Caribbean Tourism & the Global Market Towards increased linkages & competitiveness :: Scott Wayne

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  • What can tourism do for your sector or area? What is the possible linkage?
  • UNWTO Definition of International Tourism Receipts:“Expenditures of international inbound visitors including their payments to national carriers for international transport. They also include any other prepayments or payments afterwards made for goods and services received in the destination country.”
  • 21 mn, ¾ of which are to seven destinations: Aruba, Barbados, Cuba, Dominican Republic, Jamaica and Puerto Rico.
  • Caribbean Tourism & the Global Market Towards increased linkages & competitiveness :: Scott Wayne

    1. 1. Caribbean Tourism & the Global Market Towards increased linkages & competitiveness Presented by: Scott Wayne, President SW Associates – Sustainable Development through Tourism Investment Climate 1
    2. 2. Agenda Global Tourism Overview & Trends Caribbean Tourism Overview & Trends Opportunities & Challenges Examples in and beyond the Caribbean Next Steps & Key Questions 2 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    3. 3. Tourism is Everybody’s Business! It is among the top five industries. But this is not widely understood! TRAVEL & TOURISM INDUSTRY Accommodation, recreation, catering, entertainment, transportation, and other related services TRAVEL & TOURISM ECONOMY Printing/Publishing,concrete, utilities, financial services, furnishing & equipment suppliers, foods, security, administration, ship building, beverage supply, iron/steel, aircraft manufacturing,wood, mining, chemicals, textiles, oil/gas suppliers, plastics, sanitation services, metal products, computers, resort development, wholesalers, rental car manufacturing, laundry services. Investment Climate 3
    4. 4. Tourism is Everybody’s Business 4 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    5. 5. Laundry services & supplies Florist Local beverages Local crafts 5 THE WORLD BANK Electrician & Architectural & supplies Construction IT equipment, services training & services Office Lighting supplies Local supplier Cleaning produce supplies & Local services poultry Furniture Local meat makers Flooring & fish supplier World Bank Group Multilateral Investment Guarantee Agency
    6. 6. People in Tourism - Jobs 6 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    7. 7. Opportunities for Linkages? What are the opportunities for linkages in your areas of expertise? 7 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    8. 8. Global Tourism Overview UNWTO forecasting 3-4% increase in arrivals for 2012 1 billion international tourists in 2012 More than US$1 trillion in international tourism receipts More than US$2 trillion in direct GDP, +5% 98 mn jobs = 1 in 12 jobs, 6% of direct 30% of global services exports and 6% of all exports Sources: UNWTO/WTTC 8 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    9. 9. International Arrivals & Receipts Growth Source: UNWTO 9 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    10. 10. Americas 16% of Arrivals & 20% of Receipts Source: UNWTO 10 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    11. 11. Top 10 Destinations Source: UNWTO 11 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    12. 12. Top International Tourism Spenders (2011) Source: UNWTO 12 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    13. 13. Americas Tourism Overview (2010-11) Source: UNWTO 13 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    14. 14. Key Global Trends Driving Tourism Growth Brand, product and price important, but more travelers willing to try new destinations and experiences. BRIC country travelers spending more on International travel. Fastest growth among top 50 in arrivals 2010/11: Saudi Arabia (60%), Thailand (20%), Kazakhstan (20%), Finland (14%), Singapore (13%), and South Korea (11%). More destination choices for more travelers. More competition among destinations. Air travel increased 7% and capacity 8% in 2011 Sources: UNWTO/WTTC 14 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    15. 15. Caribbean Tourism Statistics International Tourist Arrivals (2011) = 20.9 mn International Tourism Receipts = US$24.5 billion Direct GDP Contribution = US$15 billion $32 billion indirect Total GDP Contribution = US$47 billion Direct Jobs created = 614,000 = 3.8% Sources: UNWTO and WTTC 15 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    16. 16. Almost 21 mn arrivals with 75% concentrated in seven destinations Sources: UNWTO/WTTC 16 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    17. 17. Caribbean Key Tourism Trends Fastest Growth in Arrivals: Turks & Caicos 26%, Curacao 14%, Cuba and Cayman Islands 7.2%, Grenada 7.1%, Anguilla 6%, and Antigua 5%. OECS Regional Tourism Policy 10 Areas Covered Priorities are: Investment, Tourism Awareness, Research and Statistics, Air Transport, and Marketing. Latin American market to Caribbean growing – 8% growth in air traffic in 2011. Pressure to have distinctive brand and product, but competition is fierce in Caribbean and beyond. 17 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    18. 18. Product Competition is fierce! 18 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    19. 19. Caribbean Tourism Product Offers Sun and Sand Destination Resorts & Hotels Nature-based Soft adventure Ecotourism Cultural/heritage Music and other events Plantation tours Honeymoons & Weddings Cruise ports & yachting Marine activities 19 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    20. 20. Challenges & Opportunities Infrastructure  Transport, accommodations, waste management, energy management. Human resources  Skilled workforce, education system, domestic tourism awareness Marketing & Product  Targeted, well researched marketing based on product offers in demand by segments. Policy & Investment  Public-Private Partnerships, public policy that reduces barriers and invests in tourism, investment incentives. Coordination between government agencies and between countries. 20 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    21. 21. Challenges & Opportunities Challenges Opportunities Increasing airlift PPPs for airport improvements Managing increased cruise arrivals Cruise strategies Distressed assets Regional Distressed Asset Fund Ongoing need to improve HR quality, education Depends on product offers, targeted research & marketing and HR capacity to deliver Coordination of national and region policy to minimize barriers, maximize benefits 21 THE WORLD BANK Tap distance learning and voluntourism as interim solutions PPPs for more targeted research Regional Policy & CTO/CHTA World Bank Group Multilateral Investment Guarantee Agency
    22. 22. Curacao – Room Tax up, Tourism up 367k arrivals in 2009342k 2010390k 2011 Room tax applied to all short term rental properties increased from 5 to 7% beginning of 2010 All room tax revenue used for promoting Curacao. Increased targeted marketing to niches such as gay travel and Jewish heritage. New international brand hotels such as Hyatt and Renaissance. About.com readers vote Curacao #1 2012 2011/10 27% increase in North American Market Increased flights from Europe and Canada as airport modernized 22 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    23. 23. Turks & Caicos – Airlift increase, Tourism up 281k arrivals in 2010354k in 2011 No taxes Proximity to US Jetblue and Continental increased flights from NY and NJ Substantial duty free concessions Direct flts from Nova Scotia to increase 2012 arrivals Increased accessibility Increased investment & development High end catering to private jets and large yachts 23 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    24. 24. Maldives 792k arrivals in 2010931k in 2011 Well positioned as high end, diving destination International brand properties Stunning beaches Large advertising budget 24 THE WORLD BANK 35% tax on tourism Increased marketing to China56%+ Cooperation w/Sri Lanka & Seychelles regional marketing All visas removed for tourists World Bank Group Multilateral Investment Guarantee Agency
    25. 25. Mauritius 935k arrivals in 2010965k in 2011 Receipts jumped from US$1 bn to $1.4 bn. Beautiful beaches and diving At US$1567, on a par with highest yielding Caribbean destinations. $395mn stimulus package by Min Finance Romance segment Aggressive marketing International brands Regional cooperation 25 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    26. 26. Seychelles 175k in 2010194k in 2011 Strong romance destination Receipts from $274 mn in 2010 to $291 mn in 2011. 97%+ from China Well represented in UK Royal honeymoon destination 26 THE WORLD BANK Increase in flights on Qatar and Emirates Visa requirements removed for all tourists. Affordable Seychelles Campaign World Bank Group Multilateral Investment Guarantee Agency
    27. 27. Next Steps and Key Questions 27 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    28. 28. OECS Regional Policy Recommendations Competitive analysis of region’s tourism, focusing on increase investment to OECS region Regional Tourism Awareness campaign implemented nationally in OECS Member States Joint representation at major trade shows Airlift capacity assessment of needs to guide OECS Member States’ efforts Tourism Satellite Accounts (TSAs) in OECS Member States Improving the ED cards used in Member States with a view to adopting a standardized and more visitor-friendly card 28 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    29. 29. Strategic Framework for Tourism Competitiveness Building on St Lucia Tourism Policy, Work Programme, Strategy and Vision Plan Benchmarking for Competitiveness and Strategic Tourism Investments Value-chain based – Quality and Pricing of Tours, Food & Beverages, Flights and Customer Service World Economic Forum Tourism Competitiveness Index 14 Pillars Tourism Satellite Account Market-oriented rankings 29 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    30. 30. Competitiveness Framework 30 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency
    31. 31. Key Questions What policy “levers” need to be pulled to increase competitiveness and reduce barriers to growth and investment? What roles can other sectors play in maximizing the growth potential and opportunities of tourism? Taxes, airlift subsidies, tax holidays…How much is too much? 31 THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency

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