tourism the growth industry where governments make 20x to 400x more money than they spend
TRANSCRIPT
Tourism
The High Growth Industry Where Countries Generate 20x to 400x
More Money than they Spend
2
Overview
1. Many underexploited exist around the world.
2. Travel & Tourism generate among the highest ROI.
3. One of the highest impact ways of boosting the economy and contributing growing prosperity of workers is through tourism.
Tourism The Growth Industry
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The Fifth Largest Industry in the World
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 2
Tourism The Growth Industry
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World’s Second Largest Employer – 8.7% of Workforce
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 3
Tourism The Growth Industry
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Among the Fastest Growing Industries 4.2% CAGR
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 3
Tourism The Growth Industry
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Benefiting Developed AND Developing Countries
Source: World Travel and Tourism Council (WTTC) 2011
Tourism The Growth Industry
Source: http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/2030_global_0.pdf7
Becoming Even More Popular In Developing Countries
Tourism The Growth Industry
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 38
Disparities Of Contribution to GDP Indicates Opportunities
Tourism The Growth Industry
Destination MarketingGovernments Generate 200x+ More Money Than They Spend!
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 289
Government Expenditures on Tourism Promotion as a % of Tourism Revenue
Tourism The Growth Industry
Destination MarketingGovernments Generate 200x+ More Money Than They Spend!
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 2810
Tourism The Growth Industry
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 2811
But Represents a Very SmallFraction of Total Budgets
Tourism The Growth Industry
Sample Tourism Revenues to Promo Expense Ratio
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, pp. 3312
Denmark 12:1
Scotland 20:1
Australia 64:1
Colorado 193:1
Arizona 180:1
Florida 147:1
Oregon 134:1
Montana 50:1
Michigan 49:1
Missouri 47:1
Tourism The Growth Industry
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 3213
Canada Tourism Revenues and ROI by Country targeted
SampleTourism to Promo Expense Ratio (cont’d)
Tourism The Growth Industry
SampleTourism Revenue to Promo
Expense Ratio (cont’d)
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 3214
California Tourism Revenues by Country targeted and Return
Tourism The Growth Industry
Demographics Change
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Tourism The Growth Industry
Demographics Change
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Tourism The Growth Industry
Demographics Change
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Tourism The Growth Industry
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Changes Present New OpportunitiesTourism The Growth Industry
Some Countries Are Better At It Than Others
Some Winners
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Brazil
Egyp
t, Arab
Rep.
Estonia
Kazakh
stan
Macao SA
R, China
Malaysi
a
Mongolia
Monteneg
ro
Morocco
Mozambique
Panam
a
Rwanda
Turke
y
Yemen
, Rep
.0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
285% 390% 518% 327% 323% 335% 441% 929% 360% 654% 466% 784% 504% 1925%
International Tourists 1995-2012Worldwide Growth: 268%
Tourism The Growth Industry
Some Countries Are Better At It Than Others
Some Laggards
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Brazil
Egypt, A
rab Rep.
Estonia
Kazakh
stan
Macao SA
R, China
Malaysia
Mongolia
Montenegro
Morocco
Mozambique
Panama
Rwanda
Turke
y
Vietnam
Yemen, R
ep.0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
95% 89% 155% 130% 130% 173% 160% 168% 132% 98% 101%
International Tourists 1995-2012Worldwide Growth: 268%
Tourism The Growth Industry
Some Countries Make A lot of $ Per Tourist
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1995-2012
Australia
Bahamas, T
he
Barbad
os
Bermuda
India
Ireland
Lebanon
Luxem
bourg
Macao SA
R, China
Panama
Sweden
Switz
erland
United States
World$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Tourism The Growth Industry
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1995-2012
Australi
a
Baham
as, Th
e
Barbad
os
Bermuda
India
Irelan
d
Leban
on
Luxem
bourg
Macao SA
R, China
Panam
a
Swed
en
Switz
erlan
d
United St
atesWorld
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Some Countries Make Little Per Tourist
Tourism The Growth Industry
But Change Is Inevitable
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Countries 2012 Growth (%) Countries 2013 – 2023
Growth (%)Qatar 29.9 Angola 9.7Kyrgyzstan 26.9 China 9.1Vanuatu 21.6 India 7.9Azerbaijan 21.3 Namibia 7.8Belarus 18 Thailand 7.2Tunisia 16.4 Philippines 6.9Uzbekistan 16.3 Vietnam 6.8Kazakhstan 11.6 Montenegro 6.7Jordan 10.7 Cape Verde 6.7Chile 10.7 Mongolia 6.6
Fastest growing: Spending on leisure travel in 2012 (left) and forecast from 2013 – 2023 (right)
Source: http://skift.com/2013/03/13/the-worlds-fastest-growing-countries-in-travel/
Tourism The Growth Industry
But Change Is Inevitable
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But Change Is InevitableTourism The Growth Industry
But Change Is Inevitable
25Source: http://skift.com/2013/03/13/the-worlds-fastest-growing-countries-in-travel/
Countries 2012 Growth (%) Countries 2013 – 2023
Growth (%)
Botswana 21.9 Montenegro 10
Armenia 21.7 China 9.2
Thailand 19.6 Zambia 9
Ivory Coast 19.2 Thailand 8.1
Malaysia 18.4 Gambia 8
Cambodia 18.2 Cape Verde 7.9
Qatar 16.9 Macau 7.8
Malawi 15.5 Pakistan 7.8
Hong Kong 15.1 Brazil 7.8
Congo 13.9 Iraq 7.6
Fastest growing: Capital investment in Travel and Tourism in 2012 (left) and forecast from 2013 – 2023
(right)
Tourism The Growth Industry
But Change Is Inevitable
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Cancun Mexico
Source: https://aclarando.wordpress.com/category/antes-y-ahora/
Tourism The Growth Industry
But Change Is Inevitable
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Shanghai, China, 1990-2010
Source: http://jpgamboa.com/
Tourism The Growth Industry
But Change Is Inevitable
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Dubai
Source: http://www.dubainight.com/mag/dubz/dubai-1980-2012,28,8929.html
Tourism The Growth Industry
Change Is InevitableExamples
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Punta Cana, Dominican Republic 1980-2010
Source: http://puntacanatv.com/punta-cana-history.html; Source: http://media-cdn.tripadvisor.com/media/photo-s/05/a2/2c/be/breathless-punta-cana.jpg
Tourism The Growth Industry
Elements of Tourism Promotions
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1. Favorable Political Climate
2. Infrastructure
3. Natural / Historical Resources
4. MARKETING
Tourism The Growth Industry
•Investor Relations•Capital Advisory•Joint Ventures
•Business Development
By Size, Specialty and Location
Critical Mission PartnersGet There Faster
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