Making Cooperation Work COMCEC STRATEGY · For Building an Interdependent Islamic World COMCEC STRATEGY Making Cooperation Work 9 % GDP (Direct, Indirect and Induced) 1/11 JOBS US

Aslı TAŞMAZ DADAKOĞLU

COMCEC Coordination Office

September 2015

Making Cooperation Work

For Building an Interdependent Islamic World

COMCEC

TOURISM OUTLOOK

2015

COMCEC STRATEGY

OUTLINE

‣ The Importance of Tourism for Development

‣ Overview of International Tourism in the World

‣ International Tourism in the OIC Member Countries

‣ Tourism Opportunities and Challenges in the OIC

Member Countries

1


COMCEC STRATEGY Making Cooperation Work



1

The Importance of Tourism for Development





2

A remarkable socio-economic phenomena

A critical sector in both advanced and developing economies

Related to more than 185 supply-side economic activities, with direct and indirect effects



9 % GDP

(Direct, Indirect

and Induced)

1/11

JOBS

US $ 1.5 TRILLION IN

EXPORTS

6%

OF WORLD’S

TRADE

30 %

OF

SERVICES EXPORTS

Source: UNWTO Tourism Highlights, 2015 Edition

The Importance of Tourism for Development



3

• Direct Contribution of Tourism to worldwide GDP is 3.1% in 2014

• 105 million jobs directly & 277 million jobs in related industries



Key Tourism Trends in the World



4

Annually 43 million increase (by 3.3% a year) in international arrivals

Increase in the weight of emerging economies

57% int. arrivals Emerging destinations (2030)

Travel between regions vs. Travel within the same region

Increase in air transport

Sustainability






5

Tourism Sustainable

Tourism

‣ The concept of «Green Economy» will gain importance for

tourism sector.






Changing Consumer

6

Decrease in working time, more time for vacation

More experienced and demanding customers

Demographic change (ageing, migration and diversification of family structure), changing values and lifestyles

Increasing middle classes in emerging economies

Being mobile & trusting other consumers more than traditional institutions

Tourists’ Choices as a Booking Channel (2014)

Internet (66%) Travel Agencies (24%) (Source: ITB World Travel Trends Report 2014/2015)






Technology

• E-tickets

• E-visas

• Improved air and ground traffic handling

• New border control systems

7

INTERNET

92% of Social Media users have been influenced by travel

blogs and ratings in 2014.






8

Forums

Blogs

Review Portals

SOCIAL

MEDIA

Source: ITB Berlin, March 2015

International Tourist Arrivals



(Millions)

* Forecast

Source: World Tourism Organization

8 For Building an Interdependent Islamic World


9

678

807

927 891 949

995 1.038 1.087

1.133 1.175

8,1

5,9

2

-3,9

6,5 5,1

4,2 4,7 4,3 4

2000 2005 2008 2009 2010 2011 2012 2013 2014 2015*

Number of tourists (millions of people) Tourists' Annual change (percent)



International Tourist Arrivals (%)

-6

-4

-2

0

2

4

6

8

10

12

07/06 08/09 09/08 10/09 11/10 12/11 13/12 14/13

4,5

-0,4

-4,4

5,2 4,9 4,0

4,7 5,8

10,4

5,2

-3,1

8,0

4,9 4,4 4,6

2,5

AdvancedEconomies

EmergingEconomies

9

Source: UNWTO, World Tourism Barometer, Volume 13, June 2015



10

International Tourism- Market Share



Africa 4%

Americas 19%

Asia/ Pacific 16%

Europe 57%

Middle East 4%

2000

Africa 5% Americas

16%

Asia/ Pacific 23%

Europe 51%

Middle East 5%

2014

Tourist Arrivals



Source: UNWTO, Tourism Highlights 2014 & World Tourism Barometer, Volume 13, June 2015

11

International Tourism Receipts



(Billion $)

* Forecast

Source: World Tourism Organization



12

475 679

941 853 927 1.030 1.079

1.197 1.246

4,5

7,3 6,3

-4,1

8,2 7,7

4,8 5 3,8

-6

-4

-2

0

2

4

6

8

10

0

200

400

600

800

1000

1200

1400

2000 2005 2008 2009 2010 2011 2012 2013 2014*

Tourism receipts (billion dollars) Receipts' Annual change (percent)

International Tourism- Market Share



Africa 2%

Americas 28%

Asia/ Pacific 18%

Europe 49%

Middle East 3%

2000

Africa 3% Americas

22%

Asia/ Pacific 30%

Europe 41%

Middle East 4%

2014

Tourism Receipts



Source: UNWTO, Tourism Highlights 2014 & World Tourism Barometer, Volume 13, June 2015

13

Prospects for 2015





14

‣ Continued Growth in 2015 (3 % - 4 % increase)

‣ Lack of Security and Ebola Disease

‣ The weakness of many currencies against US$

‣ Decline in oil prices

‣ Lower transport costs

‣ Boost economic growth by lifting

purchasing power.

Special

Demand

in Oil

Importing

Countries

International Tourism in the OIC Countries





Source: Adopted from SESRIC, 2015

15

111 111

132 149 150

161 167 177

189

81 88

108 124 121

134 143

151 151

2005 2006 2007 2008 2009 2010 2011 2012 2013

Arrivals (Millions) Receipts (Billion US$)

International Tourism in the OIC Countries





Source: Adopted from SESRIC, 2015

16

14 13

14 16

17 17 17 17 17

12 12 13 13

14 14 14 14 13

2005 2006 2007 2008 2009 2010 2011 2012 2013

Share in International Arrivals Share in International Receipts

(%)



Top-10 countries hosted 137.1 million international tourist in 2014.

Top 10 OIC Tourism Destinations in International Tourist

Arrivals (2014)

(Thousands)



17

39.811

27.437

15.098

10.282 9.990 9.628 9.435 6.069 4.769 4.560

*2013 data



Top-10 countries earned US$ 110 billion as international tourism receipts in 2014.

Top 10 OIC Tourism Earners in International Tourism

(2014)

(Billion $)



18

29,6

21,8

11,6 9,8

8,2 7,2 7,1 5,9 4,6 4,4

*2013 data



Member Countries by Major Surplus on the Travel Balance

In 2014 (US$ billion)



Tourism Receipts Tour. Expenditures Balance

2014 2014 2014

Turkey 29.6 5.1 24.5

Malaysia 21.8 12.2 9.6

Morocco 7.1 1.4 5.6

Egypt 7.2 3.1 4.1

Jordan 4.4 1.1 3.2

Indonesia 9.8 7.7 2.1

Lebanon* 5.9 4.4 1.5

S. Arabia 8.2 24.1 -15.9

UAE* 11.6 17.7 -6.1

Qatar 4.6 8.7 -4.1

Kuwait 0.4 11.3 -10.9

Turkey ranks as 5th, Malaysia as 9th, Morocco as 17th, Egypt as 22th and Jordon as 24th country in international tourism market in 2014.

19

* 2013 Data



Tourist Arrivals in OIC Regions

(OIC-MENA, OIC-Asia, and OIC-Sub-Saharan Africa)

22

(Millions)



20

26 27 29 35 38 38 40 43 44

48 49

60 67

61 70

81 84

99 102 106 104

112

4 5 5 6 6 7 8 8 8 7 7

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

OIC-ASIA OIC MENA OIC SUB-SAHARAN AFRICA



Tourism Receipts in OIC Regions

(OIC-MENA, OIC-Asia, OIC-Sub-Saharan Africa)

23

(Billion $)



21

16 16 17 22

26 25 30 32

36 37 39

47

55 56

63

78 71

81 81 83 83

88

2 2 2 3 4 3 3 4 4 5 5

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

OIC-ASIA OIC MENA OIC SUB-SAHARAN AFRICA



Recent Developments in the OIC Member Countries

24

‣ Saudi Arabia recorded healthy growth (+13%)

‣ Turkey realized 5% (39.8 mn.) more arrivals in 2014

‣ EXPO 2016 in Antalya-Turkey

‣ Malaysia realized 6.7% more arrivals in 2014

‣ celebrated The Visit Malaysia Year 2014

‣ Malaysia Year of Festivals 2015

‣ Egypt showed solid growth (+5%) in 2014 & expectations

on 3% increase for 2015.

Source: UNWTO, BMI Research 2015



22




24

‣ Indonesia recorded 7% increase in tourist arrivals in

2014.

‣ Demand for high luxury resorts

‣ Inbound arrivals are expected to increase by 4% in 2015.

‣ Lebanon saw an increase (+6%) in 2014 after two years

of decreases (-18% in 2012 & -7% in 2013).

‣ Qatar posted a solid 8% increase in arrivals in 2014.

‣ United Arab Emirates of Dubai (+2%) saw moderate

growth after four years of strong results.



Source: UNWTO

23




24

‣ Sierra Leone, reported a 46 % decrease in 2014 due to

Ebola Disease.

‣ Guinea is also affected from Ebola outbreak.

‣ Tunisia experienced a slight decrease (-3%) in 2014

and it is expected that decreases will continue in 2015.

‣ Kyrgyzstan and Kazakhstan reported 7% decrease in

arrivals for the year 2014.

Source: UNWTO



24



Tourism Opportunities and Challenges

for the OIC Member Countries



Opportunities

Natural Resources

Cultural Resources

Human Resources

Authenticity and newness

Price competitiveness

Dynamism

Challenges

Insufficient Tourism Investment &Infrastructure

Poor Tourism Planning & Product Development

Travel Facilitation Problems

Safety and Security Related Problems

Low Tourism Service Quality

INSUFFICIENT MARKETING AND PROMOTION

Insufficient Image Building and Branding

25

T&T Competitiveness Index 2015- ICT Readiness



26

Economy Rank Score

Bahrain 15 5,76

United Arab Emirates 16 5,76

Qatar 25 5,44

Saudi Arabia 28 5,29

Kuwait 39 5,01

Oman 45 4,83

Kazakhstan 48 4,74

Source: World Economic Forum, The Travel &Tourism Competitiveness Report 2015

Application of ICT’s on Tourism Sector



27

Tourism Businesses can:

optimize their operations

achieve greater marketing reach

improve their products

Governments need to:

improve ICT adoption by tourism SMEs in their business interactions

improve their competitiveness by enhancing business relationships between source markets and destinations

facilitate the involvement of SMEs in the global digital value chain

Aslı TAŞMAZ DADAKOĞLU

COMCEC Coordination Office

September 2015

Making Cooperation Work


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COMCEC STRATEGY

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Making Cooperation Work COMCEC STRATEGY · For Building an Interdependent Islamic World COMCEC STRATEGY Making Cooperation Work 9 % GDP (Direct, Indirect and Induced) 1/11 JOBS US