1.Insight ReportThe Travel & TourismCompetitivenessReport 2013Reducing Barriers to Economic Growth and Job CreationJennifer Blanke and Thea Chiesa, editors

2. Insight ReportThe Travel & TourismCompetitivenessReport 2013Reducing Barriers to Economic Growth and Job CreationJennifer BlankeThea ChiesaEditors 2013 World Economic Forum 3. The Travel & Tourism Competitiveness Report 2013World Economic Forumis published by the World Economic Forum within Genevathe framework of The Global Competitiveness andBenchmarking Network and the Industry Partnership Copyright 2013Programme for Aviation, Travel & Tourism. by the World Economic ForumAll rights reserved. No part of this publication may beProfessor Klaus Schwabreproduced, stored in a retrieval system, or transmitted,Executive Chairmanin any form or by any means, electronic, mechanical,photocopying, or otherwise without the prior permission ofBrge Brendethe World Economic Forum.Managing Director, Government Relations andConstituents EngagementISBN-13: 978-92-95044-40-1ISBN-10: 92-95044-40-1Robert GreenhillManaging Director, Chief Business OfficerThis report is printed on paper suitable for recycling andJohn Moavenzadehmade from fully managed and sustained forest sources.Senior Director, Head of Mobility IndustriesPrinted and bound in Switzerland by SRO-Kundig.The full edition of the Report, with profiles of all 140economies as well as an interactive data platform, isEDITORSavailable at www.weforum.org/ttcr.Jennifer Blanke, Senior Director, Lead Economist,Head of The Global Competitiveness andBenchmarking NetworkThea Chiesa, Director, Head of Aviation,Travel & TourismTHE GLOBAL COMPETITIVENESS AND BENCHMARKING NETWORKBeat Bilbao-Osorio, Associate Director,Senior EconomistCiara Browne, Associate DirectorRoberto Crotti, Quantitative EconomistMargareta Drzeniek Hanouz, Director, Senior Economist,Head of Competitiveness ResearchBrindusa Fidanza, Associate Director, EnvironmentalInitiativesThierry Geiger, Associate Director, EconomistTania Gutknecht, Community ManagerCaroline Ko, Junior EconomistCecilia Serin, Team CoordinatorWe thank Hope Steele for her excellent editing work andNeil Weinberg for his superb graphic design and layout.The terms country and nation as used in this report donot in all cases refer to a territorial entity that is a stateas understood by international law and practice. Theterms cover well-defined, geographically self-containedeconomic areas that may not be states but for whichstatistical data are maintained on a separate andindependent basis. 2013 World Economic Forum 4. ContentsPartner Institutesv 1.6 Competiveness, Jobs, and Green 71 Growth: A Glocal Model by Geoffrey Lipman, Greenearth.travel and VictoriaPrefacexiii University Melbourne, and Terry Delacy and Paulby Brge Brende and Robert Greenhill, Whitelaw, Victoria University MelbourneWorld Economic ForumExecutive Summary xvby Jennifer Blanke and Thea Chiesa, World Economic Part 2: Country/Economy Profiles and 79ForumData Presentation 2.1 Country/Economy Profiles 81 How to Read the Country/Economy Profiles...................................83Part 1: Selected Issues of T&T Competitiveness Index of Countries/Economies.........................................................85 Country/Economy Profiles...............................................................861.1 The Travel & Tourism Competitiveness 3Index 2013: Contributing to National Growth 2.2 Data Tables367and Employment How to Read the Data Tables........................................................369by Jennifer Blanke, Thea Chiesa, and Roberto Crotti, Index of Data Tables......................................................................371World Economic Forum Data Tables...................................................................................3731.2 How to Succeed as a Tourism 43 Technical Notes and Sources471Destination in a Volatile Worldby Jrgen Ringbeck and Timm Pietsch, Booz & Company About the Authors4791.3 Visa Facilitation: Stimulating Economic 49Growth and Development through Tourism Acknowledgments481by Dirk Glaesser and John Kester, with Mrcio Favilla,Sandra Carvo, Lorna Hartantyo, Birka Valentin, LisaFrba, Kate Holmes, Jacinta Garca, and Alberto G.Uceda, World Tourism Organization (UNWTO)1.4 The Economic Benefits of Aviation 57and Performance in the Travel & TourismCompetitiveness Indexby Julie Perovic, International Air Transport Association(IATA)1.5 Travel & Tourism as a Driver 63of Employment Growthby Rochelle Turner, World Travel & Tourism Council, andZachary Sears, Oxford EconomicsThe Travel & Tourism Competitiveness Report 2013 | iii 2013 World Economic Forum 5. 2013 World Economic Forum 6. Partner InstitutesThe World Economic Forums Global BenchmarkingBarbadosSir Arthur Lewis Institute of Social and Economic Studies,Network is pleased to acknowledge and thank theUniversity of West Indies (UWI)following organizations as its valued Partner Institutes, Judy Whitehead, Directorwithout which the realization of The Travel & TourismBelgiumCompetitiveness Report 2013 would not haveVlerick Business Schoolbeen feasible:Priscilla Boiardi, Associate, Competence CentreEntrepreneurship, Governance and StrategyAlbaniaWim Moesen, ProfessorInstitute for Contemporary Studies (ISB)Leo Sleuwaegen, Professor, Competence CentreArtan Hoxha, PresidentEntrepreneurship, Governance and StrategyElira Jorgoni, Senior ExpertEndrit Kapaj, ExpertBeninCAPODConception et Analyse de Politiques deAlgeriaDveloppementCentre de Recherche en Economie Applique pourEpiphane Adjovi, Directorle Dveloppement (CREAD)Maria-Odile Attanasso, Deputy CoordinatorYoucef Benabdallah, Assistant ProfessorFructueux Deguenonvo, ResearcherYassine Ferfera, DirectorBosnia and HerzegovinaArgentinaMIT Center, School of Economics and Business in Sarajevo,IAEUniversidad AustralUniversity of SarajevoEduardo Luis Fracchia, ProfessorZlatko Lagumdzija, ProfessorSantiago Novoa, Project ManagerZeljko Sain, Executive DirectorArmenia Jasmina Selimovic, Assistant DirectorEconomy and Values Research CenterBotswanaManuk Hergnyan, ChairmanBotswana National Productivity CentreSevak Hovhannisyan, Board Member and Senior AssociateLetsogile Batsetswe, Research Consultant and StatisticianGohar Malumyan, Research AssociateBaeti Molake, Executive DirectorAustralia Phumzile Thobokwe, Manager, Information and ResearchAustralian Industry Group Services DepartmentColleen Dowling, Senior Research CoordinatorBrazilInnes Willox, Chief ExecutiveFundao Dom Cabral, Bradesco Innovation CenterAustria Carlos Arruda, International Relations Director, InnovationAustrian Institute of Economic Research (WIFO)and Competitiveness ProfessorKarl Aiginger, Director Daniel Berger, Bachelor Student in EconomicsGerhard Schwarz, Coordinator, Survey Department Fabiana Madsen, Economist and Associate ResearcherMovimento Brasil Competitivo (MBC)AzerbaijanCarolina Aichinger, Project CoordinatorAzerbaijan Marketing SocietyErik Camarano, Chief Executive OfficerFuad Aliyev, Deputy ChairmanAshraf Hajiyev, ConsultantBrunei DarussalamMinistry of Industry and Primary ResourcesBahrainPehin Dato Yahya Bakar, MinisterBahrain Economic Development BoardNormah Suria Hayati Jamil Al-Sufri, Permanent SecretaryKamal Bin Ahmed, Minister of Transportation and Acting ChiefExecutive of the Economic Development Board BulgariaNada Azmi, Manager, Economic Planning and Development Center for Economic DevelopmentMaryam Matter, Coordinator, Economic Planning and Adriana Daganova, Expert, International Programmes andDevelopment ProjectsAnelia Damianova, Senior ExpertBangladeshCentre for Policy Dialogue (CPD)Burkina FasoKhondaker Golam Moazzem, Senior Research Fellow lnstitut Suprieure des Sciences de la Population (ISSP),Kishore Kumer Basak, Research Associate University of OuagadougouMustafizur Rahman, Executive Director Baya Banza, DirectorThe Travel & Tourism Competitiveness Report 2013 | v 2013 World Economic Forum 7. Partner InstitutesBurundi CyprusUniversity Research Centre for Economic and SocialThe European UniversityDevelopment (CURDES), National University of BurundiBambos Papageorgiou, Head of Socioeconomic andBanderembako Deo, DirectorAcademic ResearchGilbert Niyongabo, Dean, Faculty of Economics &cdbbankThe Cyprus Development BankManagementMaria Markidou-Georgiadou, Manager, Business DevelopmentCambodiaand Special ProjectsEconomic Institute of CambodiaCzech RepublicSok Hach, PresidentCMC Graduate School of BusinessSokheng Sam, ResearcherTomas Janca, Executive DirectorCameroonDenmarkComit de Comptitivit (Competitiveness Committee)Danish Technological Institute, Center for Policy and BusinessLucien Sanzouango, Permanent Secretary DevelopmentCanadaHanne Shapiro, Center ManagerThe Conference Board of CanadaEcuadorMichael R. Bloom, Vice-President, OrganizationalESPAE Graduate School of Management, Escuela SuperiorEffectiveness & Learning Politcnica del Litoral (ESPOL)Douglas Watt, Associate DirectorElizabeth Arteaga, Project AssistantCape VerdeVirginia Lasio, DirectorINOVE RESEARCHInvestigao e Desenvolvimento, LdaSara Wong, ProfessorJlio Delgado, Partner and Senior ResearcherEgyptJos Mendes, Chief Executive OfficerThe Egyptian Center for Economic Studies (ECES)Sara Frana Silva, Project ManagerIman Al-Ayouty, Senior EconomistChadOmneia Helmy, Acting Executive Director and DirectorGroupe de Recherches Alternatives et de Monitoring du Projetof ResearchPtrole-Tchad-Cameroun (GRAMP-TC)EstoniaAntoine Doudjidingao, ResearcherEstonian Institute of Economic ResearchGilbert Maoundonodji, DirectorEvelin Ahermaa, Head of Economic Research SectorCeline Nnodji Mbaipeur, Programme OfficerMarje Josing, DirectorChile Estonian Development FundUniversidad Adolfo Ibez Kitty Kubo, Head of ForesightFernando Larrain Aninat, Director MBA Ott Prna, Chief Executive OfficerLeonidas Montes, Dean, School of GovernmentEthiopiaChina African Institute of Management, Development andInstitute of Economic System and Management, National GovernanceDevelopment and Reform Commission Zebenay Kifle, General ManagerChen Wei, Research Fellow Tegenge Teka, Senior ExpertDong Ying, ProfessorZhou Haichun, Deputy Director and Professor FinlandChina Center for Economic Statistics Research, TianjinETLAThe Research Institute of the Finnish EconomyMarkku Kotilainen, Research DirectorUniversity of Finance and EconomicsPetri Rouvinen, Research DirectorBojuan Zhao, ProfessorPekka Yl-Anttila, Managing DirectorFan Yang, Professor Jian Wang, Associate ProfessorHongye Xiao, ProfessorFranceLu Dong, ProfessorHEC School of Management, ParisBertrand Moingeon, Professor and Deputy DeanColombiaBernard Ramanantsoa, Professor and DeanNational Planning DepartmentSara Patricia Rivera, Advisor GabonJohn Rodrguez, Coordinator, Competitiveness ObservatoryConfdration Patronale GabonaiseJavier Villarreal, Enterprise Development DirectorRegis Loussou Kiki, General SecretaryGina Eyama Ondo, Assistant General SecretaryColombian Private Council on CompetitivenessHenri Claude Oyima, PresidentRosario Crdoba, PresidentMarco Llins, Vicepresident Gambia, TheGambia Economic and Social Development Research InstituteCte dIvoire (GESDRI)Chambre de Commerce et dIndustrie de Cte dIvoireMakaireh A. Njie, DirectorJean-Louis Billon, PresidentMamadou Sarr, Director GeneralGeorgiaBusiness Initiative for Reforms in GeorgiaCroatiaTamara Janashia, Executive DirectorNational Competitiveness CouncilGiga Makharadze, Founding Member of the Board of DirectorsJadranka Gable, AdvisorMamuka Tsereteli, Founding Member of the Board of DirectorsKresimir Jurlin, Research Fellowvi | The Travel & Tourism Competitiveness Report 2013 2013 World Economic Forum 8. Partner InstitutesGermany IrelandWHUOtto Beisheim School of ManagementInstitute for Business Development and CompetitivenessRalf Fendel, Professor of Monetary EconomicsSchool of Economics, University College CorkMichael Frenkel, Professor, Chair of Macroeconomics and Justin Doran, Principal AssociateInternational Economics Eleanor Doyle, DirectorCatherine Kavanagh, Principal AssociateGhanaAssociation of Ghana Industries (AGI) Forfs, Economic Analysis and Competitiveness DepartmentPatricia Addy, Projects Officer Adrian Devitt, ManagerNana Owusu-Afari, President Conor Hand, EconomistSeth Twum-Akwaboah, Executive DirectorIsraelGreeceManufacturers Association of Israel (MAI)SEV Hellenic Federation of EnterprisesDan Catarivas, DirectorMichael Mitsopoulos, Senior Advisor, Entrepreneurship Amir Hayek, Managing DirectorThanasis Printsipas, Economist, EntrepreneurshipZvi Oren, PresidentGuatemala ItalyFUNDESA SDA Bocconi School of ManagementFelipe Bosch G., President of the Board of DirectorsSecchi Carlo, Full Professor of Economic Policy, BocconiPablo Schneider, Economic DirectorUniversityJuan Carlos Zapata, General Manager Paola Dubini, Associate Professor, Bocconi UniversityFrancesco A. Saviozzi, SDA Professor, Strategic andGuineaEntrepreneurial Management DepartmentConfdration Patronale des Entreprises de GuineMohamed Bnogo Conde, Secretary-General JamaicaMona School of Business (MSB), The University of the WestGuyanaIndiesInstitute of Development Studies, University of GuyanaPatricia Douce, Project AdministratorKaren Pratt, Research Associate Evan Duggan, Executive Director and ProfessorClive Thomas, DirectorWilliam Lawrence, Director, Professional Services UnitHaiti JapanGroup Croissance SA Keio UniversityPierre Lenz Dominique, Coordinator, Survey Department Yoko Ishikura, Professor, Graduate School of Media DesignKesner Pharel, Chief Executive Officer and Chairman Heizo Takenaka, Director, Global Security Research InstituteJiro Tamura, Professor of Law, Keio UniversityHong Kong SARHong Kong General Chamber of Commerce Keizai Doyukai (Japan Association of Corporate Executives)David ORear, Chief Economist Kiyohiko Ito, Managing Director, Keizai DoyukaiFederation of Hong Kong IndustriesJordanAlexandra Poon, DirectorMinistry of Planning & International CooperationThe Chinese General Chamber of Commerce Jordan National Competitiveness TeamKawther Al-Zoubi, Head of Competitiveness DivisionHungary Basma Arabiyat, ResearcherKOPINT-TRKI Economic Research Ltd. Mukhallad Omari, Director of Policies and Studies Departmentva Palcz, Chief Executive OfficerPeter Vakhal, Project Manager KazakhstanNational Analytical CentreIceland Diana Tamabayeva, Project ManagerInnovation Center Iceland Vladislav Yezhov, ChairmanArdis Armannsdottir, Marketing ManagerKarl Fridriksson, Managing Director of Human ResourcesKenyaand Marketing Institute for Development Studies, University of NairobiThorsteinn I. Sigfusson, Director Mohamud Jama, Director and Associate Research ProfessorPaul Kamau, Senior Research FellowIndia Dorothy McCormick, Research ProfessorConfederation of Indian Industry (CII)Chandrajit Banerjee, Director General Korea, Republic ofMarut Sengupta, Deputy Director General College of Business School, Korea Advanced Institute ofGantakolla Srivastava, Head, Financial Services Science and Technology KAISTByungtae Lee, Acting DeanIndonesia Soung-Hie Kim, Associate Dean and ProfessorCenter for Industry, SME & Business Competition Studies,Jinyung Cha, Assistant Director, Exchange ProgrammeUniversity of TrisaktiKorea Development InstituteTulus Tambunan, Professor and DirectorJoohee Cho, Senior Research AssociateIran, Islamic Republic of Yongsoo Lee, Head, Policy Survey UnitThe Center for Economic Studies and Surveys (CESS), IranKuwaitChamber of Commerce, Industries, Mines and AgricultureKuwait National Competitiveness CommitteeMohammad Janati Fard, Research AssociateAdel Al-Husainan, Committee MemberHamed Nikraftar, Project ManagerFahed Al-Rashed, Committee ChairmanFarnaz Safdari, Research AssociateSayer Al-Sayer, Committee Member The Travel & Tourism Competitiveness Report 2013 | vii 2013 World Economic Forum 9. Partner InstitutesKyrgyz RepublicMaltaEconomic Policy Institute Bishkek ConsensusCompetitive MaltaFoundation for National CompetitivenessLola Abduhametova, Program Coordinator Margrith Lutschg-Emmenegger, Vice PresidentMarat Tazabekov, ChairmanAdrian Said, Chief Coordinator Caroline Sciortino, Research CoordinatorLatviaStockholm School of Economics in RigaMauritaniaKarlis Kreslins, EMBA Programme Director Centre dInformation Mauritanien pour le DveloppementAnders Paalzow, Rector Economique et Technique (CIMDET/CCIAM) L Abdoul, Consultant and AnalystLebanon Mehla Mint Ahmed, DirectorBader Young Entrepreneurs Program Habib Sy, Administrative Agent and AnalystAntoine Abou-Samra, Managing DirectorFarah Shamas, Program CoordinatorMauritius Board of Investment of MauritiusLesotho Nirmala Jeetah, Director, Planning and PolicyPrivate Sector Foundation of Lesotho Ken Poonoosamy, Managing DirectorO.S.M. Moosa, PresidentThabo Qhesi, Chief Executive Officer Joint Economic CouncilNteboheleng Thaele, Researcher Raj Makoond, DirectorLibyaMexicoLibya Development Policy CenterCenter for Intellectual Capital and CompetitivenessYusser Al-Gayed, Project DirectorErika Ruiz Manzur, Executive DirectorAhmed Jehani, Chairman Ren Villarreal Arrambide, President and Chief ExecutiveMohamed Wefati, Director Officer Rodrigo David Villarreal Ramos, DirectorLithuania Instituto Mexicano para la Competitividad (IMCO)Statistics Lithuania Priscila Garcia, ResearcherOna Grigiene, Deputy Head, Knowledge Economy Manuel Molano, Deputy General Director and Special Surveys Statistics Division Juan E. Pardinas, General DirectorVilija Lapeniene, Director GeneralGediminas Samuolis, Head, Knowledge EconomyMinistry of the Economy and Special Surveys Statistics Division Jose Antonio Torre, Undersecretary for Competitiveness and StandardizationLuxembourg Enrique Perret Erhard, Technical Secretary forLuxembourg Chamber of Commerce CompetitivenessChristel Chatelain, Research Analyst Narciso Suarez, Research Director, Technical SecretaryStephanie Musialski, Research Analyst for CompetitivenessCarlo Thelen, Chief Economist, Member of theManaging Board Moldova Academy of Economic Studies of Moldova (AESM)Macedonia, FYR Grigore Belostecinic, RectorNational Entrepreneurship and CompetitivenessCouncil (NECC) Centre for Economic Research (CER)Mirjana Apostolova, President of the AssemblyCorneliu Gutu, DirectorDejan Janevski, Project Coordinator MongoliaMadagascar Open Society Forum (OSF)Centre of Economic Studies, University of Antananarivo Munkhsoyol Baatarjav, Manager of Economic PolicyRavelomanana Mamy Raoul, DirectorErdenejargal Perenlei, Executive DirectorRazato Rarijaona Simon, Executive Secretary MontenegroMalawi Institute for Strategic Studies and Prognoses (ISSP)Malawi Confederation of Chambers of Commerce and Maja Drakic, Project Manager IndustryPetar Ivanovic, Chief Executive OfficerHope Chavula, Public Private Dialogue ManagerVeselin Vukotic, PresidentChancellor L. Kaferapanjira, Chief Executive Officer MoroccoMalaysia Comit National de lEnvironnement des AffairesInstitute of Strategic and International Studies (ISIS)Seloua Benmbarek, Head of MissionJorah Ramlan, Senior Analyst, Economics MozambiqueSteven C.M. Wong, Senior Director, Economics EconPolicy Research Group, Lda.Mahani Zainal Abidin, Chief Executive Peter Coughlin, DirectorMalaysia Productivity Corporation (MPC)Donaldo Miguel Soares, ResearcherMohd Razali Hussain, Director GeneralEma Marta Soares, AssistantLee Saw Hoon, Senior Director NamibiaMali Institute for Public Policy Research (IPPR)Groupe de Recherche en Economie Applique et Graham Hopwood, Executive DirectorThorique (GREAT)Massa Coulibaly, Executive Directorviii | The Travel & Tourism Competitiveness Report 2013 2013 World Economic Forum 10. Partner InstitutesNepalPortugalCentre for Economic Development and Administration (CEDA)PROFORUM, Associao para o Desenvolvimento daRamesh Chandra Chitrakar, Professor, Country Coordinator Engenhariaand Project Director Ildio Antnio de Ayala Serdio, Vice President of the BoardMahendra Raj Joshi, Member of DirectorsHari Dhoj Pant, Officiating Executive Director, Advisor, Survey Frum de Administradores de Empresas (FAE)project Paulo Bandeira, General DirectorNetherlandsPedro do Carmo Costa, Member of the Board of DirectorsINSCOPE: Research for Innovation, Erasmus University Esmeralda Dourado, President of the Board of DirectorsRotterdam Puerto RicoFrans A. J. Van den Bosch, Professor Puerto Rico 2000, Inc.Henk W. Volberda, Director and Professor Ivan Puig, PresidentNew ZealandInstituto de Competitividad Internacional, UniversidadThe New Zealand Initiative Interamericana de Puerto RicoCatherine Harland, Research Fellow Francisco Montalvo, Project CoordinatorOliver Hartwich, Executive Director QatarNigeriaQatari Businessmen Association (QBA)Nigerian Economic Summit Group (NESG)Sarah Abdallah, Deputy General ManagerFrank Nweke Jr., Director GeneralIssa Abdul Salam Abu Issa, Secretary-GeneralChris Okpoko, Associate Director, Research Social and Economic Survey Research Institute (SESRI)Foluso Phillips, Chairman Hanan Abdul Ibrahim, Associate DirectorNorway Darwish Al Emadi, DirectorBI Norwegian Business School RomaniaEskil Goldeng, Researcher SC VBD Alliance Consulting SrlTorger Reve, Professor Irina Ion, Program CoordinatorOman Rolan Orzan, General DirectorThe International Research Foundation Russian FederationSalem Ben Nasser Al-Ismaily, Chairman Bauman Innovation & Eurasia Competitiveness InstitutePublic Authority for Investment Promotion and Export Katerina Marandi, Programme ManagerDevelopment (PAIPED) Alexey Prazdnichnykh, Principal and Managing DirectorMehdi Ali Juma, Expert for Economic Research Stockholm School of Economics, RussiaPakistan Igor Dukeov, Area PrincipalMishal PakistanCarl F. Fey, Associate Dean of ResearchPuruesh Chaudhary, Director Content RwandaAmir Jahangir, Chief Executive Officer Private Sector Federation (PSF)Paraguay Hannington Namara, Chief Executive OfficerCentro de Anlisis y Difusin de Economia ParaguayaAndrew O. Rwigyema, Head of Research and Policy(CADEP) Saudi ArabiaDionisio Borda, Research Member National Competitiveness Center (NCC)Fernando Masi, Director Awwad Al-Awwad, PresidentMara Beln Servn, Research Member Khaldon Mahasen, Vice PresidentPeru SenegalCentro de Desarrollo Industrial (CDI), Sociedad Nacional Centre de Recherches Economiques Appliques (CREA),de Industrias University of DakarNstor Asto, Project Director Diop Ibrahima Thione, DirectorLuis Tenorio, Executive Director SerbiaPhilippines Foundation for the Advancement of Economics (FREN)Makati Business Club (MBC) Mihail Arandarenko, DirectorMichael B. Mundo, Chief Economist Aleksandar Radivojevic, Project CoordinatorMarc P. Opulencia, Deputy Director Bojan Ristic, ResearcherPeter Angelo V. Perfecto, Executive DirectorManagement Association of the Philippines (MAP)SeychellesArnold P. Salvador, Executive Director Plutus Auditing & Accounting Services Nicolas Boulle, PartnerPoland Marco L. Francis, PartnerEconomic Institute, National Bank of PolandPiotr Boguszewski, Advisor SingaporeJarosaw T. Jakubik, Deputy Director Economic Development Board Anna Chan, Assistant Managing Director, Planning & Policy Cheng Wai San, Head, Research & Statistics Unit Teo Xinyu, Executive, Research & Statistics Unit Slovak Republic Business Alliance of Slovakia (PAS) Robert Kicina, Executive DirectorThe Travel & Tourism Competitiveness Report 2013 | ix 2013 World Economic Forum 11. Partner InstitutesSlovenia ThailandInstitute for Economic ResearchSasin Graduate Institute of Business Administration,Peter Stanovnik, Professor Chulalongkorn UniversitySonja Uric, Senior Research Assistant Pongsak Hoontrakul, Senior Research Fellow Narudee Kiengsiri, President of Sasin Alumni AssociationUniversity of Ljubljana, Faculty of Economics Toemsakdi Krishnamra, Director of SasinMateja Drnovek, ProfessorAle Vahcic, Professor Thailand Development Research Institute (TDRI) Somchai Jitsuchon, Research DirectorSouth Africa Chalongphob Sussangkarn, Distinguished FellowBusiness Leadership South Africa Yos Vajragupta, Senior ResearcherFriede Dowie, DirectorThero Setiloane, Chief Executive Officer Timor-Leste East Timor Development Agency (ETDA)Business Unity South Africa Jose Barreto, Survey ManagerNomaxabiso Majokweni, Chief Executive Officer Palmira Pires, DirectorJoan Stott, Executive Director, Economic Policy Chambers of Commerce and Industry of Timor-LesteSpain Kathleen Fon Ha Tchong Goncalves, Vice-PresidentIESE Business School, International Center forCompetitivenessTrinidad and TobagoMara Luisa Blzquez, Research Associate Arthur Lok Jack Graduate School of BusinessAntoni Subir, Professor Miguel Carillo, Executive Director and Professor of Strategy Nirmala Harrylal, Director, Internationalisation and InstitutionalSri Lanka Relations CentreInstitute of Policy Studies of Sri Lanka (IPS)Ayodya Galappattige, Research OfficerThe Competitiveness CompanyDilani Hirimuthugodage, Research Officer Rolph Balgobin, ChairmanSaman Kelegama, Executive Director TunisiaSuriname Institut Arabe des Chefs dEntreprisesSuriname Trade & Industry Association (VSB)Ahmed Bouzguenda, PresidentHelen Doelwijt, Executive SecretaryMajdi Hassen, Executive CounsellorRene van Essen, Director TurkeyDayenne Wielingen Verwey, Economic Policy Officer TUSIAD Sabanci University Competitiveness ForumSwazilandIzak Atiyas, DirectorFederation of Swaziland Employers and Chamber of Selcuk Karaata, Vice DirectorCommerce Sezen Ugurlu, Project SpecialistMduduzi Lokotfwako, Research Analyst UgandaZodwa Mabuza, Chief Executive Officer Kabano Research and Development CentreNyakwesi Motsa, Administration & Finance Manager Robert Apunyo, Program ManagerSweden Delius Asiimwe, Executive DirectorInternational University of Entrepreneurship and TechnologyFrancis Mukuya, Research AssociateNiclas Adler, President UkraineSwitzerlandCASE Ukraine, Center for Social and Economic ResearchUniversity of St. Gallen, Executive School of Management,Dmytro Boyarchuk, Executive DirectorTechnology and Law (ES-HSG)Vladimir Dubrovskiy, Leading EconomistRubn Rodriguez Startz, Head of Project United Arab EmiratesTobias Trtsch, Communications Manager Abu Dhabi Department of Economic DevelopmentTaiwan, ChinaH.E. Mohammed Omar Abdulla, UndersecretaryCouncil for Economic Planning and Development, Executive Dubai Economic CouncilYuan H.E. Hani Al Hamly, Secretary GeneralHung, J. B., Director, Economic Research Department Institute for Social and Economic Research (ISER), ZayedShieh, Chung Chung, Researcher, Economic Research UniversityDepartment Mouawiya Alawad, DirectorWu, Ming-Ji, Deputy Minister Emirates Competitiveness CouncilTajikistan H.E. Abdulla Nasser Lootah, Secretary GeneralThe Center for Sociological Research ZerkaloRahima Ashrapova, Assistant Researcher United KingdomQahramon Baqoev, DirectorLSE Enterprise Ltd, London School of Economics andGulnora Beknazarova, ResearcherPolitical Science Adam Austerfield, Director of ProjectsTanzania Niccolo Durazzi, Project ManagerResearch on Poverty Alleviation (REPOA) Robyn Klingler Vidra, ResearcherCornel Jahari, Assistant ResearcherJohansein Rutaihwa, Commissioned ResearcherUruguaySamuel Wangwe, Professor and Executive DirectorUniversidad ORT Uruguay Isidoro Hodara, Professorx | The Travel & Tourism Competitiveness Report 2013 2013 World Economic Forum 12. Partner InstitutesVenezuelaCONAPRIThe Venezuelan Council for Investment PromotionLitsay Guerrero, Economic Affairs and Investor Services ManagerEduardo Porcarelli, Executive DirectorVietnamHo Chi Minh City Institute for Development Studies (HIDS)Nguyen Trong Hoa, Professor and PresidentDu Phuoc Tan, Head of DepartmentTrieu Thanh Son, ResearcherYemenYemeni Businessmen Club (YBC)Mohammed Esmail Hamanah, Executive ManagerFathi Abdulwasa Hayel Saeed, ChairmanMoneera Abdo Othman, Project CoordinatorMARcon Marketing ConsultingMargret Arning, Managing DirectorZambiaInstitute of Economic and Social Research (INESOR),University of ZambiaPatricia Funjika, Research FellowJolly Kamwanga, Senior Research Fellow and ProjectCoordinatorMubiana Macwangi, Director and ProfessorZimbabweGraduate School of Management, University of ZimbabweA. M. Hawkins, ProfessorBolivia, Costa Rica, Dominican Republic, Ecuador,El Salvador, Honduras, Nicaragua, PanamaINCAE Business School, Latin American Center forCompetitiveness and Sustainable Development (CLACDS)Ronald Arce, ResearcherArturo Condo, RectorMarlene de Estrella, Director of External RelationsLawrence Pratt, DirectorLiberia and Sierra LeoneFJP Development and Management ConsultantsOmodele R. N. Jones, Chief Executive OfficerThe Travel & Tourism Competitiveness Report 2013 | xi 2013 World Economic Forum 13. 2013 World Economic Forum 14. PrefaceBRGE BRENDE AND ROBERT GREENHILLWorld Economic ForumThe World Economic Forum has, for the past seven industry and in online travel services. Resilience hasyears, engaged key industry and thought leadersalso been demonstrated in the way that some aviationthrough its Aviation, Travel & Tourism Industrycompanies responded to erratic fuel prices by exploringPartnership Programme, along with its Global Agendanew business models and acquiring energy assets.Council on New Models for Travel & Tourism, to carry Additionally, industry players have made commitmentsout an in-depth analysis of the T&T competitivenessto a low-carbon economy through several initiativesof economies around the world. The resulting Travel &aimed at optimizing operations, retrofitting, recycling, andTourism Competitiveness Report provides a platform for preserving the environment.multi-stakeholder dialogue to ensure the development Yet despite these many positive developments, theof strong and sustainable T&T industries capable need for greater openness remains one of the majorof contributing effectively to international economictrends impacting the T&T sector, especially with regarddevelopment. The theme of this years Report,to the freer movement of people. The importance ofReducing Barriers to Economic Growth and Jobefforts in this area has been highlighted specificallyCreation, reflects the importance of the sector for thisby the G20 Los Cabos communiqu in June 2012, inpurpose. which the group recognized the importance of tourismEncouraging the development of the Travel &as a vehicle for job creation, economic growth andTourism (T&T) sector is all the more important today development and furthermore committed to workgiven its important role in job creation, at a time when towards developing travel facilitation initiatives in supportmany countries are suffering from high unemployment. of job creation, quality work, poverty reduction andThe sector already accounts for 9 percent of GDP, a totalglobal growth.of US$6 trillion, and it provides 120 million direct jobsAt the core of the Report is the fifth edition of theand another 125 million indirect jobs in related industries. Travel & Tourism Competitiveness Index (TTCI). TheThis means that the industry now accounts for one in aim of the TTCI, which covers a record 140 economieseleven jobs on the planet, a number that could even rise this year, is to provide a comprehensive strategic toolto one in ten jobs by 2022, according to the World Travelfor measuring the factors and policies that make& Tourism Council. it attractive to develop the T&T sector in differentThis edition of the Report comes at an uncertain countries. By providing detailed assessments of the T&Ttime for the T&T sector. Although the global economy isenvironments of countries worldwide, the results can beshowing signs of fragile recovery, the world is becoming used by all stakeholders to work together to improve theincreasingly complex and interconnected. In this industrys competitiveness in their national economies,context, it is notable that the T&T sector has remainedthereby contributing to national growth and prosperity. Itremarkably resilient in a number of ways. The number also allows countries to track their progress over time inof travelers has increased consistently over the pastthe various areas measured.year, notwithstanding the difficult economic climate The full Report is downloadable from www.weforum.and shrinking budgets. Indeed, the UNWTO reports org/ttcr; this contains detailed profiles for each of the 140that international tourist arrivals grew by 4 percent in economies featured in the study, as well as an extensive2012, and forecasts that they will continue to increasesection of data tables with global rankings coveringby 3 percent to 4 percent in 2013. Although this trend over 75 indicators included in the TTCI. In addition,is primarily driven by increasing demand from theit includes insightful contributions from a number ofemerging-market middle class, the picture has also beenindustry experts. These chapters explore issues such asbrightening for many developed economies.how visa facilitation can play a relevant role in stimulatingThe industry has responded to the changing economic growth, the importance of policymakersenvironment with a number of structural adjustments. leveraging local competitive advantages to thrive in aIndeed, 2012 witnessed a number of alliances,volatile environment, the impact of the tourism sectormergers, and strategic investments both in the aviationon employment creation, how the connectivity that the The Travel & Tourism Competitiveness Report 2013 | xiii 2013 World Economic Forum 15. Prefaceaviation sector creates sustains economic development,and the essential role of green growth in enhancing theresilience of the sector.The Travel & Tourism Competitiveness Report2013 could not have been put together without thedistinguished thinkers who have shared with ustheir knowledge and experience. We are gratefulto our Strategic Design Partner Booz & Company,and our Data Partners Deloitte, the International AirTransport Association (IATA), the International Unionfor Conservation of Nature (IUCN), the World TourismOrganization (UNWTO), and the World Travel & TourismCouncil (WTTC) for helping us to design and develop theTTCI and for providing much of the industry-relevant dataused in its calculation. We thank our Industry Partnersin this Reportnamely Airbus/EADS, BAE Systems,Bahrain Economic Development Board, Bombardier,Delta, Deutsche Lufthansa/Swiss, Embraer, EtihadAirways, Jet Airways, Hilton, Lockheed Martin, Marriott,Safran, Starwood Hotels & Resorts, and VISAfor theirsupport in this important venture.We also wish to thank the editors of the Report,Jennifer Blanke and Thea Chiesa, as well as theproject manager, Roberto Crotti, for their energy andtheir commitment to the project. Appreciation goes toother members of the competitiveness team: BeatBilbao-Osorio, Ciara Browne, Margareta DrzeniekHanouz, Thierry Geiger, Tania Gutknecht, Caroline Ko,and Cecilia Serin. Finally, we would like to convey oursincere gratitude to our network of 150 Partner Institutesworldwide, without whose hard work the annualadministration of the Executive Opinion Survey and thisReport would not be possible.xiv | The Travel & Tourism Competitiveness Report 2013 2013 World Economic Forum 16. Executive SummaryExecutive SummaryJENNIFER BLANKE AND THEA CHIESAWorld Economic ForumThe Travel & Tourism (T&T) industry has managed to Council (WTTC). We have also received importantremain relatively resilient over the recent year despite feedback from a number of key companies that arethe uncertain global economic outlook, which has Industry Partners in the effort, namely Airbus/EADS, BAEbeen characterized by fragile global economic growth,Systems, the Bahrain Economic Development Board,macroeconomic tensions, and high unemployment in Bombardier, Delta, Deutsche Lufthansa/Swiss, Embraer,many countries. Indeed, the sector has benefitted from Etihad Airways, Hilton, Jet Airways, Lockheed Martin,the continuing globalization process: travel has beenMarriott, Safran, Starwood Hotels & Resorts, and VISA.increasing in mature markets and, particularly, has beenThe TTCI is based on three broad categories ofdriven by the rising purchasing power of the growing variables that facilitate or drive T&T competitiveness.middle class in many developing economies. These categories are summarized into the three In such a context, Travel & Tourism has continued subindexes of the Index: (1) the T&T regulatoryto be a critical sector for economic development and framework subindex; (2) the T&T business environmentfor sustaining employment, in both advanced andand infrastructure subindex; and (3) the T&T human,developing economies. A strong T&T sector contributescultural, and natural resources subindex. The firstin many ways to development and the economy. Itsubindex captures those elements that are policy relatedmakes both direct contributions, by raising the national and generally under the purview of the government; theincome and improving the balance of payments, andsecond subindex captures elements of the businessindirect contributions, via its multiplier effect and by environment and the hard infrastructure of eachproviding the basis for connecting countries, througheconomy; and the third subindex captures the softerhard and soft infrastructureattributes that are criticalhuman, cultural, and natural elements of each countrysfor a countrys more general economic competitiveness. resource endowments. Although developing the T&T sector providesEach of these three subindexes is composed in turnmany benefits, numerous obstacles at the national levelby a number of pillars of T&T competitiveness, of whichcontinue to hinder its development. For this reason, there are 14 in all. These are:seven years ago the World Economic Forum, together 1. Policy rules and regulationswith its Industry and Data Partners, embarked on a 2. Environmental sustainabilitymulti-year research effort aimed at exploring various 3. Safety and securityissues related to the T&T competitiveness of countries 4. Health and hygienearound the world. This years Report is published under 5. Prioritization of Travel & Tourismthe theme Reducing Barriers to Economic Growth and 6. Air transport infrastructureJob Creation, which reflects the forward-looking attitude 7. Ground transport infrastructureof the sector as it aims to ensure strong growth going 8. Tourism infrastructureinto the future. 9. ICT infrastructure 10. Price competitiveness in the T&T industryTHE TRAVEL & TOURISM COMPETITIVENESS 11. Human resourcesINDEX 12. Affinity for Travel & TourismThe Travel & Tourism Competitiveness Index (TTCI) 13. Natural resourcesaims to measure the factors and policies that make it 14. Cultural resourcesattractive to develop the T&T sector in different countries.The Index was developed in close collaborationEach of the pillars is, in turn, made up of a numberwith our Strategic Design Partner Booz & Company of individual variables. The dataset includes both surveyand our Data Partners Deloitte, the International Airdata from the World Economic Forums annual ExecutiveTransport Association (IATA), the International UnionOpinion Survey (the Survey) and quantitative data fromfor Conservation of Nature (IUCN), the World Tourism publicly available sources, international organizations,Organization (UNWTO), and the World Travel & Tourism and T&T institutions and experts (for example, IATA, theThe Travel & Tourism Competitiveness Report 2013 | xv 2013 World Economic Forum 17. Executive SummaryTable 1: The Travel & Tourism Competitiveness Index 2013 and 2011 comparison 20132011 2013 2011Country/Economy Rank/140Score Rank/139 Country/EconomyRank/140ScoreRank/139Switzerland 15.66 1Morocco 714.03 78Germany 25.39 2Brunei Darussalam 72 4.0167Austria 35.39 4Peru734.00 69Spain 45.38 8Sri Lanka 74 3.9981United Kingdom5 5.387Macedonia, FYR75 3.9876United States 6 5.326Ukraine 763.98 85France75.31 3Albania 773.97 71Canada85.28 9Azerbaijan783.97 83Sweden95.24 5Armenia 793.96 90Singapore105.2310Vietnam 803.95 80Australia115.1713Ecuador 813.93 87New Zealand12 5.17 19Philippines 823.93 94Netherlands135.1414Trinidad and Tobago 83 3.9379Japan145.1322Colombia843.90 77Hong Kong SAR15 5.11 12Egypt 853.88 75Iceland165.1011Dominican Republic86 3.8872Finland175.1017Cape Verde87 3.8789Belgium185.0423Kazakhstan883.82 93Ireland195.0121Serbia893.78 82Portugal 205.0118Bosnia and Herzegovina90 3.7897Denmark214.9816Namibia 913.77 84Norway 224.9520Gambia, The 92 3.7392Luxembourg 234.9315Honduras933.72 88Malta244.9226Botswana943.71 91Korea, Rep.25 4.91 32Nicaragua 953.67100Italy264.9027Kenya 963.66103Barbados 274.8828Guatemala 973.65 86United Arab Emirates 28 4.86 30Iran, Islamic Rep.98 3.64 114Cyprus 294.8424Mongolia993.63101Estonia304.8225Suriname 1003.63n/aCzech Republic 31 4.78 31Kuwait 1013.61 95Greece 324.7529Moldova1023.60 99Taiwan, China33 4.71 37Guyana 1033.60 98Malaysia 344.7035El Salvador104 3.5996Croatia354.5934Rwanda 1053.56102Slovenia 364.5833Cambodia 1063.56109Panama 374.5456Senegal1073.49104Seychelles 384.51 n/aZambia 1083.46111Hungary394.5138Tanzania 1093.46110Montenegro 404.5036Bolivia1103.46117Qatar414.4942Kyrgyz Republic111 3.45 107Poland 424.4749Nepal1123.42112Thailand 434.4741Venezuela1133.41106Mexico 444.4643Tajikistan 1143.41118China454.4539Paraguay 1153.39123Turkey 464.4450Uganda 1163.39115Costa Rica 47 4.44 44Ghana1173.38108Latvia 484.4351Zimbabwe 1183.33119Lithuania494.3955Swaziland1193.31116Bulgaria 504.3848Ethiopia 1203.29122Brazil 514.3752Cameroon 1213.27126Puerto Rico52 4.36 45Pakistan 1223.25125Israel 534.3446Bangladesh 1233.24129Slovak Republic54 4.32 54Malawi 1243.22121Bahrain554.3040Mozambique 1253.17128Chile564.2957Cte dIvoire126 3.15 131Oman 574.2961Nigeria1273.14130Mauritius584.2853Burkina Faso 128 3.12 132Uruguay594.2358Mali 1293.11133Jordan 604.1864Benin1303.09120Argentina614.1760Madagascar 1313.09127Saudi Arabia 62 4.17 62Algeria1323.07113Russian Federation 63 4.16 59Yemen1332.96n/aSouth Africa 64 4.13 66Mauritania 1342.91136India654.1168Lesotho1352.89135Georgia664.1073Guinea 1362.88n/aJamaica674.0865Sierra Leone 137 2.87 n/aRomania684.0463Burundi1382.82137Lebanon694.0470Chad 1392.61139Indonesia704.0374Haiti1402.59n/axvi | The Travel & Tourism Competitiveness Report 2013 2013 World Economic Forum 18. Executive SummaryIUCN, the UNWTO, WTTC, UNCTAD, and UNESCO). Thealso attracts tourists because of its rich and well-Survey is carried out among chief executive officers and managed natural resources. A large percentage of thetop business leaders in all economies covered by our countrys land area is protected, environmental regulationresearch; these are the people making the investment is among the most stringent (3rd), and the T&T industrydecisions in their respective economies. The Surveyis considered to be developed in a sustainable wayprovides unique data on many qualitative institutional (7th). These good environmental conditions, combinedand business environment issues, as well as specific with the high safety and security of the country (2nd),issues related to the T&T industry and the quality of thecontribute to its solid T&T competitiveness. Switzerlandnatural environment. is not only a strong leisure tourism destination but also The details of the composition of the TTCI arean important business travel hub, with many internationalshown in Appendix A of Chapter 1.1; detailed rankingsfairs and exhibitions held in the country each year,and scores of this years Index are found in Appendix Bdriving its showing on the cultural resources pillar (6th).of that chapter. Switzerlands strong performance in all these areas enables the country to somewhat make up for its lackTHE TRAVEL & TOURISM COMPETITIVENESS of price competitiveness (139th), which, together with aINDEX RANKINGS 2013fairly restrained international visa policy, does indeed limitTable 1 shows the overall rankings of the 140 economiesthe number of arrivals.assessed in this edition TTCI, comparing this years Germany ranks 2nd in Europe and out of allrankings with those from the 2011 edition of the Report,.countries in the TTCI. Similar to Switzerland, itsSwitzerland maintains its top position in the rankings,infrastructure is among the best in the world: it is rankedwhich it has retained for five consecutive editions, since 6th for ground transport infrastructure and 7th for airthe very first Travel & Tourism Competitiveness Report.transport infrastructure, facilitating connections bothTables 26 present the rankings in a regional context, within the country and internationally. Germany also hasgrouping economies into the following five regionalabundant cultural resources (ranked 5th worldwide for itsgroups: Europe, the Americas, Asia Pacific (includingmany World Heritage cultural sites) and is host to almostCentral Asia), the Middle East and North Africa, and 600 international fairs and exhibition per year (2nd), whilesub-Saharan Africa. We discuss below a selection ofhotel prices are relatively competitive (55th). In addition,countries from each region to provide a sense of the Germany makes great efforts to develop in a sustainableresults and how they are interpreted at the national level.way (4th), with the worlds most stringent environmentalMore countries are discussed in detail in Chapter 1.1. regulationswhich are also among the best-enforced and the strong support of international environmentalEurope efforts, as demonstrated through its ratification of manyIn line with statistics on international tourist arrivals, international environmental treaties.Table 1 shows that Europe remains the leading region Austria ranks 3rd, improving by one position sincefor Travel & Tourism competitiveness, with all of the2011. Its strong performance is driven by factors such astop five places taken by European countries. Likewise, tourism infrastructure, in which it ties for 1st place with13 of the top 20 countries are from the region. Table 2Italy; a welcoming attitude toward visitors; a very safeshows the rankings for European countries only, with and secure environment (7th); and, most importantly, itsthe first column showing the rank within the region, rich cultural resources. Austria hosts nine World Heritagethe second column showing the overall rank out of allcultural sites, has excellent creative industries, and140 economies included in the Index this year, and the attracts many travelers with several fairs and exhibitionsthird column showing the score. As the table shows,organized every year. The countrys tourism industry isSwitzerland is ranked 1st out of all countries in the 2013 also being developed in a sustainable way (10th), withTTCI, a position it has held since the first edition ofsome of the most stringent (4th) and well-enforced (7th)this Report in 2007. Germany, Austria, Spain, and theenvironmental regulations in the world, driving its overallUnited Kingdom complete the top five, while France and positive performance on environmental sustainabilitySweden are among the top 10 overall. (ranked 6th).Switzerland continues to lead the rankings,Spain is the country among the top 10 that seesperforming well on almost all aspects of the Index.the most improvement since 2011: moving up fourSwitzerlands infrastructure, especially ground transportplaces since the last assessment, it is now ranked 4th.(3rd), is among the best in the world. The country alsoSpain continues to lead in cultural resources, rankingboasts top marks for its hotels and other tourism-specific 1st this year in this area because of its extremelyfacilities, with excellent staff thanks to the availability of numerous World Heritage sites (2nd) and its largequalified labor to work in the industry (ranked 2nd)number of international fairs and exhibitions (3rd), as wellperhaps not surprising in a country that holds many of as its significant sports stadium capacity. Its tourismthe worlds best hotel management schools. Switzerland infrastructure is another strength, with its many hotel The Travel & Tourism Competitiveness Report 2013 | xvii 2013 World Economic Forum 19. Executive SummaryTable 2: The Travel & Tourism Competitiveness Index 2013: EuropeSUBINDEXEST&T regulatoryBusiness environment T&T human, cultural, OVERALL INDEXframeworkand infrastructureand natural resources RegionalOverallCountry/Economyrank rankScore RankScore RankScoreRankScoreSwitzerland 115.66 15.9415.42 25.63Germany 225.39 85.5765.29 75.31Austria 335.39 25.80 115.11 95.24Spain 445.38 145.48 55.30 65.36United Kingdom555.38 175.44105.13 35.57France675.31 95.5675.18 115.20Sweden795.24 125.54234.89 85.30Netherlands 8135.14 165.45 155.01 164.97Iceland 9165.10 35.77135.06 364.47Finland10175.10 55.74224.89 244.65Belgium11185.04 185.43 264.78 184.90Ireland12195.01 75.68194.96 404.41Portugal 13205.01 205.42 274.78 194.84Denmark14214.98 255.31 164.98 264.64Norway 15224.95 115.55 284.77 334.53Luxembourg 16234.93 215.41 204.96 394.42Malta17244.92 155.47 145.06 494.22Italy18264.90 504.90 294.76 145.05Cyprus 19294.84 225.35 214.89 464.27Estonia20304.82 105.55 304.72 514.19Czech Republic 21314.78 285.24 374.49 284.61Greece 22324.75 395.02 334.65 304.58Croatia23354.59 424.99 394.43 424.37Slovenia 24364.58 335.12 354.52 524.11Hungary25394.51 265.29 494.16 544.08Montenegro 26404.50 345.09 504.14 474.26Poland 27424.47 494.92 583.94 324.56Turkey 28464.44 644.62 524.08 274.63Latvia 29484.43 355.08 404.40 773.81Lithuania30494.39 414.99 484.19 613.98Bulgaria 31504.38 584.79 454.24 534.10Slovak Republic32544.32 434.96 603.92 554.06Russian Federation 33634.16 924.24 464.22 584.02Georgia34664.10 305.18 803.46 913.67Romania35684.04 664.61 683.67 733.85Macedonia, FYR 36753.98 574.79 743.581003.58Ukraine37763.98 604.73 713.62 993.59Albania38773.97 634.65 903.31 633.96Armenia39793.96 514.88 883.34 943.65Serbia 40893.78 744.50 813.401093.45Bosnia and Herzegovina 41903.78 754.47 953.19 923.66Moldova421023.60 654.61973.161333.04rooms, car rental facilities, and ATMs. Furthermore, itsThe United Kingdom moves up by two moreair transport infrastructure is highly developed and ranks positions since the last edition of the Report, to reachamong the top 10 worldwide. Spain has improved in a5th place this year. The countrys T&T competitivenessfew areas since the last edition. In particular, startingis based on its excellent cultural resources (rankeda business has become less costly and onerous, 3rd), with many World Heritage cultural sites, a largeaccording to the World Bank, and hotel prices have number of international fairs, and strong creativecome down a bit. The government has also kept tourismindustries (all ranked within the top 10). The countryhigh in its development agenda, making Spain a top has probably benefitted from two important events in10 economy for prioritization of the industry. Spain has 2012: the Olympic Games and the Diamond Jubilee ofnotably maintained its efforts on marketing activity and Queen Elizabeth II. Although the outcome is not yet fullyspending on the industrys development amid difficultreflected in the data, the United Kingdom has leveragedeconomic circumstances.the preparation of these events in terms of tourism campaigns, generating interest in visiting the countryxviii | The Travel & Tourism Competitiveness Report 2013 2013 World Economic Forum 20. Executive Summaryand reinforcing their already-solid ICT and air transportcultural sites, several international fairs and exhibitions,infrastructure (ranked 10th and 5th, respectively). Theand strong creative industries. In addition, Turkeygenerally supportive policy environment, ranked 8th, gains significantly in a number of areas and has seen aencourages the development of the sector, while thesignificant increase in tourist arrivals over the last twocountry relies on an excellent human resources baseyears. The policy rules and regulations governing the(ranked 6th). On a less positive note, the United Kingdomsector are supportive and have continued to progresscontinues to receive one of the poorest assessmentssince the 2011 T&T Report. Turkey has also improvedfor price competitiveness (138th), in large part because its air transport infrastructure (29th) and its tourismit has the 2nd highest tax rate on tickets and airport infrastructure (45th). However, some areas still hold backcharges worldwide. the overall T&T competitiveness performance of the France is ranked 7th overall in this edition, losingcountry: although improving, safety and security issuesfour positions since 2011. France continues to attract (79th) remain worrisome, ground transport infrastructuremany tourists with its rich cultural heritage (ranked 4this inadequate (especially railroads and ports), and ICTfor the number of World Heritage cultural sites and 8thinfrastructure remains unsatisfactory (71st), especially forfor creative industries). The country also hosts manya rapidly growing tourism destination. In addition, moreinternational fairs and exhibitions (ranked 5th). Frances efforts must be made toward environmental sustainabilityground transport infrastructure is still one of the best (ranked 95th), an area that will be of increasing concernin the world (ranked 5th), with particularly good roadsgoing forward.and railroads as well as good air transport infrastructure(ranked 8th). However, the overall policy rules andThe Americasregulation framework is not sufficiently supportiveTable 3 shows the regional rankings for the countries inof developing the sector, and the prioritization of thethe Americas. As this table shows, the United StatesT&T sector declines this year (ranked 35th overall). is the highest-ranked country in the Americas and 6thAdditionally, the assessment has weakened somewhat out of all countries, with stable performance since thein terms of the quality and availability of qualified labor in last assessment. Overall, the country receives highthe country. marks for its business environment and infrastructure. Italy moves up one spot this year to place 26th In particular, the United States has excellent airoverall and 18th in Europe. As well as its culturaltransport infrastructure (ranked 2nd) and high-qualityrichnesswith many World Heritage Sites, international tourism infrastructure, as well as a strong focus onfairs and exhibitions, and rich creative industries customer satisfaction. Its cultural resources and naturalItalys strengths lie in its excellent tourism infrastructureresources (ranked 5th and 3rd, respectively), with many(tying with Austria for 1st place) and its relatively good World Heritage cultural and natural sites, drive its highair transport infrastructure (24th). However, it faces a position in the rankings, together with several fairs andnumber of challenges that bring its overall rating down. exhibitions (1st) and strong creative industries (2nd). OnThese include policy rules and regulations that area less positive note, the countrys natural endowmentsstill not sufficiently supportive of the development ofare not being sufficiently protected (ranked 112th forthe sector (100th) and a lack of price competitiveness environmental sustainability). Also, compared with other(134th). top-ranked economies, the quality of ground transport Greece is ranked 32nd, down another three could be improved more (27th) and the perception ofpositions since the last assessment. The countrys safety and security leaves room for improvement (57th).rich cultural resources (ranked 25th) and excellent Canada moves up one place to 8th overall. Thetourism infrastructure (3rd) are still important strengths.country has several strengths, including its rich naturalAdditionally, Greece has very good health and hygieneresources (10th) with numerous World Heritage sitesconditions (ranked 13th overall) and good air transport(ranked 5th), excellent air transport infrastructure, highlyinfrastructure (20th). Further, there is a strong national qualified human resources (5th), and a strong policyaffinity for tourism compared with many other European environment (10th). Its cultural resources are also acountries, including a generally open and positive strong point, with many international fairs and exhibitionsattitude toward tourists. The decline in the rankingsin the country. Canada has lost some ground in terms ofcan be traced to a further worsening of the policy price competitiveness and environmental sustainability,environment and a lower perceived prioritization ofwhere, although it still ranks fairly high (41st), it registersTravel & Tourism within the country, probably because of a decline in the perception of the enforcement ofdwindling resources available for the particular industryenvironmental regulations and continues to suffer fromamid general economic and financial difficulties.high CO2 per capita emissions. Turkey climbs four positions this year to reach 46th Barbados ranks 3rd in the region and 27th overall,place. The countrys main strength continues to lie in up one place since the last assessment. Barbadosits rich cultural resources (19th), with 20 World Heritage comes in 2nd overall for the countrys affinity for TravelThe Travel & Tourism Competitiveness Report 2013 | xix 2013 World Economic Forum 21. Executive SummaryTable 3: The Travel & Tourism Competitiveness Index 2013: The Americas SUBINDEXES T&T regulatoryBusiness environment T&T human, cultural, OVERALL INDEX frameworkand infrastructureand natural resourcesRegionalOverallCountry/Economy rank rankScore RankScore RankScoreRankScoreUnited States165.32 444.95 25.36 15.65Canada 285.28 275.27 85.17 55.39Barbados 3274.88 135.50 184.96 504.20Panama 4374.54 544.83 364.52 454.29Mexico 5444.46 834.43 613.92 155.02Costa Rica 6474.44 524.88 563.98 384.45Brazil 7514.37 824.43 763.57 125.10Puerto Rico8524.36 404.99 434.33 813.75Chile9564.29 534.87 534.07 653.94Uruguay 10594.23 315.18 783.53 623.97Argentina 11614.17 694.54 723.61 414.38Jamaica 12674.08 594.76 643.76 873.72Peru13734.00 964.17 853.36 374.47Ecuador 14813.93 854.37 833.38 564.05Trinidad and Tobago 15833.931044.07 544.07 953.64Colombia16843.901014.11 1033.09344.51Dominican Republic17863.88 674.60 753.581083.45Honduras18933.72 974.17 923.28 893.69Nicaragua 19953.67 984.15 1013.11823.74Guatemala 20973.651093.93 983.15 693.88Suriname211003.631064.051003.11863.72Guyana221033.60 804.441112.88 1063.47El Salvador 231043.59 994.14823.391253.24Bolivia 241103.461253.551023.09853.73Venezuela 251133.411193.67993.121103.45Paraguay261153.391034.091152.80 1203.29Haiti 271402.591382.931362.39 1402.44& Tourism, with a positive attitude toward tourists and has also improved across almost all modes, with porttoward the value of tourism in the country, although it infrastructure now ranked 4th and railroads rankeddoes receive a middling score for the degree of customer32nd. Air transport improves as well and is now rankedorientation (64th). The importance of the T&T sector for16th. The expansion of stadium capacity and creativeBarbados is reflected in the high prioritization placed onindustries exports is also notable. On the other hand,Travel & Tourism (8th), with significant emphasis put onareas requiring further improvement include safety andthe sectors development by the government and high security (70th), the human resources base (79th), andspending on the sector, ensuring effective destination- health and hygiene standards (86th).marketing campaigns and collecting relevant sector data Mexico is stable this year at 44th position (andon a timely basis. However, although there have been5th in the region). Mexico receives impressive markssome marginal improvements in some elements of itsfor its natural resources (ranked 8th), an area thatenvironmental sustainability, additional efforts to protect shows an improvement since the last assessment,the natural environment would reinforce the countrys with many World Heritage natural sites and rich fauna.strong T&T competitiveness. The countrys cultural resources are also among the Panama witnesses one of the most markedbest in the world (21st), with 34 World Heritage culturalimprovements in this years TTCI, moving up to 37th sites, several international fairs and exhibitions, andposition overall and 4th in the region. The countrys strong creative industries. These inherent strengths aremost important competitive advantage is its richreinforced by the overall prioritization of the sector inendowment of natural resources, with its diverse fauna, the country (34th) and effective marketing and brandingsignificant protected land areas, and a number of campaigns. Some areas have improved, yet continueWorld Heritage sites. The improvement in this yearsto require attentionfor example, ground transportrankings can be traced mainly to an improvement in theinfrastructure is being developed but still ranks relativelycountrys infrastructure. Tourism infrastructure has been low (69th), and more efforts are required to ensure thatdeveloped (now ranked 42nd), most notably with more the sector is being developed in a sustainable wayavailable hotel rooms. The quality of ground transport(105th). Finally, despite a marginal improvement sincexx | The Travel & Tourism Competitiveness Report 2013 2013 World Economic Forum 22. Executive Summarylast year, safety and security remains the main source The effectiveness of marketing and branding to promoteof concern for the T&T sector, where Mexico still ranks athe T&T sector shows improvement, and governmentlow 121st. spending on the industry has increased slightly.Brazil is ranked 7th in the Americas and 51stHowever, in order to raise its T&T competitivenessoverall, up one position since 2011. The country isfurther, safety and security must be improved (118th)ranked 1st out of all countries for its natural resourcesand ground transport infrastructure must be upgradedand 23rd for its cultural resources, with many World (121st). Additionally, the country has lost some priceHeritage sites, a good proportion of protected land area,competitiveness because of higher general and tourism-and the richest fauna in the world. This is buttressed byspecific taxation, most notably the high ticket taxesa focus on environmental sustainability (ranked 30th), anand airport charges (where the country ranks 135th). Aarea that has been improving over recent years, although more in-depth analysis of the performance of the T&Tthe protection of the countrys diverse fauna requires competitiveness of Peru will be conducted in a dedicatedadditional efforts. The safety and security environmentpublication to be issued in April 2013, on occasion of theand health and hygiene conditions have also improved World Economic Forum on Latin America 2013.slightly since the last assessment. On the other hand,the ground transport network remains underdevelopedAsia Pacific(129th), with the quality of roads, ports, and railroads Table 4 displays the regional rankings and data for therequiring improvement to keep pace with the economic Asia Pacific region. As the table shows, Singapore isdevelopment of the country. Preparations for two major the top-ranked economy in the region at 10th positionsports events in the next five years (the FIFA World overall, the same position it has held for the past threeCup in 2014 and the Olympic Games in 2016) provide editions. Singapore benefits from excellent transportopportunities to bridge the infrastructure gap. Brazil alsoinfrastructure, with ground transport infrastructurecontinues to suffer from a lack of price competitiveness and air transport infrastructure ranked 2nd and 14th,(126th), with high and increasing ticket taxes and respectively. Singapore ranks 2nd for the high qualityairport charges, as well as high and rising prices moreof its available human resources. And with its famouslygenerally. Further, the overall policy environment is notwell-functioning public institutions, it is perhaps notparticularly conducive to the development of the sectorsurprising that Singapore ranks 1st out of all economies(ranked 119th), with discouraging rules on FDI, much for its policy environment, with rules and regulationstime required for starting a business, and somewhatthat are extremely conducive to the development of itsrestrictive commitments to opening up tourism services T&T industries (policies facilitating foreign ownershipunder GATS commitments.and FDI, well-protected property rights, and few visaChile ranks 9th in the region and 56th overall,restrictions). Further, Singapore is among the safestmaintaining a stable performance since the lasteconomies of all assessed with regard to safety andassessment. It has notable cultural resources, with sixsecurity, and receives strong assessments for otherWorld Heritage cultural sites and several internationaltypes of infrastructure. One area of concern is its pricefairs and exhibitions. In addition, policy rules and competitiveness, which has eroded as seen in increasingregulations are conducive to the development of the T&Thotel prices and taxation.sector (12th), with few foreign ownership restrictions,Singapore is followed in the regional rankings bya liberal visa regime, and open bilateral Air ServiceAustralia, which improves by two places and is nowAgreements, although the time and cost for startingat 11th position overall. Australias T&T competitivenessnew businesses remain relatively high. The country continues to be characterized by a number of clearalso benefits from good safety and security by regionalstrengths, including its rich natural resources and thestandards (31st). Additionally, tourism infrastructure highest number of World Heritage natural sites in thehas improved noticeably and now rank 49th. However,world, benefiting from diverse fauna and a comparativelyChiles T&T competitiveness would be strengthened by pristine natural environment. Given the importanceupgrading its transport infrastructure and thus raisingof the environment for much of its leisure tourism,the quality of tourism infrastructure further, as well as by it is notable that the stringency and enforcement offocusing more on preserving the environment to develop its environmental regulations are well assessed. Andthe industry in a more environmentally sustainable way.given the countrys distance from other continentsPeru is ranked 13th in the region, placing 73rdand the related importance of domestic air travel tooverall. Perus natural and cultural resources remainovercome the large distances between major sites,important assets for the tourism industry. The country its competitiveness is also buttressed by excellent airhas one of the richest fauna in the world (3rd) and hoststransport infrastructure (ranked 4th) as well as goodseveral natural and cultural World Heritage sites. Perugeneral tourism infrastructure (ranked 20th). Australiahas seen a continuous growth in tourist arrivals and also sees some improvements in the policy rules andinternational flights, even during the global recession. regulations affecting the sector, especially its increased The Travel & Tourism Competitiveness Report 2013 | xxi 2013 World Economic Forum 23. Executive SummaryTable 4: The Travel & Tourism Competitiveness Index 2013: Asia Pacific SUBINDEXES T&T regulatoryBusiness environment T&T human, cultural, OVERALL INDEX frameworkand infrastructureand natural resources RegionalOverallCountry/Economyrank rankScore RankScoreRankScoreRankScoreSingapore 1105.23 65.7445.31 254.64Australia 2115.17 235.32254.81 45.39New Zealand 3125.17 45.75 125.06 224.69Japan 4145.13 245.31244.86 105.22Hong Kong SAR 5155.11 195.43 35.32 294.59Korea, Rep. 6254.91 385.02174.98 204.74Taiwan, China 7334.71 295.19344.63 444.29Malaysia8344.70 554.82414.36 174.93Thailand9434.47 764.47444.25 234.68China10454.45 714.50633.77 135.09India11654.111103.92673.69 214.72Indonesia12704.03 954.18843.36 314.56Brunei Darussalam13724.01 944.18573.94 673.91Sri Lanka14743.99 614.68863.35 663.93Azerbaijan 15783.97 464.94873.34 963.63Vietnam16803.95 884.30943.26 434.30Philippines17823.93 704.51893.33 643.95Kazakhstan 18883.82 624.66793.481193.30Mongolia 19993.63 914.251072.96903.69Cambodia 201063.561054.06 1122.86783.77Kyrgyz Republic211113.45 934.23 1312.61 1033.51Nepal221123.421004.14 1282.64 1053.48Tajikistan 231143.41 904.28 1232.69 1223.26Pakistan 241223.251313.38 1042.99 1163.38Bangladesh 251233.241243.56 1092.91 1243.24openness in bilateral Air Service Agreements. In termsespecially by a rise in the number of available hotelof visa requirements, Australia has one of the most rooms.advanced visa policies in the world (especially withJapan is ranked 4th regionally and 14th out of allrespect to the electronic visa process) at a time whenthe economies in the TTCI, up eight places since the lasta number of other countries are moving in the oppositeassessment. This achievement is especially impressivedirection.against the backdrop of the 2011 tsunami and relatedNew Zealand ranks 3rd in the region and 12thnuclear disaster. Japans T&T sector resilience can beoverall, an improvement of seven positions, one of theascribed to its rich cultural resources (ranked 11th),most significant in the region. The country continues towith its 32 World Heritage cultural sites, the manybenefit from its rich natural resources, with a numberinternational fairs and exhibitions hosted by the country,of World Heritage natural sites (ranked 18th) and a and its rich creative industries. Its ground transportpristine natural environment (ranked 3rd), protectedinfrastructure is among the best in the world (rankedby strong and well-enforced environmental legislation.7th), especially its railroads, and Japan continues toThe countrys policy rules and regulations are highly lead in the area of education and training (ranked 13th).conducive to the development of the sector (rankedMoreover, it has continued to develop its already strong2nd), with very transparent policymaking and amongICT infrastructure and now ranks 7th in this area. Inthe least time and lowest cost required to start aaddition, Japans extremely customer oriented culturebusiness in the world. The country also benefits from (1st) is an important strength for the T&T industry. On thehigh-quality human resources (ranked 13th) and a very other hand, the country continues to be an expensivesafe and secure environment overall (9th). Although destination, ranking 130th in the price competitivenessNew Zealands ground transport network remainspillar.somewhat underdeveloped given its advanced stageHong Kong SAR is ranked 15th. Its transportof development, its air transport infrastructure gets infrastructure is among the most developed in theexcellent marks (ranked 12th) and its ICT infrastructure is world, with the best ground transport infrastructurequite good by international standards. The most relevantand air transport infrastructure that ranks 6th. Further,improvement in New Zealands performance in thisthe economys ICT infrastructure ranks 2nd worldwide,edition is registered in its tourism infrastructure, driven demonstrating an important support for an industry thatxxii | The Travel & Tourism Competitiveness Report 2013 2013 World Economic Forum 24. Executive Summarydepends so much on ICTs. Additionally, Hong Kong remain: despite the prioritization of the sector bybenefits from strong safety and security (3rd) as well the government, some aspects of the regulatoryas a conducive business environment, coming in 3rd environmentsuch as the protection of property rightsin the policy rules and regulations pillar. It also receives and the long time required for starting a businessarerelatively good marks for cultural resources, with manynot particularly conducive to developing the sectorinternational fairs and exhibitions and strong creative(ranked 77th). In addition, given the importance ofindustries. However, Hong Kong trails other advanced the natural environment for the countrys tourism,economies in the region for its lack of emphasis onenvironmental sustainability should be a greater priorityenvironmental sustainability, where it ranks a low 118th.(ranked 99th on this indicator).Korea, Rep. is ranked 25th, just ahead of Taiwan China is ranked 10th regionally, losing six placesand Malaysia in the regional rankings and improving by and falling to 45th overall this year. China continues toseven places. Koreas strengths lie in its excellent groundbuild on some clear strengths: it comes in 5th for itstransport and ICT infrastructure (ranked 16th and 1st, natural resources, with many World Heritage naturalrespectively) and its rich cultural resources (ranked 10th). sites and fauna that are among the richest in theIts rise in the overall rankings is driven by improvements world. It places 15th for its cultural resources, within almost all the pillars, with a measurable increase in several World Heritage cultural sites, many internationalthe prioritization and affinity for Travel & Tourism, thanks fairs and exhibitions, and creative industries that areto increased marketing and branding efforts, and a unsurpassed. Moreover, the country continues tohigh degree of customer orientation (9th). On a less develop its infrastructure, with improvements in airpositive note, Korea remains a relative costly destination transport (35th) and ground transport (51st). However,(ranked 96th for price competitiveness) and, despite some weaknesses pull the countrys ranking down.much discussion in public discourse, the tourism sectorChinas policy environment is not highly conducive to theis not being developed in a sufficiently sustainable way T&T sectors development (ranked 86th). Furthermore,(69th), although there are improvements since the last there are increasing concerns related to the sustainableassessment.development of the sector (109th). Chinas tourismMalaysia is ranked 8th regionally and 34th overall,infrastructure remains underdeveloped (ranked 101th),up one position since the 2011 Report. Malaysia with few international-quality standard hotel roomsbenefits from its rich natural resources (ranked 18th) and available and few ATMs, and the country receives a poorits cultural resources (ranked 31st). The country also assessment for its general affinity for Travel & Tourism,benefits from excellent price competitiveness (rankedwhere it ranks 129th. Finally, although the country5th), with comparatively low fuel prices, low ticket taxes continues to benefit from relative price competitivenessand airport charges, competitive hotel prices, and a (ranked 37th), this advantage has started to weakenfavorable tax regime. Malaysias policy environment is under the weight of increasing inflation in several areas,assessed as very conducive to the development of the as demonstrated by higher hotel prices and weakeningsector (ranked 9th), an area that has improved since the purchasing power.last assessment, and the country is characterized by a India is ranked 11th in the region and 65th overall,strong affinity for Travel & Tourism more generally (rankedgaining three places since the last edition. As with China,16th). However, health and hygiene indicators trail thoseIndia is well assessed for its natural resources (rankedof many other countries in the region, with, in particular,9th) and cultural resources (24th), with many natural anda low physician density and few hospital beds available. cultural World Heritage sites, rich fauna, many fairs andFurther, environmental sustainability remains an areaexhibitions, and strong creative industries. India also hasfor improvement, with high emission levels and several quite good air transport (ranked 39th), particularly giventhreatened species, although business leaders feel thatthe countrys stage of development, and reasonableefforts are being made in this area. ground transport infrastructure (ranked 42nd), althoughThailand is ranked 9th in the region and 43rdthe quality of roads (85th) and of ports (79th) requireoverall. The country declines by only two places since further improvement. In addition, India remains athe last edition, demonstrating some resilience to the relatively price competitive destination (20th), even innatural disasters and political unrest with which thethe regional context. However, some aspects of itscountry has been grappling. Thailand is endowed with tourism infrastructure remain somewhat underdevelopedrich natural resources and a strong affinity for Travel &(ranked 95th), with very few hotel rooms per capita byTourism (ranked and 23rd and 18th, respectively), with international comparison and low ATM penetration. ICTa very friendly attitude of the population toward tourists infrastructure also remains somewhat underdeveloped(ranked 13th). This is buttressed by the governmentsand underexploited (111th). Another area of concern isstrong prioritization of the sector, with good destination-the policy environment, which is ranked 125th becausemarketing campaigns (11th) and relative priceof the long time and high cost required to start acompetitiveness (25th). However, some weaknesses business, a restrictive visa policy (132nd), and low levelThe Travel & Tourism Competitiveness Report 2013 | xxiii 2013 World Economic Forum 25. Executive Summaryof commitment in GATS agreements for tourism servicesThe Middle East and North Africa(114th). Other areas requiring attention are health andTable 5 shows the regional rankings for the Middle Easthygiene standards (109th) and the countrys humanand North Africa region. As the table shows, the Unitedresources base (96th). Arab Emirates (UAE) continues to lead the region atIndonesia is ranked 12th in the region, right behind 28th overall, up two places since the last assessment.India the regional rankings and 70th overall, up fourAlthough the UAE is not endowed with rich naturalplaces since the last edition. In terms of strengths,resources, it has built a cultural resource base, attractingIndonesia places 6th for its excellent natural resources,both leisure and business travelers, with severalwith several World Heritage natural sites and theand growing international fairs and exhibitions andrichness of its fauna as measured by the known species increasingly diverse creative industries. In addition, thein the country. Indonesia also has rich cultural resources country is characterized by a strong affinity for Travel &(ranked 38th), with 10 World Heritage cultural sites, aTourism (24th). Perhaps the most important competitivenumber of international fairs and exhibitions held in theadvantage of UAE T&T competitiveness relates to itscountry, and strong creative industries. Further, theworld-class international hubs for global air travel.country is ranked 9th overall on price competitiveness inFurther, the country has carried out effective marketingthe T&T industry because of its competitive hotel prices and branding campaigns (1st) and has embraced(ranked 21st), low ticket taxes and airport charges, and policy rules and regulations that are conducive to thefavorable fuel prices. In addition, it is ranked 19th fordevelopment of the sector (13th). In particular, theits national prioritization of Travel & Tourism. However,country is open to foreign investments (14th) and has athese strengths are held back by underdevelopedliberal visa regime (33rd). Environmental sustainability,infrastructure in the country, especially ground although improving somewhat compared with pasttransport (87th), tourism infrastructure (113th), and ICTyears, continues to be an area of some concerninfrastructure (87th); together these represent significant(ranked 91st). Hotel prices are also somewhat high byinvestment opportunities in the country. There are alsointernational standards (101st).some concerns related to safety and security, particularly Qatar is ranked 2nd in the region and 41st overall,the business costs of crime and potential terrorism. Inup one place since the last assessment. Qatar benefitsaddition, Indonesia is not ensuring the environmentallyfrom a safe and secure environment (ranked 21st),sustainable development of the tourism sector (rankedgood ICT and tourism infrastructures (32nd and 37th,125th), an area of particular concern given the sectors respectively), and excellent air transport infrastructuredependence on the quality of the natural environment.(23rd), in line with its role as an air transportationThe Philippines is the most improved country inhub. The ease of hiring foreign labor (4th), increasingthe region, ranking 16th regionally and 82nd overall, up enrollment rates, and the quality of its education drive12 places since the last edition. Among the countrysthe ability of the country to find high-quality humancomparative strengths are its natural resources (44th),resources (ranked 7th) inside and outside the country.its price competitiveness (24th), and a very strongandQatar also has a high degree of customer orientationimprovingprioritization of the Travel & Tourism industry(5th). In order to further enhance the countrys T&T(this indicator ranks 15th, as government spending oncompetitiveness, Qatar should continue to improve itsthe sector as a percentage of GDP is now 1st in thefocus on environmental sustainability (59th) and ensureworld, and tourism marketing and branding campaignsthat it does not lose sight of the importance of the sectorare seen to be increasingly effective). In addition, the for its developmentat a rank of 80 in this edition, thecountry has been ensuring that several aspects of itsprioritization of the sector is somewhat lower than in pastpolicy rules and regulations regime are conducive to the years.development of the T&T sector. Among these are betterIsrael is ranked 3rd in the region, dropping sevenprotection of property rights, more openness towardplaces to 53rd overall. Israel benefits from its culturalforeign investments, and few visa requirements for attributes, including a number of World Heritageforeign visitors (ranked 7th). However, other areassuch cultural sites. The countrys human resources base isas the difficulty of starting a business in the country, inalso well evaluated (31st), providing healthy and well-both cost and length of the process (ranked 94th and trained people to work in the T&T sector. Further, its117th, respectively)remain a challenge. Moreover, ICT infrastructure is quite well developed (27th), while itssafety and security concerns (ranked 103rd); inadequatehealth and hygiene gets a good mark (26th), especiallyhealth and hygiene (94th); and underdevelopedin a regional context. On a less positive note, someground transport, tourism, and ICT infrastructure areaspects of safety and security continue to erode atall holding back the potential of the economys T&Tthe countrys T&T competitiveness: these are primarilycompetitiveness. related to concerns about terrorism (Israel ranks 124th on this indicator, somewhat lower than in the last edition). However, the decline in rank since the lastxxiv | The Travel & Tourism Competitiveness Report 2013 2013 World Economic Forum 26. Executive SummaryTable 5: The Travel & Tourism Competitiveness Index 2013: The Middle East and North Africa SUBINDEXEST&T regulatory Business environment T&T human, cultural, OVERALL INDEXframework and infrastructureand natural resourcesRegionalOverallCountry/Economy rank rankScore RankScore RankScore RankScoreUnited Arab Emirates1284.86 454.95 95.14354.51Qatar 2414.49 484.93314.70753.85Israel3534.34 365.07514.08713.86Bahrain 4554.30 774.46324.69833.74Oman5574.29 564.81474.20763.84Jordan6604.18 375.05693.63723.86Saudi Arabia7624.17 874.32384.43803.76Lebanon 8694.04 734.50653.74703.87Morocco 9714.03 684.59733.60683.89Egypt10853.88 864.35773.56843.74Iran, Islamic Rep. 11983.641123.90963.18743.85Kuwait 121013.611143.81 623.89 1313.14Algeria131323.071343.301262.66 1233.25Yemen141332.961402.821102.89 1283.18Mauritania 151342.911373.071332.60 1323.07assessment can also be attributed to diminished pricenatural environment is now assessed as being in goodcompetitiveness (ranked 133rd), the result of increasing condition, efforts to develop the industry in a sustainablefuel prices, hotel prices, ticket taxes, and airport charges way could be reinforced, for example by increasingand the perception that general taxation has becomemarine and terrestrial protection, which would help tomore distortionary.protect the many threatened species in the country Bahrain is ranked 4th in the region and 55th(132nd).overall, down 15 positions since the last assessment. Mauritius loses its number one spot in the regionalThe country maintains a number of clear strengths: rankings, overtaken by the entry of the Seychelles thisgood transport infrastructure, particularly ground year, and is ranked 58th overall. The prioritization oftransport infrastructure (ranked 11th); high-quality the industry remains high (3rd), together with a stronghuman resources in the country (26th); and strong pricenational affinity for Travel & Tourism (6th). The countryscompetitiveness (7th). However, Bahrain is seeing atourism and ground infrastructure are well developedweakening in the assessment of its tourism infrastructureby regional standards (48th and 37th, respectively), and(66th), while health and hygiene standards (89th) andits policy environment is supportive of the developmentICT infrastructure (47th) struggle to keep up with rapid of the sector (ranked 28th). Mauritius also benefits frompopulation growth. Also its limited natural resourceshigh marks for safety and security (36th). However,(129th) and environmental sustainability (103rd) do notthe country has seen its price competitiveness declinehelp the country to attract tourists.significantly (ranked 75th, down from 18th in the last assessment)primarily the result of increasing hotel andSub-Saharan Africa fuel prices and high ticket taxes and airport charges.Table 6 shows the results for the sub-Saharan region Additionally, in terms of challenges, the countryswhich sees the Seychelles entering the rankingsenvironmental sustainability has received a weakenedfor the first time at the top of the region, and 38thassessment, of particular concern given the importanceoverall. The importance of Travel & Tourism for theof the natural environment for the countrys leisurecountrys economy is reflected in its top ranking for thetourism.prioritization of the industry, with the 2nd highest T&TSouth Africa is ranked 3rd in the region andexpenditureto-GDP ratio in the world and effective64th overall, gaining two places since the last edition.marketing and branding campaigns. These effortsSouth Africa comes in high at 17th place for its naturalare reinforced by a strong national affinity for Travel &resources and 58th for its cultural resources, basedTourism (5th); good tourism infrastructure, especially on its many World Heritage sites, its rich fauna, itsin terms of available hotel rooms (6th); and goodcreative industries, and the many international fairs andground and air transport infrastructures, particularly byexhibitions held in the country. Infrastructure in Southregional standards (31st and 27th, respectively). TheseAfrica is also well developed for the region, with airpositive attributes somewhat make up for its relativetransport infrastructure ranked 43rd and a particularlylack of price competitiveness (120th). Although thegood assessment of railroad quality (46th) and road The Travel & Tourism Competitiveness Report 2013 | xxv 2013 World Economic Forum 27. Executive SummaryTable 6: The Travel & Tourism Competitiveness Index 2013: Sub-Saharan Africa SUBINDEXES T&T regulatoryBusiness environment T&T human, cultural, OVERALL INDEX frameworkand infrastructureand natural resources RegionalOverallCountry/Economyrank rankScore RankScoreRankScoreRankScoreSeychelles 1384.51 474.94 424.35 484.26Mauritius2584.28 325.16 554.04 933.65South Africa 3644.13 814.44 593.93 574.03Cape Verde 4873.87 794.45 663.721073.45Namibia5913.77 894.30 703.621153.38Gambia, The6923.73 724.50 933.271113.43Botswana 7943.71 844.38 913.311123.43Kenya8963.661083.98 1052.98604.01Rwanda 91053.56 784.461172.74 1043.49Senegal 101073.491113.911132.84883.71Zambia111083.461024.111222.69983.60Tanzania121093.461183.671252.68594.02Uganda131163.391163.711212.70793.76Ghana 141173.381133.861082.94 1173.35Zimbabwe151183.331173.671162.76 1013.56Swaziland 161193.311074.021062.96 1352.94Ethiopia171203.291223.601272.65973.61Cameroon181213.271233.581242.68 1023.56Malawi191243.221153.771352.48 1133.43Mozambique201253.171213.641202.72 1303.15Cte dIvoire 211263.151333.311182.73 1143.41Nigeria 221273.141353.261142.83 1183.33Burkina Faso231283.121203.641342.55 1293.16Mali241293.111283.451292.61 1213.28Benin 251303.091273.461302.61 1263.20Madagascar261313.091323.331192.73 1273.20Lesotho 271352.891263.461322.60 1392.62Guinea281362.881363.241372.38 1343.03Sierra Leone291372.871293.431382.36 1372.81Burundi 301382.821303.401392.33 1382.73Chad311392.611392.901402.11 1362.82quality (42nd). Overall, policy rules and regulations are airport charges (105th), which have diminished its priceconducive to the sectors development (ranked 29th); this competitiveness.is an area where the country has improved steadily over Namibia reaches 5th place the regional rankings,the past few assessments, with well-protected propertycoming in at 91st overall. The country benefits from itsrights and few visa requirements for visitors. Indeed,rich natural resources, with rich fauna and a pristinetourism continues to be one of the five priority sectorsnatural environment. Indeed, environmental sustainab