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The Travel & Tourism Competitiveness Report 2011 Beyond the Downturn Jennifer Blanke, World Economic Forum Thea Chiesa, World Economic Forum

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The Travel & Tourism Competitiveness Report 2011 is published by the World Economic Forum within the framework of the Centre for Global Competitiveness and Performance and the Industry Partnership Programme for Aviation, Travel & Tourism.

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  • 1.The Travel & TourismCompetitiveness Report 2011Beyond the DownturnJennifer Blanke, World Economic ForumThea Chiesa, World Economic Forum

2. World Economic ForumGeneva, Switzerland 2011The Travel & TourismCompetitiveness Report 2011Beyond the DownturnJennifer Blanke, World Economic ForumThea Chiesa, World Economic ForumEditorsThe full version of the Report with Country Profiles and Data Tables is available at www.weforum.org/ttcrThe Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 3. The Travel & Tourism Competitiveness World Economic ForumReport 2011 is published by the WorldGenevaEconomic Forum within the framework ofthe Centre for Global Competitiveness and Copyright 2011Performance and the Industry Partnershipby the World Economic ForumProgramme for Aviation, Travel & Tourism.All rights reserved. No part of this publicationProfessor Klaus Schwabmay be reproduced, stored in a retrievalExecutive Chairmansystem, or transmitted, in any form or by anymeans, electronic, mechanical, photocopying,Robert Greenhillor otherwise without the prior permission ofChief Business Officerthe World Economic Forum.ISBN-13: 978-92-95044-96-8EDITORSThis book is printed on paper suitable forJennifer Blanke, Director, Lead Economist,recycling and made from fully managed andHead of the Centre for Globalsustained forest sources.Competitiveness and PerformanceThea Chiesa, Associate Director, Head ofPrinted and bound in Switzerland by SRO-Kundig.Aviation, Travel & TourismCENTRE FOR GLOBAL COMPETITIVENESS AND PERFORMANCECiara Browne, Associate DirectorRoberto Crotti, Junior QuantitativeEconomistMargareta Drzeniek Hanouz, Director,Senior EconomistThierry Geiger, Associate Director,EconomistSatu Kauhanen, CoordinatorIrene Mia, Director, Senior EconomistPearl Samandari, Community ManagerWe thank Hope Steele for her superb editingwork and Neil Weinberg for his excellentgraphic design and layout.The terms country and nation as used in thisreport do not in all cases refer to a territorialentity that is a state as understood by inter-national law and practice. The terms coverwell-defined, geographically self-containedeconomic areas that may not be states butfor which statistical data are maintained on aseparate and independent basis.The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 4. ContentsPartner Institutesv1.7 Green Growth, Travelism, and the Pursuit 77 of Happiness by Geoffrey Lipman, Beyond Tourism, and Shaun Vorster,PrefacexiMinistry of Tourism, South Africaby Robert Greenhill, World Economic Forum 1.8 A New Big Plan for Nature: Opportunities 81Executive Summary xiii for Travel & Tourismby Jennifer Blanke and Thea Chiesa, World Economic Forum by Julia Marton-Lefvre and Maria Ana Borges, International Union for Conservation of Nature (IUCN) 1.9 Assessing the Openness of Borders89 by Thea Chiesa, Sean Doherty, and Margareta DrzeniekPart 1: Selected Issues of T&T Competitiveness1Hanouz, World Economic Forum1.1 The Travel & Tourism Competitiveness Index 2011:3Assessing Industry Drivers in the Wake of the Crisisby Jennifer Blanke and Thea Chiesa, World Economic Forum Part 2: Country/Economy Profiles and Data101 Presentation1.2 Crisis Aftermath: Pathways to a More Resilient 35Travel & Tourism Sectorby Jrgen Ringbeck and Timm Pietsch, Booz & Company2.1 Country/Economy Profiles 103 How to Read the Country/Economy Profiles ..............................105by Roberto Crotti1.3 Tourism Development in Advanced and Emerging 45List of Countries/Economies .......................................................107Economies: What Does the Travel & TourismCountry/Economy Profiles ...........................................................108Competitiveness Index Tell Us?by John Kester and Valeria Croce, World Tourism Organization(UNWTO)2.2 Data Tables387 How to Read the Data Tables......................................................389 Index of Data Tables ....................................................................3911.4 Premium Air Travel: An Important Market53Data Tables ..................................................................................393Segmentby Selim Ach and Brian Pearce, International Air TransportAssociation (IATA) Technical Notes and Sources 4871.5 Hospitality: Emerging from the Crisis61About the Authors 493by Alex Kyriakidis, Simon Oaten, and Jessica Jahns, Deloitte,Tourism, Hospitality & Leisure Acknowledgments 4971.6 Investment: A Key Indicator of Competitiveness 69in Travel & Tourismby Nancy Cockerell, World Travel & Tourism Council,and David Goodger, Oxford EconomicsThe Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 5. The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 6. Partner InstitutesPartner InstitutesThe World Economic Forums Centre for GlobalBangladeshCentre for Policy Dialogue (CPD)Competitiveness and Performance is pleased toKhondaker Golam Moazzem, Senior Research Fellowacknowledge and thank the following organizations Kazi Mahmudur Rahman, Senior Research Associateas its valued Partner Institutes, without which the Mustafizur Rahman, Executive Directorrealization of The Travel & Tourism Competitiveness BarbadosReport 2011 would not have been feasible: Arthur Lewis Institute for Social and Economic Studies,University of West Indies (UWI)Albania Andrew Downes, DirectorInstitute for Contemporary Studies (ISB)Artan Hoxha, PresidentBelgiumElira Jorgoni, Senior ExpertVlerick Leuven Gent Management SchoolEndrit Kapaj, Junior Expert Priscilla Boairdi, Associate, Competence CentreEntrepreneurship, Governance and StrategyAlgeria Wim Moesen, ProfessorCentre de Recherche en Economie Applique Leo Sleuwaegen, Professor, Competence Centrepour le Dveloppement (CREAD) Entrepreneurship, Governance and StrategyYoucef Benabdallah, Assistant ProfessorYassine Ferfera, DirectorBenin Micro Impacts of Macroeconomic Adjustment PoliciesAngola (MIMAP) BeninMITC Investimentos Epiphane Adjovi, Business CoordinatorEstefania Jover, Senior AdviserMaria-Odile Attanasso, Deputy CoordinatorvPROPETROLServios PetroliferosFructueux Deguenonvo, ResearcherArnaldo Lago de Carvalho, Managing Partner Bosnia and HerzegovinaSouth Africa-Angola Chamber of Commerce (SA-ACC) MIT Center, School of Economics and Business in Sarajevo,Roger Ballard-Tremeer, Hon Chief Executive University of Sarajevo Zlatko Lagumdzija, ProfessorArgentina Zeljko Sain, Executive DirectorIAEUniversidad Austral Jasmina Selimovic, Assistant DirectorMara Elina Gigaglia, Project ManagerEduardo Luis Fracchia, Professor Botswana Botswana National Productivity CentreArmenia Letsogile Batsetswe, Research Consultant and StatisticianEconomy and Values Research Center Parmod Chandna, Acting Executive DirectorManuk Hergnyan, Chairman Phumzile Thobokwe, Manager, Information andSevak Hovhannisyan, Board Member and Senior Associate Research Services DepartmentGohar Malumyan, Research Associate BrazilAustralia Fundao Dom CabralAustralian Industry Group Marina Arajo, Economist and Researcher,Colleen Dowling, Senior Research Coordinator The Competitiveness and Innovation CenterNick James, Economist Carlos Arruda, Executive Director, International Board andHeather Ridout, Chief Executive Professor and Coordinator, The CompetitivenessAustriaand Innovation CenterAustrian Institute of Economic Research (WIFO) Arthur Kux, Economist and Research Assistant,Karl Aiginger, DirectorThe Competitiveness and Innovation CenterGerhard Schwarz, Coordinator, Survey DepartmentMovimento Brasil Competitivo (MBC)Azerbaijan Erik Camarano, Director PresidentAzerbaijan Marketing Society Ceclia Macedo, Economist and Senior Projects CoordinatorFuad Aliyev, Project Manager Nikelma Moura, Communications AssistantZaur Veliyev, Consultant Brunei DarussalamBahrainMinistry of Industry and Primary ResourcesBahrain Competitiveness Council, Bahrain EconomicPehin Dato Yahya Bakar, MinisterDevelopment BoardDayang Hajah Suriyah Haji Umar, Permanent Secretary INada Azmi, Manager, Economic Planning and DevelopmentDato Dr Amin Abdullah, Permanent Secretary IIJawad Habib, Senior Partner, BDO Jawad Habib BulgariaRima Al Kilani, Director, International MarketingCenter for Economic Development Anelia Damianova, Senior ExpertThe Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 7. Partner Institutes Burkina Faso Croatia lnstitut Suprieure des Sciences de la Population (ISSP),National Competitiveness Council University of OuagadougouMartina Hatlak, Research Assistant Samuel Kabore, Economist and Head of Development StrategyKresimir Jurlin, Research Fellow and Population ResearchMira Lenardic, General Secretary BurundiCyprus University Research Centre for Economic and Social Cyprus College Research Center Development (CURDES), National University of Burundi Bambos Papageorgiou, Head of Socioeconomic Richard Ndereyahaga, Head of CURDESand Academic Research Gilbert Niyongabo, Dean, Faculty of EconomicsThe Cyprus Development Bank & ManagementMaria Markidou-Georgiadou, Manager, International Cambodia Banking Services Unit and Business Development Economic Institute of CambodiaCzech Republic Sok Hach, PresidentCMC Graduate School of Business Poch Kongchheng, ResearcherTomas Janca, Executive Director CameroonDenmark Comit de Comptitivit (Competitiveness Committee)Department of Business Studies, Aalborg University Lucien Sanzouango, Permanent SecretaryBirgitte Gregersen, Associate Professor Canada Gert Villumsen, Associate Professor Institute for Competitiveness and ProsperityEcuador Tamer Azer, ResearcherESPAE Graduate School of Management, Roger Martin, Chairman and Dean of the Rotman Escuela Superior Politcnica del Litoral (ESPOL) School of Management, University of TorontoElizabeth Arteaga, Project Assistant James Milway, Executive DirectorVirginia Lasio, Acting Director Cape Verde Sara Wong, Professor INOVE RESEARCHInvestigao e Desenvolvimento, LdaEgypt Rosa Brito, Senior ResearcherThe Egyptian Center for Economic Studies Jlio Delgado, Partner and Senior ResearcherOmneia Helmy, Deputy Director of Research and Frantz Tavares, Partner and Chief Executive OfficerLead Economist Chad Magda Kandil, Executive Director and Director of Research Groupe de Recherches Alternatives et de Monitoring Malak Reda, Senior Economistvi du Projet Ptrole-Tchad-Cameroun (GRAMP-TC)Estonia Antoine Doudjidingao, ResearcherEstonian Institute of Economic Research Gilbert Maoundonodji, DirectorEvelin Ahermaa, Head of Economic Research Sector Celine Nnodji Mbaipeur, Programme OfficerMarje Josing, Director ChileEstonian Development Fund Universidad Adolfo IbezKitty Kubo, Head of Foresight Fernando Larrain Aninat, Director of the Master in ManagementOtt Prna, Chief Executive Officer and Public Policy, School of Government Camila Chadwick, Project Coordinator Ethiopia Leonidas Montes, Dean, School of GovernmentAfrican Institute of Management, Development andGovernance ChinaTegegne Teka, General Manager Institute of Economic System and Management National Development and Reform Commission Finland Zhou Haichun, Deputy Director and ProfessorETLAThe Research Institute of the Finnish Economy Chen Wei, Research FellowPetri Rouvinen, Research Director Dong Ying, Professor Pasi Sorjonen, Head of the Forecasting GroupPekka Yl-Anttila, Managing Director China Center for Economic Statistics Research, Tianjin University of Finance and EconomicsFrance Lu Dong, Professor HEC School of Management, Paris Jian Wang, Associate Professor Bertrand Moingeon, Professor and Deputy Dean Hongye Xiao, Professor Bernard Ramanantsoa, Professor and Dean Bojuan Zhao, ProfessorGambia, The Huazhang Zheng, Associate ProfessorGambia Economic and Social Development Research ColombiaInstitute (GESDRI) National Planning Department Makaireh A. Njie, Director Alvaro Edgar Balcazar, Entrepreneurial Development DirectorGeorgia Carolina Rentera Rodrguez, General DirectorBusiness Initiative for Reforms in Georgia Mauricio Torres Velsquez, AdvisorTamara Janashia, Executive Director Colombian Council of Competitiveness Giga Makharadze, Founding Member of the Board of Directors Hernando Jos Gomez, President Mamuka Tsereteli, Founding Member of the Board of Directors Cte dIvoireGermany Chambre de Commerce et dIndustrie de Cte dIvoireWHUOtto Beisheim School of Management, Vallendar Jean-Louis Billon, President Ralf Fendel, Professor of Monetary Economics Jean-Louis Giacometti, Technical Advisor to the PresidentMichael Frenkel, Professor, Chair of Macroeconomics Mamadou Sarr, Director General and International EconomicsThe Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 8. Partner InstitutesGhana ItalyAssociation of Ghana Industries (AGI) SDA Bocconi School of ManagementPatricia Djorbuah, Projects Officer Secchi Carlo, Full Professor of Economic Policy,Cletus Kosiba, Executive DirectorBocconi UniversityNana Owusu-Afari, President Paola Dubini, Associate Professor, Bocconi UniversityFrancesco A. Saviozzi, SDA Assistant Professor,GreeceStrategic and Entrepreneurial Management DepartmentSEV Hellenic Federation of EnterprisesMichael Mitsopoulos, Coordinator, JamaicaResearch and Analysis Mona School of Business (MSB), The University ofThanasis Printsipas, Economist, the West IndiesResearch and Analysis Patricia Douce, Project AdministratorEvan Duggan, Executive Director and ProfessorGuatemalaWilliam Lawrence, Director, Professional Services UnitFUNDESAEdgar A. Heinemann, President of the Board of Directors JapanPablo Schneider, Economic DirectorHitotsubashi University, Graduate School of InternationalJuan Carlos Zapata, General Manager Corporate Strategy (ICS) in cooperation with KeizaiDoyukai Keizai (Japan Association of Corporate Executives)GuyanaYoko Ishikura, ProfessorInstitute of Development Studies, University of GuyanaKiyohiko Ito, Managing Director, Keizai DoyukaiKaren Pratt, Research AssociateClive Thomas, DirectorJordanMinistry of Planning & International CooperationHong Kong SARJordan National Competitiveness TeamHong Kong General Chamber of CommerceHiba Abu Taleb, Primary ResearcherDavid ORear, Chief EconomistMaher Al Mahrouq, Team Leader and Director of PoliciesFederation of Hong Kong Industriesand Studies DepartmentAlexandra Poon, DirectorKawther Al-Zoubi, Primary ResearcherThe Chinese General Chamber of Commerce KazakhstanJSC National Analytical Centre of the Government andHungarythe National Bank of the Republic of KazakhstanKOPINT-TRKI Economic Research Ltd.Ayana Manasova, Chairpersongnes Nagy, Project ManagerAibek Baisakalov, Project Managerva Palcz, Chief Executive OfficerIcelandKenyaviiInstitute for Development Studies, University of NairobiInnovation Center IcelandMohamud Jama, Director and Associate ProfessorKarl Fridriksson, Managing Director ofPaul Kamau, Research FellowHuman Resources and MarketingDorothy McCormick, Associate ProfessorRosa Gisladottir, Marketing ManagerThorsteinn I. Sigfusson, Director Korea, Republic ofCollege of Business School, Korea Advanced Institute ofIndiaScience and Technology KAISTConfederation of Indian Industry (CII)Ingoo Han, Senior Associate Dean and ProfessorChandrajit Banerjee, Director GeneralRavi Kumar, Dean and ProfessorTarun Das, Chief MentorYoujin Sung, Manager, Exchange ProgrammeVirendra Gupta, Head, International and Trade FairsKuwaitIndonesiaKuwait National Competitiveness CommitteeCenter for Industry, SME & BusinessAdel Al-Husainan, Committee MemberCompetition Studies, University of TrisaktiFahed Al-Rashed, Committee ChairmanTulus Tambunan, Professor and DirectorSayer Al-Sayer, Committee MemberIran, Islamic Republic ofKyrgyz RepublicThe Centre for Economic Studies and Surveys (CESS),Economic Policy Institute Bishkek Consensus Iran Chamber of Commerce, Industries and MinesLola Abduhametova, Program CoordinatorHammed Roohani, DirectorMarat Tazabekov, ChairmanIrelandLatviaCompetitiveness Survey Group, Department of Economics,Institute of Economics, Latvian Academy of Sciences University College CorkHelma Jirgena, DirectorEleanor Doyle, Professor, Department of EconomicsIrina Curkina, ResearcherNiall OSullivanBernadette PowerLebanonNational Competitiveness CouncilBader Young Entrepreneurs ProgramAdrian Devitt, ManagerAntoine Abou-Samra, Managing DirectorCaoimhe Gavin, Policy Advisor Hiba Zunji, AssistantIsraelLesothoManufacturers Association of Israel (MAI)Mohloli Chamber of BusinessShraga Brosh, President LibyaDan Catarivas, Director National Economic Development BoardYehuda Segev, Managing Director Entisar Elbahi, Director, Relations and Supported ServicesLithuaniaStatistics LithuaniaOna Grigiene, Head, Economical Survey DivisionAlgirdas emeta, Director General The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 9. Partner Institutes Luxembourg Moldova Chamber of Commerce of the Grand Duchy of Luxembourg Academy of Economic Studies of Moldova (AESM) Franois-Xavier Borsi, Attach, Economic DepartmentGrigore Belostecinic, Rector Carlo Thelen, Chief Economist, Member of the Managing BoardCentre for Economic Research (CER) Marc Wagener, Attach, Economic DepartmentCorneliu Gutu, Director Macedonia, FYRMongolia National Entrepreneurship and Competitiveness Council (NECC)Open Society Forum (OSF) Dejan Janevski, Project CoordinatorMunkhsoyol Baatarjav, Manager of Economic Policy Zoran Stavreski, President of the Managing BoardErdenejargal Perenlei, Executive Director Saso Trajkoski, Executive DirectorMontenegro MadagascarInstitute for Strategic Studies and Prognoses (ISSP) Centre of Economic Studies, University of AntananarivoMaja Drakic, Project Manager Ravelomanana Mamy Raoul, DirectorPetar Ivanovic, Chief Executive Officer Razato Rarijaona Simon, Executive SecretaryVeselin Vukotic, President MalawiMorocco Malawi Confederation of Chambers of Commerce and IndustryUniversit Hassan II, LASAARE Chancellor L. Kaferapanjira, Chief Executive OfficerFouzi Mourji, Professor of Economics MalaysiaMozambique Institute of Strategic and International Studies (ISIS)EconPolicy Research Group, Lda. Mahani Zainal Abidin, Chief ExecutivePeter Coughlin, Director Steven C.M. Wong, Senior Director, EconomicsDonaldo Miguel Soares, Researcher Malaysia Productivity Corporation (MPC)Ema Marta Soares, Assistant Mohd Razali Hussain, Director GeneralNamibia Lee Saw Hoon, Senior DirectorNamibian Economic Policy Research Unit (NEPRU) Mali Jacob Nyambe, Senior Researcher Groupe de Recherche en Economie Applique et Fanuel Tjingaete, Director Thorique (GREAT)Nepal Massa Coulibaly, CoordinatorCentre for Economic Development and MaltaAdministration (CEDA) Competitive MaltaFoundation for National CompetitivenessRamesh Chandra Chitrakar, Professor andviii Margrith Lutschg-Emmenegger, Vice PresidentCountry Coordinator Adrian Said, Chief Coordinator Bharat Pokharel, Project Director and Executive Director Caroline Sciortino, Research Coordinator Mahendra Raj Joshi, Member Mauritania Netherlands Centre dInformation Mauritanien pour le Dveloppement Erasmus Strategic Renewal Center, Economique et Technique (CIMDET/CCIAM) Erasmus University Rotterdam Khira Mint Cheikhnani, DirectorFrans A. J. Van den Bosch, Professor L Abdoul, Consultant and AnalystHenk W. Volberda, Professor Habib Sy, AnalystNew Zealand MauritiusBusiness New Zealand Joint Economic Council of MauritiusPhil OReilly, Chief Executive Raj Makoond, DirectorThe New Zealand Institute Board of InvestmentLisa Bailey, Executive Assistant Kevin Bessondyal, Assistant Director, Planning and PolicyRick Boven, Director Dev Chamroo, Director, Planning and PolicyNigeria Veekram Gowd, Senior Investment Advisor, PlanningNigerian Economic Summit Group (NESG) and PolicyFrank Nweke Jr., Director General Raju Jaddoo, Managing DirectorSam Ohuabunwa, Chairman Mexico Chris Okpoko, Research Director, Research Center for Intellectual Capital and CompetitivenessNorway Erika Ruiz Manzur, Executive DirectorBI Norwegian School of Management Ren Villarreal Arrambide, President andEskil Goldeng, Researcher Chief Executive OfficerTorger Reve, Professor Jess Zurita Gonzlez, General Director Instituto Mexicano para la Competitividad (IMCO) Oman Gabriela Alarcn Esteva, Economist The International Research Foundation Luis Csar Castaeda Valds, ResearcherSalem Ben Nasser Al-Ismaily, Chairman Manuel J. Molano Ruz, Deputy General Director Arabian Research Bureau Roberto Newell Garca, General DirectorGus Freeman, Managing Director Ministry of the EconomyMahir Al-Maskari, General Manager Paulo Esteban Alcaraz, Research Director, ProMxicoPakistan Trade & InvestmentCompetitiveness Support Fund Felipe Duarte Olvera, Undersecretary for CompetitivenessArthur Bayhan, Chief Executive Officer and StandardizationImran Naeem Ahmad, Communication Specialist Javier Prieto, Technical Secretary for CompetitivenessMaryam Jawaid, Communication Specialist Jose Antonio Torre, Head of the Business Intelligence Unit, ProMxico Trade & InvestmentThe Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 10. Partner InstitutesParaguay SingaporeCentro de Anlisis y Difusin de Economia Paraguaya (CADEP)Economic Development BoardDionisio Borda, Research MemberLim Hong Khiang, Director Planning 2Fernando Masi, DirectorChua Kia Chee, Head, Research and Statistics UnitMara Beln Servn, Research MemberCheng Wai San, Head, PlanningPeru Slovak RepublicCentro de Desarrollo Industrial (CDI), Sociedad Nacional Business Alliance of Slovakia (PAS)de IndustriasRobert Kicina, Executive DirectorNstor Asto, Project DirectorPeter Klatik, ResearcherLuis Tenorio, Executive Director Matej Tunega, ResearcherPhilippinesSloveniaMakati Business Club (MBC) in association with Institute for Economic ResearchManagement Association of the Philippines (MAP)Mateja Drnovek, Professor, Faculty of EconomicsAlberto A. Lim, Executive Director, MBCPeter Stanovnik, ProfessorArnold P. Salvador, Executive Director, MAPSonja Uri , Senior ResearcherMarc P. Opulencia, Deputy Director, MBCAles Vahc , Professor, Faculty of Economics icMichael B. Mundo, Chief Economist, MBC South AfricaPoland Business Leadership South AfricaEconomic Institute, National Bank of PolandFriede Dowie, DirectorMateusz Pipien, General Director Michael Spicer, Chief Executive OfficerPiotr Boguszewski, Advisor Business Unity South AfricaPortugal Simi Siwisa, DirectorPROFORUM, Associao para o DesenvolvimentoJerry Vilakazi, Chief Executive Officer da Engenharia SpainIldio Antnio de Ayala Serdio, Vice President of IESE Business School, International Center for Competitiveness the Board of Directors Antoni Subir, ProfessorFrum de Administradores de Empresas (FAE) Mara Luisa Blzquez, Research AssociatePaulo Bandeira, General Director Sri LankaPedro do Carmo Costa, Member of the Board of Directors Institute of Policy StudiesEsmeralda Dourado, President of the Board of Directors Ayodya Galappattige, Research OfficerPuerto RicoSaman Kelegama, Executive DirectorPuerto Rico 2000, Inc. Manoj Thibbotuwawa, Research OfficerixSuzette M. Jimenez, President SwazilandFrancisco Montalvo Fiol, Project Coordinator Federation of Swaziland Employers and Chamber of CommerceQatarZodwa Mabuza, Chief Executive OfficerQatari Businessmen Association (QBA) Sihle Fakude,Research AnalystIssa Abdul Salam Abu Issa, Secretary-General SwedenSarah Abdallah, Deputy General Manager Center for Strategy and Competitiveness,RomaniaStockholm School of EconomicsGroup of Applied Economics (GEA) Christian Ketels, Senior Research FellowLiviu Voinea, Executive Director rjan Slvell, ProfessorIrina Zgreaban, Program Coordinator SwitzerlandRussian Federation University of St. Gallen, Executive School of Management,Bauman InnovationTechnology and Law (ES-HSG)Alexei Prazdnitchnykh, Principal, Associate ProfessorBeat Bechtold, Communications ManagerKaterina Marandi, Consultant Alexander Jungmeister, Vice Executive Director Rubn Rodriguez Startz, Project ManagerStockholm School of Economics, RussiaIgor Dukeov, Area PrincipalSyriaCarl F. Fey, Associate Dean of ResearchMinistry of Economy and Trade Amer Housni Louitfi, Minister of Economy and TradeRwandaPrivate Sector FederationState Planning CommissionMolly Rwigamba, Acting Chief Executive Officer Tayseer Al-Ridawi, Head of State Planning CommissionEmmanuel Rutagengwa, Policy Analyst Syrian Enterprise Business Center (SEBC)Saudi Arabia Tamer Abadi, DirectorNational Competitiveness Center (NCC) Taiwan, ChinaAwwad Al-Awwad, President Council for Economic Planning and Development, Executive YuanKhaldon Mahasen, Vice President Liu, Y. Christina, MinisterSenegalHung, J. B., Director, Economic Research DepartmentCentre de Recherches Economiques Appliques (CREA),Shieh, Chung Chung, Researcher, Economic Research DepartmentUniversity of Dakar TajikistanDiop Ibrahima Thione, Director The Center for Sociological Research ZerkaloSerbia Qahramon Baqoev, DirectorCenter for Applied European Studies (CPES) Gulnora Beknazarova, ResearcherSrdjan Djurovic, DirectorAlikul Isoev, Sociologist and EconomistDusko Vasiljevic, Senior ResearcherThe Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 11. Partner Institutes Tanzania Vietnam Research on Poverty Alleviation (REPOA)Central Institute for Economic Management (CIEM) Joseph Semboja, Professor and Executive Director Dinh Van An, President Lucas Katera, Director, Commissioned ResearchPhan Thanh Ha, Deputy Director, Department of Cornel Jahari, Researcher, Commissioned Research DepartmentMacroeconomic ManagementPham Hoang Ha, Senior Researcher, Department of ThailandMacroeconomic Management Sasin Graduate Institute of Business Administration, Chulalongkorn University Institute for Development Studies in HCMC (HIDS) Pongsak Hoontrakul, Senior Research Fellow Nguyen Trong Hoa, Professor and President Toemsakdi Krishnamra, Director of SasinDu Phuoc Tan, Head of Department Piyachart Phiromswad, Faculty of Economics Trieu Thanh Son, Researcher Thailand Development Research Institute (TDRI) Zambia Somchai Jitsuchon, Research Director Institute of Economic and Social Research (INESOR), Chalongphob Sussangkarn, Distinguished FellowUniversity of Zambia Yos Vajragupta, Senior ResearcherMutumba M. Bull, DirectorPatricia Funjika, Staff Development Fellow Timor-LesteJolly Kamwanga, Coordinator East Timor Development Agency (ETDA) Jose Barreto Goncalves, Survey SupervisorZimbabwe Palmira Pires, DirectorGraduate School of Management, University of Zimbabwe David Wilkes, Survey Field Officer A. M. Hawkins, Professor Trinidad and TobagoBolivia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Arthur Lok Jack Graduate School of BusinessHonduras, Nicaragua, Panama Miguel Carillo, Executive Director INCAE Business School, Latin American Center for Harrylal Nirmala, Director, International Centre Competitiveness and Sustainable Development (CLACDS)Arturo Condo, Rector The Competitiveness CompanyMarlene de Estrella, Director of External Relations Rolph Balgobin, ChairmanLawrence Pratt, Director, CLACDS TunisiaVctor Umaa, Researcher and Project Manager, CLACDS Institut Arabe des Chefs dEntreprisesLatvia, Lithuania Majdi Hassen, Executive CounsellorStockholm School of Economics in Riga Chekib Nouira, PresidentKarlis Kreslins, Executive MBA Programme DirectorxTurkey Anders Paalzow, Rector TUSIAD Sabanci University Competitiveness Forum Dilek Cetindamar, Director and Professor Funda Kalemci, Project Specialist Uganda Kabano Research and Development Centre Robert Apunyo, Program Manager Delius Asiimwe, Executive Director Catherine Ssekimpi, Research Associate Ukraine CASE Ukraine, Center for Social and Economic Research Dmytro Boyarchuk, Executive Director Vladimir Dubrovskiy, Leading Economist United Arab Emirates Dubai Economic Council Gayane Afrikian, Director, Dubai Competitiveness Centre Khawla Belqazi, Special Projects Manager Emirates Competitiveness Council Abdullah Nasser Lootah,Secretary General Institute for Social and Economic Research (ISER), Zayed University Nico Vellinga, Professor United Kingdom LSE Enterprise Ltd, London School of Economics and Political Science Niccolo Durazzi, Project Administrator Robyn Klingler Vidra, Researcher Jane Lac, Project Manager Uruguay Universidad ORT Isidoro Hodara, Professor Venezuela CONAPRIVenezuelan Council for Investment Promotion Eduardo Porcarelli, Executive Director Litsay Guerrero, Manager, Economic AffairsThe Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 12. PrefacePrefaceROBERT GREENHILLChief Business Officer, World Economic ForumAfter two years during which the Travel & Tourism results can be used by all stakeholders to work together(T&T) sector faced a myriad of obstacles, it is now to improve the industrys competitiveness in theiremerging from the most difficult period in its recent national economies, thereby contributing to nationalhistory. The industry has faced not only the global growth and prosperity. It also allows countries to trackeconomic crisis and volatile oil prices, but also climatictheir progress over time in the various areas measured.disturbances, multiple security incidents, pandemics, and The full Report is downloadable fromstrikes among industry personnel. Following all these www.weforum.org/ttcr and contains detailed profilesshocks, the sector is now witnessing a gradual recovery,for each of the 139 economies featured in the study, aswith emerging markets leading the way. Indeed, after awell as an extensive section of data tables with globalsignificant contraction in 2009, international touristrankings covering over 70 indicators included in thearrivals picked up again in 2010 and have returned to TTCI. In addition, it includes insightful contributionstheir pre-crisis peak level. The World Travel & Tourism from a number of industry experts. These chaptersCouncil (WTTC) estimates that, from direct and indirect explore issues such as the impact of the recent economicactivities combined, the T&T sector now accounts for aand financial crisis on the tourism industry, the oppor-remarkable 9.2 percent of global GDP, 4.8 percent oftunities for increasing the sectors competitiveness, andworld exports, and 9.2 percent of world investment. the important role to be played by Travel & Tourism inThe T&T sector thus clearly remains a critical onethe emerging green economy. xifor the world economy, accounting for a significant share The Travel & Tourism Competitiveness Report 2011of global employment and also providing an importantcould not have been put together without the distin-opportunity for developing countries to move up the guished thinkers who have shared with us their knowledgevalue chain toward the production of higher-value-and experience. We are grateful to our Strategic Designadded services. In this context, an analysis of the T&T Partner Booz & Company, and our Data Partnerscompetitiveness of individual economies around theDeloitte, the International Air Transport Associationworld remains pertinent. This is the objective of this(IATA), the International Union for Conservation offourth edition of The Travel & Tourism CompetitivenessNature (IUCN), the World Tourism OrganizationReport (TTCR).(UNWTO), and the World Travel & Tourism CouncilThe World Economic Forum has for the past five(WTTC) for helping us to design and develop theyears engaged key industry and thought leaders throughTTCI and for providing much of the industry-relevantits Aviation, Travel & Tourism Industry Partnership data used in its calculation. We thank our IndustryProgramme to carry out an in-depth analysis of thePartners in this ReportAirbus, Bombardier, Etihad T&T competitiveness of economies around the world. Airways, Gulf Air, Hertz, Jet Airways, Jumeirah, Rolls- The aim is to provide a platform for multi-stakeholderRoyce, Silversea, SWISS, and Visafor their support in dialogue to ensure the development of strong and sus- this important venture. tainable national T&T industries capable of contributing We also wish to thank the editors of the Report, effectively to international economic development. TheJennifer Blanke and Thea Chiesa, for their energy theme of this edition of the TTCR, Beyond theand their commitment to the project. Appreciation Downturn, reflects the cautiously optimistic outlook goes to the members of the competitiveness team: and many complexities still facing the industry that must Ciara Browne, Roberto Crotti, Margareta Drzeniek be overcome to ensure strong sectoral growth goingHanouz, Thierry Geiger, Satu Kauhanen, Irene Mia, into the future.and Pearl Samandari. Finally, we would like to conveyAt the core of this years Report is the fourthour sincere gratitude to our network of 150 Partner edition of the Travel & Tourism Competitiveness Index Institutes worldwide, without whose hard work the (TTCI). The aim of the TTCI, which covers a recordannual administration of the Executive Opinion Survey 139 economies this year, is to provide a comprehensiveand this Report would not be possible. strategic tool for measuring the factors and policies that make it attractive to develop the T&T sector in different countries. By providing detailed assessments of the T&T environments in countries worldwide, the The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 13. The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 14. Executive SummaryExecutive SummaryThe Travel & Tourism (T&T) industry is slowly recover- ing from the economic downturn, with the strong recovery in emerging economies compensating some-JENNIFER BLANKE what for the still weaker mature markets in Europe andTHEA CHIESANorth America. In this context, this fourth edition ofWorld Economic Forum The Travel & Tourism Competitiveness Report is being released at a time when the industry is looking for ways to develop new market segments and attract new customers.Indeed, Travel & Tourism remains a critical eco- nomic sector worldwide, with the potential to provide economic growth and development internationally. A growing national T&T sector contributes to employment, raises national income, and can improve the balance of payments. Thus the sector is an important driver of growth and prosperity, and, particularly within develop- ing countries, it can also play a key role in poverty reduction.Although developing the T&T sector provides many benefits, numerous obstacles at the national level continue to hinder its development. In this context, five years ago the World Economic Forum, together with its Industry and Data Partners, embarked on a multi-year research effort aimed at exploring various issues related to the T&T competitiveness of countries around the world. This years Report is published under the theme Beyond the Downturn, which reflects the forward-xiii looking attitude of the sector as it aims to ensure strong growth going into the future. The Travel & Tourism Competitiveness Index Although developing the T&T sector provides many benefits, numerous obstacles at the national level continue to hinder its development. The Travel & Tourism Competitiveness Index (TTCI) aims to measure the many different regulatory and business- related issues that have been identified as levers for improving T&T competitiveness in countries around the world. Through detailed analysis of each pillar and subpillar of the Index, businesses and governments can address their particular challenges to the sectors growth.The TTCI has been developed within the context of the World Economic Forums Industry Partnership Programme for the Aviation, Travel & Tourism sector. The Index was developed in close collaboration with our Strategic Design Partner Booz & Company and Data Partners Deloitte, the International Air Transport Association (IATA), the International Union for Conservation of Nature (IUCN), the World Tourism Organization (UNWTO), and the World Travel & Tourism Council (WTTC). We have also received important feedback from a number of key companies that are Industry Partners in the effort, namely Airbus, Bombardier, Etihad Airways, Gulf Air, Hertz, Jet Airways, Jumeirah, Rolls-Royce, Silversea, SWISS, and Visa. The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 15. Executive SummaryThe TTCI aims to measure the factors and policies The table shows that Switzerland remains the top-ranked that make it attractive to develop the T&T sector in different country, a place it has held since the first edition of the countries. It is based on three broad categories of vari-Report. ables that facilitate or drive T&T competitiveness. TheseTables 26 show the rankings in a regional context, categories are summarized into the three subindexes of grouping countries into the following five regional the Index: (1) the T&T regulatory framework subindex;groups: Europe, the Americas, Asia Pacific (including (2) the T&T business environment and infrastructureCentral Asia), the Middle East and North Africa, and subindex; and (3) the T&T human, cultural, and natural sub-Saharan Africa. We discuss here a selection of countries resources subindex. The first subindex captures thosefrom each region to provide a sense of the results and elements that are policy related and generally under how they are interpreted at the national level. More the purview of the government; the second subindex countries are discussed in detail in Chapter 1.1. captures elements of the business environment and the hard infrastructure of each economy; and the third Europe subindex captures the softer human, cultural, and nat- Table 1 shows that many countries from Europe do very ural elements of each countrys resource endowments. well in the rankings, with all of the top 5 places takenEach of these three subindexes is composed in turnby European countries and 14 of the top 20 countries by a number of pillars of T&T competitiveness, of whichhailing from the region. Table 2 shows the rankings just there are 14 in all. These are:for European countries, with the first column showingthe rank within the region and the second column 1. Policy rules and regulationsshowing the overall rank out of all 139 economies 2. Environmental sustainabilityincluded in the Index this year. As the table shows, 3. Safety and security Switzerland is ranked 1st. Germany, France, Austria, 4. Health and hygieneSweden, the United Kingdom, and Spain follow as the 5. Prioritization of Travel & Tourismother countries among the top 10 overall. 6. Air transport infrastructureSwitzerland is a country rich in cultural and natural 7. Ground transport infrastructure resources, including an impressive number of Worldxiv8. Tourism infrastructureHeritage cultural and natural sites for a country of its 9. ICT infrastructuresize. A large percentage of the countrys land area is pro-10. Price competitiveness in the T&T industry tected and the natural environment is assessed as being11. Human resources among the most pristine in the world (ranked 5th). This12. Affinity for Travel & Tourism natural heritage is buttressed by a strong national focus13. Natural resources on environmental sustainability: Switzerland is ranked14. Cultural resources2nd overall on this pillar, based on strong and well-enforced environmental legislation and with a particularEach of the pillars is, in turn, made up of a numberfocus on developing the T&T sector sustainably. of individual variables. The dataset includes both SurveySwitzerland is not only an attractive leisure tourism data from the World Economic Forums annualdestination but is also an important business travel hub, Executive Opinion Survey, and quantitative data from with many international fairs and exhibitions held in publicly available sources, international organizations, the country each year. Staffing of the industry is facili- and T&T institutions and experts (for example, IATA, tated by the availability of qualified labor to work in IUCN, the UNWTO, WTTC, UNCTAD, and Travel & Tourism (ranked 2nd), perhaps not surprising UNESCO). The Survey is carried out among CEOsin a country with many of the best hotel management and top business leaders in all economies covered by our schools. Added to these strengths is Switzerlands excel- research; these are the people making the investmentlent ground transport infrastructure (ranked 5th), with decisions in their respective economies. The Survey top-quality roads and railroads and an excellent domes- provides unique data on many qualitative institutionaltic transport network. Also well assessed is the specific and business environment issues, as well as specific issues tourism infrastructure (ranked 8th), with readily available related to the T&T industry and the quality of thehotel rooms and automated teller machines (ATMs) for natural environment. The exact methodology underlying cash withdrawals. Such high-quality infrastructure makes the construction of the TTCI is described in Chapter 1.1. a tourists stay in the country easy and comfortable, an experience that is reinforced by the high level of general safety and security (ranked 2nd, just behind Finland). The Travel & Tourism Competitiveness IndexGermany is ranked 2nd out of all countries in rankings 2011 the TTCI, having moved up one place since the last Table 1 shows the overall rankings for the 139 countriesassessment and overtaking Austria. The country is char- included in this years TTCI, comparing this years acterized by abundant cultural resources, ranked 6th rankings with those from the 2009 edition of the Report.worldwide for its 32 World Heritage cultural sites, 2nd The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 16. Executive SummaryTable 1: Travel & Tourism Competitiveness Index 2011 and 2009 comparison20112009 20112009Country/Economy Rank/139 Score Rank/133 Country/EconomyRank/139 Score Rank/133Switzerland 15.68 1 Lebanon 704.03 n/aGermany 25.50 3 Albania 714.0190France35.41 4 Dominican Republic723.9967Austria 45.41 2 Georgia 733.9873Sweden55.34 7 Indonesia 743.9681United States 65.30 8 Egypt 753.9664United Kingdom75.3011 Macedonia, FYR763.9680Spain 85.29 6 Colombia773.9472Canada95.29 5 Morocco 783.9375Singapore105.2310 Trinidad and Tobago 793.9184Iceland115.1916 Vietnam 803.9089Hong Kong SAR125.1912 Sri Lanka 813.8778Australia135.15 9 Serbia823.8588Netherlands145.1313 Azerbaijan833.8576Luxembourg 155.0823 Namibia 843.8482Denmark165.0514 Ukraine 853.8377Finland175.0215 Guatemala 863.8270Portugal 185.0117 Ecuador 873.7996New Zealand195.0020 Honduras883.7983Norway 204.9819 Cape Verde893.77 n/aIreland214.9818 Armenia 903.7791Japan224.9425 Botswana913.7479Belgium234.9222 Gambia, The 923.7087Cyprus 244.8921 Kazakhstan933.7092Estonia254.8827 Philippines 943.6986Malta264.8829 Kuwait953.6895Italy274.8728 El Salvador 963.6894Barbados 284.8430 Bosnia and Herzegovina973.63 107Greece 294.7824 Guyana983.62 102United Arab Emirates 304.7833 Moldova 993.6093 xvCzech Republic 314.7726 Nicaragua1003.56 103Korea, Rep.324.7131 Mongolia 1013.56 105Slovenia 334.6435 Rwanda 1023.54 n/aCroatia344.6134 Kenya1033.5197Malaysia 354.5932 Senegal1043.49 101Montenegro 364.5652 Syria1053.4985Taiwan, China374.5643 Venezuela1063.46 104Hungary384.5438 Kyrgyz Republic1073.45 106China394.4747 Ghana1083.44 110Bahrain404.4741 Cambodia 1093.44 108Thailand 414.4739 Tanzania 1103.4298Qatar424.4537 Zambia 1113.40 100Mexico 434.4351 Nepal1123.37 118Costa Rica 444.4342 Algeria1133.37 115Puerto Rico454.4253 Iran, Islamic Rep. 1143.37 n/aIsrael 464.4136 Uganda 1153.36 111Tunisia474.3944 Swaziland1163.35 n/aBulgaria 484.3950 Bolivia1173.35 114Poland 494.3858 Tajikistan 1183.34 109Turkey 504.3756 Zimbabwe 1193.31 121Latvia 514.3648 Benin1203.30 120Brazil 524.3645 Malawi 1213.30 117Mauritius534.3540 Ethiopia 1223.26 123Slovak Republic544.3546 Paraguay 1233.26 122Lithuania554.3449 Libya1243.25 112Panama 564.3055 Pakistan 1253.24 113Chile574.2757 Cameroon 1263.18 125Uruguay584.2463 Madagascar 1273.18 116Russian Federation 594.2359 Mozambique 1283.18 124Argentina604.2065 Bangladesh 1293.11 129Oman 614.1868 Nigeria1303.09 128Saudi Arabia 624.1771 Cte dIvoire1313.08 130Romania634.1766 Burkina Faso 1323.06 126Jordan 644.1454 Mali 1333.05 119Jamaica654.1260 Timor-Leste1342.99 n/aSouth Africa 664.1161 Lesotho1352.95 132Brunei Darussalam674.0769 Mauritania 1362.85 127India684.0762 Burundi1372.81 131Peru 694.0474 Angola 1382.80 n/a(Contd.) Chad 1392.56 133 The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 17. Executive Summary Table 2: The Travel & Tourism Competitiveness Index 2011: Europe SUBINDEXEST&T business environment T&T human, cultural,OVERALL INDEXT&T regulatory framework and infrastructure and natural resources Country/EconomyRegional rank Overall rank Score Rank ScoreRank Score RankScore Switzerland115.681 5.99 15.5825.48 Germany225.50 12 5.67 25.5755.26 France 335.417 5.71 85.3595.18 Austria445.413 5.89125.1910 5.13 Sweden 555.34 11 5.67155.1585.21 United Kingdom 675.30 21 5.35115.2735.28 Spain785.29 22 5.34105.3265.22 Iceland8 115.192 5.90 65.3641 4.31 Netherlands9 145.13 16 5.50185.1016 4.78 Luxembourg 10155.08 14 5.51 75.3538 4.37 Denmark11165.05 15 5.51165.1126 4.53 Finland12175.025 5.74304.7525 4.55 Portugal 13185.01 19 5.47244.8417 4.73 Norway 14204.988 5.71264.7932 4.45 Ireland15214.98 10 5.68234.8837 4.37 Belgium16234.92 18 5.48354.6620 4.64 Cyprus 17244.89 23 5.33145.1544 4.19 Estonia18254.88 17 5.50195.0950 4.06 Malta19264.889 5.69224.9354 4.02 Italy20274.87 45 5.00274.7915 4.83 Greece 21294.78 34 5.11294.7529 4.48 Czech Republic 22314.77 26 5.26374.5631 4.48 Slovenia 23334.64 29 5.19334.7053 4.03 Croatia24344.61 42 5.02364.5843 4.23 Montenegro 25364.56 32 5.15494.1536 4.38xviHungary26384.54 24 5.29454.2848 4.06 Bulgaria 27484.39 54 4.79444.3251 4.05 Poland 28494.38 49 4.86653.8130 4.48 Turkey 29504.37 66 4.58554.0228 4.50 Latvia 30514.36 38 5.07394.3683 3.66 Slovak Republic31544.35 39 5.05573.9652 4.04 Lithuania32554.34 33 5.14464.2185 3.66 Russian Federation 33594.23 73 4.49534.0745 4.15 Romania34634.17 51 4.85663.8066 3.84 Albania35714.01 53 4.79913.3061 3.93 Georgia36733.98 35 5.11943.2192 3.62 Macedonia, FYR 37763.96 56 4.78783.4993 3.62 Serbia 38823.85 67 4.57843.3994 3.60 Ukraine39853.83 64 4.63763.53 118 3.33 Armenia40903.77 58 4.75 1003.09 107 3.47 Bosnia and Herzegovina 41973.63 92 4.24973.14 103 3.49 Moldova42993.60 68 4.57983.11 129 3.12 for the number of international fairs and exhibitionstourists with its rich cultural heritage (ranked 4th for held in the country, and 3rd for its creative industries.the number of World Heritage cultural sites and 7th The countrys infrastructure is among the best in thefor creative industries). The country also hosts many world, ranked 3rd for the quality of its ground transportinternational fairs and exhibitions (ranked 5th), thereby infrastructure and 7th for its air transport infrastructure. attracting business travelers as well. Frances ground In addition, Germany makes great efforts to develop thetransport infrastructure is among the best in the world T&T industry in a sustainable way, with the worlds(ranked 4th), with the quality of roads and railroads most stringent and best-enforced environmental regula- particularly well assessed, as well as its air transport infra- tions and strong support of international environmentalstructure (ranked 6th). Ensuring that the sector is devel- efforts, as demonstrated through its ratification of manyoped in a sustainable way is also a significant priority for international environmental treaties.the government, with France ranked 9th on this pillar.France moves up this year by one place to 3rdAustria drops by two positions this year, although position, also overtaking Austria. France attracts the country is still ranked a high 4th out of all 139The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 18. Executive Summaryeconomies. Its ranking is attributable to its rich culturalfairs and exhibitions, and rich creative industries, Italysresources, with eight World Heritage cultural sites, richstrengths lie in areas such as the health and hygiene ofcreative industries, and many fairs and exhibitions cater- the country (27th), its air transport infrastructure (30th),ing to business travelers. The natural environment is also and especially its excellent tourism infrastructurewell assessed, along with the countrys focus on environ-(ranked 1st). However, it faces a number of challengesmental sustainability (ranked 5th). In addition, Austrians that bring its overall rating down. These include policyare perceived as open and welcoming to foreign travel- rules and regulations, where Italy ranks 84th (consistentlyers. Austrias tourism infrastructure is assessed as secondgetting worse over the past few years) because of itsto none, with abundant car rental facilities, hotel accom- lack of foreign ownership (ranked 112th) and its lack ofmodations, and ATMs. Other strengths include Austrias transparency in government policymaking (119th). Inassessment as one of the safest countries in the world addition, ground transport infrastructure requires upgrad-(ranked 10th) and its excellent health and hygiene levelsing, there is insufficient focus on developing the sector(ranked 3rd).in an environmentally sustainable way, and the country Sweden joins the top five countries for the first continues to suffer from a lack of price competitiveness.time, having improved by two places since the 2009 T&T Greece is ranked 21st in Europe and 29th overall,Report. The country is ranked 1st out of all countries indown by five positions since the last assessment. Thethree key areas that span the three subindexes of thecountry benefits from rich cultural resources (rankedTTCI: environmental sustainability, ICT infrastructure,25th), excellent health and hygiene (ranked 20th overall),and cultural resources. The countrys supportive policyand a top-notch tourism infrastructure (5th). Further,environment (ranked 8th), excellent safety and securitythere is a strong national affinity for tourism comparedenvironment (7th), and excellent air transport infrastruc- with many other European countries, including a gener-ture (10th) contribute to this strong result and help theally open and positive attitude toward tourists (26th). Thecountry to overcome its lack of price competitivenessdecline in rank can be traced to factors such as a weaker(ranked 120th).policy environment and increased concerns about safety The United Kingdom moves up by an impressiveand security, as well as a lower prioritization of Travel &four positions since the last edition of the Report to reach Tourism within the country (perhaps not surprising given7th place this year. The countrys T&T competitiveness the countrys recent more general economic travails). xviiis based on its excellent cultural resources (ranked 3rd),strong human resources (ranked 8th), and solid ICT The Americasand air transport infrastructures (ranked 9th and 5th, Table 3 shows the regional rankings for the countries in respectively). The country also benefits from a support-the Americas. As this table shows, the United States is ive policy environment as well as significant focus onthe highest-ranked country in the Americas and 6th out environmental sustainability. Its rise in rank since the last of all countries, up two positions from the last assessment assessment is driven largely by greater safety and securi-and with a somewhat stable performance since the TTCI ty, a greater affinity for Travel & Tourism in the country, was conceived. The country places 3rd for its overall and more competitive prices, particularly hotel prices. business environment and infrastructure and 1st for its Spain is ranked behind the United Kingdom human, cultural, and natural resources. In particular, the within Europe, falling two places to 8th position. TheUnited States has an excellent air transport infrastructure country is ranked 2nd worldwide for the richness of its (ranked 2nd) and high-quality tourism infrastructure. Its cultural resources, with many World Heritage sites, a cultural resources are ranked 6th and its natural resources large number of international fairs and exhibitions, andare ranked 3rd out of all countries, with many nationally a significant sports stadium capacity. Spains tourismprotected areas and many World Heritage natural sites, infrastructure is ranked 8th internationally, with many although a perception exists that the environment is not hotel rooms, car rental facilities, and ATMs, and its air being sufficiently protected (ranked 105th for environ- transport infrastructure also gets good marks (ranked mental sustainability). 8th). The government prioritizes the sector significantly,Canada falls four places this year to 9th overall and taking great care to collect comprehensive and timely 2nd in the region. Canadas natural resources constitute a data on the T&T sector, and the country makes strongkey strength, with the countrys nine World Heritage efforts to attract tourists through solid destination-natural sites placing it 4th internationally. Its cultural marketing campaigns and by ensuring Spains presenceresources are also a strong point, with many international at many international tourism fairs. Spains decline in fairs and exhibitions in the country and strong creative rank is driven in large part by increased concerns aboutindustries in particular. Canadas air transport infrastructurethe availability of qualified labor and a comparativeis ranked 1st out of all countries, and it also gets goodweakening of some aspects of the policy environment. marks for its tourism and ICT infrastructure, facilitating Italy moves up by one position to 27th overall, the online T&T environment. Canadas policy environ-and is ranked 20th in Europe. As well as its culturalment is very conducive to the development of the sectorrichness, with many World Heritage Sites, international(ranked 4th, up one place since the 2009 T&T Report).The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 19. Executive Summary Table 3: The Travel & Tourism Competitiveness Index 2011: The Americas SUBINDEXEST&T business environment T&T human, cultural, OVERALL INDEXT&T regulatory frameworkand infrastructure and natural resourcesCountry/EconomyRegional rank Overall rank ScoreRank ScoreRank Score RankScoreUnited States 16 5.30 445.01 35.4215.48Canada29 5.29 255.28 55.3875.21Barbados3 28 4.84 205.45214.9947 4.07Mexico4 43 4.43 744.48613.9113 4.90Costa Rica5 44 4.43 474.92583.9533 4.43Puerto Rico 6 45 4.42 405.05384.5588 3.65Brazil7 52 4.36 804.40753.5511 5.13Panama8 56 4.30 524.84524.0857 3.97Chile 9 57 4.27 484.91563.9962 3.89Uruguay10 58 4.24 305.19713.6260 3.93Argentina11 60 4.20 724.51703.6635 4.41Jamaica12 65 4.12 554.79593.9387 3.65Peru 13 69 4.04 874.30823.4034 4.42Dominican Republic 14 72 3.99 634.66693.6689 3.65Colombia 15 77 3.941024.17923.3039 4.36Trinidad and Tobago16 79 3.911004.18514.13 111 3.42Guatemala17 86 3.821034.08813.4058 3.96Ecuador18 87 3.79 934.24933.2664 3.87Honduras 19 88 3.79 904.27803.4177 3.68El Salvador20 96 3.68 844.35793.49 124 3.19Guyana 21 98 3.62 914.25993.10 102 3.50Nicaragua22100 3.561053.99 1043.0384 3.66Venezuela23106 3.461203.67963.1599 3.55Bolivia24117 3.351333.36 1112.8767 3.82Paraguay 25123 3.261073.95 1222.72 130 3.11xviii Note: Suriname is not covered this year. Barbados is ranked 3rd in the region, at 28th over- insufficient heath and hygiene (ranked 64th), and safety all, up two places since the last assessment. Barbados is and security concerns, ranked 128th. ranked 2nd overall for the countrys affinity for Travel & Costa Rica is ranked 5th in the region and 44th Tourism, with a positive attitude toward tourists and overall. The country gets excellent marks for its natural toward the value of tourism in the country. The country resources (ranked 6th), with several World Heritage sites, is prioritizing the sector to a very high degree (rankeda high percentage of nationally protected areas, and its 3rd), spending a high percentage of GDP on the sector,very diverse fauna. Given the importance of the natural ensuring effective destination-marketing campaigns, and environment for the countrys tourism industry, it is collecting relevant sector data on a timely basis. Increasednotable that it ranks a high 25th overall for environmental efforts toward environmental sustainability would further sustainability, an area where it has continued to improve reinforce the countrys strong T&T competitiveness. over the past few years. However, health and hygiene Mexico has improved by eight places and is nowremains a concern (74th). Further, although its tourism ranked 4th in the region and 43rd overall, overtaking infrastructure is relatively well developed (39th), with Costa Rica and Brazil since the last assessment. Mexico a strong presence of major car rental companies and gets impressive marks for its natural resources (ranked abundant hotel rooms, ground transport infrastructure 10th), an area that shows an improvement since the last requires significant upgrading (93rd), particularly roads and assessment, with many World Heritage natural sites andports, making travel in the country somewhat difficult. rich fauna. The countrys cultural resources are alsoBrazil is ranked 7th in the Americas and 52nd among the best in the world (19th), with 33 World overall, declining by seven places since the last assess- Heritage cultural sites, several international fairs andment but with a stable score. The country is ranked 1st exhibitions, and strong creative industries. These inher- out of all countries for its natural resources and 23rd for ent strengths are reinforced by the overall prioritizationits cultural resources, with many World Heritage sites, a of the sector in the country (30th), with effective mar-great proportion of protected land area, and the richest keting and branding campaigns for attracting tourists fauna in the world. This is buttressed by a focus on envi- and significant efforts to collect T&T sector data in a ronmental sustainability (ranked 29th), an area that has comprehensive and timely manner. Some areas requiring been improving over recent years. Safety and security attention are the ground transport infrastructure (79th), has also improved impressively since the last assessment. The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 20. Executive SummaryTable 4: The Travel & Tourism Competitiveness Index 2011: Asia PacificSUBINDEXES T&T business environment T&T human, cultural, OVERALL INDEXT&T regulatory framework and infrastructure and natural resourcesCountry/EconomyRegional rank Overall rank ScoreRank Score Rank Score RankScoreSingapore 1 10 5.2365.7245.3923 4.59Hong Kong SAR 2 12 5.1945.80 135.1924 4.59Australia 3 13 5.15 365.08 175.1145.28New Zealand 4 19 5.00 135.60 254.8022 4.60Japan 5 22 4.94 275.24 324.7214 4.86Korea, Rep. 6 32 4.71 504.86 284.7627 4.53Malaysia7 35 4.59 604.71 404.3518 4.72Taiwan, China 8 37 4.56 464.95 314.7355 4.00China 9 39 4.47 714.52 643.8412 5.06Thailand 10 41 4.47 774.45 434.3221 4.64Brunei 11 67 4.07 964.20 504.1463 3.87India12 68 4.071143.84 683.7119 4.65Indonesia13 74 3.96 944.21 863.3340 4.35Vietnam14 80 3.90 894.28 893.3146 4.12Sri Lanka15 81 3.87 794.41 833.4068 3.81Azerbaijan 16 83 3.85 594.72 873.33 105 3.49Kazakhstan 17 93 3.70 654.59 883.32 123 3.19Philippines18 94 3.69 984.18 953.1875 3.69Mongolia 19101 3.56 974.201122.8286 3.65Kyrgyz Republic20107 3.45 954.211322.59 100 3.54Cambodia 21109 3.441103.921182.7381 3.67Nepal22112 3.371063.971282.62 101 3.52Tajikistan 23118 3.34 884.281302.60 128 3.13Pakistan 24125 3.241293.451023.06 122 3.21Bangladesh 25129 3.111303.451132.82 131 3.05Timor-Leste26134 2.991233.641382.42 134 2.90xixOn the other hand, the ground transport networkboth its transport and tourism infrastructures and by aremains underdeveloped (116th), with the quality ofgreater focus on developing the industry in a moreroads, ports, and railroads requiring improvements. Theenvironmentally sustainable way.country also continues to suffer from a lack of pricecompetitiveness (114th), attributable in part to highAsia Pacificticket taxes and airport charges in the country, as well asTable 4 displays the regional rankings and data for thehigh prices and high taxation more generally. Further, Asia Pacific region. As the table shows, Singapore is thethe overall policy environment is not particularly con-top-ranked country in the region at 10th position, theducive to the development of the sector (ranked 114th),same position it held in the last edition of the Report.with discouraging rules on FDI, much time required for Singapore benefits from excellent transport infrastruc-starting a business, and somewhat restrictive commit-ture, with ground transport infrastructure and air trans-ments to opening up tourism services under GATSport infrastructure ranked 2nd and 14th, respectively.commitments. Singapore is ranked 2nd for the quality of its humanChile is ranked 9th in the region and 57th overall,resources available to work in the country. And with themaintaining a very stable performance since the last countrys famously well-functioning public institutions,assessment. It has notable cultural resources, with sixit is perhaps not surprising that it ranks 1st out of allWorld Heritage cultural sites and several internationalcountries for its policy environment, with rules andfairs and exhibitions held in the country. In addition,regulations that are extremely conducive to the develop-policy rules and regulations are conducive to the devel- ment of its T&T industries (policies facilitating foreignopment of the T&T sector (12th), with few foreignownership and FDI, well-protected property rights, andownership restrictions, a liberal visa regime, and openfew visa restrictions). Further, Singapore is among thebilateral Air Service Agreements, although the time andsafest countries of all assessed and is ranked 2nd for thecost for starting new businesses remains relatively high.overall prioritization of Travel & Tourism in the country.The country also benefits from good safety and securityPrice competitiveness also remains an area of strengthby regional standards (27th). However, Chiles T&T compared with many other countries at the samecompetitiveness would be strengthened by upgrading advanced stage of development.The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 21. Executive SummarySingapore is followed in the regional ranking by exhibitions held in the country, and its rich creativeHong Kong SAR at 12th overall, the same place it heldindustries. Its ground transport infrastructure is amongin the last edition. Hong Kongs transport is even betterthe best in the world (ranked 6th), especially railroads,assessed than Singapores, with ground transport and air and Japan continues to be a leader in the area of educa-transport infrastructures ranked 1st and 12th, respective- tion and training (ranked 12th). However, Japan ranksly. Hong Kong gets relatively good marks for culturalthird from the bottom for the affinity of the country forresources, with many international fairs and exhibitions Travel & Tourism (131st), and it struggles with pricesheld in the country and strong creative industries. Hong that are not competitive by international standardsKongs policy environment is rated second only to(ranked 137th).Singapores, and the tourism sector is a clear priorityMalaysia is ranked 7th regionally and 35th overall,(ranked 12th). Like Singapore, Hong Kong is safe fromdown three positions since the 2009 T&T Report.crime and violence (ranked 5th), and the country isMalaysia benefits from its rich natural resources (rankedunsurpassed for the quality of health and hygiene, where 22nd) and its cultural resources (ranked 33rd). Theit ranks 1st.country also benefits from excellent price competitive-Australia continues to decline in the rankings byness (ranked 3rd), with low comparative hotel and fuelfour more places, and is now at 13th position overall. prices, low ticket taxes and airport charges, very com-Australias T&T competitiveness continues to be charac-petitive hotel prices, and a favorable tax regime. Malaysiasterized by a number of clear strengths, including its rich policy environment is assessed as conducive to thenatural resources: the country ranks 1st for its World development of the sector (ranked 21st), and the countryHeritage natural sites, benefiting from diverse fauna andis characterized by a strong affinity for Travel & Tourisma pristine natural environment. Given the importance ofmore generally (ranked 17th). With regard to weakness-the environment for much of its leisure tourism, it is es, health and hygiene indicators lag behind those ofnotable that the stringency and enforcement of its envi- many other countries in the region, with, in particular, aronmental regulations are well assessed. And given the low physician density (placing the country 96th).countrys distance from other continents and the related China, ranked 9th regionally, has continued itsimportance of domestic air travel to overcome the largeascent in the rankings, moving up an additional eightxx distances between major sites, its competitiveness is alsoplaces to 39th overall this year. China has been building buttressed by excellent air transport infrastructureon a number of clear strengths: it is ranked 5th for its (ranked 3rd) as well as good general tourism infrastruc- natural resources, with many World Heritage natural sites ture (ranked 16th). The drop in rank since the last edi- and fauna that are among the richest in the world. It is tion can be traced in large part to a perceived weaken-ranked 16th for its cultural resources, with several World ing of the focus on environmental sustainability and Heritage cultural sites, many international fairs and exhi- increased concerns about the availability of qualified bitions held in the country, and creative industries that labor in the country.are unsurpassed. Moreover, the country is ranked 24th inNew Zealand is ranked 4th in the region and price competitiveness. In addition, China has a relatively 19th overall, up one position since the last edition. Thegood air transport infrastructure (ranked 35th). However, country benefits from its rich natural resources, with a there are some weaknesses pulling the countrys ranking number of World Heritage natural sites (ranked 17th) and down. China has a policy environment that is not con- a pristine natural environment (ranked 3rd), protected ducive for T&T development (ranked 80th), although by strong and well-enforced environmental legislation. this is an area that has improved somewhat since the last The overall policy rules and regulations in the countryassessment. Furthermore, policies related to environmen- are conducive to the development of the sector (ranked tal sustainability, while also improving, require further 3rd), with very transparent policymaking and among the attention (95th). There are also some concerns related to least time and lowest cost required to start a businesshealth and hygiene (96th). Ground transport infrastruc- internationally. Although the countrys ground transport ture gets middling marks (59th), and the countrys network remains somewhat underdeveloped, its air tourism infrastructure remains underdeveloped (ranked transport infrastructure gets excellent marks (ranked95th), with few hotel rooms available and few ATMs. 11th), and both the tourism and ICT infrastructuresThailand is ranked 10th in the region and 41st are quite good by international standards. New Zealand overall, down two places since the last edition. It is also benefits from high-quality human resources (rankedendowed with rich natural resources and a strong affini- 14th) and a very safe and secure environment overall ty for Travel & Tourism (ranked 21st and 24th, respec- (14th).tively), with a very friendly attitude of the population Japan is ranked 5th regionally and 22nd out of toward tourists (ranked 8th). This is buttressed by the all countries in the TTCI, up three places since the governments strong prioritization of the sector (ranked last assessment. Japan benefits from its cultural resources16th), with good destination-marketing campaigns and (ranked 12th), attributable to its 29 World Heritage price competitiveness. However, some weaknesses cultural sites, the many international fairs and remain: despite the prioritization of the sector by theThe Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 22. Executive SummaryTable 5: The Travel & Tourism Competitiveness Index 2011: The Middle East and North Africa SUBINDEXEST&T business environment T&T human, cultural, OVERALL INDEXT&T regulatory frameworkand infrastructure and natural resourcesCountry/EconomyRegional rank Overall rank ScoreRank ScoreRank Score RankScoreUnited Arab Emirates1 30 4.78 574.77 95.3242 4.24Bahrain 2 40 4.47 624.66205.0678 3.68Qatar 3 42 4.45 435.02344.6890 3.64Israel4 46 4.41 415.04424.3365 3.87Tunisia 5 47 4.39 315.17544.0559 3.94Oman6 61 4.18 614.67474.1876 3.69Saudi Arabia7 62 4.17 814.38414.3570 3.77Jordan8 64 4.14 375.08723.6174 3.73Lebanon 9 70 4.03 784.42633.8669 3.80Egypt10 75 3.96 704.53743.5971 3.77Morocco11 78 3.93 694.55773.5073 3.74Kuwait 12 95 3.681083.94603.92 126 3.18Syria13105 3.491014.17 1092.91 113 3.39Algeria14113 3.371123.87 1102.89 116 3.35Iran, Islamic Rep. 15114 3.371313.43 1033.0391 3.64Libya16124 3.251223.64 1072.92 125 3.18government, some aspects of the regulatory environ-resources (ranked 39th), with eight World Heritage cul-mentsuch as stringent foreign ownership restrictions, tural sites, a number of international fairs and exhibitionsvisa restrictions for many travelers, and the long timeheld in the country, and strong creative industries.required for starting a business in the countryare notFurther, the country is ranked 4th overall on price com- xxiparticularly conducive to developing the sector (rankedpetitiveness in the T&T industry because of its competi-76th). In addition, given the importance of the naturaltive hotel prices (ranked 6th), low ticket taxes and airportenvironment for the countrys tourism, environmental charges, and favorable fuel prices. In addition, it is rankedsustainability should be a greater priority (ranked 97th). 15th for its national prioritization of Travel & Tourism.India is ranked 12th in the region and 68th overall, However, these strengths are held back by underdevel-down six places since the last edition. As with China, oped infrastructure in the country, including to a certainIndia is well assessed for its natural resources (ranked 8th)extent air transport (58th) and especially ground trans-and cultural resources (24th), with many World Heritageport (82nd), tourism infrastructure (116th), and ICTsites, both natural and cultural, rich fauna, many fairs infrastructure (96th), representing significant investmentand exhibitions, and strong creative industries. India alsoopportunities in the country. There are also some con-has quite good air transport (ranked 39th), particularly cerns related to safety and security, particularly a lack ofgiven the countrys stage of development, and reasonable trust of police services and the business costs of potentialground transport infrastructure (ranked 43rd). However,terrorism. In addition, the country is not ensuring thesome aspects of its tourism infrastructure remain some-sustainable development of the tourism sector (rankedwhat underdeveloped (ranked 89th), with very few hotel 127th), an area of particular concern given the sectorsrooms per capita by international comparison and low dependence on the quality of the natural environment.ATM penetration. Another area of concern is the policyenvironment, which has weakened measurably since the The Middle East and North Africalast assessment and is now ranked 128th, with much Table 5 shows the regional rankings for the Middle Easttime and cost for starting a business, bilateral Air Service and North Africa region. Note that these rankings wereAgreements that are not assessed as open, and visasestablished prior to the political unrest experienced inrequired for most visitors. Other areas requiring atten- North Africa in early 2011. As the table shows, thetion are health and hygiene standards (112th) and theUnited Arab Emirates (UAE) continues to lead thecountrys human resources base (96th). region at 30th overall, up three places since the lastIndonesia is ranked 13th in the regional ranking assessment. While the UAE is not endowed with richand 74th overall, up seven places since the last edition. In natural resources (116th), it sees a significant improve-terms of strengths, Indonesia places 17th for its naturalment in the assessment of its cultural resources (34th, upresources, with several World Heritage natural sites and from 84th). In addition, the country is characterized bythe richness of its fauna as measured by the known a strong affinity for Travel & Tourism (25th). The UAEs species in the country. Indonesia also has rich culturalinfrastructure also gets good marks, particularly its air The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 23. Executive Summarytransport infrastructure, which is ranked a very high 4th (ranked 8th), and collecting tourism data in a timelyout of all countries assessed. The government is seen asfashion. Mauritius is ranked 4th for the countrysprioritizing the sector strongly (ranked 8th) and carry-overall affinity for Travel & Tourism, with the sectoring out very effective destination-marketing campaignsrepresenting an important part of the economy and the(ranked 1st). An area of clear improvement over recentgeneral attitude of the population to foreign travelersyears is in the rules and regulations, which have beenbeing extremely welcoming. The countrys tourismadjusted to better support the sectors development, with infrastructure is well developed by regional standardsthe UAE moving up from 81st place in the 2009 Report(47th), and its policy environment is supportive of theto 38th place this year.development of the sector (ranked 27th). MauritiusBahrain is ranked 2nd in the region and 40th over-also benefits from price competitiveness (ranked 18th),all, up one place since the last assessment. The countrywith relatively low prices overall and taxation that isbenefits from good transport infrastructure, particularly not overly burdensome, although this would be improvedground transport infrastructure (ranked 11th), and from through lower ticket taxes and airport charges, and morea well-developed tourism infrastructure (ranked 26th).competitive hotel prices. Safety and security levels areBahrain also has high-quality human resources to call also good by regional standards (ranked 45th). In termson in the country (29th), along with high levels of of challenges, although the government is seen to besafety and security. On the other hand, policy rules andmaking an effort to develop the industry in a sustainableregulations could be more supportive of the sectorsway (ranked 10th), this effort could be backed up bydevelopment (ranked 58th), and environmental sustain- more stringent and well-enforced environmental reg-ability remains a particular area of concern (123rd). ulations (ranked 60th and 55th, respectively). The drop in Qatar is ranked 3rd in the region and 42nd overall,rank is attributable to declines across most areas meas-down five places since the 2009 T&T Report. Qatar ured by the Index, and particularly those measuring thebenefits from a safe and secure environment (ranked quality of infrastructure, including transport, tourism,28th), high-quality human resources in the countryand ICT infrastructures.(ranked 18th), good tourism infrastructure (34th), andSouth Africa is ranked 2nd in the region andexcellent air transport infrastructure (21st), in line66th overall, joining Mauritius as one of the only twoxxiiwith its increasing role as an air transportation hub. In sub-Saharan African countries in the top half of the order to further improve the countrys T&T competi-overall rankings. South Africa comes in at a high 14th tiveness, the country should continue to improve its for its natural resources and 55th for its cultural policy environment and also to focus on environmentalresources, based on its many World Heritage sites, its sustainability (67th). rich fauna, its creative industries, and the many interna- Israel is ranked 4th in the region, dropping 10 tional fairs and exhibitions held in the country. The places to 46th overall. Israel benefits from its cultural 2010 FIFA World Cup has reinforced South Africas attributes, including a number of World Heritage cultural position as a key international tourist destination. South sites. The countrys human resources base is also wellAfrica also benefits from price competitiveness (37th), evaluated (31st), providing healthy and well-trainedwith reasonably priced hotel rooms and a favorable people to work in the T&T sector. Further, its ICTtax regime. Infrastructure in South Africa is also well infrastructure is quite well developed compared withdeveloped for the region, with air transport infrastruc- those of other countries in the region. But althoughture ranked 43rd and a particularly good assessment of Israel gets excellent marks related to health and hygiene railroad quality (47th) and road quality (43rd). Overall, (ranked 16th), some aspects of safety and security con- policy rules and regulations are conducive to the sectors tinue to be a concern, primarily related to concernsdevelopment (ranked 31st); this is an area where the about terrorism (ranked 105th). The decline in rank country has improved since the last assessment, with since the last assessment is in large part attributable to awell-protected property rights and few visa requirements weakening in the policy environment, and a sense that for visitors. Indeed, in 2010 the government selected the sector is no longer being prioritized as strongly as in tourism as one of the five priority sectors in its growth the past. plan and has been reviewing tourism legislation in an effort to streamline it further. However, there are alsoSub-Saharan Africa some areas of weakness that have brought down theTable 7 shows the rankings for sub-Saharan Africa. countrys overall ranking. Safety and security remains ofMauritius remains the highest-ranked country in this serious concern (ranked 129th), as is the level of healthregion at 53rd overall, despite dropping 13 places inand hygiene, where South Africa is ranked 88th as athe rankings since the last assessment. Mauritius is result of its low physician density and concerns aboutranked 1st out of all countries for the overall prioritiza-access to improved sanitation in particular. Related totion of the sector, with high government spending on this, health indicators are extremely worrisome. Souththe tourism industry (ranked 3rd), ensuring excellentAfricas life expectancy is low (albeit improving), atdestination-marketing campaigns to attract tourists53 years, placing the country 124th overall, a ranking The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 24. Executive SummaryTable 6: Travel & Tourism Competitiveness Index 2011: Sub-Saharan Africa SUBINDEXEST&T business environment T&T human, cultural,OVERALL INDEXT&T regulatory framework and infrastructure and natural resourcesCountry/Economy Regional rank Overall rank ScoreRank Score Rank Score RankScoreMauritius1 53 4.35 285.24 484.1579 3.67South Africa 2 66 4.11 824.37 623.8849 4.06Namibia3 84 3.84 834.37 673.71 109 3.45Cape Verde 4 89 3.77 854.33 733.61 114 3.39Botswana 5 91 3.74 864.32 853.3498 3.56Gambia, The6 92 3.70 764.46 903.31 117 3.35Rwanda 7102 3.54 754.461202.73 110 3.43Kenya8103 3.511133.871062.9372 3.75Senegal9104 3.491113.901082.9282 3.67Ghana 10108 3.441153.821053.01 104 3.49Tanzania11110 3.421213.671272.6256 3.97Zambia12111 3.401044.021312.6095 3.58Uganda13115 3.361163.751252.6580 3.67Swaziland 14116 3.35 994.181013.07 136 2.81Zimbabwe15119 3.311183.711262.6496 3.57Benin 16120 3.301193.681172.75 106 3.47Malawi17121 3.301093.931332.54 112 3.42Ethiopia18122 3.261323.421142.8197 3.56Cameroon19126 3.181273.491292.61 108 3.45Madagascar20127 3.181263.491162.76 120 3.29Mozambique21128 3.181243.641192.73 127 3.15Nigeria 22130 3.091343.221152.76 119 3.30Cte dIvoire 23131 3.081353.221242.67 115 3.36Burkina Faso24132 3.061173.711352.50 132 2.99Mali25133 3.051283.471372.42 121 3.26Lesotho 26135 2.951253.541232.70 138 2.63xxiiiMauritania27136 2.851363.161362.44 133 2.95Burundi 28137 2.811373.081342.52 135 2.82Angola29138 2.801383.071212.72 139 2.61Chad30139 2.561392.881392.09 137 2.70related in large part to the very high rates of communi-Botswana is ranked 5th in the region at 91st over-cable diseases such as HIV/AIDS. Improving the health all, down 12 places after a significant improvement inof the workforce is of urgent concern for the future of the last edition of the Index. The country, known forthe T&T sector, as well as for all other sectors in the its beautiful natural parks, is ranked 33rd out of alleconomy.countries for its natural resources, with much nationally Namibia follows South Africa in the regional rank- protected land area (ranked 6th), rich fauna, and a lackings, placing 84th overall. The country benefits from its of environmental damage. The country also benefitsrich natural resources, with rich fauna and a pristinefrom excellent price competitiveness, where it is rankednatural environment. Indeed, environmental sustainability 8th because of low ticket taxes and airport charges, ais prioritized in the country (ranked 22nd), which is favorable tax regime, and low prices more generally. Incritical given the importance of the quality of the envi- addition, some aspects of the policy environment areronment for Namibias tourism. In addition, groundsupportive of the sectors development, including well-transport infrastructure is well developed by regionalprotected property rights and few visa restrictions.standards (44th). In order to further develop the sector, a However, Botswana does face some challenges that leadmore conducive policy environment will be important.to its rather low ranking overall. The countrys bilateralFor example, despite efforts in recent years, it remainsAir Service Agreements are not evaluated as open (105th),costly and time consuming to start a business in theand, despite improvements, much time is still requiredcountry. Health and hygiene is also not up to interna-for starting a new business (61 days, placing the countrytional standards (106th): the country has few doctors 126th). Further, Botswanas transport infrastructure isand insufficient access to improved sanitation and drink- somewhat underdeveloped, as is its tourism infrastruc-ing water. More generally, improving the countrysture, with a low hotel room concentration, a limitedhuman resources base through better education and presence of international car rental companies, andtraining and more conducive labor laws will be critical.relatively few ATMs. There are also some concerns in The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 25. Executive Summarythe area of health and hygiene (100th), attributable to a implications for policymakers and map out pathwayslow physician density, limited hospital beds, and insuffi-on how to prepare the T&T sector for the emergingcient access to improved sanitation. Associated with this,new global environment. They highlight the fact thatthe greatest comparative weakness relates to the health tourism destinations first need to manage downturnof the workforce, although it must be noted that theperiods tactically in order to mitigate their short-termcountrys average life expectancy of 62 years represents ademand impact. At the same time, they also need tosignificant improvement over the situation in recentdevelop consistent strategies to transform structuralyears.market drifts into opportunities for more crisis-resilientKenya, a country long famous for its tourismlong-term growth.attributes, is ranked 8th regionally and 103rd overall.In their chapter on Tourism Development inKenya is ranked 28th for its natural resources, with itsAdvanced and Emerging Economies: What Does thetwo World Heritage natural sites and its rich diversity Travel & Tourism Competitiveness Index Tell Us?of fauna. Tourism is a recognized priority within the John Kester and Valeria Croce from the World Tourismcountry (ranked 18th on this pillar), with high govern- Organization (UNWTO) discuss the expansion andment spending on the sector and effective destination-diversification of the tourism sector and the rising rolemarketing campaigns. In addition, there is a strong of emerging economies as drivers of growth. They notefocus on environmental sustainability in the countrythat over the past decade an increasing number of(ranked 26th), which is particularly important for Kenyaemerging economies have successfully been leveraginggiven the sectors dependence on the natural environ- tourism to boost their economic and social develop-ment. On the downside, the policy environment is notment. Even during the recent economic crisis, emergingat present sufficiently conducive to the developmentdestinations showed fewer losses and rebounded fasterof the sector (ranked 103rd), with bilateral Air Servicethan advanced economies. In 2009, international touristAgreements that are not open, insufficiently protectedarrivals to advanced economies declined by 4.3 percentproperty rights, and much time and cost required forand arrivals to emerging economies by 3.5 percent, and starting a business. In addition, infrastructure remainsin 2010 they enjoyed increases of 5.3 percent and 8.2 underdeveloped and health and hygiene levels requirepercent, respectively.xxiv improvement. Finally, the security situation in the The authors point out that, despite the increasing country remains a significant hindrance to furtherimportance of emerging economies in the T&T sector, developing the sector (ranked 139th). the 2011 edition of the TTCI continues to see its top ranks held primarily by advanced economies. In this context the authors try to shed some light on why thisExploring issues of T&T competitivenessis the case. Analyzing the four editions of the TTCI, theThe Report also features excellent contributions fromauthors investigate whether changes in the rankings overT&T industry experts, complementing the TTCI time reflect the progress made by emerging destinationsanalysis described above. Many of the chapters focus in terms of tourism development. The 14 pillars of theon particular challenges facing the industry, providingIndex are also analyzed in detail to highlight the com-suggestions on how to overcome them. parative advantages of each group of countries. Finally, In their chapter Crisis Aftermath: Pathways to the authors compare the rankings in the TTCI relativea More Resilient Travel & Tourism Sector, Jrgento the overall stage of development of each economy,Ringbeck and Timm Pietsch of Booz & Companyin order to understand which economies perform betteranalyze structural trends in the global T&T sector and or worse than what might be expected based on theirassess how the economic crisis of 200809 acceleratedrespective stages of development.these trends, which have led to the sharpest decline in Given the tendency of the TTCI to rank advancedinternational tourist arrivals in history. economies higher than countries at lower stages of The authors highlight the interplay between long- development, the authors suggest that, looking forward,term trends such as the high growth dynamics ofsome readjustment of the Index could be warranted,emerging tourism regions, maturing travel spending drawing on the various qualities of successful emergingin the western hemisphere, and new opportunities for destinations.domestic/regional tourism as well as short-term volatilityIn their chapter Premium Air Travel: An Importantas a consequence of disruptive events. Collectively theseMarket Segment, Selim Ach and Brian Pearce of IATAall constitute new challenges but also opportunities in quantify the relative impact of the most important busi-Travel & Tourism for national governments.ness travel drivers determining the size of premium travel The authors review which countries have felt markets between country pairs.the pain from the current downturn and which have The authors begin by identifying and then quanti-managed to grow through the crisis, and they outlinefying, through an econometric model, the various factorsreasons and change factors driving these differentrelated to the number of premium passengers. They thenexperiences. From these case studies, the authors outline study the extent to which these particular drivers explainThe Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum 26. Executive Summarydifferences between country pairs. Finally, they investi-The authors describe how global T&T investmentgate how changes in aspects of a countrys attractivenessclosely tracked global tourism