Making Cooperation Work COMCEC STRATEGY · Top 10 OIC Tourism Destinations in International Tourist...

Aslı TAŞMAZ DADAKOĞLU

COMCEC Coordination Office

September 2016

Making Cooperation Work

For Building an Interdependent Islamic World

COMCEC

TOURISM OUTLOOK

2016

COMCEC STRATEGY

OUTLINE

‣ The Importance of Tourism for Development

‣ Tourism Trends (Demand & Supply Sides)

‣ Overview of International Tourism in the World

‣ International Tourism in the OIC Member Countries

1


COMCEC STRATEGY Making Cooperation Work



1

The Importance of Tourism for Development





2

A remarkable socio-economic

phenomena

A critical sector in both advanced and developing

economies

Related to more than 185 supply-side economic activities, with

direct and indirect effects



10 % GDP

(Direct, Indirect

and Induced)

1/11

JOBS

US $ 1.5 TRILLION IN

EXPORTS

7%

OF WORLD’S

TRADE

30 %

OF

SERVICES EXPORTS

Source: UNWTO Tourism Highlights, 2016 Edition

The Importance of Tourism for Development



3

Key Tourism Trends –Demand Side

8 % 12 % 21 %

1950 2013 2050

• Active travelers

• Highly personalized services

• Soft adventure for «feeling young»

• Health and wellness products

Share of global population

over the age of 60



4

Source: Horwart HTL Tourism Megatrends, 2016


Generation Y (Millennials)

• 50 % of all travelers by 2025

• Technology is essential!!!

Generation Z (iGen – 6-20 ages)

• Different from Generation Y

• Spend parents’ money faster

• High level of involvement in digital trends

• Higher access to information

• A more dynamic lifestyle



5



1.8 3.2 4.9

2009 2020 2030

Middle Class Population

(in billion)

• The increase in average income results in a

growing middle class

• Look for value for Money (choose low cost

airlines, trains etc. & discounted tickets)



6



• Increase in the weight of emerging economies

• 10 cities are from the Middle East and Asia in

the top 20 global destinations by international

overnight visitors.



Emerging Destinations

57 % of Total

Arrivals

2030

7


Key Tourism Trends –Supply Side

35%

35%

30%

25%

20%

16%

10%

7%

4%

2%

33%

Website of Country /Destination

Website of Accommodation/Hotel

Social Media

Website of Fligtht/Train etc.

Reservation/Booking Websites

Website of Tour Operators

Website for Price Comparison

Official Websites of Embassies

Articles in Internet Magazines

Sites with Official Tests of Institutes

Others

INTERNET INFORMATION SOURCES

Source: ITB World Travel Trends Report 2015-2016



8




9

«Sharing

Economy»

Airbnb

(Accommodation Sharing)

Uber

(Car Sharing) 39,5

25,5

25,4

16,3

15,3

12,9

HILTON WORLDWIDE

AIRBNB

MARRIOTT INTERNATIONAL

STARWOOD HOTELS&RESORTS

WYNDHAM HOTEL GROUP

ACCORHOTELS

Global Hotel Groups Market Capitilisation vs Airbnb (Billion US $)

Source: Hospitality On, 2015

Sharing Economy will reach to

$ 335 billion by 2025. (Source: PWC)




10

Source: WTTC, 2016

13

21

24

27

Safety andSecurity Issues

Diseases EnvironmentalDisasters

Political Unrest

Time to Recover from Crises for Tourism (months)


Tourism Sustainable

Tourism

Sustainable Tourism is defined as:

« tourism that respects both local people and the traveler,

cultural heritage and the environment»



11

International Tourist Arrivals



(Millions)

* Forecast

Source: World Tourism Organization

8 For Building an Interdependent Islamic World


12

678

807

929 894

950 994

1.040 1.088

1.134 1.186

8,1

5,9

2

-3,9

6,5 5,1 4,2 4,7 4,2 4,6

2000 2005 2008 2009 2010 2011 2012 2013 2014 2015*

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

International Tourism- Market Share



Africa 4%

Americas 19%

Asia/ Pacific 16%

Europe 57%

Middle East 4%

2000

Africa 5% Americas

16%

Asia/ Pacific 24%

Europe 51%

Middle East 5%

2015

Tourist Arrivals



Source: UNWTO, Tourism Highlights 2014 & World Tourism Barometer, Volume 14, July 2016

13

International Tourism Receipts



(Billion $)

* Forecast

Source: World Tourism Organization



14

495

706

987

905

986 1.104

1.146 1.241

1.309 1.260

4,5

7,3

6,3

-4,1

8,2 7,7 4,8

8,2 5,5

-3,8

2000 2005 2008 2009 2010 2011 2012 2013 2014 2015

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

International Tourism- Market Share



Africa 2%

Americas 28%

Asia/ Pacific 18%

Europe 49%

Middle East 3%

2000

Africa 3% Americas

24%

Asia/ Pacific 33%

Europe 36%

Middle East 4%

2015

Tourism Receipts



Source: UNWTO, Tourism Highlights 2014 & World Tourism Highligths 2016

15



Estimates and Forecasts for Travel&Tourism

Economic Impact in OIC Member States



16

COMCEC 2015

($ billion)1

2015

% of total

2016

Growth2

2026

$ billion1

2026

% of total Growth3

Direct contribution to GDP 213.3 3.4 3.5 352.2 3.5 4.8

Total contribution to GDP 551.2 8.7 3.8 926.7 9.3 4.9

Direct contribution to

employment4 15,393 2.8 1.7 19,980 2.8 2.5

Total contribution to

employment4 39,716 7.1 1.9 52,203 7.3 2.6

Leisure spending 287.4 2.6 3.3 478.0 2.7 4.9

Business spending 89.9 0.8 5.3 142.2 0.8 4.2

Capital investment 99.1 6.3 5.2 175.7 6.9 5.4

12015 constant prices and exchange rates; 2 2016 real growth adjusted for inflation (%); 3 annual real growth adjusted for inflation; 4000 jobs Source: WTTC, Economic Impact 2016 Report-COMCEC



International Tourism in the OIC Member Countries

22

(Millions)



17

(Billion $)

152 157

163 159

178 173

114 117

124 127

140 131

2010 2011 2012 2013 2014 2015

OIC Tourist Arrivals (millions) OIC Tourism Receipts (Billion $)

Source: UNWTO and projections of COMCEC



Tourist Arrivals in OIC Regions

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

22

(Millions)



18

28 27 30 36 39 39 42 46 47 48 51 50

61 68

62 71

82 85

102 104 108 104

119 116

4 5 5 6 6 7 8 8 8 7 8 7

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

OIC-ASIA OIC MENA OIC SUB-SAHARAN AFRICA

Source: UNWTO and projections of COMCEC



Tourism Receipts in OIC Regions

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

23

(Billion $)



19

15 15 17 22

26 25 30 33

36 38 41

36

47

55 56 63

78 71

81 81 83 84

95 89

2 2 2 3 4 3 3 4 5 5 5 5

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

OIC-ASIA OIC MENA OIC SUB-SAHARAN AFRICASource: UNWTO and projections of COMCEC



Top-10 countries hosted 137.9 million international tourist in 2015.

Top 10 OIC Tourism Destinations in International Tourist

Arrivals (2015)

(Thousands)



20

Source: UNWTO, Tourism Highlights 2016 & Tourism Barometer Volume 14, July 2016

* 2013 data, **2014 data

39.478

25.721

17.994

10.408 10.177 9.990 9.139 5.237 5.163 4.560



Top-10 countries earned US$ 109 billion as international tourism receipts in 2015.

Top 10 OIC Tourism Earners in International Tourism

(2015)

(Billion $)



21

26.616

17.597 16.038

10.761 10.130

6.857 6.065 6.003 5.035 4.065



Countries by Major Surplus on Travel Balance- 2015



22

Source: UNWTO, 2016

Tourism Receipts Tour. Expenditures Balance

2013 2014 2015 2013 2014 2015 2013 2014 2015

Turkey 28.0 29.6 26.6 4.8 5.1 5.4 23.2 24.5 21.2

Malaysia 21.5 22.6 17.6 12.2 12.4 10.5 9.3 10.2 7.1

Morocco 6.9 7.1 6.0 1.3 1.4 1.4 5.5 5.6 4.6

Egypt 6.0 7.2 6.1 3.0 3.1 3.4 3.0 4.1 1.7

Indonesia 9.1 10.3 10.7 7.7 7.7 7.3 1.4 2.6 3.4

UAE 12.4 14.0 16.0 13.8 14.4 15.1 -1.4 -0.4 0.9

S. Arabia 7.7 8.2 10.1 17.7 24.1 20.7 -10.0 -15.9 -10,6

Kuwait 0.3 0.4 - 11.6 11.3 - -11.3 -10.9 -

Qatar 3.5 4.6 5.0 6.6 8.7 8.2 -3.1 -4.1 -3.2



Recent Developments in the OIC Member Countries

24

‣ Turkey realized 22% decrease in arrivals and 21%

decrease in receipts for first 4 months of 2016.

‣ Turkey's tourism industry is facing with difficult times with

regional insecurity and domestic issues affecting the image of

country as a destination.

‣ Positive signals from Russian market by allowing charter

flights to Turkey.

‣ Incentives for tourism SMEs

‣ New tour packages for China and India.

Source: UNWTO, BMI Research 2015



23




24

‣ In 2015, Malaysia realized 6% decrease in arrivals, 22%

decrease in receipts. However, the country reported 3%

growth in arrivals and 1% decrease in receipts through

March 2016.

‣ Decreases in arrivals due to declines in visitors from

China, Australia, Singapore and Japan.

‣ Malaysia has launched e-visa service for visitors from

China, effective 1 March 2016.



Source: UNWTO

24




24

‣ Indonesia reported increases in arrivals (+8%) and

receipts (+5%) for the 5 months of 2016.

‣ As well as improving international air connections,

Indonesia is also expanding connectivity across its

many islands.

Source: UNWTO



25




24

‣ Tunisia posted 19 % decrease in arrivals (Jan-May

2016) and 50% decrease for the 1stQ of 2016.

‣ Sierra Leone has rebounded after Ebola virus outbreak,

with arrivals quadrupling (310% increase) from January

to June compared to 2015.

‣ Morocco recorded a slight decline in arrivals (1%) and

7% increase in receipts for 4 months of 2016.

‣ Qatar posted 3% decrease in arrivals and 1% increase

in receipts for first months of 2016.

Source: UNWTO



26




24

‣ Lebanon (10%), Oman (10%) and Saudi Arabia (7%)

recorded significant growths.

‣ Egypt realized significant declines (-49%) in arrivals for

the 5 months of 2016.

‣ Continued struggle, following the insurgency attacks

in 2015, the Russian plane crash in October and

travel advisories from major source markets such as

the Russian Fed. and United Kingdom.

Source: UNWTO



27



Tourism Opportunities and Challenges

for the OIC Member Countries



Opportunities

Natural Resources

Cultural Resources

Human Resources

Authenticity and newness

Price competitiveness

Dynamism

Challenges

Insufficient Tourism Investment &Infrastructure

POOR TOURISM PLANNING&PRODUCT DEVELOPMENT

Travel Facilitation Problems

Safety and Security Related Problems

Low Tourism Service Quality

INSUFFICIENT MARKETING AND PROMOTION

Insufficient Image Building and Branding

LACK OF TOURISM DIVERSIFICATION

28



Muslim Friendly Tourism (MFT)



29

Muslim Friendly Tourism

Increasing awareness

Expanding numbers of

Muslim Tourists

Developing and Marketing of MFT Products & Services

Regulations for Accommodation Establishments in the

OIC Member Countries

(2017/I Meeting)

Aslı TAŞMAZ DADAKOĞLU

COMCEC Coordination Office

September 2016

Making Cooperation Work


THANK YOU

[email protected]

COMCEC STRATEGY

www.comcec.org

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