tourism the growth industry where governments make 20x to 400x more money than they spend

Tourism

The High Growth Industry Where Countries Generate 20x to 400x

More Money than they Spend

2

Overview

1. Many underexploited exist around the world.

2. Travel & Tourism generate among the highest ROI.

3. One of the highest impact ways of boosting the economy and contributing growing prosperity of workers is through tourism.

Tourism The Growth Industry

3

The Fifth Largest Industry in the World

Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 2

Tourism The Growth Industry

4

World’s Second Largest Employer – 8.7% of Workforce

Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 3

Tourism The Growth Industry

5

Among the Fastest Growing Industries 4.2% CAGR

Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 3

Tourism The Growth Industry

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Benefiting Developed AND Developing Countries

Source: World Travel and Tourism Council (WTTC) 2011

Tourism The Growth Industry

Source: http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/2030_global_0.pdf7

Becoming Even More Popular In Developing Countries

Tourism The Growth Industry

Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 38

Disparities Of Contribution to GDP Indicates Opportunities

Tourism The Growth Industry

Destination MarketingGovernments Generate 200x+ More Money Than They Spend!

Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 289

Government Expenditures on Tourism Promotion as a % of Tourism Revenue

Tourism The Growth Industry

Destination MarketingGovernments Generate 200x+ More Money Than They Spend!

Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 2810

Tourism The Growth Industry

Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 2811

But Represents a Very SmallFraction of Total Budgets

Tourism The Growth Industry

Sample Tourism Revenues to Promo Expense Ratio

Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, pp. 3312

Denmark 12:1

Scotland 20:1

Australia 64:1

Colorado 193:1

Arizona 180:1

Florida 147:1

Oregon 134:1

Montana 50:1

Michigan 49:1

Missouri 47:1

Tourism The Growth Industry

Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 3213

Canada Tourism Revenues and ROI by Country targeted

SampleTourism to Promo Expense Ratio (cont’d)

Tourism The Growth Industry

SampleTourism Revenue to Promo

Expense Ratio (cont’d)

Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 3214

California Tourism Revenues by Country targeted and Return

Tourism The Growth Industry

Demographics Change

15

Tourism The Growth Industry

Demographics Change

16

Tourism The Growth Industry

Demographics Change

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Tourism The Growth Industry

18

Changes Present New OpportunitiesTourism The Growth Industry

Some Countries Are Better At It Than Others

Some Winners

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Brazil

Egyp

t, Arab

Rep.

Estonia

Kazakh

stan

Macao SA

R, China

Malaysi

a

Mongolia

Monteneg

ro

Morocco

Mozambique

Panam

a

Rwanda

Turke

y

Yemen

, Rep

.0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

285% 390% 518% 327% 323% 335% 441% 929% 360% 654% 466% 784% 504% 1925%

International Tourists 1995-2012Worldwide Growth: 268%

Tourism The Growth Industry

Some Countries Are Better At It Than Others

Some Laggards

20

Brazil

Egypt, A

rab Rep.

Estonia

Kazakh

stan

Macao SA

R, China

Malaysia

Mongolia

Montenegro

Morocco

Mozambique

Panama

Rwanda

Turke

y

Vietnam

Yemen, R

ep.0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

95% 89% 155% 130% 130% 173% 160% 168% 132% 98% 101%

International Tourists 1995-2012Worldwide Growth: 268%

Tourism The Growth Industry

Some Countries Make A lot of $ Per Tourist

21

1995-2012

Australia

Bahamas, T

he

Barbad

os

Bermuda

India

Ireland

Lebanon

Luxem

bourg

Macao SA

R, China

Panama

Sweden

Switz

erland

United States

World$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Tourism The Growth Industry

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1995-2012

Australi

a

Baham

as, Th

e

Barbad

os

Bermuda

India

Irelan

d

Leban

on

Luxem

bourg

Macao SA

R, China

Panam

a

Swed

en

Switz

erlan

d

United St

atesWorld

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Some Countries Make Little Per Tourist

Tourism The Growth Industry

But Change Is Inevitable

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Countries 2012 Growth (%) Countries 2013 – 2023

Growth (%)Qatar 29.9 Angola 9.7Kyrgyzstan 26.9 China 9.1Vanuatu 21.6 India 7.9Azerbaijan 21.3 Namibia 7.8Belarus 18 Thailand 7.2Tunisia 16.4 Philippines 6.9Uzbekistan 16.3 Vietnam 6.8Kazakhstan 11.6 Montenegro 6.7Jordan 10.7 Cape Verde 6.7Chile 10.7 Mongolia 6.6

Fastest growing: Spending on leisure travel in 2012 (left) and forecast from 2013 – 2023 (right)

Source: http://skift.com/2013/03/13/the-worlds-fastest-growing-countries-in-travel/

Tourism The Growth Industry

But Change Is Inevitable

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But Change Is InevitableTourism The Growth Industry

But Change Is Inevitable

25Source: http://skift.com/2013/03/13/the-worlds-fastest-growing-countries-in-travel/

Countries 2012 Growth (%) Countries 2013 – 2023

Growth (%)

Botswana 21.9 Montenegro 10

Armenia 21.7 China 9.2

Thailand 19.6 Zambia 9

Ivory Coast 19.2 Thailand 8.1

Malaysia 18.4 Gambia 8

Cambodia 18.2 Cape Verde 7.9

Qatar 16.9 Macau 7.8

Malawi 15.5 Pakistan 7.8

Hong Kong 15.1 Brazil 7.8

Congo 13.9 Iraq 7.6

Fastest growing: Capital investment in Travel and Tourism in 2012 (left) and forecast from 2013 – 2023

(right)

Tourism The Growth Industry

But Change Is Inevitable

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Cancun Mexico

Source: https://aclarando.wordpress.com/category/antes-y-ahora/

Tourism The Growth Industry

But Change Is Inevitable

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Shanghai, China, 1990-2010

Source: http://jpgamboa.com/

Tourism The Growth Industry

But Change Is Inevitable

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Dubai

Source: http://www.dubainight.com/mag/dubz/dubai-1980-2012,28,8929.html

Tourism The Growth Industry

Change Is InevitableExamples

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Punta Cana, Dominican Republic 1980-2010

Source: http://puntacanatv.com/punta-cana-history.html; Source: http://media-cdn.tripadvisor.com/media/photo-s/05/a2/2c/be/breathless-punta-cana.jpg

Tourism The Growth Industry

Elements of Tourism Promotions

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1. Favorable Political Climate

2. Infrastructure

3. Natural / Historical Resources

4. MARKETING

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Tourism The Growth Industry

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•Business Development

By Size, Specialty and Location

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