SADC TRAVEL AND TOURISM BAROMETER 2017 Measuring the impacts of Tourism to the Economic Development of the Southern African Development Community

Transcription

1 SADC TRAVEL AND TOURISM BAROMETER 2017 Measuring the impacts of Tourism to the Economic Development of the Southern African Development Community (SADC) Member States

2 Tourism Economic Impact Indicators: Global GDP: Travel and Tourism generated US$ 7.6 Trillion, a 10.2% of total global GDP in At 3.1%, the Travel and Tourism industry outperformed the global economic growth of 2.5%. The WTTC estimates that Travel and Tourism s growth rate will improve to 3.8% in Employment: The sector created 6.6 million net additional jobs and employed 292 million people in 2016, which is equivalent to 1 in every 10 jobs in the global economy. With Governments implementing pro-tourism policies, the sector is projected to employ over 380 million jobs by Exports: Travel and Tourism accounted for 6.6% of total global exports and 30% of total global services exports The WTTC Economic Impact Report 2017 Tourism Economic Impact Indicators: Africa Arrivals: Tourist arrivals to Africa have progressively increased to 57.8 million in 2016 from just 15 million in The increase is small when compared against other regions of the World. The continent s global market share remains lower at less than 5%. GDP: Direct contribution of Travel and Tourism Africa s GDP was US$ 66.4Bn, a 3.1% of total GDP in This is projected to rise to 3.7% in 2017 and by 4.5% pa from 2017 to 2027 to give a projected GDP contribution of US$268.2Bn or 7.9% of GDP in Employment: Travel and Tourism supported directly, jobs in % of total employment in Africa. The sector s employment contribution is projected to rise by 2.1% in 2017, and rising thereafter by 3.1% pa up to 2027 to jobs in 2027, a 2.7% of total employment in Africa. Exports: Visitor exports generated US$ 40.7Bn, a 9.2% of total exports in Africa in This is projected to grow by 5.3% in 2017 and by 5.9% pa from 2017 to 2017 to US$76Bn, reaching an 8.4% of total exports in Africa. Investments: Travel and Tourism investment was US$28.5Bn or 6.2% of total investment in Africa in Travel and Tourism investment is projected to rise by 4.9% pa between 2017 and 2027 to US$47.1Bn, a 6.1% of total investment in Africa by

3 Foreword By declaring 2017, the International year of Sustainable Tourism for Development, the UN gave the tourism sector an opportunity to showcase its economic, socio-cultural and environmental value to the global, national and local communities. However, such value can only be shown if it is measured. In most cases, developing economies like the SADC lacks the capacity to measure the impacts of tourism on the economy relative to other sectors. Advanced economies have demonstrated and benefitted from the economic and social values of tourism activities like sport, arts, culture and MICE. Mature tourism destinations of the world have also demonstrated the importance of both domestic and intra-regional travel to the growth of the tourism economy. The importance of tourism investment and the linkages of tourism with other sectors and the resulting impacts to the national economies need to be measured and documented. The SADC Travel and Tourism Market Intelligence Report 2017 is published with the objective of informing decision makers involved with the sector as well as to motivate the socio-economic and environmental case of tourism. As more robust Sustainable Tourism Indicators are developed, RETOSA will continue to apply such indicators to showcase SADC s growth and development as a Sustainable Tourism destination. The SADC Travel and Tourism Market Intelligence Report is produced yearly providing current available tourism statistics for RETOSA member states and SADC Tourism Stakeholders. Data and all information is sourced from the Members States themselves as well as other reliable global sources like the UNWTO, World Travel and Tourism Council (WTTC), World Economic Forum (WEF), World Bank and the Africa Development Bank. The new thrust in producing the report is to look at tourism in a holistic context of a pivotal sector to the economic development of the SADC region. I hope you will find the publication useful. Chief Executive Officer RETOSA 3

4 SECTION 1 1: Overview 1.1: Trends driving global tourism Transformation. The World Economic Forum s Travel and Tourism Competitiveness Report, 2017 highlights key factors that are shaping and transforming global tourism growth and development in the short, medium and long term, these are summarised below. 1.2: New Trends: Lowering of travel barriers and costs opened travel to the reach of millions. Combined with the growth of disposable incomes, the rise of the middle class in many emerging markets and changing attitudes has meant more people than ever before are travelling. There are 1.24 billion international arrivals in 2016, compared to 25 million in the 1950s. In previous decades, North America and Europe have enjoyed the lion s share of the global travel markets, but this may not be the case for much longer. By 2030, most of the growth in international travel will come from Africa, Asia and the Middle East. Emerging markets will not only become larger source markets, but they will also become more attractive destinations. The global middle class is forecasted to grow by another three billion people between 2011 and 2031, the majority of which will come from emerging markets, with China and India leading the way. While travel is already booming in China, it is estimated that, at present, only 5% of Chinese nationals have passports. 1.3: Geopolitical Insecurity and a New Policy Framework for Cross Border Travel The world is faced with a complex geopolitical landscape marked by a rise in physical and e-terrorism and a surge in populism and xenophobia. These have the potential to reverse the gains by the sector over the past 3 decades in global travel. The travel and tourism industry is responsible for the safe travel through the skies of over 8 million people daily. To support the expected growth in international travel in the next decade and beyond there is a need to develop a new policy that governs cross border movement. Technological solutions should be developed and implemented to move the global system from`` one of physical to an integrated digital system which covers digital identification and authentication through biometrics to a frictionless airport transfer courtesy of digitally enabled security devices, and the creation of a digital interface and individual profiles to increase accuracy, efficiency and security. All this requires the harmonization of intelligence and data-sharing, the global implementation of common standards set by the International Civil Aviation Organization (ICAO) and the will to shift to a secure digital process. 4

5 1.4: Baby Boomers and Millennials: New consumers like the millennials, as well as older baby boomers are not only demanding, but looking for experiences, whether it is an authentic local experience, an adventure or even the opportunity to make a difference at the destination. Studies show that millennials are more tech-savvy and connected than any previous generation and are changing the way travel is consumed. In the next five to 10 years, this group will become the industry s core customer base. Millennials spending on business flights is expected to account for 50% of global travel by 2020 and to maintain that share for the subsequent 15 years. While millennials are on the rise, baby boomers are the most travelled generation to date and have more disposable income to be able to travel. 1.5: Old System-Facilitation and VISA Regime: Today s traveller has high expectations for efficiency and a low tolerance for barriers to global mobility. In 2015, tourist destinations worldwide required 61% of the world s population to obtain a visa prior to departure. This is a significant improvement from 2008, when 77% of the world s population had to apply for a traditional visa. Removing travel visas at the bilateral level would more than triple travel flows between countries. Regional measures to reduce travel barriers implemented in other parts of the world include: The Schengen agreement in Europe (EU) The US Global Access Programme in North America The APEC Business Travel card in Asia Different regional agreements are also in the process of being negotiated for: The Association of Southeast Asian Nations (ASEAN) community The Pacific Alliance and The idea of an African passport has been adopted by the African Union. In Southern Africa, the SADC UNIVISA proposed 20 years ago is yet to be realised. 1.6: New Model-Smart Travel: A model for Smart Travel, one that includes Smart Visas, Smart Borders, Smart Security processes and Smart Infrastructure, will revolutionize the travel and tourism sector the way the smartphone has transformed the telecommunications and media industries, bringing job creation and growth along with it. To achieve a Smart Travel approach, the travel industry must increasingly rely on technology and digitization to create a safe and seamless experience for passengers. With the available technology, passengers today can book their flights, check-in online, have their boarding passes on their smartphones, go through automated clearance gates and even validate their boarding passes electronically to board planes. The integrated model to facilitate Smart Travel is an unavoidable advancement. It is therefore critical for destinations like Southern Africa to adapt, adopt and embrace these technological changes to enhance their competitiveness. 5

6 For the SADC region, RETOSA working with the private sector should actively engage national governments to highlight the economic case of travel facilitation and the security benefits of implementing technologically enabled solutions. 1.7: Fourth Industrial Revolution: Changes in customer expectations, new technologies and trends are compelling the industry to adapt new business operating models to meet growing market demands. Service delivery continues to evolve, as mobile tools, social media and digital infrastructure increasingly becomes the new way of life. There are 4.9 billion unique mobile (cell) phone users worldwide and an estimated 2.7 billion people on social media. The sharing economy is on the rise; Airbnb reported over one million hosts in To remain competitive, the industry must complement its high-touch approach with high-tech applications. Today, consumers want to feel special and expect personalised service and experience. While data analytics enable the sector to tailor and personalise its offerings to the traveller, it is important to ensure that increased automation does not lead to a disconnect between online and inperson exchanges. 1.8: Integrated Infrastructure, Bottlenecks and Investment The travel and tourism industry contributed 10.2% to global GDP in 2016, an increase for the sixth consecutive year. However, private and public infrastructure investments in airport development, accommodation room stock, road and rail, and communication technologies have lagged, leading to significant bottlenecks. Tourists want to move quickly and seamlessly, and will choose alternative destinations when access is difficult. For passengers, airports are a means to an end and not a destination. Therefore, airports and borders need to become smarter and travel infrastructure leaner. Given changing consumer preferences and changing market demand characteristics, travel and tourism investments should continue to evolve to ensure they meet market needs. Infrastructure is critical to a nation s travel and tourism competitiveness. As such, there is a need for dialogue between the public and private sectors, including airlines and airports, to ensure an integrated infrastructure strategy as well as alignment on issues such as investment, regulation, sustainability, security, safety and corruption. 1.9: Employment Creation in the Digital Tourism Economy The travel & tourism sector accounts for one in 10 jobs in the world. Research shows that for every 30 new tourists to a destination one new job is created. Today, the travel and tourism industry has almost twice as many women employees as other sectors. The travel and tourism industry offer employment opportunities for persons entering the labour market for the first time or without many options in other sectors. The industry plays a key role in creating opportunities for low-skilled workers, minorities, migrants, youth and the women who may prefer part-time work due to family responsibilities. 6

7 Research forecasts a net displacement of current jobs in the industry. A concerted effort across industry, government, educational institutions and civil society will be required to update university and training programmes to ensure they keep up with market needs and technological advancements to mitigate any negative impacts of the new digital tourism economy. 1.10: Sustainable Tourism Consumption and Production Since the 1980s, air traffic has doubled every 15 years, a trend which is expected to continue. Nearly 4 billion people travelled by plane in 2016, a number which is expected to reach 7.2 billion by While the economic benefits are clear, growth in the number of global tourists does impact local environments and local communities. This must be mitigated to ensure the industry s long-term sustainability and its contribution to the fight against climate change and poverty. Areas that need to be addressed include: Water usage (research suggests that tourists tend to consume around three to four times more water per day than permanent residents) Waste generation Energy consumption and The deterioration of natural and cultural world heritage sites. The aviation industry, through the International Air Transport Association (IATA), has set clear targets to reduce carbon emissions 50% of 2005 levels by While there are no common targets for the hospitality industry to date, individual companies are implementing measurement mechanisms to monitor and reduce energy, waste and water usage. Sustainable Tourism Indicators: Working with UNWTO, UN Environment and Local Sustainable Tourism Stakeholders RETOSA to implement a regional sustainable measurement mechanism through agreed indicators. 1.12: SADC Competitiveness Achieving the Vision If SADC is to meet the recently adopted tourism growth target of 5% market share of global tourist arrivals over the next 10 years, it is important Facilitation, Accessibility, Connectivity, Efficiency, Friendly and Value for Money transportation system into and within the region are a must-have condition and are fundamentals to be given high priority at both national and regional level: As tourism grows it is important to note that challenges will arise with regards to maximising social and economic benefits as well as minimising the negative impacts. 7

8 SECTION 2 2: International Tourism 2.1: Arrivals: In 2016 International tourist arrivals reached 1,237 million. 3.9% growth from previous year. UNWTO projections indicate that between 2020 and 2030, international tourist arrivals will continue to increase albeit at a slower pace of 3.3% than the last decade of 4.2%. Long term global tourism trends, indicates that this moderate, sustainable and inclusive growth will be influenced by the following factors: High base volumes, that while increases will continue, the rates will be lower. Lower GDP growth as economies mature Lower elasticity of travel to GDP Increasing transport costs The UNWTO predicts that there is great potential for both existing and emerging destinations to grow their tourism provided they respond to market forces covering the following: Friendly/conducive business operating environment Efficient infrastructure with a complimentary combination of both hard and soft infrastructure. User/Tourist friendly destination Sustainable production and consumption of tourism goods and services Skilled work force and friendly host community Effective marketing Table 1: Global Tourist Arrivals and Market Share by Region (millions) Countries 1990 % of Total 2000 % of Total 2010 % of Total 2015 % of Total 2016 % of Total Europe Asia & Pacific Americas Africa Middle East Global Source: UNWTO 8

9 Table 2: Global Market Share of Tourist Arrivals by Region Countries 1990% 2000% 2010% 2015 % 2016 % Europe Asia & Pacific Americas Africa Middle East Global Source UNWTO Table 2 above shows that Africa s market share of global tourist arrivals, at 4.7% remains comparatively very small. Given the continent s tourism resource endowments, there is no reason why Africa should not enjoy a double-digit market share of at least 10%? 2.2: Tourism Receipts Table 3: Tourist Receipts by Region (millions) Country 1990 % of Total 2000 % of Total 2010 % of Total 2015 % of Total 2016 % 0F Total Europe Asia and the Pacific Americas Africa Middle East Global Source: UNWTO (x No data) At 2.8% Africa enjoys the least share of the more than 1 trillion $US generated by tourism worldwide. 9

10 2.3: Accommodation Capacities by Region Table 4: International Hotel Occupancy by Region (2016) Region Room Occupancy Average Room Rate (US$) RevPar (US$) Europe Americans Asia Pacific Africa & Middle East Source UNWTO/World Economic Forum : Population Size Table 5: Population Size by Region Region 2010 (000s) % Share 2025 (000s) % Share Africa Europe Latin Americans North America Asia Total Source UN Population Division 2016 The World Bank estimates that by 2020 more than half the World s middle class will be from Asia, China and India accounting for two thirds of the changing demographics and global population. Africa has the lowest GDP but the second largest population size. The WB projects Africa s economy to enjoy an average annual economic growth of 4.4% up until Africa is increasingly viewed as the new economic growth frontier. It must be noted that the bigger the population size, coupled with higher disposable incomes the bigger the potential travel market size. These projected population and economic growth trends call for evolving marketing strategies. 10

11 2.5: Africa Tourism Table 6: Key Economic Indicators of Travel and Tourism Contributions (2016) Global, Africa and Southern Africa Travel and Tourism Contribution GDP Direct (US Bn) % of Total GDP Exports % of Total Jobs Direct % of Total Capital Investment % of Total Global Global (2027) Projected Africa Africa (2027) Projected Source WTTC 2017 Report SECTION 2: SADC (SOUTHERN AFRICA) TOURISM TRENDS 2.1 Market Share Table 7: SADC (%) Market share of Global and Africa Arrivals: Years SADC s Market share of World Tourist Arrivals SADC s Market Share of World Tourism Receipts SADC market share of Africa Tourist Arrivals SADC market share of Africa Tourism Receipts Source UNWTO 2012 Table 7 above show that SADC s market share of global tourist arrivals and tourism receipts remains very small with little or no growth over the last three and half years. 11

12 2.2: Key Socio-Economic Indicators Table 8: SADC: Travel & Tourism Socio-Economic Indicators; GDP/Inflation (2016) GDP(PPP) Billion $US Rank Africa Rank Global GDP/Capita (PPP, $US) Rank Africa Rank Global GDP % Growth (PPP) Inflation Rate (%) Angola Botswana D R C Lesotho Madagascar Malawi Mauritius Mozambique Namibia Seychelles South Africa Swaziland Tanzania Zambia Zimbabwe SADC Total or Average Source: WB, Economy Watch 2012 Reports, UN Economics and Tradingeconomics.com Table 9: Global Contribution to Balance of Payment (Total Exports of Goods and Services) (US$ Billion) Year World Total Total International Tourism % of Tourism % of Total Exports in Services Travel and Tourism Total Global Global Exports in Goods and Passenger Receipts Exports in Services Services Transport Goods and Services Source UNWTO

13 Angola Botswana D R Congo Lesotho Madagascar Malawi Mauritius Mozambique Namibia Seychelles South Africa Swaziland Tanzania Zambia Zimbabwe Total Table 10: SADC Travel and Tourism Socio-Economic Indicators (Population) SADC Member State Pop Size % Share Source UN Population : Tourist Arrivals Table 10: Tourist Arrivals (000) in RETOSA Member States Angola Botswana D R C Lesotho Madagascar Malawi Mauritius Mozambique Namibia Seychelles South Africa Swaziland Tanzania Zambia Zimbabwe* SADC (million) Africa (million) World (million) mn 1.235mn Source UNWTO and Member States; Figures in green are estimates 13

14 Table 11: RETOSA Member States % Market Share of Tourist Arrivals into Southern Africa Angola Botswana D R C Lesotho Madagascar Malawi Mauritius Mozambique Namibia Seychelles South Africa Swaziland Tanzania Zambia Zimbabwe Source: RETOSA member states 2.4: Tourism Receipts Table 12: SADC Tourism Receipts (Million) by Member States and % regional market share (2015) 1990 Bn $US 2000 Bn $US 2010 Bn $US 2015 Bn $US % Market Share of SADC (2015) 2016 Bn $US Angola * Botswana * D R C ,0 Lesotho Madagascar Malawi Mauritius Mozambique Namibia Seychelles South Africa Swaziland Tanzania Zambia Zimbabwe SADC (% of Africa 2 597* 4 610* SADC (% of World) Source: UNWTO; Figures in green are estimates % market share ofsadc Arrivals (2016) 14

15 2.5: Tourism Economic Contribution Table 13: SADC Tourism Exports and Investment Absolute and % of Total by Country (2016) Tourism Direct Contribution to GDP $US mn % of Total GDP Tourism Direct Contribution to Employment % of Total Jobs Tourism Exports ($US Mn) % of Total Exports Tourism Investment ($US Mn) % of Total Invest ments Angola Botswana D R C Lesotho Madagascar Malawi Mozambique Namibia Seychelles South Africa Swaziland Tanzania Zambia Zimbabwe SADC Africa World Source WTTC/WEF

16 2.6: Tourism Departures Table 14: SADC Tourist Departures by Member State Angola 1425 Botswana D R C Lesotho Malawi Mauritius Mozambique Namibia Seychelles South Africa Swaziland Tanzania Zambia Zimbabwe* Source UNWTO 2.7: Tourism Expenditures Table 15: SADC Tourism Expenditures by Member States Angola Botswana D R C Lesotho Malawi Mauritius Mozambique Namibia Seychelles - South Africa Swaziland Tanzania - - Zambia Zimbabwe * Source UNWTO. = * Estimates Table 14 and 15 above shows significant gaps in tourist departure and expenditure statistics for the SADC nationals travelling abroad. A good number of SADC member states are not capturing such statistics mainly due lack of resource capacity to collect such statistics. 16

17 2.8: Tourism Length of Stay and Capacities Table 16: Length of Stay; Accommodation Capacity and Usage (SADC) Country Length of Stay No of Rooms Available Room Occupancy Rate (%) Number of beds available Angola Botswana DRC Lesotho Malawi Mauritius Mozambique Namibia Seychelles South Africa Swaziland Tanzania Zambia Zimbabwe Source: Member States; Data in green to be updated. Bed Occupancy Rate Average Length of Stay reflects the level of sophistication and development of destination s tourism economy. The higher the product development, variety and sophistication levels: The longer the visitors will stay. The higher the expenditure per person per visit. SECTION 3: 3: Markets Analysis: Segmentation and Targeting (source UNWTO) 3.1: Domestic and Regional Market Tourism growth and development trends across the world show that sustainable tourism growth in mature destinations like Western Europe and North America is a result of vibrant domestic and intra-regional tourism. In Southern African, intra-regional travel remains relatively low and this is partly due to: High product prices and inadequate facilities suitable for the domestic and regional markets. poor accessibility, a result of poor and insufficient air services, high airfares, a result of inefficient, competing national airlines Poor entry/exit facilities and services Unfriendly VISA regimes 3.2: Overseas Markets and Competitiveness 3.2.1: Europe (EU) Western Europe is a traditional source market for southern Africa. Member States are all former colonies of European powers. Social, economic and political ties remain strong with the former colonial countries. The tourism sector of Southern Africa should continue to exploit these 17

18 historical ties. Since 2009 Europe has experienced economic challenges as a result, European travellers have of late tended to focus on short haul or intra-regional travel. Despite these challenges, it is important for Southern Africa to continue investing to retain this mature market, which remains a cash cow UK: The Brexit in the UK has raised economic tensions in the Union but at the same time, offers new opportunities as the Brits look outside the EU for business and trade : Portugal and Spain: remain attractive markets for Angola and Mozambique : France and Belgium: remain source markets with growth potentials for D R Congo, Mauritius and Seychelles : Russia is one of the BRICS economies. a newly emerged economy with high potential to be a new source market for Southern Africa : North America: The USA s economy is the world s biggest economy and the world s largest source market. Over the last year, America has taken a more inward-looking approach. It however remains a key traditional market with more potential for Southern Africa. Canada is a known high spending market : South America: South America, especially Brazil, has traditional historical and language links with some RETOSA Member States like Angola and Mozambique. Brazil like the other BRICS economies is a newly emerged source market. Regional destinations will do well to invest in this market. The increasing disposable income of its nationals has increased and the propensity to travel to new long-haul destinations is higher : Asia and the Pacific: For many years this market has generally experienced high economic growth levels. The key individual markets in the region include: Japan, China, Hong Kong, Taiwan, and Singapore which have well developed economies and are major global tourist generating markets. Travellers from this market have tended to travel intra-regional and to mature overseas destinations like N America and Europe. The numbers are slowly increasing to Africa. Southern Africa should increase its investments into this big and still growing market : China: In 2010 China officially became the world s second largest economy. It is now the world s second largest tourist destination, source and spending market China will become the largest economy in the world within the next decade. With a population of more than 1.3 billion, China is a huge and still growing tourist generating market. Every destination in the world is trying to make inroads into this market. Southern Africa, with its strong political ties with China (where the state remains instrumental in directing where its citizens visit), must take advantage of the opportunities provided : India: At 1.2 billion, India has the second largest population in the world and is projected to overpass that of China within the next 20 years. India is a member of the BRICS economies. Like China, it has been experiencing unprecedented economic growth during the past decade and continues to do so. Many of the world s richest people are found in India. With a critical mass of its citizens with high disposable incomes, India is a key emerging tourist generating market. 18

19 3.2.9: Australia and New Zealand: Though considered a western and traditional source market for Southern Africa, these two countries are now members of the Asian Pacific sub-regional economies. The region will do well to retain its share of this historical market. Australia remains in the top 10 high expenditure markets with the second highest tourist expenditure per capita : Middle East: This is a small but important market. Citizens have high disposable incomes. Visitors from the Middle East go on holiday during the hot seasons in the Middle East. They stay in the visited destinations for up wards of 1 to 2 months, spending on food and accommodation. They demand quality and want to be pampered while being adventurous. They want to relax, play golf and enjoy their holidays. Because they are religious they do need relevant facilities. The markets to target in the Middle East based on expenditure patterns will include: Saudi Arabia, UAE, Kuwait, Iran, Israel, Lebanon and Iraq. Many Southern African destinations still struggle to meet the demands of this high returns market. Table 17: Top 25 Tourist Spending Markets (2016) Rank International Expenditure US$ billions) World China United States Germany United Kingdom France Canada Korea (ROK) Italy Australia Hong Kong (China) Russia Singapore Spain Belgium Saudi Arabia Japan Netherlands U A E Taiwan India Switzerland Norway Brazil Sweden Kuwait 12.2 Source: World Tourism Organisation (UNWTO, 2010) Table 18 above shows the world s top 25 spending markets. The right side of the Table shows the top 10 markets with amount spent per capita. 19

20 SECTION 4 4.1: Travel and Tourism Growth and Competitiveness Analysis The Travel & Tourism Competitiveness Index by WEF 2017 Report: analyses the performance of 136 economies using the Travel & Tourism Competitiveness Index (TTCI), which provides unique insight into the strengths and areas for development of each country to enhance its destination competitiveness. It allows for cross-country comparison, benchmarking countries policy progress and investment decisions related to tourism business and industry development. The Report provides a platform for destinations like the SADC to self-assess at the country-level and formulate appropriate policies and actions to be more competitive. Fig 1: The Travel and Tourism Competitiveness Index 2017 Framework (WEF) Travel & Tourism Competitiveness Index Enabling Environment T&T Policy and Enabling Conditions Infrastructure Natural and Cultural Resources Business Environment Prioritization of Travel & Tourism Air Transport Infrastructure Natural Resources Safety and Security International Openness Ground and port Infrastructure Cultural Resources and Business Travel Health and Hygiene Price competitiveness Tourist Service Infrastructure Human Resources and Environmental Sustainability Labor Market ICT Readiness 20

21 4.2: Global competitiveness by region 4.2.1: Europe and Eurasia is the region with the strongest overall T&T competitiveness performance, with six economies in the top 10. It continues to lead the rankings thanks to its cultural richness, its excellent tourism service infrastructure, its international openness as well as its perceived safety, despite slightly declining security perceptions in Western and Southern Europe : The Americas is the macro region with the second most improved performance at the aggregate level, with the United States (6th), Canada (9th), Mexico (22nd) and Brazil (27th) all ranking in the top 30. While most of the countries in the region rely on rich natural resources, vast differences remain across the region. While North America should enhance its price competitiveness, environmental sustainability and infrastructure; Central and South American nations should continue improving their safety and security, create more enabling environments for business and develop their infrastructure to enhance connectivity : Asia-Pacific consists of some of the economies that have flourished most in recent years and five out of the 15 most- improved countries in the index: Japan (4th), Korea (19th), India (40th), Vietnam (67th) and Bhutan (78th). While East Asia and Australia boasts world class infrastructure and are among the most ICT-ready economies globally, they are also relatively less price competitive than other areas in the region. Conversely, while South- East Asian and South Asian nations are more price-competitive destinations, infrastructure and ICT readiness lags for the most part. Improving regional visa policies could further enhance travel and tourism : Middle East and North Africa, led by the United Arab Emirates (29th), has improved its T&T competitiveness. Better ICT infrastructure, lower prices, partial improvements in international openness and some progress in nurturing cultural heritage have created better conditions to develop the T&T sector overall. Still, natural and cultural resources remain mostly underexploited, international openness is still limited and security perceptions remain the biggest hurdle : Sub-Saharan Africa showcases South Africa (53rd), Mauritius (55th), Kenya (80th) and Namibia (82nd) as its four most T&T competitive economies. Despite sustained economic growth, T&T remains mostly untapped. Air connectivity and travel costs remain challenges as well as visa policies and infrastructure. While tourism in the region is mainly driven by

22 natural tourism, there is significant room for improvement in protecting, valuing and communicating cultural richness. The following country by country analysis on the prospects for tourism growth in Southern Africa is based on the WEF T&T Competitiveness Report 2017, which itself is based on economic growth indicators as given by the WB, IMF and other authoritative sources. 4.3: SADC Tourism Competitiveness: An Overview The WEF report of 2017 highlights that the Sub-Saharan Africa remains, on aggregate, the region where Travel & Tourism competitiveness is the least developed. Although regional performance has increased, it has improved less compared to other parts of the world. Given the size and the rich cultural and natural resources, the 23 million tourists visiting Southern Africa in 2016 is low. What are the challenges? 4.3.1: Socio-Economic Constraints Despite sustained economic growth in the past decade, Africa has not seen the same kind of income increases enjoyed by for instance Asian households. Consequently, relatively fewer African people can afford to travel. In Europe and, more recently Asia, tourism has been fuelled by intra-regional travel, data reveals that, on average, African tourists spend a tenth of what an overseas tourist would spend : Accessibility; Connectivity and Cost to Travel. Air connectivity and travel cost are challenges linked to the regulatory framework. Although most African nations have signed onto the 1988 Yamoussoukro Declaration to reach a multilateral open skies agreement, almost thirty years later, air travel remains inefficient throughout the region. Protectionist fears linked to national carriers mean that there is little competition and little connectivity. In fact, in some cases, it is faster for a passenger to fly through Europe rather than use an African hub. The lack of competition in turn impacts the costs of tickets and airport and landing charges. Twenty of the 30 Sub-Saharan countries covered by the Report apply ticket taxes and airport charges above the world average. Most African countries still maintain unprofitable, inefficient and insecure publiclyowned national carriers. Air transport and transport infrastructure generally, remain, to date, the biggest challenge for travel & tourism development in Africa : Openness and Facilitation Lack of international openness is a further area that requires policy attention at the regional level. In addition to open-skies policies, visa policies are still very restrictive. 22

23 Table 18: SADC VISA Openness to Other African Countries Country NO VISA Required form other African states VISA on Arrival VISA Required before travel VISA Openness rank in SADC VISA Openness Rank in Africa Comment on How Easy or Difficult to travel to destination, based on country s VISA Regime Angola The most difficult destination to travel to Botswana Difficult DRC Second most difficult destination Lesotho Difficult Madagascar Easy/friendly Malawi Can be improved Mauritius Easy/Friendly Mozambique Easy/ Friendly, Ranked 2nd best in SADC Namibia Difficult Seychelles Best practice case in Africa and the world South Africa Difficult Swaziland Difficult Tanzania Zambia Zimbabwe Easy Can be improved Can be improved 4.3.4: Natural and Cultural Resources The lack of value addition in the use of natural resources hinders Africa s T&T competitiveness. While tourism in the region is mainly driven by natural tourism, there is ample room for improvement in protecting, valuing and communicating cultural richness. In several African countries, there are numerous cultural sites and intangible expressions that could be better leveraged and combined with the rich natural capital available; only South Africa performs above the world average. 23

24 Rank in SADC Overall Rank in the World Prioritization Of Travel & Tourism Air Transport Infrastructure Tourist Service Infrastructure Ground & Port Infrastructure Safety & Security Price Competitiveness ICT Readiness Cultural Resources & Business Travel Natural Resources Health & Hygiene International Openness Environmental Sustainability Table 19: Travel and Tourism Competitiveness and Growth Trends for RETOSA Member States SADC Member State Angola x x x x x x x x x x x x x x Botswana D R C x x x x x x x x x x x x x x Lesotho Madagascar Malawi Mauritius Mozambique Namibia Seychelles x x x x x x x x x x x x x x South Africa Swaziland x x x x x x x x x x x x x x Tanzania Zambia Zimbabwe

25 4.5: SADC Member States: Country Profiles and comparative competitiveness indicators. The indicators are based on the WEF report of 2017 which looked at 136 countries across the world. Angola Fig 2: Key Tourism Indicators and T&T Competitiveness Population = 26.6 GDP = GDP/Capita = Tourism % of GDP = 1.8 Tourism Receipts = 1163 Tourism % of Exports = Mn (3.5) Tourism Investment = 300 Mn (2.9) Prioritisation of T&T = x International Openness = x Tourism Service Infrastructure = x Air Transport Infrastracture = x Ground and Port Infrastructure = x Business Environment = x ICT Readiness = x Price Competitiveness = x Safety & Security = x Health & Hygiene = x 25

26 Botswana Fig 3: Key Tourism Indicators and T&T Competitiveness Population 2.3 GDP GDP/Capita Tourism % of GDP 3.9 Tourism Receipts 948 Tourism % of Exports 5.8 Tourism Investment (8.5) Prioritisation of T&T = 70 International Openness = 118 Tourism Service Infrastructure = 84 Air Transport Infrastracture = 87 Ground and Port Infrastructure = 89 Business Environment = 30 ICT Readiness = 83 Price Competitiveness = 13 Safety & Security = 77 Health & Hygiene =

27 D R Congo Fig 4: Key Tourism Indicators and T&T Competitiveness Population 82.2 Mn GDP US$ Bn GDP/Capita 785 Tourism % of GDP 0.7 Tourism Receipts 0.1 Bn Tourism % of Exports 0.0 Tourism Investment 200 (3.6) Prioritisation of T&T = x International Openness = x Tourism Service Infrastructure = x Business Environment = x Air Transport Infrastracture = x ICT Readiness = x Ground and Port Infrastructure = x Price Competitiveness = x Safety & Security = x Health & Hygiene = x 27

28 Lesotho Fig 5: Key Tourism Indicators and T&T Competitiveness Population = 2.1 GDP = GDP/Capita = Tourism % of GDP = X Tourism Receipts = x Tourism % of Exports = x Tourism Investment =x Prioritisation of T&T = 60 International Openness = 129 Tourism Service Infrastructure = 118 Air Transport Infrastracture = 136 Ground and Port Infrastructure = 134 Business Environment = 93 ICT Readiness = 113 Price Competitiveness = 57 Safety & Security = 71 Health & Hygiene =

29 Madagascar Fig 6: Key Tourism Indicators and T&T Competitiveness Population = 1.2 GDP = GDP/Capita = Tourism % of GDP = 5.1 Tourism Receipts = 574 Tourism % of Exports = 17.9 Tourism Investment = 300 (19.5) Prioritisation of T&T = 84 International Openness = 74 Tourism Service Infrastructure = 112 Air Transport Infrastracture = 120 Ground and Port Infrastructure = 132 Business Environment = 126 ICT Readiness = 133 Price Competitiveness = 55 Safety & Security = 93 Health & Hygiene =119 29

30 Malawi Fig 7: Key Tourism Indicators and T&T Competitiveness Population = 18.3 GDP = GDP/Capita = 1139 Tourism % of GDP = 3.4 Tourism Receipts = 37 Mn Tourism % of Exports = 1.6 Tourism Investment = 28.8 (4.0) Prioritisation of T&T = 121 International Openness = 86 Tourism Service Infrastructure = 126 Air Transport Infrastracture = 135 Ground and Port Infrastructure = 127 Business Environment = 99 ICT Readiness = 127 Price Competitiveness = 95 Safety & Security = 74 Health & Hygiene =

31 Mauritius Fig 8: Key Tourism Indicators and T&T Competitiveness Population = 1.2 GDP = GDP/Capita = Tourism % of GDP = 11.6 Tourism Receipts = Mn Tourism % of Exports = - Average Receipts Per Arrival = Prioritisation of T&T = 4 International Openness = 59 Tourism Service Infrastructure = 36 Air Transport Infrastracture = 56 Ground and Port Infrastructure = 27 Business Environment = 24 ICT Readiness = 65 Price Competitiveness = 116 Safety & Security = 33 Health & Hygiene = 69 31

32 Mozambique Fig 9: Key Tourism Indicators and T&T Competitiveness Population = 29.5 GDP = GDP/Capita = 1228 Tourism % of GDP = 3.6 Tourism Receipts = 108 Mn Tourism % of Exports = 4.2 Tourism Investment = 200 (4.2) Prioritisation of T&T = 103 International Openness = 68 Tourism Service Infrastructure = 104 Air Transport Infrastracture = 122 Ground and Port Infrastructure = 124 Business Environment = 94 ICT Readiness = 123 Price Competitiveness = 93 Safety & Security = 105 Health & Hygiene =

33 Namibia Fig 10: Key Tourism Indicators and T&T Competitiveness Population = 2.5 GDP = GDP/Capita = Tourism % of GDP = 2.8 Tourism Receipts = 295 Tourism % of Exports = 7.0 Tourism Investment = (11.6) Prioritisation of T&T = 61 International Openness = 92 Tourism Service Infrastructure = 73 Air Transport Infrastracture = 58 Ground and Port Infrastructure = 66 Business Environment = 38 ICT Readiness = 90 Price Competitiveness = 30 Safety & Security = 82 Health & Hygiene =

34 Seychelles Fig 11: Key Tourism Indicators and T&T Competitiveness Population = 0.1Mn GDP = Bn GDP/Capita = Tourism % of GDP = 22 Tourism Receipts = 414 Tourism % of Exports = 39.1 Tourism Investment = (29.0) Prioritisation of T&T = x International Openness = x Tourism Service Infrastructure = x Air Transport Infrastracture = x Ground and Port Infrastructure = x Business Environment = x ICT Readiness = x Price Competitiveness = x Safety & Security = x Health & Hygiene = x 34

35 South Africa Fig 12: Key Tourism Indicators and T&T Competitiveness Population = 55.4 GDP = GDP/Capita = Tourism % of GDP = 3.0 Tourism Receipts = Tourism % of Exports = 9.9 Tourism Investment = (8.1) Prioritisation of T&T = 59 International Openness = 110 Tourism Service Infrastructure = 59 Air Transport Infrastracture = 46 Ground and Port Infrastructure = 59 Business Environment = 21 ICT Readiness = 68 Price Competitiveness = 43 Safety & Security = 120 Health & Hygiene =

36 Swaziland Fig 13: Key Tourism Indicators and T&T Competitiveness Population = 1.3 GDP = Bn GDP/Capita = Tourism % of GDP = 2.8 Tourism Receipts = 14 Tourism % of Exports = 0.4 Tourism Investment = 14.8 (2.5) Prioritisation of T&T = x International Openness = x Tourism Service Infrastructure = x Air Transport Infrastracture = x Business Environment = x Ground and Port Infrastructure = x ICT Readiness = x Price Competitiveness = x Safety & Security = x Health & Hygiene = x 36

37 Tanzania Fig 14: Key Tourism Indicators and T&T Competitiveness Population = 56.9 GDP = GDP/Capita = Tourism % of GDP = 4.7 Tourism Receipts = 2 231Mn Tourism % of Exports = 21.4 Tourism Investment = 1200 Mn (8.7) Prioritisation of T&T = 45 International Openness =64 Tourism Service Infrastructure = 103 Air Transport Infrastracture = 106 Ground and Port Infrastructure = 102 Business Environment = 102 ICT Readiness = 121 Price Competitiveness = 34 Safety & Security = 92 Health & Hygiene =

38 Zambia Fig 15: Key Tourism Indicators and T&T Competitiveness Population = 17.2 GDP = GDP/Capita = Tourism % of GDP = 3.2 Tourism Receipts = 660 Mn Tourism % of Exports = 11.4 Tourism Investment = 100 (1.7) Prioritisation of T&T = 107 International Openness = 83 Tourism Service Infrastructure = 114 Air Transport Infrastracture = 117 Ground and Port Infrastructure = 113 Business Environment = 52 ICT Readiness = 118 Price Competitiveness = 79 Safety & Security = 73 Health & Hygiene =

39 Zimbabwe Fig 16: Key Tourism Indicators and T&T Competitiveness Population = 16.3 GDP = GDP/Capita = Tourism % of GDP = 3.5 Tourism Receipts = 886 Tourism % of Exports = 7.3 Tourism Investment = 100 (4.3) Prioritisation of T&T = 105 International Openness = 82 Tourism Service Infrastructure = 106 Air Transport Infrastracture =116 Ground and Port Infrastructure = 110 Business Environment = 134 ICT Readiness = 117 Price Competitiveness = 53 Safety & Security = 60 Health & Hygiene =

40 Regional Capacity Building Programme on Tourism Statistics (TSA) RETOSA/UNWTO ( ) 1. Introduction and Background In 2010 RETOSA having realised that its member states were not able to provide relevant tourism statistical information approached the UNWTO for technical assistance to build capacity of member states to collect, collate and disseminate tourism statistics. The UNWTO agreed to run a joint programme with RETOSA the same year a region wide baseline study was carried out to assess capacity levels for each member state in the production of tourism statistics. Reports for each country with recommendations were completed and circulated to all member states. Based on the results of the baseline study, RETOSA and the UNWTO decided to implement a tourism statistics capacity and skills development program. The program was designed to target key institutions and individuals responsible for the collection, collation and dissemination of tourism statistics in each country. The two organizations ran the programme over a period of 5 years from 2011 to 2016, at the end of which, a program evaluation showed that while the necessary institutional framework were in place and the relevant skills acquired, the major challenge and constraint for most member states remains the lack of resources to collect required data. Way Forward: It is the intention of the new RETOSA management team to establish a SADC Tourism Statistics Working Group which should be the vehicle of identifying data gaps, prioritising and agreeing on a new methodological approach of collecting such data and establishing a robust and most efficient regional system of tourism statistics. For each Member State it is proposed that a National Tourism Statistics Development Committee (NTSDC) is established. Such a Committee must be Inter-Institutional and Inter-Ministerial. Members of the NTSDC will then meet annually to agree on data gaps and ways of collecting and sharing such data at regional level. It is therefore proposed that a SADC Tourism Statistics Working Group to implement the program suggested above is established. The strategic objective of the regional tourism statistics program is to ensure every member state is able to collect, collate and disseminate tourism statistics. That each member state must be able to progress and develop a national TSA as well as include the measurement of sustainable tourism indicators as they are developed and come on to the market. To establish more efficient means of collecting and sharing tourism statistics data. And to ensure that as a region tourism statistical information and market intelligence is readily available. The proposed institutional framework is shown diagrammatically below. 40

41 Fig 17: The SADC Tourism Statistics Institutional Platform (SADC TSIP) HEAD: MINISTRY OF TOURISM/NTB HEAD:CENTRAL BANK HEAD : CENTRAL STATISTICS OFFICE UNIVERSITIES REP HEAD IMMIGRATION DEPARTMENT National Tourism Statistics Technical Committee Ministry Tourism and NTB Central Bank Chair Central Statistics Office (National Accouints) Immigration Department Universities 41