Papathanassis. Prof. Dr. Alexis Papathanassis. Prof. Dr. Alexis. Institut für Maritimen Tourismus. Cruise Management & CruiseT Workshop

Transcription

1 Prof. Dr. Alexis Institut für Maritimen us Papathanassis E- Cruise Management & Prof. Dr. Alexis Papathanassis CruiseT Workshop Batumi, 16th July 2015 Odessa, 20th July 2015

2 Midas = Symbol of Riches?! At one time the Phrygians were without a king. Oracle decreed that the next man to enter the city driving an ox-cart should become their king. Farmer Gordias drove into town on an ox-cart and became king. His son Midas dedicated the ox-cart to the Gods and tied it to a post with an intricate knot. Alexander the Great tried to untie it and became frustrated So he drew his sword and cut it! A Gordian knot is impossible to untie because it has no visible end and no visible beginning

3 World Travel & Council

4 GDP Contribution Million Dollar Company Revenue Tourist Spending Indicators / Geo Region $ $ $ $ $ $ $ $ $0 Africa Caribbean East Asia Europe Middle East North & Cental America Pacific South America West Asia Direct Contribution to GDP Internal Travel & Consumption Leisure Travel & Spending Source Data: World & Travel Council (2014)

5 Source Data: World & Travel Council (2014)

6 Question of the Day: Which business sector is more important for the German Economy? -, Automobile-, or Internet- Sector?

7 97 Gross-Value-Added (Bn EURO) Revenues (Bn EURO) Sector Automobile Sector Internet-Business Sector Automobile Industry Unit Production Jobs Holidays Cars Sector Automobile Sector Source Data (a): DRV (2014) Source Data (b): BMWI (2012)

8 represents a significant part of the World s GDP. Even in countries one would not expect.

9 Who needs tourism more? And who earns more from it?

10 Source Data: World & Travel Council (2014)

11 Destination Focus Source Market Focus Source Data:

12 Spain $ France $ Croatia $ Turkey $ Ukraine $ 12.9 Greece $ 26.6 Georgia $ 1.21 Portugal $ Marocco $ 12.2 Tunisia $ 4.9 Italy $ Bulgaria $ 4.52 Egypt $ Romania $ Source Data: World & Travel Council (2014)

13 Question of the Day: Even Though is a significant part of their economies, Destinations have lower levels of -Spending. How come?

14 ANOVA Sum of Squares df Mean Square F Sig. Mass Between Groups 114, ,710 1,852,140 Within Groups 3,833 10,383 Total 118, Life Cycle Phase Between Groups 217, ,343 2,302,072 Within Groups 5,833 10,583 Total 223, The degree of mass-tourism and the tourism life cycle phase are not sufficient to explain the differences in tourism spending between countries

15 The role of Government Spending & Capital Investment

16 Travel & Direct Contribution to GDP GDP generated by industries that deal directly with tourists, including hotels, travel agents, airlines and other passenger transportation services, as well as the activities of restaurant and leisure industries that deal directly with tourists. It is equivalent to total internal Travel & spending within a country minus purchases made by those industries (including imports). Domestic Travel & Spending Spending within a country by that country's residents for both business and leisure trips. Multi-use consumer durables are not included since they are not purchased solely for tourism purposes. Outbound spending by residents abroad is not included here Government Individual Travel & Spending Government spending on individual nonmarket services for which beneficiaries can be separately identified. These social transfers are directly comparable to consumer spending and, in certain cases, may represent public provision of consumer services. For example, it includes provision of national parks and museums. Internal Travel & Consumption ( Revenue) Total revenue generated within a country by industries that deal directly with tourists including visitor exports, domestic spending and government individual spending. This does not include spending abroad by residents. Leisure Travel & Spending (Tourist Spending) Spending on leisure travel within a country by residents and international visitors. Capital Investment Capital investment spending by all sectors directly involved in the Travel & industry. This also constitutes investment spending by other industries on specific tourism assets such as new visitor accommodation, passenger transportation equipment, as well as restaurants and leisure facilities for specific tourism use. Source: World & Travel Council (2014)

17 Direct Contribution to GDP Government Individual Travel & Spending Internal Travel & Consumption Domestic Travel & Leisure Travel & Geographic Region Spending Spending Capital Investment Africa N Sum $ $116 $3.081 $ $ $ Mean $2.203 $2.474 $66 $848 Std. Deviation $4.658 $6.407 $297 $ $6.898 $2.049 Caribbean N Sum $ $6.497 $502 $ $ $3.516 Mean $784 $500 $39 $270 Std. Deviation $964 $735 $72 $2.320 $2.202 $334 East Asia N Sum $ $1,E+06 $ $1,E+06 $1,E+06 $ Mean $ $ $709 $ Std. Deviation $ $ $1.862 $ ,485 $ $ Europe N Sum $ $681 $ $1,E+06 $ $ Mean $ $ $412 $4.651 Std. Deviation $ $ $666 $48.290,850 $ $7.304 Middle East N Sum $ $ $1.820 $ $ $ Mean $6.679 $5.525 $140 $3.726 Std. Deviation $7.658 $5.890 $153 $ $ $7.244 Source Data: World & Travel Council (2014)

18 Direct Contribution to GDP Government Individual Travel & Spending Internal Travel & Consumption Domestic Travel & Leisure Travel & Geographic Region Spending Spending Capital Investment North & Central America N Sum $ $ $ $1,E+06 $ $ Mean $ $ $9.618,00 $ Std. Deviation $ $ $ $ $ $ Pacific N Sum $ $ $4.923 $ $ $ Mean $11.797,13 $ $615 $6.771 Std. Deviation $ $ $1.097 $ $ $ South America N Sum $ $ $3.215 $ $ $ Mean $8.593 $ $169 $3.275,63 Std. Deviation $ $ $454 $ $ $7.055 West Asia N Sum $ $ $1.846 $ $ $ Mean $5.287 $ $205 $2.051 Std. Deviation $11.070,083 $23.543,281 $450,277 $31.313,152 $ $4.363 Total N Sum $2,E+06 $3,E+06 $ $5,E+06 $4,E+06 $ Mean $ $19.492,06 $389,14 $5.183,79 Std. Deviation $ $ $1.612 $ $ $ Source Data: World & Travel Council (2014)

19 Investment Government Spending,928 **,933 **,994 Tourist,903 ** Spending ** Revenue Capital Investment,958**,959 ** Investment,985 ** Tourist,994 ** Spending Revenue Source Data: World & Travel Council (2014)

20 1 Coefficients a Model Unstandardized Stand. Collinearity Correlations Coefficients Coefficients Statistics t Sig. Zeroorder ce Toleran B Std. Error Beta Partial Part VIF (Constant) 1339, ,997 1,393,166 Investment 3,571,048,985 74,994,000,985,985,985 1,000 1,000 (Private &Public) a. Dependent Variable: Leisure Travel & Spending Investment,985 ** Tourist Spending Revenue 1 Dollar increase / decrease in tourism investment corresponds to 3.5 increase / decrease in tourism spending Source Data: World & Travel Council (2014)

21 Unstandardized Coefficients Coefficients a Standardized Coefficients Model B Std. Error Beta t Sig. 1 (Constant) -734, ,144-1,537,126 Collinearity Correlations Statistics Zeroorder Partial Part Tolerance VIF Leisure Travel & Spending 1,349,007, ,410,000,998,998,998 1,000 1,000 a. Dependent Variable: Internal Travel & Consumption Investment Tourist Spending,998 ** Revenue 1 Dollar increase / decrease in tourism spending corresponds to 1.3 increase / decrease in tourism revenue Source Data: World & Travel Council (2014)

22 Tourist s Spending is a result of Investment and generates Revenues for Companies!

23 Ming Che Chou (2013): Spending and Growth in Transition Countries (doi: /j.econmod ) Empirical studies have shown inconsistent or even contradictory results in terms of a tourism-led economic growth hypothesis (p.227) One can attribute the neutrality between tourism spending and economic growth to a relatively small contribution of domestic tourism spending to overall output. (p.231) Mario Holzner (2011): Beach Disease (adaptation of the Dutch Disease Model to ) De-industrialisation and Economic Contraction (DOI: /j.tourman ) The main policy recommendation for countries in development with a potential for tourism specialisation is to invest apart from tourism specific also into traditional infrastructure, which can be used both by the tourism sector as well as by the manufacturing sector (p.929) María del P. Pablo-Romero & José A. Molina (2013): Literature Review on the relationship between economic growth and tourism (DOI: /j.tmp ) The relation between tourism and growth depends on various factors, the main one being the country's degree of specialisation in tourism Christian Steiner (2010): Foreign Direct Investment in (DOI: /jtr.788) The influence of political risk and violent political unrest on tourism FDI is overestimated

24 Empirical research questions the causality between tourism and economic growth

25 as an Economic Mono-Culture Requires Clever Investment and Taxation Policies

26 Key Policy Instruments Infrastructure Investment Taxation Investment Tourist Spending Revenue Industrial Development Domestic Tourist Spending Key Spending Drivers

27 Key Policy Instruments Infrastructure Investment Leakage 3: Subsidies for Externalities Taxation Leakage 1: Tax Evasion / Black economy Leakage 2: Foreign Ownership / Taxation Incentives for Foreign Investment Investment Tourist Spending Revenue Industrial Development Domestic Tourist Spending Leakage 4: Exclusion of local tourists (price, seasonality) Key Spending Drivers

28 The Banks are closed But the Beaches are open

29 Administrative Functions: - Dean Faculty of Business Infrastructure & Services - Member of the Bremerhaven Univ. Research Committee Research Functions: - Founder & Chairman of the Cruise Research Society ( - Co-Director of the Institute for Maritime (IMT) ( Editorial / Reviewer Functions: - Special Issue Editor for the Journal of in Marine Environments (TIME) ( - Editorial Board Member of the Journal of the European Journal of, Hospitality and Recreation (EJTHR) ( - Reviewer for the Management Journal ( - Reviewer for the Intl. Journal of Hospitality Management ( com/international-journal-of-hospitalitymanagement/) - Reviewer for the Journal of Hospitality & Research ( - Reviewer for the International Journal of Research ( com/journal/ /%28issn% ) - Reviewer for the International Journal of Research ( com/journal/ /%28issn% ) - Reviewer for the Current Issues in Journal ( loi/rcit20#.vz1ubuas8wc)