THE FIFTH UNITED NATIONS WORLD TOURISM ORGANIZATION FORUM ON TOURISM TRENDS AND OUTLOOK

Transcription

1 THE FIFTH UNITED NATIONS WORLD TOURISM ORGANIZATION FORUM ON TOURISM TRENDS AND OUTLOOK (26-28 October 2011; Guilin, China) Executive Summary Prepared by School of Hotel and Tourism Management The Hong Kong Polytechnic University 7 December

2 INTRODUCTION Innovation and diversification have been essential to product development to match new and emerging markets and to the winning of competitive advantage for tourism at demanding times. Facilitated with technology, innovation and diversification could serve as effective strategies for destinations to recover from crises and to lead new growth. Overarched within the theme of innovation and diversification, this 5 th United Nations World Tourism Organization (UNWTO) Forum on Tourism Trends and Outlook aims at providing a platform for government offices, NGOs, industry practitioners and academics to share their perspectives, research findings, and practices on innovation and diversification in tourism. Specifically, the Forum aims at achieving the following objectives: - To share state-of-the-art research, practices and perspectives on innovation and diversification in new product development and in the creation of quality tourist experience at different scales or in different contexts. - To analyze global and regional tourism trends with a focus on emerging markets with high potentials of growth. - To exchange views and share experiences in tourism recovery for destinations after crises and/or disasters. - To discuss the prospects of utilizing technology to promote destinations, businesses, and visitor experience. The Forum was held on October 2011 in Guilin, China in collaboration with the Pacific Asia Travel Association (PATA), The Hong Kong Polytechnic University s School of Hotel and Tourism Management, and the Guilin Municipal Government. The meeting was attended by over 180 registered and invited delegates from twenty countries or regions, as well as local audiences. Participants include officials from national tourism administrations or government tourism authorities of UNWTO member states or regions, representatives from tourism 2

3 industries, the academia, research associates, consultants, media, as well as local tourism authorities. Consisting of technical and general sessions, the Forum has remained an important platform for dissemination of both tourism research and practices. The technical sessions (on 26 October) aim at a specialized audience. These sessions provide practitioners and academics with a platform to exchange views and experiences on the state of the art of innovation and diversification in tourism with both research presentations and best practice examples from around the globe. Topically, the discussion is developed around three tracks on 1) tourism trends and emerging markets, 2) technology in tourism, and 3) new tourism product development. The plenary sessions (on 27 October) are open to a broad audience. These sessions take a holistic view to look at the overall trends and outlook on innovation and diversification in tourism and hospitality industries. The event is concluded with a technical tour (on 28 October) to local yet internationally renowned attractions such as the Lijiang River Cruise and the live on-site performance of Impression Sanjie Liu. In short, the theme of the Forum is amply addressed, and its overarching objectives adequately fulfilled, with twenty substantive presentations and one panel discussion session in two days. As an outlet for sharing knowledge, strategies and practices, this Forum has served as a timely platform to reflect upon and exchange ideas about innovation and diversification in tourism. TECHNICAL SESSIONS The program on the first day features four technical sessions, with a preamble setting up the scene, three subsequent sessions addressing 1) new tourism product development, 2) technology in tourism, and 3) tourism trends and emerging markets, respectively. The first day was closed with a technical session summary of what has been presented and discussed to serve as a connective to the next days plenary sessions. Welcome addresses by Mr. Xu Jing, Director of UNWTO Regional Programme for Asia and the Pacific, and Mr. Chen Yunchun, Deputy Director of Guilin Tourism 3

4 Administration, mark the opening of the technical sessions. Three presentations, each addressing a sessional topic under the broad theme of innovation and diversification, follow to set up the scene for discussions in the subsequent technical sessions. Session One: Setting up the Scene On behalf of Michel Julian (Senior Officer of Tourism Trends and Marketing Strategies Programme of the UNWTO), Mr. Xu Jing speaks on the topic of tourism trends and emerging markets. Based on UNWTO statistics, he reviews the status quo of international/inbound tourism by 2010, with 940 million international tourist arrivals and US$919 billion in terms of international tourism receipts. His presentation also looks at market share by continents, and variation of international tourist flow by months and sub-regions for the ears In terms of Asia and the Pacific, the growth remains to be led by North-East Asia (112 million arrivals, US$122 billion in receipts), followed by South-East Asia (70 million arrivals, US$68 billion in receipts) and South Asia (11 million arrivals, US$19 billion in receipts). In terms of emerging markets, two longitudinal patterns of growth are highlighted. First over a matter of thirty years from 1980 to 2010, international tourist arrivals from advanced economies have been gradually on a decline whereas the pattern from emerging economies is on a slow and steady growth. Second for over half a century from , the dominance of international tourism by a few major source markets has been weakened, with a pattern pinpointing to a notable absence of such concentrations of international tourist arrivals from major sources by the 2010s. Such longitudinal patterns of overall growth have very useful implications for the industry and its businesses to remain innovative for future s diverse and changing markets. Mathew McDougall (CEO and Executive Chairman, Sinotech Group) addresses the topic of technology in tourism with a focus on social media in China. The speech points out an enormous potential of using online social media and networking devices for travel and tourism marketing. In addition, the use of social media for online shopping and travel-related booking has witnessed phenomenal growth; as a result, to leverage social media for tourism, industries and businesses should not 4

5 only understand and appeal to the needs of these future netizens, they should also make themselves visible to and establish trust with social media users. Haiyan Song, Chair Professor and Associate Dean of the School of Hotel and Tourism Management at The Hong Kong Polytechnic University, addresses on new product development from an e-tourism perspective. Unlike his demand forecasting addresses typically substantiated with econometric models, the speaker almost takes a humanistic turn in this presentation with an overview of the potentially enormous impacts of technology on every aspect of human life and activities, particularly in pertinence to travel and tourism. The typology of advancement encompasses information and communication technology (e.g., internet and search engine, social media and networking devices), aviation and space technology to not only enhance the future capacity of air travel but also for human to travel farther away into the outer space, as well as mobile technology and the creation of virtual realities. Arguably, all of these have almost immediate implications for innovation and new product development in tourism. Succinctly, the three presentations have nicely set up the scene with complementary perspectives to overarch the main theme of the Forum. A heated albeit brief session of interaction followed with a variety of interesting questions raised by the audience and entertained by the speakers. Session Two: New Tourism Product Development Moderated by Professor Haiyan Song, this session features four presentations with a mixture of theoretical reflections with practical orientations from geographically complementary regions. On the conceptual side, Peter Mac Nulty (Managing Director of Tourism Development International, Ireland) addresses on the fundamentals and principles of product development supported with numerous examples from around the world including a case study on rural/eco-tourism development from the host country s Guizhou Province. Holistically, the presentation is derived from a UNWTO handbook on tourism product development, which comprehensively deals with definitions, principles, frameworks and procedures of destination planning and new tourism product development. Notably, some of the tourism development theories, 5

6 which are more often covered in academic tourism conferences, are also introduced. Additional case studies the speaker wishes to but has no time to elaborate cover a variety of countries or regions such as Australia, Norway, Slovenia, Malaysia, Romania, France, the United States, Hungary, Spain, India, Cambodia and Ireland. The second presenter, Professor Lu Lin (College of Territorial Resources and Tourism, Anhui Normal University, China), addresses the topic of Wetland-based Ecotourism Tourism Research. His presentation is also largely from an academic perspective, beginning with a review and critique of what has been researched on wetland-based ecotourism. The presenter adopts a comparative perspective to both examine studies from neighboring fields such as ecology and natural resources management, and to contrast the undertakings in China (or in Chinese) versus works published in other languages (mainly English). On the basis of this, the speaker presents a series of research agenda, methodologically and in substantive topical areas, for future studies to look into wetland-based ecotourism development in China. The discussion has practical implications for sustainability and new product development in the attraction sector. The third presentation in this session, by Geoffrey Bailey (Economic and Industry Analysis, Department of Resources, Energy and Tourism, Australia), speaks on latest tourism product development in Australia. From a historical perspective, international tourism to Australia has witnessed very strong growth in the 1980s, with weaker growth in the 90s, and very slow growth in the 2000s. On the other hand, outbound tourism from Australia has had very strong growth over the last ten years. Against such a background of a strong Australian economy with hard exchange currency, tourism product development has different implications for different markets. On the one hand, there is a high demand, of domestic vacation market, for holiday and package leisure products; on the other, there is a high demand from the business and incentive market for a small scale high products (e.g., eco-resorts). In addition, there are needs for cultural/heritage products to cater to the increasing demand form the visiting friends and relatives markets. As a result, it is concluded that new tourism product development reflects both the changing patterns of international tourism to and from Australia, and strategic investments in and government focus on the incoming leisure markets. 6

7 The last presenter in this session is Mr. Mohd Daud Mohd Arif (Director of Industry Development Division, Ministry of Tourism, Malaysia), who speaks on the experiences and perspectives of tourism product development in Malaysia. His speech outlines a transformational, strategic plan for Malaysia tourism in what is numbered 2020:36:168. As is implied, by 2020 Malaysia tourism aims at attracting 36 million arrivals and achieving RM168 billion in tourist receipts. While the goal is inspiring and glamorous, Malaysia tourism is positioned to link more widely and in greater depth with a number of related industries for economic well being of the country. In particular, the Ministry of Tourism has focused on conventions, events and festivals; cultural and natural heritage; as well as the country s multicultural/multiethnicity lifestyle (e.g., homestay products) to enhance its tourist industry. Session Three: Technology in Tourism This afternoon session is moderated by Stuart Lloyd (Senior Director - Marketing and Membership Services, PATA) and features four presentations on technology and its utilization in different sectors or from complementary perspectives in tourism. George Cao, Co-founder and CEO of Dragon Trail, speaks on the use of technology to engage visitors and enhance their travel experiences. Focusing on the three initials of So, Lo, Mo, the presentation adequately capitalizes on social trends and societal changes spearheaded by the Y generation, and has convincingly stressed the importance of technology s facilitating role in getting social, getting local, and getting mobile. The story of technology engaging businesses is told by Jason Pang, Director of Technology and Innovation of Hotel ICON (Hong Kong). The speaker chronologically reviews progress in the use of technology in the hotel sector since the mid 1980s, encompassing the uses of telephones, telex and facsimiles, television set in hotel rooms, cash registers, computer reservation systems, and more recently the application of advanced technology such as IPTV, IP Telephony, electronic document signing and its use in hotel management, advanced POS and its use in restaurant and revenue management, and mobile and social networking devices. With respect to enhancing businesses through technology in the hotel industry, the 7

8 speaker alludes to Hotel ICON as an example of innovation in adopting frontier technology in its management and operation, which in the meantime is supported by cutting-edge research in hospitality. The next presenter in this session is Alexander Rayner (ebusiness Adviser, PATA), who addresses on technology that engages destinations. Drawing from prior research, the speaker proposes an mtourism as the frontier of information and communication technology in tourism. Building on the ubiquity of mobile technology and its far-reaching impacts, the potential of developing mtourism (or mobile tourism) is adequately highlighted as very much the same in the instances of developing mgovernment, mhealth, and mbanking, etc.. To put the discussion in context, the presenter also compares and contrasts etourism with mtourism, with interesting evidence and figures to support his proposal of developing mtourism in future destinations. Finally, in this session, Terence Mak (CEO, 3 rd Planet, Singapore) presents a demo of the 3 rd Planet in what he refers to as the world s first 3D online interaction mirror world. In addition to the use of existing technology and its advantage of bringing tourism industry together, the 3 rd Planet could potentially reduce the cost of destination marketing. Furthermore, the use of 3D online interactive technology will have greatly enhanced the virtual experience of users or potential visitors in their search for potential places or destination for travel. Session Four: Tourism Trends and Emerging Markets Moderated by Honggen Xiao (The Hong Kong Polytechnic University), this session also features four presentations, the first of which is titled China s outbound tourism: In search of diversification in industrial cooperation, delivered by Professor Dai Bin (President of the China Tourism Academy, China). Professor Dai reviews the process of its development and the current status of China s outbound tourism, and prospects its future trends. In particular, the speaker analyzes the defining characteristics of China s outbound tourism in terms of its preference to short-haul destinations, packages or group tours, and its high proportion of expenditure on shopping during their travel. In addition, issues such as consumer behaviors of the Chinese outbound tourists as well as their concern for safety and security during 8

9 overseas travel are also discussed, which according to the speaker will have huge implications for destinations targeting at this emerging market. Caroline Bremner (Head of Travel and Tourism Research, Euromonitor International, UK) speaks on emerging outbound markets in uncertain times. Her demographic analysis highlights a rising middle class in both developed and developing economies who will likely serve as a catalyst of growth for outbound travel. According to the speaker, source outbound markets like China, India, Russia and Brazil are likely to continue to lead the growth in international travel. Other source markets such as the Middle east have also had notable growth after the crisis, which deserves the attention of both tourism marketers and analysts. In such a context of emerging outbound markets, the speaker concludes that opportunities for tourism businesses are enormous in terms of a rapidly growing number of middle class households with a capacity to generate more departures, as well as increased connectivity and greater segmentation amongst businesses and suppliers. The post-earthquake tourism in Japan and its outbound travel has been a topic of interest and concern for this Forum. Mr. Hiroshi Kurosu, Senior Researcher of Japan Travel Bureau Foundation, addresses the audience on the title of Tourism Recovery in Japan after the Earthquake. The speaker compared the situation with past crises in terms of exerting negative impacts on tourism. But for outbound travel, unlike past crises, it was noted that instead of staying at home, the stress from the disaster motivated people to travel to overseas destination. Based on results released for June to August, Japanese arrivals to destinations such as Thailand, Singapore, Chinese Taipei, and Vietnam have been on an increase, and passports issued especially for the younger age groups have also encouraged overseas travel. According to the speaker, a change of consumer mindset is also notable after the earthquake, in terms of moving away from mass consumption, shifting away from spending on assets to investing in experience, and helping others through donations, etc., all of which in fact will eventually trigger further growth in outbound tourism. The last presentation in this session is delivered by Jonathan Howlett (Senior Vice President of Advertising, BBC World News, UK), who addresses on the challenges and opportunities of managing the Middle East as an emerging tourist market. The speaker begins with a review of the recent increase by 14% of the 9

10 Middle East market in international tourist arrivals, of which significant growth has been notable of Egypt, Dubai, Lebanon, Saudi Arabia, and Jordan. In general, while uncertainties and challenges are cautioned due to the instability and unrest resulting from regional conflicts, uprisings, and tensions, the overall message from this BBC executive is positive, especially in his belief of the role of media in influencing the travel market. As an example, it is cited that entertainment and travel are amongst the top categories of information to be influenced by opinion leaders and the mass media. Furthermore, the speaker alludes to the results of a 2011 BBC travel survey, which indicates that three out of four travelers would choose unknown destinations if it is recommended by a trusted source. For tourism to and from the Middle East, it is summarized that investments should be made in developing brands as well as infrastructure, and that the promotion of a destination or place should be associated with credible sources. In summary, technical sessions on the first day are brought to a closure by Professor Haiyan Song who synthesizes the three tracks of topics under discussion. Moreover, the welcome dinner and the evening show themed under culture and tourism festival add to the richness of this year s Forum. PLENARY SESSIONS On the second day, the Forum features a grand opening ceremony, a keynote session with five renowned speakers, and a panel discussion addressing the overall theme of innovation and diversification in tourism. The opening ceremony is moderated by Ms. Chen Lihua (Vice Mayor of Guilin). In succession, opening and welcome address is delivered by local hosts and chief officials of the Forum s organizing parties, including Mr. Li Zhigang (Mayor of Guilin), Mr. Frederic Pierret (Executive Director of UNWTO), Mr. Joao Manuel Costa Antunes (Director of Macau Government Tourist Office, and Vice Chairman of PATA), Professor Kaye Chon (Chair Professor and Dean, School of Hotel and Tourism Management at The Hong Kong Polytechnic University), Madame Du Yili (Vice Chairman of China National Tourism Administration), and Mr. Chen Jianjun (Director General of Guangxi Tourism Administration). With all these grand opening remarks, a warm welcome is extended to the Forum delegates, so are promises made to support successful hosting of 10

11 future events. This is then followed by the keynote session (featuring five presentations) and the panel discussion. Keynote Session: Innovation and Diversification in Tourism Overall Trends and Outlook Moderated by Mr. Joao Manuel Costa Antunes (Director of Macau Government Tourist Office, and Vice Chairman of PATA), this session features five keynote presentations. The first keynote, by Mr. Xu Jing (Director of UNWTO Regional Programme for Asia and the Pacific), is titled Tourism towards 2030: Global overview. The report is neatly and succinctly structured for communication, with its key messages highlighted and consecutively reiterated after the UNWTO General Assembly immediately preceding this Forum. Building on UNWTO s prior work on Tourism 2020 Vision and in light of the actual trends of world tourism, the broad project behind Mr. Xu Jing s presentation represents an ongoing area of long-term forecasting and research initiated in the 1990s, which aims to assist UNWTO Members in formulating policies and long-term strategic plans, to provide a global reference on tourism future development, to reinforce UNWTO s role in agenda setting for tourism-related subjects, and to constitute a reference for UNWTO strategic documents, programme of work, and activities. According to the speaker, central to this long-term undertaking are the projections for international tourism flows in the two decades of The speech also pertains succinctly to the technical and methodological aspects of the research, as well as the major assumptions (or pre-conditions) upon which future scenario projections are made. It is noted that data series on international tourist arrivals as reported by destination countries are used as key indicators, which also take into account sub-regions of destinations, regions of origins, modes of transport, and purposes of visit for the period Notably, quantitative forecasts are based on a causal econometric model with international tourist arrivals as the dependent variable, and as independent variables growth of Gross Domestic Product (GDP), a proxy for traveller affluence and business travel potential, as well as cost of transport. 11

12 As a result of this research, eleven trends can be stated as indications of global tourism overview into the 2030s. First, growth in international tourism will continue, but at a more moderate pace. Second, international tourist arrivals are about to increase by 43 million a year on average. Third, international tourist arrivals are projected to reach 1.8 billion by the year Fourth, emerging economy destinations are projected to surpass advanced economy destinations in Fifth, Asia and the Pacific will gain most of the new arrivals. Sixth, Northeast Asia will be the most visited sub-region in Seventh, Europe will continue to lead in international arrivals received per 100 of population. Eighth, there will be no major changes in share by purposes of visit. Ninth, air transport will continue to increase market share, but at a slower pace. Tenth, travel between regions will continue to grow slightly faster than within the same region. Eleventh, Asia and the Pacific will also be the fastest growing outbound region in international tourism. To end his keynote with take-home messages, Mr. Xu Jing presents a one-page summary of his address, which stresses that long-term tourism growth will be characteristic of moderate, sustainable and inclusive patterns. By implications, his address shows that there is still a substantial potential for further expansion in the coming decades. In this regard, established as well as new destinations can benefit from the projected trends and opportunities, provided they do shape the adequate conditions and policies pertaining to business environment, infrastructure, facilitation, marketing and human resources. The second keynote is addressed by Stuart Lloyd (Senior Director of Marketing and Membership Services of PATA) on the title of The state of travel and tourism industry in Asia and the Pacific. Sequentially, the speaker deals with a brief review of the past year, the current state of play, short-term outlooks, and influencing factors in the shaping of future scenarios. To begin with, a modest growth of international visitor arrivals to Asia and the Pacific in 2010 is reviewed, of which China, Japan, Korea (ROK), Australia, and India are recorded as major source markets in significantly generating intra-regional travel at a notable rate of positive growth compared to the year of As of the current month/year of the Forum, based on national tourism offices statistics, international visitor arrivals to Asia and the Pacific have maintained a slightly stronger rate of growth (despite the earthquake and tsunami in Japan and the flooding in Thailand). 12

13 Interestingly, as is observed by the speaker, about 22-44% of the growth volume comes from source markets such as Sri Lanka, Vietnam, Mongolia, Kyrgyzstan, Kazakhstan, Brazil, Russia, Indonesia and Macau. By year-to-year growth and volume change, the increase is characteristic of non-core source markets (e.g., visitors to South Asia from Myanmar, Finland, Sweden, France and Russia; visitors to Southeast Asia from Russia, Saudi Arabia, Vietnam, Hong Kong, and Malaysia; and visitors to the Pacific Island States from origins such as Qatar, Canada, Indonesia, Micronesia, Brazil, and New Zealand). In terms of short-term outlook into 2013, a grand total annual growth rate of 6-7% is projected for international visitor arrivals; by sequence of growth in sub-regions into 2013, PATA s forecast suggests that on top of the growth is Southeast Asia (8.14%), followed by South Asia (7.45%), Northeast Asia (7.25%), North America (5.57%), and the Pacific (4.68%), respectively. What drives these changes? The speaker reflects upon factors such as energy costs (e.g., aviation fuel and consequently travel costs), and socio-demographic changes in Asia (e.g., the rise of its middle class, the concentration of wealth by a small number of individuals, etc.) as collectively shaping the international travel market to and from this region. The third presenter in this session is Professor Kaye Chon (Chair Professor and Dean, School of Hotel and Tourism Management of The Hong Kong Polytechnic University). His keynote address is titled Visions and prospects of tourism education in Asia and the Pacific. The presentation is broadly framed within the context of a community of learning and practice. To begin with, a changing scenario of practice is presented for tourism industries in Asia and the Pacific for the last 40 years, in which a notable shift is highlighted from Asian tourism industries receiving western tourists with largely imported expertise in the 1970s to today s industries and businesses primarily catering to tourists from within Asia and the Pacific region. Notably, such a shift has philosophical implications for worldwide hospitality and tourism education, particularly for the nurturing and development of Asian leadership for the industry. In addition, from a historical perspective, such a shift of centre of excellence to Asia in terms of industries and practices is clearly reflected in the evolution of hospitality and tourism education (e.g., from skill training for professional practice typical of the 13

14 European paradigm commencing from the end of the 19 th century, to managementoriented university education in North America since the early 20 th century, and moving on to the currently emerging Asian paradigm featuring a balance of practical skills with conceptual knowledge in its integration of global perspectives and the nurturing of a culture of Asian hospitality). It is against these backgrounds and in consideration of changing demographics of Generation Y that his keynote is contextualized and prospects of human capital development envisioned for hospitality and tourism industries in Asia. Notably, a number of key messages are spelled out in his address. First, Professor Chon highlights a good balance of three sets of desired qualities for students in tourism and hospitality, which encompasses management know-how and leadership skills, communication skills, and career experience. Second, a spirit or quality of innovation is called for hospitality and tourism graduates to think and act strategically and in unconventional ways. Third, it is emphasized that a strong hospitality and tourism school will not likely to exist without strong institutional support, industry partnership, high quality of faculty/staff, and high quality of students. Speaking of leadership in hospitality and tourism education, Professor Chon proudly alludes to practices at The Hong Kong Polytechnic University in which he serves as the Dean of the School of Hotel and Tourism Management. He vividly exemplifies the co-creation of values amongst key stakeholders in the scientific community carved out by his school. These practices include 1) the co-creation of values with industry partners through their involvement in student recruitments and admission, mentorship and internship, industry participation in teaching, academic staff attachment to industry, as well as executive development programs; 2) the co-creation of values with students as valued customers for their all-round education and personal development; and 3) the cocreation of values with faculty or academic staff through developing a team who share the same vision and goals and through creating a fun place for them to work towards the shared vision and goals. From the passion spilling over his address, it can be clearly felt that as a world leader in hospitality and tourism education, Professor Chon is acting on his vision and crafting the prospects of preparing leaders for tomorrow s industry. 14

15 The next highly passionate keynote is addressed by Dr. Nalaka Godahewa (Chairman, Sri Lanka Tourism Development Authority), who speaks on the experience of marketing Sri Lanka as an emerging destination in Asia. The presentation is neatly organized and contextualized against Asia tourism within global outlook and trends. To begin with, a top-down effort is highlighted for the planning and development of tourism in Sri Lanka. The President of this Democratic Socialist Republic, His Excellency Mahinda Rajapaksa, is quoted for the vision of tourism in this country. In particular, the roles of the government are stressed in planning, policy making, providing common infrastructure, coordinating capacity building, and researching and promoting the country as a destination. As a concerted effort, the mandates of the private sector in developing tourism are to identify and invest in new business opportunities, to build capacity, to train staff and improve service standards, to continuously create value added products, and to ensure corporate social responsibility as well as industry sustainability. In his comprehensive coverage of tourism in Sri Lanka, it is made aware that the destination is rich in both natural (particularly wildlife) and cultural resources. Capitalizing on technology and driven by the philosophy for sustainable development, Sri Lanka tourism aims to develop five key focus areas: 1) creating an environment conducive for tourism, 2) ensuring arriving tourists are happy, 3) attracting new tourists, 4) improving domestic tourism, and eventually 5) improving the global perception of the country. Likewise, the key objectives of tourism development are defined as follows: To position Sri Lanka as one of the most sought after tourist destinations; to reach annual tourist arrivals of two and a half million by 2016; to increase annual foreign exchange earnings to US$2.75 billion by 2016; to attract US$3 billion or more foreign direct investments to the country within next 5 years; to increase accommodation capacity to 45,000 rooms by 2016; and to reach 500,000 direct and indirect employment within the next 5 years. Lastly, in this keynote session, Professor Tong Jiadong (Vice President of Nankai University, China) gives a presentation on Strategic industries and trends for China tourism development. His speech begins with defining tourism as a strategic and pillar industry largely from a economic perspective. The speaker then presents 15

16 an overview of the status quo of its current development, its objectives, and its transformation and impacts on the Chinese society. The implications of tourism development for education and human resources development are also discussed at the closure of his keynote. In sum, centering around the theme of innovation and diversification, the five keynotes provide rich food for thoughts for policy makers, destination marketers, and academics working in the field of tourism and hospitality. After the presentation, a variety of questions are raised and entertained during the period of interactions. Panel Discussion: Innovation and Diversification in Tourism This session is moderated by Professor Kaye Chon (Chair Professor and Dean, School of Hotel and Tourism Management, The Hong Kong Polytechnic University). It features five intervention speeches to set up the context for the intended panel discussion. The five panelists are Joao Manuel Costa Antunes (Director of Macau Government Tourist Office, and Vice Chairman of PATA), JaeKyong Lee (Vice President, Korea Tourism Organization, Korea), Brent Ritchie (Deputy Head, School of Tourism, University of Queensland, Australia), Nor'ain Binti Hj. Othman (Deputy Dean, Faculty of Hotel and Tourism Management, Universiti Teknologi MARA, Malaysia), and Ganda Sumantri (Deputy Director of Marketing Strategy, Ministry of Culture and Tourism, Indonesia). The first intervention by Mr. Antunes offers a perspective on innovation and diversification in Macau tourism, particularly in terms of its new promotional slogan of Touching Moments Experience Macau as well as its capitalizing on interactive/mobile technology and festivals/events in destination marketing (in addition to its established status as a renowned destination for casino and gambling). JaeKyong Lee s speech centers around Korean wave and how Korea Tourism Organization makes use of Hallyu for country image building and worldwide destination marketing. Brent Ritchie s reflection focuses on firm innovation in Australian tourism in terms of its nature, rationale for, and process of innovation. His speech also deals with key barriers to and facilitators of firm innovations. In addition, Nor'ain Binti Hj. Othman s brief presentation is about innovation and diversification (particularly product development) in community-based tourism in Malaysia, while Ganda Sumantri s intervention takes a rather comprehensive and introductory approach to Indonesia 16

17 tourism in terms of its achievements; targets, goals and forecasts; tourist facilities and infrastructures; and major destinations and attractions in the country. Following these interventions, the panelists are invited to either address specific questions on innovation and diversification in tourism, or to share their experiences and perspectives on this theme from their own working regions. Take KTO s capitalizing on Hallyu for tourism and destination marketing as an example. The critical success factors, according to KTO s Vice President, include the comprehensive allure of the Korean wave in terms of movies/dramas, music, dance, and entertainment; the use of social network devices in its popularization, and the localization of Hallyu in some origin/source markets. In addition to rejoinders from the panelists, the discussion is also open to the audience, where an array of issues pertaining to innovation and diversification are reflected in the interactive Q&A session. In fact, much of the panel interaction serves as a recap of the theme and the three major topics addressed in the foregoing Forum sessions. The plenary session comes to an end with closing remarks from Mr. Xu Jing (Director, Regional Programme for Asia and the Pacific of the UNWTO), Mr. Joao Manuel Costa Antunes (Vice Chairman of PATA), and the local host represented by Madame Chen Lihua (Vice Mayor of Gulin). As a technical visit, the Li River Cruise is arranged for Forum delegates on the next day to Yangshuo, which, together with the renowned evening show, has greatly enhanced the attendee experience of the 2011 UNWTO Guilin Tourism Forum. CONCLUSION This year s UNWTO Forum addresses the theme of innovation and diversification in tourism. In view of the many presentations and subsequent discussions on its three tracks of subjects (i.e., tourism trends and emerging markets, technology in tourism, and new product development), the Forum has neatly achieved its four objectives (i.e., to share state-of-the-art research, practices and perspectives on innovation and diversification; to analyze global and regional trends with a focus on emerging markets; to exchange views and share experiences in innovation and diversification; and to discuss the prospects of utilizing technology to promote destinations, 17

18 businesses, and visitor experience). It has successfully served as a platform for tourism researchers, governmental agencies, and industry practitioners to share and exchange views on innovation and diversification in tourism. In conclusion, a number of observations or perspectives emerged from the Forum can be noted as follows. First, UNWTO s global tourism overview into the 2030s, which is released at its General Assembly as well as in this Forum, will serve as a useful set of projections and expression of trends for tourism academics and educators, policy makers, destination marketers, and business suppliers. Indeed, it is essential to note that international tourism growth will continue at a more moderate pace, and that emerging economy destinations will surpass advanced economy destinations in the near future. This will have implications for international/intergovernmental tourism organizations as well as emerging economy destinations to further strengthen and holistically extend the role of tourism in the economic, social and cultural functioning of both destination and origin societies. Second, the role of hospitality and tourism education in building human capital for tomorrow s practice cannot be over-emphasized. Notwithstanding, this will be closely related to innovation and sustainability of the industry in the years to come. Third, in much the same vein, the ubiquity of technological impacts on every aspect of the tourism and hospitality industries would in turn strengthen the importance of education and training to maintain the industry and its work force to keep abreast of technological advancements for business success. Fourth, regionally, it is repeatedly reiterated that Asia and the Pacific will remain on top of the growth in terms of gaining international tourist arrivals, attracting intraregional visits, and generating the volume of outbound travellers to other worldwide destinations. In light of this foreseeable growth, it is indeed high time to develop people and nurture leadership to ride the Asian wave in tourism and hospitality. In short, this year s Forum on innovation and diversification will have important policy and practical implications for tourism administrations, academics and educators, and industries and businesses not only in a specific region or sector, but also globally and holistically. 18