SECTORAL ROUNDTABLE. Tourism

Transcription

1 SECTORAL ROUNDTABLE Tourism SEPT 13TH, 2016

2 AGENDA 15 min. Introduction: Global and Regional Context Presented by Jean-Claude Ramirez, Managing Partner, Bain & Company 30 min. The Government s Agenda Presented by Gustavo Santos, Minister of Tourism 25 min. The Private Sector Perspective Panelists include: Isela Costantini, Aerolineas Argentinas Group Francisco Gutierrez, NH Hotels Daniel Reigl, Howard Johnson Argentina 20 min. Q&A

3 Introduction Presented by Jean-Claude Ramirez, Managing Partner, Bain & Company

4 GLOBALLY, TOURISM IS GROWING AT 4.6% Worldwide Outbound trips (Millions) 4.6% Note: In volume of trips; nominal value s CAGR is 3.8% Source: Euromonitor

5 GLOBAL TRENDS DRIVING TOURISM Worldwide Asia Pacific growing at 7.5% (outbound tourists; period) - China 16.4% (2015: 76M trips) Latin America growing at 6.4% Within developed, middle classes also gaining share In Leisure off-season city travel (Europe), cruises And ecotourism & adventure/active travel, examples in Latam: - Machu Pichu - Amazonas - Patagonia - Antarctica, Global growth of 4.4% in 2015 and positive outlook for 2016 despite terrorism Tourism is resilient Shift to safer destinations - i.e. Med region: Spain, Italy, Croatia vs. North Africa Average spending per trip falling ~2%*, but there is +premiunization Growth of low costairlines (also in emerging countries) New business models i.e. Airbnb Growth of online distribution, and social media (*) Real terms, CAGR Source: UNWTO, Euromonitor, IPK

6 TOURISM IS RELEVANT FOR ARGENTINA Share in % (2015) ARGENTINA IN SOUTH AMERICA Revenues of 3.8% GDP* (US$15B) Represents 5.4% of employment* In 2011 used to be #1 with 25% 53.4M of trips M Domestic (~65% of spending) - 5.7M Inbound (~35% of spending) Figures as of 2015; except (*) from 2014; Argentina Domestic using EVyTH survey (extrapolated to total population). Source: Ministry of Tourism, Euromonitor, EIU

7 ARG. HAS LAGGED VERSUS THE REGION Argentina & S. America Domestic trips (Millions) DOMESTIC INBOUND OUTBOUND Inbound trips (Millions) Outbound trips (Millions) 3% 5% 6% Note: Argentina Domestic using EVyTH survey (extrapolated to total population); Source: Ministry of Tourism, Euromonitor

8 LOWER GROWTH IMPACTED INVESTMENT Argentina & S. America CHANGE IN HOTELS CAPACITY Increase in hotel beds ( variation, 000s) As a proxy for hotel investments DEVELOPMENT OF DOMESTIC AIR TRANSPORTATION Passengers / 100 inhabitants CAGR 2011 vs CAGR 2000 vs % 7.0% 6.8% 6.3% 8.4% Source: Euromonitor; Indec (ARG); ANAC (BRA); Junta Aeronáutica Civil (CHL); UAEAC (COL); Ministerio de Transporte y Comunicaciones (PER)

9 ARGENTINA HAS STRONG FUNDAMENTALS Argentina STRONG & DIVERSIFIED PRODUCT EXAMPLES Humahuaca Iguazú Dakar Heritage Jesuit Ecotourism Fishing Ski resorts Wineries Tango Barbecue Perito Moreno Ushuaia Source: Ministry of Tourism, EIU, United Nations, OVUM

10 ARGENTINA S FUTURE PERSPECTIVES Argentina Recover #1 Inbound position in South America Return Domestic to growth in line with South America Better connectivity/ Eliminate bottlenecks Promote Argentina Improve Competitiveness Develop transportation and Tourism resources

11 The Government s Agenda Presented by Gustavo Santos, Minister of Tourism

12 TOURISM GOALS FOR 2019 INTERNATIONAL DOMESTIC Annual tourist arrivals Annual tourist expense Annual tourist arrivals Annual tourist expense 50% 90% 47% 58% These targets imply increasing jobs by +300,000 (or +28%)

13 WE HAVE CLEAR GOALS BY REGION Inbound trips growth by market North America Neighbor countries Rest of the world Rest of America Brazil Europe

14 WE ARE WORKING TO MEET THESE TARGETS INITIATIVE USA Reciprocity Fee elimination +18% of arrivals in 1 st semester Cross-border integration Proposal to China to improve bilateral trade balance through Tourism Electronic travel authorization for Chinese tourists who have USA or Shengen visa VISA Reciprocity with Brazil and Chile Accommodation tax return (21%) for foreign tourists STATUS Done In progress In progress Done In progress To be started

15 WE ARE DEVELOPING NEW DESTINATIONS NEA ECO-TOURISM CORRIDOR PUNA CORRIDOR OTHER DESTINATIONS 1 NATIONAL PARKS 2 ROUTE OF THE JESUITS National plan of touristic investments Eco-sustainable municipalities Strategic investments to be financed International financing National plan of touristic investments Eco-sustainable municipalities Strategic investments to be financed International financing INCA PATHWAY Iguazú San Ignacio Iberá Impenetrable North of Argentina Chile RIVER CRUISES Moconá La Estrella Bolivia

16 ARGENTINA IS INCREASING CONNECTIVITY PLAN: INCREASE AND RECOVER STRATEGIC MARKETS Countries from the region USA Europe Middle East Africa Asia (China) 2X Domestic flights International Flights (New routes and frequencies) Oceania

17 INVESTMENTS IN ARGENTINA Argentina US$ +1,000M investments already being executed US$ +2,000M investment opportunities in new destinations

18 The Private Sector s Perspective Moderated by Jean-Claude Ramirez, Managing Partner, Bain & Company

19 THE PRIVATE SECTOR S PERSPECTIVE ISELA COSTANTINI FRANCISCO GUTIERREZ DANIEL REIGL AEROLINEAS ARGENTINAS GROUP CEO, Argentina NH HOTELS Director of Projects, América HOWARD JOHNSON ARGENTINA Director of Operations, Argentina

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