Session II: ASEANSession II: ASEAN--India India ConnectivityConnectivity

Enhancing People to People Connectivity: Tourism in ASEAN

Marife M Ballesteros, PhDPhilippine Institute for Development Studies

OutlineOutline• Definition: People to People connectivity• Prospects of Tourism in ASEAN• Common Goals for tourism cooperation• Challenges and shared concerns• Philippines Tourism Milestones for ASEAN

Why people to people Why people to people connectivity?connectivity?

• ASEAN Integration in 2015 is aimed not only at economic and physical integration but also community building

• Community building involves creating “unity in diversity” which is an important foundation for improvements in physical and institutional connectivity

• People to people connectivity can be attained through education (i.e. higher education) cultural exchanges and tourism.

TOURISM in ASEAN RegionTOURISM in ASEAN Region

International tourism has expanded rapidly in the ASEAN region Projected double digit growth I tourist arrivals 2009 to 2015

65,680,630 73,740,988

79,247,283 86,048,671

92,722,389 99,733,838

107,381,527

-

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

2009 2010 2011 2012 2013 2014 2015

Tourist Arrivals in ASEAN during 2009-2015

Actual

Source: ASEAN Secretariat 2012* ASEAN NTOs= National Tourism Organizations

Rank2011

Inbound Tourism Arrivals (Millions)

Inbound Tourism Expenditure (Million US$)

1 China 57.6 China 53.3

2Russian Federation 24.9 Australia 34.2

3 Malaysia 24.7 Hong Kong, China 33.74 Hong Kong, China 22.3 Thailand 31.25 Thailand 19.2 Turkey 28.56 Macao, China 12.9 Singapore 18.07 Singapore 10.4 India 17.58 Indonesia 7.7 Republic of Korea 17.29 Japan 6.2 Russian Federation 17.0

10 Viet Nam 6.0 Japan 12.5

Top Ten Top Ten International Tourist International Tourist Destination in AsiaDestination in Asia

Source: UNESCAP Statistical Yearbook for Asia and the Pacific 2012

Note: No Data for some countries

ASEAN Tourism CooperationASEAN Tourism Cooperation

• Increasing tourism cooperation among ASEAN, ASEAN+3

o Implementation of the ASEAN Tourism Strategic Plan 2011-2015o Progress of joint collaboration in developing main ASEAN tourism

products: cruise and river based tourism, nature, culture and heritage, eco-tourism

o Establish basic guidelines and principles to ensure quality of tourism (e.g. Clean tourist city standards, green hotels, homestay standards )

o Institutionalize ASEAN Tourism Forumo Efforts for ASEAN Connectivity to further promote linkages and

promote cooperation with other Asia-Pacific countries

Common Common GoalsGoals

• Positioning tourism as a central contributor to economic growth

• Tourism industry to improve foreign exchange earnings

• Tourism as a tool for poverty alleviation, cultural preservation , natural conservation, gender and minority issues

Challenges to Sustainable Tourism Development Challenges to Sustainable Tourism Development and Cooperation (Shared Concerns)and Cooperation (Shared Concerns)

• Improving competitivenesso Tourism growth different across Asiao The level of competitiveness differs across

countries in Asia

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2

4

6

8

10

12

14

16

18

East and North-East

Asia

South-East Asia

South and South-West

Asia

North and Central Asia

Pacific

In P

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nt

Inbound Tourism Arrivals Growth, Asia Pacific

2009-2010

2010-2011

Source: UNESCAP Statistical Yearbook for Asia and the Pacific 2012Note: No data for some countries

Travel and Tourism Travel and Tourism Competitiveness IndexCompetitiveness Index

CountryTTCI

Rank/139Brunei Darussalam 67 Cambodia 109 Indonesia 74 Lao PDR -Malaysia 35 Myanmar -Philippines 94 Singapore 10 Thailand 41 Vietnam 80 ASEAN -

Sources: World Economic Forum; UNWTO 2012; IMF, World Economic Outlook (April 2012); and authors’ calculations

ASEAN TTCI 2011 rankings by PillarsASEAN TTCI 2011 rankings by Pillars

Pillars(rank our of 139 economies) Si

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TTCI 2011 10 35 41 67 74 80 94 109 751. Policy rules and regulations 1 21 76 120 88 67 70 132 732. Environmental sustainability 41 64 97 136 127 115 94 82 963. Safety and security 13 83 94 23 72 68 109 79 764. Health and hygiene 55 75 80 70 115 89 97 133 855. Prioritization of Travel & Tourism 2 46 38 127 15 107 70 13 426. Air transport infrastructure 14 34 23 41 58 85 80 113 507. Ground transport infrastructure 2 36 56 49 82 77 114 103 678. Tourism infrastructure 33 74 40 91 116 110 98 131 959. ICT infrastructure 20 52 81 47 96 67 98 123 7410. Price competitiveness 29 3 15 1 4 16 20 31 1611. Human resources 2 37 74 47 51 72 86 109 6212. Affinity for Travel & Tourism 12 17 24 48 121 87 65 21 4513. Natural resources 96 22 21 38 17 51 70 53 4514. Cultural resources 30 33 32 91 39 36 76 111 38

Source: World Economic Forum 2012

Challenges (Shared concerns)……..Challenges (Shared concerns)……..contcont

• Travel facilitationo Ease of visa requiremento Air accessibility among cities

• Safety and security o Tourist safety/securityo Health risks (inbound tourist)o Security of cultural heritage and other infra (e.g. tourism ethics)

• Cooperation of national tourism organizations (NTOs)

• Human resource developmento Professionalism in tourism industry

Tourism Industry in the PhilippinesTourism Industry in the Philippines

Contribution to Total expenditure: P1.19 billion which will potentially increase to P1.76 Billion (US$40.9 M) by 2015

GDP contribution: 5.9% of GDP in 2011 to increase to 6.8% by 2015

Employment contribution: 3.7million persons in 2011 and estimated to rise to 6.5 million persons or 12% of total employment in 2015

Philippine Tourism: Milestones Philippine Tourism: Milestones

• On Tourism Policyo Open skies policy (2011)o Bilateral agreements with neighboring countries

to promote, facilitate connectivityo Promoting cluster destinations offering alternative

and diverse experienceso Establishment of tourism zones to improve

business environment and infrastructureo Promoting community-based ecotourism for

poverty alleviation and environmental preservation

• On Infrastructureo Upgrading of airport infrastructureo Road improvements in tourist cluster destinationo Upgrading of ports , terminals, to boost cruise

tourismo Development of low cost carrier (LCC) terminals

Philippine Tourism: Milestones Philippine Tourism: Milestones

Thank you