international tourism in oic member countriespremises, halal tour packages, and halal transport...

INTERNATIONAL TOURISM IN OIC MEMBER COUNTRIES

Prospects and Challenges

2015

STATISTICAL, ECONOMIC AND SOCIAL RESEARCH AND TRAINING CENTRE FOR ISLAMIC COUNTRIES (SESRIC)

ORGANIZATION OF I SLAMIC COOPERATION (OIC)

4th Meeting of the OIC/COMCEC Private Sector Tourism Forum 14-15 January 2016

Istanbul, Turkey

DR. CEM TINTIN

Outline I. Highlights on International Tourism Worldwide II. Highlights on International Tourism in OIC Countries III. The Economic Role of International Tourism in OIC Countries IV. Intra-OIC Tourism V. Islamic Tourism in OIC Countries VI. The Role of Public Private Partnerships (PPPs) for the Development of the Tourism Sector in OIC Countries VII. Concluding Remarks and Policy Recommendations

4th Meeting of the OIC/COMCEC Private Sector Tourism Forum

Highlights on International Tourism

Worldwide

3

A remarkable socio-economic phenomena of the past century.

One of the world’s largest industries and categories of international trade.

All the activities that are directly/indirectly involved in providing goods and services to tourists (According to SICTA: 185 supply-side activities).

Transportation and communication, hotels and lodging, food and beverages, cultural and entertainment, banking and finance, promotion and publicity services, etc.

Importance of International Tourism



Global Tourism Trends: Arrivals and Receipts

Over the last decade, international tourism is growing at substantial and sustainable rates.

During 2009-2014, arrivals went up from 880 to 1133 millions. Similarly, receipts climbed up from $852 billion to $1245 billion.

During the period under consideration, tourist arrivals increased at an annual average growth of 4.3 per cent whereas annual average growth rate of tourism receipts is around 6.5 per cent.

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2009 2010 2011 2012 2013 2014

Arrivals (Millions) Receipts (Billion US$)

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-5,00

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2009 2010 2011 2012 2013 2014

Arrivals (% change) Receipts (% change)

Global Tourism Trends: Regional Performance |2009 vs. 2014|


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Africa Americas Asia/Pacific Europe Middle East

5,2 15,9

20,6 52,3

6,0 4,9

16,0

23,2 51,4

4,5

3,3

19,4

23,8 48,4

5,1 2,9 22,0

30,3

40,9

4,0

Tourist Arrivals

Tourism Receipts

Figure 2.2: International Tourism by Region (% of World Total)

2009 2014

Source: Table A.1 and A.2 in the Statistical Appendix

Global Tourism Trends: Regional Performance |Tourism Receipts|

9th Session of Islamic Conference of Tourism Ministers (ICTM)

7

Annual % Change

Since 2010, tourism receipts has been

continuously on the rise in

• Europe,

• Americas and

• Asia & Pacific.

The average rate of growth of tourism

receipts between 2009 and 2014

followed a volatile trend (i.e. registered

both positive and negative growth) in

the Middle East and Africa.

-10

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0

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15

2009 2010 2011 2012 2013 2014

Africa Americas Asia & Pacific

Europe Middle East

Global Tourism Trends: Tourism Receipts per Arrival


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In 2014, the average tourism receipts per arrival is above the world average of $1099 in Americas and Asia&Pacific and, whereas, in Middle East, Europe and Africa, it is below the world average.

1183 1121

968

819 897

612

1515 1431

1099

963

875

649

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1800

Americas Asia/Pacific World Middle East Europe Africa

2009 2014

Figure 2.5: International Tourism Receipts per Arrival 2009 vs. 2014 (US$)

Highlights on International Tourism in

OIC Countries

9

OIC Tourism Trends: Arrivals and Receipts


The number of international tourist arrivals in the OIC countries increased from 156.3 million in 2009 to 174.6 million in 2013, corresponding to a 16.1% share in the world. The annual average growth rate was measured as 2.2% between 2009-2013.

In 2009, these tourists generated $121.3 billion as international tourism receipts in the OIC

countries, corresponding to a 14.2% share in the world’s total tourism receipts. In 2013, international tourism receipts amounted to $144 billion corresponding to a 12.0% share in world’s total tourism receipts. The annual average growth rate was about 3.5% in this period.

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2009 2010 2011 2012 2013

Arrivals (Millions) Receipts (Billion US$)

Share in World Arrivals Share in World Receipts

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2,00%

4,00%

6,00%

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2009 2010 2011 2012 2013

Arrivals (% change) Receipts (% change)

Tourist Arrivals and Tourism Receipts Annual % Change

OIC Tourism Trends: Top Tourist Destinations and Earners, 2013

11

Top-10 countries hosted 131.5 million international tourist , corresponding to a share of 75. 2% of the OIC total in 2013.

Top-10 countries earned $121.8 billion as international tourism receipts in 2013, corresponding to a share of 84.5% of the OIC total.

Top 10 OIC Tourism Earners (receipts in US$ Billions)

Top 10 OIC Tourism Destinations (arrivals in millions)


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OIC Tourism Trends: International Tourism Receipts per Arrival in OIC Countries

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The OIC average tourism receipts per arrival in 2013 amounted to $825.

The highest receipts per tourist arrival were recorded in Lebanon ($5002) followed by Qatar ($3237) and Maldives ($2078).

0 1000 2000 3000 4000 5000 6000

OIC Average

Turkey

Oman

Uganda

Azerbaijan

Yemen

Indonesia

Jordan

Sudan

Maldives

Qatar

Lebanon

825

922

935

998

1.043

1.108

1.170

1.304

1.308

2.078

3.237

5.002

International Tourism Receipts per Arrival in OIC Countries (US$ in 2013)


The Economic Role of International Tourism in

OIC Countries

13


OIC Tourism Trends: Balance of International Tourism

14

Notably, majority of the countries with highest tourism balance are the main OIC international tourism destinations and earners. Turkey has a surplus of $29.6 billion followed by Malaysia with a surplus of $9.1 billion.

Balance of international tourism is calculated by deducting the international tourism expenditure from the international tourism receipts.

Figure 3.4: Top 10 OIC Countries in terms of Balance of International Tourism (Billion US$ in 2013)

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Turkey Total OIC

Balance

Malaysia Morocco Jordan Egypt Tunisia Maldives Lebanon Bahrain Yemen


Economic Role of Tourism in OIC Countries

15

Balance of International Tourism as % of GDP

(Average 2009-2013)

International Tourism Receipts as % of Merchandise

Exports (Average 2009-2013)

0% 5% 10% 15% 20%

Afghanistan

Mali

OIC Average

Tajikistan

Comoros

Sierra Leone

Suriname

Benin

Senegal

Uganda

Albania

Yemen

Syria

Turkey

Egypt

Malaysia

Bahrain

Tunisia

Lebanon

Gambia

Morocco

Jordan

Maldives 66

0% 50% 100% 150% 200% 250%

Maldives

Lebanon

Albania

Gambia

Comoros

Mali

Jordan

Uganda

Morocco

Egypt

Kyrgyzstan

Syria

Senegal

Benin

Afghanistan

Turkey

Burkina Faso

Tunisia

Togo

Yemen

Niger

Suriname

OIC Average

1103

Intra-OIC Tourism

16

Intra-OIC Tourism Trends: Arrivals and Receipts


17

Intra-OIC tourist arrivals increased

48.8 million in 2008 to 60.7 million in 2013.

In 2013, intra-OIC tourist arrivals

accounted for 34.8 % of the total tourists arrivals in OIC.

Intra-OIC tourism receipts are up

from US$ 37.9 billion in 2009 to US$ 50.1 billion in 2013.

As of 2013, Intra-OIC tourism receipts

accounted for almost 34.8 % of the total international tourism receipts in the OIC.

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Intra-OIC Tourist Arrivals (Millions)

Share in Total OIC Arrivals

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2009 2010 2011 2012 2013Intra-OIC Tourism Receipts (Billions)Share in Total OIC Receipts

Intra-OIC Tourism Arrivals

Intra-OIC Tourism Receipts

Intra-OIC Tourism Trends: Top Tourist Destinations and Earners


18

Top-10 countries hosted 49.7 million tourists from the OIC member countries, corresponding to 81.8% of the total intra-OIC tourist arrivals in 2013.

Top-10 countries earned US$ 31.5 billion from intra-OIC tourists corresponding to 62.9% of the total intra-OIC receipts.

Arrivals in 2013 (Millions)

Receipts in 2013 (Billion US$) 0

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New Directions in the Tourism Sector:

Islamic Tourism in

OIC Countries

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Islamic Tourism


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Over the two last decades, demand for Sharia’h complaint products and services increased tremendously all across the world including the OIC countries.

In this context, Halal Hotels, Halal Food

Premises, Halal Tour Packages, and Halal Transport (airlines) became components of Islamic Tourism.

As a result, Muslim tourism market (excluding the Hajj and Umrah expenditures of $20 to

$25 billion) has increased from around $80 billion in 2006 to $145 billion in 2014,

corresponding to an impressive increase of 81 per cent .

• Islamic tourism is mainly targeting people with Islamic beliefs

• Islamic Tourism has been used with different names in the tourism theory and practice:

Halal Tourism/ Sharia’h Tourism /Muslim-Friendly Tourism

Major Components of Islamic Tourism

Halal Hotels

Halal Transport (Airline)

Halal Food Premises

Halal Tour Packages

Halal Finance

Islamic Tourism and Its components


0% 10% 20% 30% 40% 50% 60% 70%

All Other Responses

Air Travel Experience

Air & Hotel Deal

Dining Food Experience

Adventure

Choice of Destination

Hotel/Resort Stay Experience

Relaxation

Muslim-Friendly Experience

Overall Price

Halal Food

12%

21%

28%

31%

35%

36%

37%

46%

49%

53%

67%

Source: Dinar Standard and Crescent rating, 2015

Factors Affecting the Decision of Muslim Tourists


EAP 12%

ECA 26%

MENA-GCC 38%

MENA-Others

13%

North America

2%

South Asia 3%

SSA 6%

Source: Thomson Reuters and Dinar Standard,2013-2015

• Muslim tourism market (excluding the Hajj and Umrah) has increased from US$80 billion in 2006 to $145 billion in 2014, corresponding to an impressive increase of 81%

• Despite growth, Islamic tourism remained as an emerging niche market with 108 million Muslim travellers, accounting for 10 to 12% of the global tourism sector

• with an annual growth rate of 4.8%, Muslim tourism market is growing faster than the global tourism market, which recorded a growth rate of 3.8 per cent in 2013

Regional Distribution Muslim Tourism Market, 2014/15

State of Islamic Tourism in the OIC Countries


Rank Country

Size Rank Country

Size

(US $ Billion)

(US $ Billion)

1 Saudi Arabia 17.8 11 Germany 3.6

2 Iran 14.3 12 Egypt 2.8

3 United Arab Emirates 11.2

13 Azerbaijan 2.4

4 Qatar 7.8 14 United Kingdom 2.4

5 Kuwait 7.7 15 Singapore 2.3

6 Indonesia 7.5 16 France 2.3

7 Malaysia 5.7 17 Iraq 2.2

8 Russia 5.4 18 United States 2

9 Turkey 4.5 19 Morocco 2

10 Nigeria 4.4 20 Lebanon 1.9

Source: Thomson Reuters and Dinar Standard

Top-20 Muslim Tourist Source Markets, 2013/14

Major Source Markets for Islamic Tourism


83,8

73,8

72,1

71,3

68,2

67,5

66,7

66,4

64,4

64,3

0 50 100

Malaysia

Turkey

UAE

Saudi Arabia

Qatar

Indonesia

Oman

Jordan

Morocco

Brunei

65,1

59,2

55

51,1

48,2

47,5

47,5

47,3

46,5

46,2

050100

Singapore

Thailand

United Kingdom

South Africa

France

Belgium

Hong Kong

USA

Spain

Taiwan

Source: MasterCard and Crescent Rating, 2015

Global Muslim Travel Index (GMTI): Top 10 OIC and Non-OIC Islamic Tourism Destinations

Major Islamic Tourism Destinations


On-going Challenges

Lack of unified and global standards and

certification

Financial Constraints for the Islamic tourism

industry

Gender related issues: female employment in

tourism sector

Differences in the influence of Islamic values and beliefs

Opportunities

Potential for

economic growth

Innovative tourism products

Social media for marketing

At the National and the OIC Cooperation Level

•Harmonization of policies and guidelines

• Sharing of expertise and experiences Cooperation for making a positive image

• Organizing Islamic tourism events Utilizing the media

• Designing long-term strategies and master plans

At the Industry Level

• Ensuring Halal

• Training the staff

• Facilitating the access

• Paying attention to diversity

• Proper accommodation management

• Information about halal food

• Offering gender specific facilities

• Appropriate dress code for the staff

• Suitable marketing strategies

Policy Recommendations for the Development of

Islamic Tourism


The Role of Public Private Partnerships (PPPs) for the

Development of the Tourism Sector in OIC Countries

29

PPPs for the Development of the Tourism Sector in OIC Countries


30

The experience has shown that if PUBLIC and PRIVATE Sector come together to work synergistically for the development of the tourism sector, the value could be exponential.

The way to make this happen is the

effective Public-Private Partnerships (PPPs).

PUBLIC + PRIVATE New Investments

INCREASED TOURISM ACTIVITY

Partnership Areas for PPPs in Tourism Sector in OIC Countries


31 Source: UNWTO (2003)

•Development and preservation of resources;

•Establishment of quality standards;

•Development of attractions, theme parks and accommodation;

•Provision of technical support to programmes for the development of innovative products;

•Contribution to the economic wealth of the community;

•Realization of sustainable development in the tourism sector;

•Overcoming trade and investments barriers;

•Protection of consumers;

•Dealing with competition.

Product development

•Improving the destination’s image;

•Improving marketing efficiency;

•Improving market coverage and reach;

•Supporting electronic marketing and distribution, including the internet;

•Supporting participation in trade fair and events;

•Strengthening joint marketing programmes;

•Accessing new markets.

Marketing and sales

•Providing methodologies for research and measurement;

•Implementing tourism satellite accounts;

•Stimulating technological innovations and their application.

Research and technology

•Improving roads, transport infrastructure and basic services;

•Promoting intermodal transport;

•Improving public health and sanitation;

•Improving safety and security;

•Strengthening the telecommunications system.

Infrastructure

•Establishing standards for services and quality;

•Providing educational programmes and trainings;

•Improving productivity and innovations.

Human resources

•Securing investments and financial assets;

•Securing the means to complement public investments;

•Obtaining start-up financing;

•Improving results

Financing

Experience of Some OIC Countries with PPPs in Tourism Sector


32

• In Turkey and Tunisia, the PPP model worked very effectively while the public

sector decided to disengage from the tourism sector progressively in favour of

private sector. Also, the PPP model helped Turkey to have brand-new international

airports in some major cities.

• In Indonesia, the PPP model was successfully implemented in Nusa Dua Tourism

Area with the involvement of public and private authorities as well as support of

local civil society organisations.

• Lebanon is another OIC country with a good number of successful PPP projects. For

instance, Lebanon successfully completed the PPP projects at Jeita grotto, Saida and

Tyr touristic attraction sides that helped to improve the contribution of the tourism

sector to Lebanese economy.

Concluding Remarks

and Policy Recommendations

33

Concluding Remarks


34

• For many OIC countries, tourism sector is an important growth-enabling factor

and an major source for foreign exchange. Moreover, millions of workers are

getting their salaries through working in this sector.

• Intra-OIC cooperation is bearing some fruits that each year more tourists

originated from OIC countries are visiting other OIC countries. But there is

much more room for development.

• Islamic tourism has emerged as an important new segment of tourism sector

that has a great unlocked potential.

• Without realizing appropriate investments, it is difficult to unlock the tourism

potential in many OIC countries, a very effective way to have these investments

is to use PPP model for the development of tourism sector in OIC countries.

Challenges


35

The challenges are diverse as each country has its own tourism features, level of development and national development priorities and policies.

Technical know-how and weak promotional activity

Tourism-related infrastructures

Tourism investments

Consistent tourism strategies and policies

Tourism diversification

Tourism safety

Policy Recommendations (I)


36

At the National Level

Sustainable tourism development strategies and plans

Physical planning of tourism destinations

The quality and efficiency of the basic tourism-related infrastructures and services

Synergies between transport and tourism policies

Private sector involvement including SMEs in tourism development plans and projects

Diversification of tourism products and services

Tourism-oriented education and training programmes

Policy Recommendations (II)


37

At the OIC Cooperation Level

OIC Internet Guide for Tourism

OIC Tourism Alliances, Airline Companies

Agreement on Tourism Visa Arrangements

Developing Standards for Islamic (Halal) Tourism and Incentivising the sector

Promote and Encourage Public-Private Partnership in Tourism

T H A N K Y O U M E R C I

ا ر ك ش

Statistical, Economic And Social Research And Training Centre For Islamic Countries (SESRIC)

Organisation of Islamic Cooperation (OIC)

www.sesric.org


Istanbul, Turkey

international tourism in oic member countriespremises, halal tour packages, and halal transport...

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