PowerPoint Presentation

World Travel & Tourism CouncilPractical considerations: Infrastructure, policy and legal frameworks

Montenegro, October 2015

Helen MaranoVice President of Government & Industry Affairs

WTTC MissionTo maximise the sustainable growth of the sector by informing governments and wider society of the enormous economic and social benefit that Travel & Tourism brings to the world community

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AirlinesTravel Agencies Tour OperatorsAirportsHotelsEurope/ Mid East/ AfricaAmericasAPACOthers

Huangshan Tourism Group

CarCruise

WTTC: GLOBAL MEMBERSHIP150 of the worlds leading companies in Travel & Tourism

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To 2025 The next ten years

3.8%

Growth every year

10.5%GDP1 in 10 JOBS

Long term prospects are for continued growth of Travel & Tourism. Increased travel across the globe has been driven by growth in real incomes; greater amounts of leisure time; improved and highly accessible transportation systems; ongoing globalization of business linkages, including supply chains; highly effective communication systems that facilitate marketing; and a significant number of new tourism services.

And we will continue to growWe will grow by nearly 4% a year and in ten years will account for 10% of the worlds GDPBy 2025 we providing employment for 1 in 10 people in the world, having created 80 million new jobs

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Travel & Tourism Total GDP annual growth per Region 201520254.9%3.5%4.9%2.6%4.6%3.8%Source: Oxford Economics

The forecasted growth will be naturally distributed unevenly

The challenge

2013

2014

2030

1.8 billion1 billion1.1 billion

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STRATEGIC CAMPAIGNS

Freedom to TravelPolicies for GrowthTourism for Tomorrow

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The industry must grow sustainably

Tourism for TomorrowThe industry must grow sustainably, bringing economic and social benefits

WTTC is highly engaged in the sustainability arena.

In meetings with Heads of State as part of the Global Leaders for Tourism campaign, we discuss the vital contribution that Travel & Tourism makes to the global development agenda, affording it a unique role in building strong, sustainable and balanced global growth.

Engaging in Sustainability AgendaSit on UNEP 10 Year Framework Programme for Sustainable Tourism Represent WTTC at UN Global Compact meeting of international trade associationsOther representation at industry and multi-stakeholder events

WTTC continues to represent the private sector in intergovernmental sustainability circles, to ensure that the business perspective is embedded in discussions and proposals.

Council staff sit on the Steering Group of the Global Partnership for Sustainable Tourism and the Multi-stakeholder Advisory Committee of the UNEP 10 Year Framework Programme for Sustainable Tourism.

WTTC represented the sector at the UN Global Compact meeting of international trade associations, highlighting the considerable strides forward made by Travel & Tourism in sustainability and corporate social responsibility

Other representations and speeches include International Transport Forum, International Institute of Peace through Tourism, ICAO/UNWTO high level forum, and the ATAG Sustainability Summit, among others.

Hotel Carbon Measurement Initiative

Agreed methodology for the measurement of carbon emissions for hotel staysJune 2013 - HCMI v1.1, updated versionTo date, over 21,000 hotels across the world are using HCMI

We led with the International Tourism Partnership (ITP) the Hotel Carbon Measurement Initiative (HCMI) which was launched in June 2012

the result of a major collaborative effort by the industry to develop an agreed methodology for the measurement of carbon emissions for hotel stays.

June 2013 saw the release of HCMI v1.1, an updated version containing revisions to the methodology based on user feedback and new research.

To date, over 21,000 hotels across the world use HCMI

Environmental, Social & Governance

ESG reporting important tool in monitoring and communicating sustainabilityReport from April outlined key issues for ESG reporting in Travel & Tourism

A WTTC Task Force of Member Companies was very engaged in developing industry guidance on Environmental, Social and Governance (ESG) reporting. The guidance and an associated call to action was published in 2015.

As of the end of 2014, 55% of WTTC Member companies reported on ESG issues

Tourism for Tomorrow awards

Worlds leading sustainable tourism awards5 categories: Community, Destination, Environment, Innovation, and People

WTTCs Tourism for Tomorrow Awards are the worlds leading sustainable tourism awards. They showcase and celebrate Travel & Tourism businesses and destinations, which are successfully balancing people, planet, profits.

Fiona Jeffery, Chair of Just A Drop, as Chair of the Awards and Prof Graham Miller, Head of the School of Tourism and Professor of Sustainable Business, University of Surrey as Lead Judge

The T4T Awards are open for applications with a deadline of 16th November.

Climate ChangeReport on review of industry commitments climate targets for November launchUpdate of 2009 report where industry aspired to cut CO2 by 50% by 2035Now, sector is 20% more carbon efficient than in 2009

Germane to todays conference, WTTC is highly engaged in launching a new report on Climate Change in the run up to the global climate change discussions (COP 21) in Paris in November.

This sets out the work that WTTC Member companies have been undertaking to limit their carbon impacts. The report is an update of the 2009 report where WTTC companies aspired to reduce CO2 emissions by 50% by 2035, based on 2005 levels.

The earlier report, Leading the Challenge on Climate Change, was produced for a similar global discussion (COP15) and show that in the past 6 years the sector has made some steady progress:

In the areas of accountability and responsibility in particular, much progress has been made.

Travel & Tourism is 20% more carbon efficient than it was in 2009

We realized that a 50% reduction by 2035 may not be enough to ensure that temperatures remain below the maximum for a 2 degree Celsius increase. This needs to be confirmed scientifically or a new appropriate target set.

Cross-Member representation on this issue has been very successful with representatives from over 20 member companies contributing feedback on the report and case study examples and data. We will continue to work intently to gain more case studies from our membership.

Global Travel Association Coalition

Powering Travel & Tourism into the Next Decade

But we cant do it alone. So we are highly engaged as the Secretariat for securing One Voice through our Global Travel Association Coalition.

This was formed in 2012 because long-term public sector activity requires stronger collective advocacy and better communication of the benefits and value of the sector.

The Global Travel Association Coalition is a grouping of the sectors leading associations WTTC, UNWTO, IATA, CLIA, ACI, PATA, ICAO and WEF

Agenda for Tourism Growth and Development

Significant for this gathering is that one of the four key elements identified in an Agenda for Tourism Growth and Development is indeed environmental sustainability. Many strides have been made already in efforts to be attentive to emissions reduction, water and waste management and overall responsibility for the environment.

There are remarkable efforts to be credited to the aviation industry through ATAGs recently released report on Climate Change, the cruise lines continued investment and efforts and legislative considerations by CLIA for all to be ahead of the curve.

The Authority onWorld Travel & TourismThank youwww.wttc.org/research