Mahidol

Asia Pacific Tourism

Destinations

Competing for Tourists and their

Dollars

Peter Semone03 March 2012

Mahidol University

World Tourism Facts• 935 million international tourists• Earning 900 billion in exports• 9.1 percent of Global GDP• Supporting 258 million jobs• Largest ‘Services’ Sector Industry• Force for Poverty Alleviation

Boom in International Tourism

Year Aircraft Flight Time

Airfare Capacity

1939 Boeing 314 25-30 HoursNY-London

Half the Price of a small

house

74 pax

1969 Boeing 747 6 hours 5 minutes

NY-London

A small fortune 366 pax

2004 Airbus 340-500 18 HoursNY-Singapore

A month’s salary

184 pax

2006 Airbus 380-800 12.5 HoursSingapore-

London

Just under a month’s salary

450 pax

IVAs World & Asia Pacific(1960-2005; Note: differences in tabulating data between WTO and PATA)

From 5 percent to 40 percent of Global Tourism Arrivals in 35 years

International Tourism Receipts 1960 to Present

By 2020 Tourism Demand will DOUBLEExpenditure Expected to be > US$2 Trillion

GMS Tourism

Tourism is a Globally Competitive Business

GMS

Mekong Tourism Snapshot

The InstitutionSection One of Marketing Plan

MARKETING

Mekong Tourism Office (MTO)

Marketing Expert

Market GMS in order to increase long-stay above

average spending subregional travellers

Private Sector Partnerships

DEVELOPMENT

Mekong Tourism Coordinating Office (MTCO)

Development Expert

Orchestrate implementation and funding of 28-Development Projects as prescribed TSS

Donor Partnerships

Finances

• Annual Government Contribution for Operating Budget = US$90,000

• Residual Funds from AMTA = US$25,000• Private Sector Cash and In-Kind Contributions• Support by Thailand Ministry of Tourism and

Sport and French Government

GMS SWOT AnalysisStrengths Weaknesses

Unique range of nature based and cultural attractions; UNESCO World Heritage sites; Fascinating indigenous cultures and traditions; Generally friendly and hospitable local population; Well established and spectacular cultural events; Extraordinary natural environments, many possessing unique and rare flora and

fauna; Relative closeness to Asian source markets; Excellent accessibility through international hubs such as Bangkok and HCM City; Comprehensive air and land transport network; Relatively unspoiled environment; Increasing support from central governments for tourism (and some provincial

governments); Strong regional private sector companies; Well establish cooperative framework through MTCO.

Weak and inconsistent branding in key markets; Historically low level of promotions and funds thinly spread across a number of

markets; Limited capacity among many governments to plan and market the tourism sector; Low community and government awareness of tourism benefits and needs; Lack of market research/weak statistical base; Weak provincial tourism bureaus and associations; Limited private sector involvement in destination marketing; Weak public private partnership frameworks; Insufficient government investment and commitment to regionalism;

Opportunities Threats

Growing global interest in activity based special interest tourism; Growing iconic status of natural and cultural heritage attractions; Increased intra-regional and international air services (particularly low cost

carriers); Increase coordination of marketing and industry participation; The aura and mystique of the Mekong; Mobilisation of MTCO as a centralised regional tourism marketing and

development agency; Develop stronger branding; Commitment to regionalism; Emergence of Asian tourist; Concentrate marketing on key defined source markets; Strengthen research base to underpin marketing strategies; Positively manage image in key markets through PR programme; Increased internet marketing activities; Focus marketing on to niche markets; Strengthen marketing capacity within MTCO, respective NTOs and regional

industry associations

Increasing global oil prices Terrorist or security incidents as major deterrent to travel; Inaction; Global and regional competitions and increasing competitor marketing; HIV/AIDS epidemic or other pandemics will deter visitors; Political and economic instability; Adverse publicity; Lack of sustainable tourism operations; Reduced funding for development and promotion

Marketing the Mekong

Mekong Tourism Office (MTO)Plan 2008-2010

•Profit

able

•Socially In

clusive

•Low on C

O2

•High o

n + Impacts

Nature Community CultureEco- (Lodges, Tourism, Tours) Tourism ReligionSustainable Village HeritageGreen People BuddhismVerdant Market AnimismNature-based Local NativeDiverse Rural TribalAgro Tourism Home StaysSoft Adventure Mekong RusticWater Pure AuthenticUntainted Indigenous RealRiver SimpleFresh

Activities: cycling, trekking canoeing, hiking, rafting, elephant treks, self drive holidays, camping…..

Thematic Direction ofExplore Mekong Campaign

Explore Mekong Campaign Slogan and Logo

• Pure and Simple• Back to Basics• Asia’s Last or Final Frontier• Come Find Yourself• A River Runs Through It• Meet the Mekong• At the Edge of Asia• The Outback of Asia

Explore Mekong

Explore Mekong 2010 Slogan and LogoDevelopment Process

• Slogan shortened to ‘Explore Mekong’

• Logo Upgraded to incorporate common wisdom

• Two Options Presented at SKAL Meeting

• Final Stage of Refinement

Lao People’s Democratic Republic

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Year

LAO TOURISM

• $400,000,000

• 20,000 Direct Jobs

• #2 Export Earner

• Opportunities

• Poverty Alleviation

Lao 2010 Arrivals and Revenuestitling the scale in the wrong way?…….

Length of Stay x Per Diem Spend

IMPROVED SERVICE QUALITY

TVET Performance AppraisalHospitality and Tourism Programmes – Project LAO/020 research

• Teachers lack adequate practical industry experience and qualifications;

• Curricula outdated and unresponsive to industry needs;

• Lack of Lao language textbooks, teaching materials and teaching aids;

• Insufficient facilities, especially for practical training.

Lanith Core Team – our future teachersStudying in Singapore, France and Luxembourg – since 2009

Lanith Diploma Suite2 Year Diploma

LANITH

F&B Production

AccommodationOperations

Travel & Tour Operations

F&B Service Operations

Industry Skills Training

• Vientiane• Champassak• Khammouane• Luang Prabang• Xiengkhouang

THE LANITH CAMPUSClassrooms, Administrative Offices, Restaurant and Bar, Rooms Division Lab, Training Kitchen, IT Lab, Library, International Meeting Hall, Visitor Information Centre and Hotel

Development Aid

• Project Document

• Objectives• Inputs• Outputs• Outcomes• Impacts

Business

• Business Plan

• Mission• Capital• Product• Sales• Profits

Products and Services• 2 yr diploma (education)• Passport to Success (industry-training)• Restaurant, Bar and Café• Visitor Information Centre/Gift Shoppe• 4 Star Hotel

THE

HOTEL

Master Plan

Bamboo way to Mekong

The Lao National Institute of Tourism and Hospitality

Luxembourg Development Cooperation

LAO/020$12,000,000

Government of Laos Ministry of

Education$12,000,000

Hotel Investor (s)$12,000,000

A $36,000,000 Social Enterprise Project

Capital

INSTITUTIONALIZED PUBLIC PRIVATE PARTNERSHIP MODEL

HOTEL COMPANY

LANITHContracting

Agency

INVESTOREconomic Operator

Roles of Prospective Partners

Grants

Debt

Equity

• Luxembourg Development Cooperation (LAO/020)

• Government of Lao (Land)• ADB/IFC (technical

assistance)

• ADB• IFC

• Private Investment

THANK YOU

For more information, please contact [email protected]