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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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 $1245 billion.
During the period under consideration, tourist arrivals increased at an annual average growth of 4.3 per cent whereas annual average growth rate of tourism receipts is around 6.5 per cent.
5
0
200
400
600
800
1000
1200
1400
2009 2010 2011 2012 2013 2014
Arrivals (Millions) Receipts (Billion US$)
-15,00
-10,00
-5,00
0,00
5,00
10,00
15,00
2009 2010 2011 2012 2013 2014
Arrivals (% change) Receipts (% change)
Global Tourism Trends: Regional Performance |2009 vs. 2014|
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
6
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
-5
0
5
10
15
2009 2010 2011 2012 2013 2014
Africa Americas Asia & Pacific
Europe Middle East
Global Tourism Trends: Tourism Receipts per Arrival
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
8
In 2014, the average tourism receipts per arrival is above the world average of $1099 in Americas and Asia&Pacific and, whereas, in Middle East, Europe and Africa, it is below the world average.
1183 1121
968
819 897
612
1515 1431
1099
963
875
649
0
200
400
600
800
1000
1200
1400
1600
1800
Americas Asia/Pacific World Middle East Europe Africa
2009 2014
Figure 2.5: International Tourism Receipts per Arrival 2009 vs. 2014 (US$)
Highlights on International Tourism in
OIC Countries
9
OIC Tourism Trends: Arrivals and Receipts
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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 $144 billion corresponding to a 12.0% share in world’s total tourism receipts. The annual average growth rate was about 3.5% in this period.
0,00
2,00
4,00
6,00
8,00
10,00
12,00
14,00
16,00
18,00
20,00
0
20
40
60
80
100
120
140
160
180
200
2009 2010 2011 2012 2013
Arrivals (Millions) Receipts (Billion US$)
Share in World Arrivals Share in World Receipts
-4,00%
-2,00%
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
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)
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
0
5
10
15
20
25
30
35
40
0
5
10
15
20
25
30
35
40
OIC Tourism Trends: International Tourism Receipts per Arrival in OIC Countries
12
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)
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
The Economic Role of International Tourism in
OIC Countries
13
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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)
0
3
6
9
12
15
18
21
24
27
30
Turkey Total OIC
Balance
Malaysia Morocco Jordan Egypt Tunisia Maldives Lebanon Bahrain Yemen
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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.
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
10
20
30
40
50
60
70
2009 2010 2011 2012 2013
Intra-OIC Tourist Arrivals (Millions)
Share in Total OIC Arrivals
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
10
20
30
40
50
60
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
2
4
6
8
10
12
0
1
2
3
4
5
6
7
8
New Directions in the Tourism Sector:
Islamic Tourism in
OIC Countries
19
Islamic Tourism
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
20
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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)
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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)
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum
Istanbul, Turkey