Global Tourism Trends

Global World tourism has exceeded all the growth expectations put forth for 2013, as reported by the World Tourism Barometer OT in one of its most recent publications. The number of international tourist arrivals grew by 5 % during the first half of 2013 when compared to the same period in 2012. Close to 494 million tourists arrivals were recorded in this period, over 25 million more international visitors than in the same period of 2012. This figure exceeds the forecasts made earlier this year, which predicted between +3 % and +4 % growth (WTO, 2013). Asia, the Pacific and Europe led this growth. Europe had an increase of 5%, Asia-Pacific grew by 7% and South Asia exceeded all expectations and recorded a 12% increase. China is the main source of outbound tourists. Asia remains the leading global region for economic growth. In 2012, the number of outbound tourists totals 83,182,700, up 18.41% comparing with 2011.The China Tourism Academy expects the Chinese outbound market to reach 94 million trips this year, up 15 percent from 2012. China surpassed the U.S. and Germany in 2012 to become largest source of outbound travelers in the world. International tourism expenditure exceeded WTTC (World Travel and Tourism Council) expectations with estimated growth of 4.0% in 2013, more than the previous estimate of 3.1%. The total contribution from Travel & Tourism to the world economy will be 2.9% in 2013. The IMF predicts global GDP to rise by 3.8% in 2014 thanks to steady growth in the Eurozone. Global tourist arrivals and inbound spending will continue to be vital for the 2012-2017 period. Latin America The direct contribution of Travel & Tourism to GDP was USD138.8bn (3.2% of total GDP) in 2012, and is forecast to rise by 4.7% in 2013, and to rise by 4.8% to USD232.4bn in 2023 (in constant 2012 prices). (World Travel and Tourism Council)

In 2012 Travel & Tourism directly supported 5,849,000 jobs (2.9% of total employment). This is expected to rise by 3.1% in 2013 and rise by 2.7% to 7,895,000 jobs (3.3% of total employment) in 2023. (World Travel and Tourism Council)

Visitor exports generated USD38.3bn (4.7% of total exports) in 2012. This is forecast to grow by 5.1% in 2013, and grow by 7.8% to USD85.3bn in 2023 (6.1% of total). (World Travel and Tourism Council)

Travel & Tourism investment in 2012 was USD49.7bn, or 5.7% of total investment. It should rise by 7.3% in 2013, and rise by 6.1% over the next ten years to USD96.7bn in 2023 (6.6% of total). (World Travel and Tourism Council)

Ecuador The direct contribution of Travel & Tourism to GDP was US$1,439.1mn (2.0% of total

GDP) in 2012, and is forecast to rise by 5.3% in 2013, and to rise by 4.6% to US$2,384.9mn in 2023 (in constant 2012 prices). (World Travel and Tourism Council)

In 2012 Travel & Tourism directly supported 110,000 jobs (1.7% of total employment). This is expected to rise by 2.4% in 2013 and rise by 3.3% to 156,000 jobs (2.0% of total employment) in 2023. (World Travel and Tourism Council)

Visitor exports generated US$918.0mn (3.6% of total exports) in 2012. This is forecast to grow by 1.1% in 2013, and grow by 5.3 to US$1,557.4mn in 2023. (4.9% of total) (World Travel and Tourism Council)

Travel & Tourism investment in 2012 was US$704.1mn, or 3.9% of total investment. It should rise by 7.2% in 2013, and rise by 4.5% over the next ten years to US$1,174.9mn in 2023 (4.3% of total). (World Travel and Tourism Council)

Opportunities and Trends

The imminent growth of the Travel and Tourism sector and the predicted growth of global GDP present an opportunity for the growth of the Economic impact of tourism in Latin America and Ecuador.

Given the favorable circumstances, it is vital to pay attention to the Travel trends in 2014 in order to maximize the economic benefit of tourism. 2014 will be an important year for tourism and travel and the Travel Trends are as follows:

• The importance of Millennials and seniors keeps on rising.

• Social Media and virtual presence is vital.

• Luxury and Eco Friendliness become bigger factors.

• Travelers have started to value quality over savings.

• Health is biggest factor in travel decisions.

• The Americas should focus on PANKS (Professional Aunt, No Kids)

• More multi-generational travel.

Health condition is biggest factor in travel decisions. According to Emerging Lifestyle & Travel Trends American tourists name their reasons to travel as follows:

1. Health (58%) 2. Financial Stability (45%) 3. Get to know the World (37%) 4. Spend more time with Family (37%) 5. Spend more time with friends (29%)

The importance of Social Media. Blogs are very influential tools when deciding where and when to travel. A few examples include About Tourism, Where I've Been, and DownTown Traveler. Additionally, travel destinations and hotels with a social media presence such as Facebook or twitter tend to have a wider reach when trying to captivate an audience. Visual tools like Instagram can serve to further advertise the visual appeal of a destination. Millennials and Technology Millennials (people born between the early 1980s to the early 2000s) are starting top lay a large role in tourism, especially when it relates to social media and technology:

• Millennials are far more interested in international travel than non-Millennials, Millennials are more interested in urban rather than resort destinations

• Millennials are more likely to travel for leisure in organized groups, with extended family, or with friends.

• Millennials are twice as likely as non-Millennials to use their mobile phones to show travel pictures to friends, share travel photos on social media, blog or recount travel experiences online, and post travel reviews, according to a survey by BCG.

• 8 in 10 Millennials consider online travel reviews either “somewhat” or “very important.” Wired & Wireless.

• More than 40% of all online research for travel came from a mobile device.   • Millennials are more likely than their older colleagues to book their business

travel on their mobile phones (32 percent) or tablets (20 percent), a habit that’s slow to catch on among 46- to 65-year-olds. (Expedia.com)

• Internet access is the MOST important hotel amenity for affluent U.S. travelers. • Mobile apps are replacing the hotel concierge (Resonance Consulting)

Luxury and Eco-friendliness. Many travelers prefer luxury. In 2013, 26% of travelers preferred luxury hotels and accommodations, compared to 15% in 2011. Luxury travelers are seeking out ways to stay active and healthy on the road. Luxury travel continues to be a robust segment of the industry.������ There are millions of millionaires, and the number of affluent U.S. households is projected to increase from 10.5 million in 2012 to 20.5 million in 2020. Growth in adventure travel has accelerated at a 65% yearly rate since 2009. The value of the global outbound adventure travel sector was more than $345 billion in 2012. Tourists spend approximately one-third of their total tourism expenditures on retail purchases. Tourism shopping includes: pre-trip shopping, add-on function of the attraction or destination, shopping experience, and experience local culture. Even though just 16% of affluent U.S. travelers rate eco-friendliness an important factor, visits to Beijing have dropped by roughly 50% so far this year, which many attribute to the city’s notorious pollution. Showing that eco-consciousness is in fact a factor in tourists decision process. (Resonance Consulting)

The top five goods and experiences desired by the affluent are: ���

• Owning a smartphone��� • Owning a vacation home��� • Having the freedom to work from home��� • Taking vacations to exotic destinations��� • Taking extended time off from work

Quality over Savings. American travelers value “Quality over Savings” regardless of annual household income. Figures show that 34% of travelers choose destination first, and 33% choose type of travel first, before setting a budget (18%) and finding deals (8%). Americas: PANKS - A new Demographic According to Euromonitor, the US travel industry is targeting PANKs - 'Professional Aunt, No Kids' - who collectively spend billions on travelling with nieces and nephews. These women have children later in life or choose not to have children at all. Travel firms aware of the power of PANKs' spending can adjust to this trend and reap the benefits. Rising importance of seniors. Seniors are estimated to comprise 1.3 billion to 1.6 billion people worldwide. ������Customer service is crucial to this group, and they show lower levels of tolerance for poor service, seniors end up being the most demanding travellers. This group travels primarily for rest and relaxation they favor calmer, quieter, less congested destinations. Multigenerational travel Another important trend is multigenerational travel; A lot of multigenerational travel is planned around milestone events. This market is about trading memories, convenience and value. Suppliers have had a slow time adjusting to this trend, destinations have lagged when it comes to providing services and amenities that appeal to kids, Millennials and seniors but some cruise lines have taken a leadership position in taking advantage of this market.