INTERNATIONAL IN OIC MEMBER COUNTRIES

Prospects and Challenges

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

O RGANIZATION O F I SLAMIC C OOPERATION (OIC)

DR. CEM TINTIN

SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector , 2014

Contents Highlights on International Tourism Worldwide

4 Importance of International Tourism

 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.

Global Tourism Trends: Arrivals and Receipts

Arrivals (Millions) Receipts (Billion US$) 1400

1200  Over the last decade, international 1000 tourism is growing at substantial and

800 sustainable rates.

600  From 2007-2013, arrivals are up from 900 400 to 1087 millions. Similarly, receipts are

200 up from $858 billion to $1159 billion.

0 2007 2008 2009 2010 2011 2012 2013

Arrivals (% change) Receipts (% change)

20,0

15,0

 During the period under consideration, 10,0 tourist arrivals increased at an annual 5,0 average growth of 3.2 per cent whereas 0,0 annual average growth rate of tourism -5,0

receipts is around 5.1 per cent. -10,0

-15,0 2007 2008 2009 2010 2011 2012 2013

6 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 Global Tourism Trends: Regional Performance |2000 vs. 2013|

7 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 Global Tourism Trends: Regional Performance |Tourism Receipts|

Annual % Change

25  After 2009, tourism receipts has been 20 continuously on the rise in Africa, Americas and Asia & Pacific. 15

10

5

0

 The average rate of growth of tourism -5 receipts between 2006 and 2012 is as -10 follows: -15  Africa: 7.0% 2006 2007 2008 2009 2010 2011 2012  Americas: 6.0%  Asia & Pacific: 13.7% Africa Americas Asia & Pacific  Europe: 4.4%  Middle East: 9.1% Europe Middle East

8 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 Global Tourism Trends: Tourism Receipts per Arrival in 2013 (US$)

1600 1447 1400 1365

1200 1066

1000 917 868

800

613 600

400

200

0 Asia/Pacific Americas World Middle East Europe Africa

 The average tourism receipts per arrival is above the world average of $1066 in Asia&Pacific and Americas, whereas, in Middle East, Europe and Africa, it is below the world average.

9 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 Highlights on International Tourism in OIC Countries

10 OIC Tourism Trends: Arrivals and Receipts

Figure 3.1: International Tourism in OIC Countries

Tourist Arrivals and Tourism Receipts Annual % Change

Arrivals (Millions) Receipts (Billion US$) Arrivals (% change) Receipts (% change) Share in World Arrivals Share in World Receipts

180 20 30 160 18 16 140 20 120 14 12 100 10 10 80 8 60 6 0 40 4 20 2 0 0 -10 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

 The number of international tourist arrivals in the OIC countries increased from 155.5 million in 2008 to 157.3 million in 2012 corresponding to a 15.2% share in the world. The annual average growth rate is 0.23% between 2008-2012 (impact of recession). However, for the 2000 -2011 period it is 7.2%.

 In 2008, these tourists generated $124.1 billion as international tourism receipts in the OIC countries, corresponding to a 14.2% share in the world’s total tourism receipts. In 2012, international tourism receipts amounted to $132.3 billion corresponding to a 12.9% share in world’s total tourism receipts. The annual average growth rate is 1.29%. However, for the 2000 -2011 period it is 10.6%.

SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 OIC Tourism Trends: Top Tourist Destinations and Earners, 2012

Top 10 OIC Tourism Destinations

40

35 30  Top-10 countries hosted 124.7 25 million international tourist , 20 corresponding to a share of 79.2% of 15 the OIC total in 2012. 10

5

0 Top 10 OIC Tourism Earners

35

30

25

20

15

 Top-10 countries earned $110.6 billion 10

as international tourism receipts in 5 2012, corresponding to a share of 0 83.5% of the OIC total.

12 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 OIC Tourism Trends: International Tourism Receipts per Arrival in OIC Countries in 2012 (US$)

Lebanon 4.611 2.934 1.981 1.751 Palestine 1.541 1.176 1.078 1.060 1.050 967 923 906 903 900 873 OIC average 841

0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

 The OIC average tourism receipts per arrival in 2012 amounted to $841.

 The highest receipts per tourist arrival were recorded in ($4611) followed by Qatar ($2934) and Maldives ($1981).

13 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 The Economic Role of International Tourism in OIC Countries

14 OIC Tourism Trends: Balance of International Tourism, Billion US$ 2012

30

25

20

15

10

5

0 Turkey Total OIC Egypt Morocco Jordan Lebanon Maldives Yemen Balance

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

 Notably, majority of the countries with highest tourism balance are the main OIC international tourism destinations and earners. Turkey has a surplus of $27.6 billion followed by Malaysia with a surplus of $8.7 billion. 15 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 Economic Role of Tourism in OIC Countries

Balance of International Tourism as % of GDP (Average 2008-2012) International Tourism Receipts as % of Exports (Average 2008-2012)

Maldives 60.51 Maldives 81.95 Jordan 9,97 54,03 Gambia 7,95 Palestine 36,41 Morocco 7,05 Jordan 31,49 Lebanon 6,53 Lebanon 30,19 Tunisia 6,00 Morocco 29,48 Bahrain 4,37 Gambia 27,41 Egypt 4,21 Syria 24,12 Malaysia 3,95 Egypt 23,70 Syria 3,46 Uganda 21,24 Turkey 3,19 Kyrgyz R. 19,55 2,72 Turkey 16,32 Yemen 2,59 15,96 Albania 2,06 Tunisia 14,71 Uganda 2,01 -Bi. 12,65 OIC average 1,88 OIC average 12,23

0 10 20 30 40 50 60 70 0 20 40 60 80 100 Source: WDI.

16 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 Intra-OIC Tourism

17 Intra-OIC Tourism Trends: Arrivals and Receipts

60 40 50  Intra-OIC tourist arrivals decreased 30 40 from 46.9 million in 2008 to 46.3 million in 2012. 30 20

20  10 In 2012, intra-OIC tourist arrivals 10 accounted for 30.7 % of the total

0 0 tourists arrivals in OIC. 2008 2009 2010 2011 2012

Intra-OIC Tourist Arrivals (Millions) Share in Total OIC Arrivals

45 40 40 35 30  30 Intra-OIC tourism receipts are up 25 20 from US$ 29.9 billion in 2008 to US$ 20 30.5 billion in 2012. 15 10 10  As of 2012, Intra-OIC tourism receipts 5 0 0 accounted for almost 24.6% of the total 2008 2009 2010 2011 2012 international tourism receipts in the Intra-OIC Tourism Receipts (Billions) Share in Total OIC Receipts OIC.

18 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 Intra-OIC Tourism Trends: Top Tourist Destinations and Earners, 2012

Arrivals (Millions)

14

12  Top-10 countries hosted 41.3 million 10 tourists from the OIC member 8 countries, corresponding to 90.2% of 6 the total intra-OIC tourist arrivals in 2012. 4

2

0 Receipts (Billion US$)

8 7 6  Top-10 countries earned US$ 27.9 5 billion from intra-OIC tourists 4 corresponding to 91.4% of the total 3 intra-OIC receipts. 2 1 0

19 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 Challenges

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

20 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 Conclusions

High potential for the development of a sustainable international tourism sector

Rich and diverse natural, geographical, historical, and cultural heritage assets

A large number of citizens travel around the world for business, leisure, and other purposes

International tourism is a very important sector that, if properly planned and managed, could play a significant role in the economic development of the OIC countries.

Adoption of articulate long-term strategies and medium to short-term coherent plans and programmes at the national level

Creating a supportive OIC cooperation environment at the regional level

21 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 Policy Recommendations (I)

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 in tourism development plans and projects

Diversification of tourism products and services

Tourism-oriented education and training programmes

22 SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014 Policy Recommendations (II)

At the OIC Cooperation Level

OIC Internet Guide for Tourism

OIC Tourism Alliances, Airline Companies

Agreement on Tourism Visa Arrangements

Promote and Encourage public-private joint investment in Tourism

23 SESRIC | 8th Session of Islamic Conference of Tourism Ministers, 2013

T HANK Y OU

www.sesric.org

SESRIC | COMCEC Workshop on the Role of PPP for the Development of the Tourism Sector, 2014