Annual Report 2017/18
Total Page:16
File Type:pdf, Size:1020Kb
MAURITIUS TOURISM PROMOTION AUTHORITY Annual Report 2017/18 Message from Chairman 02-03 Message from Director 04-05 Corporate Governance 06-13 Strategic Objectives 14-21 Year in Review 23 Tourism Performance 24-27 Analysis of Seat Capacity 28-29 Analysis of Markets 30-53 Marketing Actions 54-55 Digital Campaigns 56-57 Financial review 58 Audit Report 60-65 MTPA Financial Statements for the year ended 30 June 2018 66 Statement of Financial Position 67 Statement of Financial Performance 68 Statement of changes in Net Assets/Equity 69 Cash Flow Statement 70 Statement of Comparison of Budget and Actual Amounts 71-73 Statement Showing Reconciliation of Actual Cash Flows 73 with Financial Statements Notes to the Accounts 74-89 Statistical Tables 90-103 Mauritius Tourism Promotion Authority Annual Report 2018 1 Message from the Chairman Our future strategy will focus on branding of Mauritius around sustainability and inclusive tourism. VIJAY COOMARSINGH BHUJOHORY The tourism contribution to our economy tourism receipts of MUR 60.3 billion recorded has been excellent. We registered growth in in 2017, representing an increase of 8%. tourist arrivals of 4% amidst a year where we faced cyclone Berguita in January 2018 which We have always worked towards this objective, brought lots of disturbance in our passenger and we are pleased to see the gradual re- inflows and the cessation of flights from Beijing structuring of the MTPA team both at Head and Guangzhou as from October 2017 has Office and abroad to support this objective. caused a dip in arrivals from the China market. PR Representations have been consolidated We also had to manage the negative impact of in core markets and new PRs have been a plague epidemic in Madagascar which in turn appointed in emerging markets such as the had an adverse effect on tourist arrivals to the Benelux, the Middle-East and the Nordics. By Indian Ocean. end of this year, we will also have Advertising Representations in France, UK, Germany, and We have the firm belief that under conducive India. market conditions, the Mauritian tourism sector could grow beyond 7% per annum with We reckoned the importance of a revamped the right mix of hotel rooms and uplift from air access strategy as part of an overall the various markets. It is to be noted that strategic structure to take the tourism sector during the calendar year 2017, ten major hotel to new heights. The MTPA Board made it an resorts embarked on major renovations and acceptable fact that strategy should be aligned product rebranding. This, in itself, represents to boost arrivals not only from the ‘Point to a shortfall of three thousand room nights in Point’ airlines but also to have a dedicated ‘hub 2017/2018. However, this renovation cycle strategy’ with Emirates [Dubai], Turkish Airlines has brought a major boost to our tourism [Istanbul], KLM/MK [Schipol], Air Mauritius industry and today Mauritius is better known [Changi]. We also see it even broader with MK as an exclusive luxury destination. This has in Charles de Gaules and in Johannesburg. We contributed to the positive sustained growth in welcome Government initiative of having a 2 Mauritius Tourism Promotion Authority Annual Report 2018 new hub in Nairobi and attracting to our shores growth from the Chinese market, and with the key airline brands such as Saudi Airlines/Kenya price of fuel on the rising trend, we need to Airways and KLM in the Mauritian airspace. But devise the right strategy and be very proactive, we have the strong belief that much more can be taking into account that we are operating into done to have an air access strategy that follow a very competitive world. This urges all us to the pace of the development of the tourism strategise much beyond the horizon. sector. Given the context, MTPA approach will focus on MTPA marketing strategy so far has been driven the following: in markets with growth potential but we found Boosting the low and shoulder season it also important to invest in future trendy outbound markets, especially the ASEANS Attracting growth from robust economies [South Korea, Malaysia, Singapore, Japan]. We of Europe supported marketing actions that attracted Exploiting the hubs growth from the traditional European markets Capitalising on Africa/Regional markets such as [France, the UK, Germany, Switzerland Managing uncertain markets: China, India and Italy], as well key European cities connected and UK through hubs [UK, Germany, Switzerland, Organising local and world class events Eastern European, Nordics amongst others]. Promoting the MICE /Wedding segment China has been a big bone of contention. Strengthening the cruise segments with Since 2016, China has suffered from certain the new terminal being operational in 2019 key structural imbalances in connectivity, hotel room allotment and visibility which have The MTPA’s realistic tourism growth target for affected growth. This situation seems to be 2019 will be around 5%. This will be achieved by more precarious presently with an unstable getting all stakeholders moving in harmony, and distribution resulting into reduction of seat strike in togetherness. capacity and cessation of flight operation in Beijing. The MTPA is sparing no effort to Our future strategy will focus on branding of reconquer the Chinese market and hopefully a Mauritius around sustainability and inclusive concerted solution is adhered to by one and all tourism. very shortly. I believe in our potential to do even better and India remains a market of good potential. We will wish to extend my thanks to all members of the soon be reaching 100,000 Indian tourists, and board for their contribution to the success of this market has had good marketing support the tourism industry. I also want to thank the from the Board. In 2019, India will have an Minister of Tourism, Hon. Anil Gayan, for the Advertising Representation. confidence and trust bestowed upon the MTPA board. The Middle-East has been the market that has also received the Board’s attention. Indeed, We look forward to making 2019 a brighter year the results are tangible with arrivals more than with the collaboration of all our key partners in quadrupled in 2018. the Mauritian tourism industry. On the Regional front, Reunion market is back on the growth track after several months. South Africa is still performing laudably. Future outlook The year 2019 will be a very challenging year. We are worried that the BREXIT effect will start to be felt. We will still have to strive hard to re-establish Mauritius Tourism Promotion Authority Annual Report 2018 3 Message from the Director The industry has experienced laudable growth proactively to tap growth in both the core since the last three years. Tourist arrivals have and the emerging markets. Actions initiated increased from 1.15 million and will likely cross in this regard have been the consolidation of 1.4 million by 2018. This success has been the MTPA PR representation in core markets and fruition of concerted efforts on the part of one appointment of new PR representations in and all. I take this opportunity to thank my emerging markets such as the Nordics and in predecessors for this achievement. Saudi Arabia. Since I resume office in June 2018, I have Proximity to the consumers will be also one of set as objectives to cruise at a sustainable my key priorities. The Board has been solicited annual growth rate of 5% for the coming three to approve the appointment of advertising years, a reasonable target in the context of a agencies in markets that will respond to widened tourism base knowing that 2019 will MTPA’s growth objectives. The procedures be a very challenging year for the Mauritian initiated, we expect by December 2018 to have tourism industry. We will need to face market advertising representations in India, Germany, realities not necessarily in the ambit of our UK and the Middle-East. Having said so, we control: rising fuel prices, the uncertainty will have a revigorated team to address the related to BREXIT, continuous decline in tourist challenges of 2019. arrivals from China as a result of an unstable distribution and the reduction in seats capacity from the Indian market. To this effect, MTPA strategy will focus on first and foremost having the right Organisational Marketing Support structure capable of reacting 4 Mauritius Tourism Promotion Authority Annual Report 2018 MESSAGE FROM THE DIRECTOR Repositioning Mauritius in the league of Luxury, lifestyle, glamour and shine back as the gem of the Indian ocean. ARVIND BUNDHUN With the team set in place, the MTPA will We will also make it a priority to use all media focus on strategy pertaining to: platforms that we reckon would bring us that added value. Bonding with the trade Boost tourist arrivals for the low season will be done through roadshows and during 2019 by at least 10% our presence in the major world tourism Capitalise on tourist arrivals from robust events. Actions on niche markets will also economies of Europe: Germany, France, figure amongst our top priorities, with more Eastern European, Nordics amongst others presence and visibility in specialized event such as diving, golf, or marriage fairs. We will Exploit hubs and the huge network stress on the fact that the destination is very conferred to us by EK, Turkish Airlines and upscale and affordable. MK/KLM Streamline Africa strategy and exploit Growth of the tourism industry hinges on full potential of ‘Rising Africa’ through the collaboration of all stakeholders. I count Johannesburg/Nairobi of on the employees of the tourism trade to continue as it has been in the past to express Manage uncertain markets: UK, China, their ‘unique hospitality’ through their smiles.