Industry Agenda Smart Unlocking Economic Growth and Development through Travel Facilitation

June 2014 © World Economic Forum 2014 - All rights reserved.

The viewpoints expressed herein attempt to reflect the collective opinion of various individuals who have contributed to the research and development of this report. They do not necessarily imply an agreed position among them or institutional endorsement by any participating company or organization involved in the work or mentioned in the report, or of the World Economic Forum.

REF 110614 Contents Preface

3 Preface The 21st century traveller has high expectations for efficiency and a low tolerance for barriers to global mobility. Unfortunately, the infrastructure and bureaucracy 4 Executive Summary which that traveller must navigate are decidedly 20th century. Barriers to mobility 6 Barriers to Travel Are Holding and inefficiency are particularly notable when obtaining visas and at the . Back Growth Indeed, in 2013, destinations worldwide required on average two thirds of the 1 7 Smart Travel in a Free Trade Era: world’s population to obtain a visa prior to departure. Stimulating Growth and Job Creation These barriers operate just like any other trade barriers, impeding growth and depressing job creation in the affected industry. A comprehensive model for “Smart 7 First Barrier to Smart Travel: Travel”, one that includes Smart Visas, Smart Borders, Smart Security processes Outdated Visa Practices and Smart Infrastructure, could revolutionize the travel and sector the way 7 Second Barrier to Smart Travel: the smartphone has transformed the telecommunications and media industries, The Airport Experience bringing job creation and growth along with it. 8 Dynamic Solutions: Visa Facilitation The World Economic Forum’s Global Agenda Council on New Models for Travel 9 Visa Facilitation & Tourism urges collaborative efforts among all relevant public and private 9 A Common Visa for Regional stakeholders and proposes a fully integrated model to facilitate Smart Travel by: Trading Blocs – Including travel facilitation as a pillar of bilateral and regional trade negotiations 10 Creating a Common Visa Area and agreements 12 Dynamic Solutions: Fully Automated Check-in, Security and Border – Reviewing and streamlining current visa processes, including adopting new Control/Smart Visa technology to speed up visa applications and move towards an electronic (e-) 13 Models for a “Smart Travel” visa while strengthening security Experience – Reviewing and enhancing border-crossing processes and security checks at 13 Aspirational Smart Travel: The key entry points, notably at ACIS Solution 15 Visas and Borders: The Key for Seamless Travel 15 A Roadmap to Implementation 16 Final Recommendations

Unlocking Economic Growth and Development through Travel Facilitation 3 Executive Summary

The World Economic Forum’s Global of travel. Many of these potential once the traveller has returned to Agenda Council on New Models for travellers are deterred by outdated visa the original destination. A properly Travel & Tourism proposes a fully application processes and cumbersome implemented Smart Travel approach integrated “Smart Travel” model airport screening procedures. should include data-sharing designed to unlock growth and job across government agencies and creation in the travel and tourism This White Paper encourages countries. It will require cutting-edge industry. governments to facilitate travel and technology to integrate the visa tourism by streamlining the visa application and airport screening Tourism already represents 9% of the application process as well as the processes to eliminate redundancies world’s GDP and one out of every 11 airport experience for travellers. In while enhancing security. The end jobs, and is growing faster than other particular, the paper recommends a result would be reduced wait times segments of the global economy. The Smart Travel approach, consisting of for visa approvals, greater efficiency problem is that the fastest growing two major components, as a starting in moving travellers through customer base for the travel and point towards greater travel mobility: security and , and tourism sector – the rapidly expanding more thorough cross-checking of middle class in emerging economies – Adopt an all-encompassing passenger data against international in Asia, Africa, Latin America and solution to security and border databases. the Middle East – is subject to high control that begins with the visa transaction costs that limit the appeal application process and ends

4 Smart Travel – Increase bilateral and regional The travel and tourism industry is poised cooperation on visa policy, to serve as one of the principal engines culminating in an expansion of of economic growth and job creation common visa areas in which over the coming decade. While there travellers move freely between have been notable advancements in the geographically proximate countries past three to five years, there is more to over the course of a trip on a be done to unlock the potential of the single visa. Examples of existing industry. Indeed, to fully benefit from successful collaborations include the potential of this dynamic sector, the 26-state Schengen area. Many governments must work to reduce the countries around the globe are barriers to trade as they would in any exploring similar arrangements other industry. with neighbouring states, as they recognize the benefits of sharing the costs of visa processing and traveller screening, as well as how these arrangements enhance their appeal as tourist destinations.

Unlocking Economic Growth and Development through Travel Facilitation 5 Barriers to Travel Are Holding Back Growth Visa requirements are non-tariff Smart Travel in a barriers to trade; therefore, visa Second Barrier to Free Trade Era: regimes should become a standard Smart Travel: The topic for trade agreements. The Stimulating Growth emphasis on facilitating cross-border Airport Experience movement within the world trading and Job Creation system should prompt a thorough examination of internal, bilateral and The redundancy that contributes regional visa policies and travel security much of the inefficiency and needless Recent decades have seen a infrastructure. Removing restrictions bureaucracy in current visa practices proliferation of free trade agreements on the free movement of travellers plagues airport operations as well. and a sustained expansion in the should receive as much attention as the Passengers wait in long queues to pass quantity of goods and services moving abolition of other barriers to liberalized through , only to get more freely across borders. These trade in goods and services. in line again to have their documents developments have profound economic inspected by immigration and customs benefits for participating economies. officers. These repetitive obstacles The desire to advance this process might be justifiable if they were part is evident in the emergence of new First Barrier to Smart of a layering of security mechanisms regional trade blocs and the pursuit of designed to adequately prevent against new agreements, such as the ongoing Travel: Outdated Visa failures in other links in the chain. Transatlantic Trade and Investment Unfortunately, the redundancy in the Partnership (TTIP) and Trans-Pacific Practices system exists for precisely the opposite Partnership (TPP) negotiations, as well reason: a lack of a comprehensive as the historic Bali trade agreement. Many visa practices currently in use approach to managing travel security around the world trace their origins to and border control that results in While historically overlooked as a border controls imposed during the inefficient and wasteful efforts by distinct segment of international trade, the First World War. Today, much of the government agencies with overlapping dramatic expansion of travel and information collected for visa approval is jurisdictions. tourism in the past 30 years has superfluous to the personal data already demonstrated the industry’s capacity gathered when a passenger applies This unintended redundancy fails to to drive growth and job creation. It is for a . Requiring additional enhance security, as is evident from expected that the travel and tourism approval deters travellers and tourists the recent example of passengers industry will become even more by imposing additional costs on their travelling with stolen on important for countries that apply the travel plans. These costs are not merely Malaysia flight 370. Rather than “Smart Traveller” principles to take financial, as visa applicants sometimes having to pass through a streamlined advantage of future trends. Consider: are required to travel great distances but integrated process with multiple to apply through a consulate of the checkpoints where the false documents – The global middle class will more country they wish to visit and often face could have been discovered, the stolen than double in size by 2030.2 long waiting periods before the visa is passport holders fell through the cracks approved. For many travellers, visas of the current convoluted system of visa – Passenger air traffic is represent the worst form of bureaucratic rules and airport procedures. forecast to increase 31% by 2017.3 inefficiency, diminishing the appeal of international travel. Under a Smart Travel approach, those – Annual international tourist arrivals travellers would have submitted to are expected to reach 1.8 billion by The US Travel Association estimates only one process, beginning with their 2030.4 that the difficulty in obtaining a US visa application and carrying their visa for citizens of the three fastest personal information over to follow them – The rate of growing source markets (Brazil, India through airport screening and border growth between 2010 and 2030 will and the People’s Republic of China) has control. This process would clearly be highest in emerging economies contributed to losses in US international assign responsibility for verifying the in Asia, Africa, Latin America and the travel market share equivalent to passengers’ information, and ensure Middle East.5 467,000 jobs. A recent study also that information was routinely cross- estimates that eliminating travel visas checked against crucial international – Visa facilitation could create as much at the bilateral level would more than databases such as Interpol, which had as 5.1 million extra jobs in G20 triple travel flows between countries.9 flagged the two passports in question economies by 2015.6 Indeed, improving visa processes alone in the Malaysian Airlines incident. The could generate an estimated additional elimination of repetition and the use of – Visa facilitation could generate $89 $35 billion to $206 billion in tourism advanced technology would enable billion in additional international receipts by 2015 in the G20 economies, passengers to be classified by risk tourism receipts and 2.6 million extra resulting in as many as 5.1 million new level, reducing their travel times while jobs in APEC countries by 2016.7 jobs.10 enhancing security. – Tourism represents 9.5% of the world’s GDP, 6% of world exports and one in every 11 jobs.8

Unlocking Economic Growth and Development through Travel Facilitation 7 Dynamic Solutions: Visa Facilitation governments to better direct their Visa Facilitation security resources to screening Some regions have already accepted higher risk passengers. the merits of this proposal and have taken action in this area. The first and most obvious step to – Electronic visas. Australia offers overcoming barriers to growth in the passport holders from certain – Schengen Area. The most integrated travel and tourism sector is to scrutinize countries an eVisitor or Electronic of the common visa area models, the regulatory barriers currently in place Travel Authority entry authorization the Schengen Area represents and remove those that are found to online, free of charge, without a territory of 26 European states be unnecessary or for which the costs consulate visits or other bureaucratic that have mostly abolished their outweigh the benefits. Many of the hurdles. The US does something borders and collectively administer outdated visa practices discussed in similar with its Visa Waiver Program. a single visa allowing visitors from the previous section can be streamlined Other countries that have taken outside the area free movement or eliminated altogether. Additionally, key steps in launching electronic within the Schengen community. modern information technologies can visas in the past three years include The consulate of the country of make the visa application process Sri Lanka (2012), Turkey (2013), entry, or alternatively the primary more accessible and convenient for Azerbaijan (2013), Qatar (2014) and destination of the visitor, is travellers, who may otherwise have (shortly) Myanmar. responsible for processing the to travel long distances to reach the visa application, but application closest consulate. The introduction of The most effective way to remove procedures and criteria are set at a “visa on arrival”, “trusted traveller” and visa-related barriers is to eliminate regional level. Cooperation by the e-visa programmes further enhances visa requirements entirely. There are Schengen states far surpasses just convenience for travellers and creates numerous reasons for existing visa the administration of visas. It also an information infrastructure that can be policies, including security, border encompasses elements of border linked to the security screening process. control and geopolitical considerations, security, immigration and other Some examples of countries that have but each diplomatic agreement that more complicated political issues recently taken steps to facilitate visa eliminates the need for these restrictions that can be seen as distinct from access include: enhances the prospects for economic operating a common short-stay visa growth in the countries affected. programme. – Introduction of visa-on-arrival in India. In 2013, India undertook – ECOWAS. Nationals of the efforts to make its visa application Economic Community of West process less of a deterrence to A Common Visa for African States (ECOWAS), which potential visitors. The number of includes 15 countries, can travel different types of visa offered was Regional Trading visa-free within the region. The reduced from 16 to three, and next step is a visa-free region for visitors from select countries are now Blocs foreigners in 2015. able to obtain visas upon arrival at India’s largest international airports. – APEC Card (ABTC). While eliminating visa requirements The ABTC comprises Australia, – European Commission proposal for worldwide is unrealistic in the short Brunei Darussalam, Chile, the Schengen revisions. The European term, countries can begin the visa People’s Republic of China, Hong Commission has recently put facilitation process by building on the Kong SAR, Indonesia, Japan, forward a proposal to make the trusted relationships they currently have. South Korea, Malaysia, Mexico, Schengen visa application process By working together, similarly situated New Zealand, Papua New Guinea, more accommodating to applicants. countries can increase their appeal to Peru, the Philippines, the Russian Under this proposal, the deadline foreign travellers through the creation of Federation, Singapore, Taiwan, China, for processing and approving a common visa areas. Thailand and Vietnam. It allows visa request would be reduced business travellers pre-cleared, to 10 days from the current 15. A common visa area allows travellers facilitated short-term entry to Additionally, application forms would to visit multiple countries on a single participating member economies. be simplified and made available visa. This dramatically reduces the The ABTC removes the need to online and a new type of multiple- costs in time and money for a tourist or apply for individual visas or entry entry visa would be offered to business person making a multi-state permits, saving valuable time, frequent visitors. trip. It also enhances the attractiveness and allows multiple entries into of the collaborating countries as either participating economies during the – Mexico-US trusted traveller tourist destinations or potential business three years during which the card coordination. Mexico and the centres because of the ease of visiting is valid. Cardholders also benefit United States have announced multiple destinations on the same trip. from faster immigration processing plans to collaborate in operating It also allows the cooperating states on arrival through fast-track entry, their respective trusted traveller to share some of the financial costs and exit through special APEC lanes programmes, Viajero Confiable of visa processing and administration, at major airports in participating and Global Entry. These passenger as well as creates the groundwork for economies. The ABTC enhances classification systems will facilitate further cooperation on security and border integrity and security in expedited travel for approved border control, leading to additional participating economies by providing travellers, allowing the two cost savings and strengthening regional security. benefits to border agencies – it

Unlocking Economic Growth and Development through Travel Facilitation 9 increases the number of low-risk travellers since each applicant is checked against “watch lists” of other participating states. Therefore, the ABTC carries savings not only for business people, but also for governments.

– Kenya, Rwanda and Uganda’s Single Destination Tourist Visa. As of 1 January 2014, the three countries launched a single destination visa to boost tourism in the region. The countries have also launched a new branding initiative called “Borderless Borders”, to signify the new direction in promoting trade and tourism in the region.

– UK-Ireland Common Travel Area. The United Kingdom and Ireland are establishing a common visa area for non-EU visitors by 2016. This would expand and improve the current visa waiver programme that allows visitors from certain countries to travel to Ireland using a UK visa. Once implemented, the new policy would apply to visitors from a much larger number of countries, including Brazil, the People’s Republic of China and India, with growing sources of new tourism.

designate certain visas as having limited to consider how they will apportion the permission.11 costs in both the short and the long Creating a Common term, as well as how they will fairly Visa Area Border security: Management of distribute the financial burden and the the state’s physical territory and the revenues linked to visa processing. The exclusion or acceptance of individuals Schengen Area, for instance, requires While it is clear that a common visa into that territory is fundamental to the (a) that visitors apply for a regional visa requires inter-state collaboration on role of the “Westphalian” state. Sharing from the consulate of the Schengen politically sensitive matters and presents this authority with another country state through which they intend to enter several legal and implementation requires a high degree of mutual trust. or the consulate of the state in which challenges, none of these challenges Even if both states maintain distinct they plan to spend the majority of time, should be insurmountable. For a border control operations, they are and (b) that the state which processes common visa proposal to be effective, it trusting each other to manage the the application is entitled to the fee. In needs to address the following issues. screening process by which certain this way, there is a logical connection foreign nationals gain permission between the cost and revenue side Foreign relations: Whether a state to enter each sovereign territory. of visa processing. This solution is requires citizens of another state Additionally, by standardizing and designed to deter visa shopping, where to procure a visa before entering is harmonizing processing procedures and visitors apply through the consulate fundamentally a matter of foreign document standards, each state must of whichever member state develops policy. Visa requirements are often be willing to dilute its own authority over a reputation for having the most part of reciprocal agreements and a the procedural control it exerts over the permissive approval standards. Without reflection of the relations between two admission process. The countries must these limiting rules governing where countries. Should they collaborate on a trust each other not to exploit or make applications can be made, states would common visa, they would need to set a negative use of the insight gained into be encouraged to lower their standards common foreign policy in this respect. each other’s border control operations. to attract visa shoppers and incremental For a common visa to be effective, the fees. participating states would presumably Cost and revenue sharing: The want to create a single list of countries implementation of a new visa Administration: Rather than include from which a visa would be required. programme requires significant up-front many of the necessary procedural 12 If this proves a bridge too far, it is costs followed by continued funding for details in the text of the treaty, possible (as in the Schengen area) to operations. It is important for countries the Schengen Area established an

10 Smart Travel executive committee to implement the The most important function of the data held in official files. In contrast, the common visa. The executive committee regional administrative body established proposed EU programme observes consists of one representative from will be to work productively with the the data access protections enshrined each contracting party; moreover, appropriate governmental agencies in a number of EU codes including the committee decisions are required to be within each participating state to ensure EU Charter of Fundamental Rights. unanimous. It is not necessary for all technological and procedural alignment. Regardless of the applicable jurisdiction, regional visa arrangements to use the It will be incumbent upon each state strict standards will have to be adopted same structure. However, some type of to identify the appropriate domestic for recording, accessing, storing and administrative body will be necessary governmental agencies and to see that disposing of personal data. It is also to draft and issue the numerous they are properly integrated into the important to be proactive from a public technical provisions necessary for the project. At a minimum, administration awareness standpoint, reassuring standardized visa application form of a regional visa is likely to require travellers (whatever the status of and process that will be used by all cooperation from agencies responsible their actual legal rights) about the implementing bodies within each for border security, foreign affairs, protections in place to prevent misuse participating state. The administrative trade and transportation. Moreover, or appropriation of their personal data or body will also need to oversee the interagency communication and biometric information. implementation, monitor compliance cooperation is essential to the success among participating countries, and of a Smart Visa project. make expedient decisions as needed. Privacy and data protection: Countries State implementation: Any regional need to consult their own codes as visa collaboration would need to well as international agreements to adhere to the principle that protects the ensure they have the authority to sovereignty of the individual participating share traveller data. State policies states. Countries have different internal on the use of passenger data vary mechanisms for implementing external considerably. It is notable, for example, trade and security agreements; some that the implementing legislation for require additional domestic legislation the US trusted traveller programme for these agreements to take legal known as “Global Entry” appears to effect, and domestic action is almost preclude individual passengers from inevitably necessary for implementation. demanding access to their personal

Unlocking Economic Growth and Development through Travel Facilitation 11 Dynamic Solutions: Fully Automated Check-in, Security and Border Control/Smart Visa Models for a “Smart ACIS Solution: A Traveller’s Step 5: National database cross-checks Vantage Point traveller’s information against Interpol Travel” Experience and international visa databases. Step 1: Traveller submits application Step 6: Processor grants/denies visa and, if necessary, participates in an and pre-approved immigration status. Twenty-first century technology offers interview for visa and pre-approved various innovative solutions to many immigration programme online. The of the problems that frustrate travellers Step 7: Traveller submits personal application includes traveller’s biometric information to risk-classification and restrain growth in the travel and information. tourism sector. For instance, in 2013, database. the first 14 “Smart Gates” opened in Step 2: Applicant pays fee online to Dubai ’s Terminal Step 8: Risk-classification database private visa application processing checks against international e-visa 3, automating security checkpoints company. through biometric recognition. database and provides information to airport security operator. Step 3: Processor forwards International organizations and predetermined share of fees to industry associations have also taken Step 9: Airport security operator government of country traveller intends forwards check-in information to airlines. concrete steps to improve the traveller’s to visit. experience through technological Step 10: Passenger arrives at airport, advancements. The International Step 4: Processor checks traveller’s Air Transport Association (IATA) has already checked in with the and information against national database, subject only to the security checks developed SMARTS, a concept for inputs new information into database. an airport security system that would commensurate with the person’s employ advance scanning technology assigned risk level once the identity has with eye and face recognition protocols been confirmed by biometric scan. capable of drastically reducing time spent queuing in security lines. The International Civil Aviation Organization (ICAO) is working on establishing international standards for machine- readable travel documents and creating an online platform for sharing passenger data between countries. More can be found on both of these initiatives on the ICAO website. Additionally, the APEC Travel Facilitation Initiative includes plans for cross-border cooperation on trusted traveller programmes, the use of advanced passenger information and other travel facilitation tools.

In parallel, the World Economic Forum, through its Connected World project, proposes a solution that uses technology and new operational and business models to enhance the visa processing and approval structures as well as travel facilitation at immigration borders and airport security check-in. Under a streamlined process of Fully Aspirational Smart and update the applicant’s record Automated Check-in, Security and within the database based on the Border Control and Smart Visa (ACIS), Travel: The ACIS information submitted. The information travellers would be able to submit and would also be cross-checked against receive their visa approval electronically Solution international visa databases and once the information has been cross- security organizations such as Interpol. checked against the relevant databases. The applicant not only would be spared Visa approval would be digitally The first component of ACIS – the the inconvenience of travelling to a recorded and available for access by review and enhancement of the current consular office, but would also receive automated fingerprint or iris scanners visa process – can be accomplished an immediate approval or rejection at security checkpoints as part of a through a variety of reforms. Full of the application, eliminating the comprehensive process that includes ACIS implementation would enable uncertainty and long wait periods that flight check-in and registration along travellers to submit their application and deter travellers (see Figure 1). with security examination in one easy pay fees online to a visa processing step. The ACIS process is described in service that would instantaneously The second component of the travel the sidebar “ACIS Solution: A Traveller’s check the applicant’s information process that would be substantially Vantage Point”. against a government-run database transformed under ACIS is the system

Unlocking Economic Growth and Development through Travel Facilitation 13 of airport security checks. Travellers security operator, thereby enabling for check-in desks or long security lines would pre-submit their information to risk-based screening at the airport. The once the passenger’s identity has been a risk classification database, which security operator would then forward confirmed by biometric scan (see would in turn provide an assessment of the necessary information to the Figure 2). the passenger’s risk level to the airport appropriate airline, eliminating the need

Figure 1: Smart Visa

Secure e-mail Electronic response payments

Grants/denies e- Visa and PAIP Real-time update Online interview application Visa and pre-approved immigration and submission program processor (privately or publicly operated) Submits e- Visa application Checks and Forwards and updates Pays eVisa and updates applicant's travel/visa biometric application applicant's history; deposits e-Visa information fee & PAIP fee if travel/visa and biometric information desired & applicable history Real-time update

National database operator (gov't operated1) Airport Security Traveler Risk- classification Checks database

Define e-Visa Forwards Fund and application maintain Interpol/ share of Europol rules, reserves fees right toEnabled refuse by any application biometric self- Checks Real-time update International e-Visa service gates Pay Provides PAIP database operator proportionate access at point (supranational org. 1) of immigration share for installation Checks PAIP access and service Commonly set National immigration/ applicability of standards, homeland security authorities traveler cooperation of multiple countries Relationships shown: Cash flows Service/information flows

Figure 2: Smart Airport

Fund Provides hardware Sponsor 2 "ad space" Airport operator Advanced Provide hardware Provides preferred service, e.g. scanning Pays for risk-based screening, technology biometric-based check-in, etc. 1 Security operator service (Check-in/Security screening)

Forwards Traveller screening and (or company in case of check-in info Pay usage business trip) fee

Transmits personal info, e.g., biometrics, risk- classification Provides risk- details classification assessment Advanced and info analytics Pays for Airlines/ service Airline alliances Risk-classification database Transmits data & (gov't operated) risk-classification assessment Pays for ticket and preferred eVisa service3 International e-Visa Relationships shown: database operator Cash flows Service/information flows

14 Smart Travel to create an efficient, seamless The end result would be a highly Visas and Borders: experience for the traveller (see Figure efficient system that speeds up travel The Key for 3). Indeed, the ACIS Smart Travel using the same processes by which system would collect the traveller’s products move across borders, through Seamless Travel information once and then redistribute electronic identification and scanning it as necessary across the various without needless delays or manual agencies and checkpoints for approval processing. Importantly, the airport security and verification purposes during the screening upgrades through ACIS traveller’s journey, rather than forcing would operate entirely independently the traveller to resubmit information and of a state’s visa systems. But the ACIS undergo duplicative checks required solution envisions the visa system by the various agencies involved in the feeding into the ACIS security apparatus travel process.13

Figure 3: Smart Visa and Airport Border Worlds Linked to Enable Efficient Travel

E-Visa Airport Security

Visa and pre-approved Sponsor immigration programme Airport processor operator

Security operator

National database Traveller / operator Traveller Applicant

Interpol/ Europol

International e-Visa database operator Airlines/ Airline alliances National immigration/ Risk-classification homeland security database authorities

Interface between int'l e-Visa database and risk- classification database enables pre-departure screening

immigration programmes (PAIPs) do not By phase three, multiple countries A Roadmap to exist. Security infrastructure consists of would accept passengers with visas conventional scanning machines and from other states, and greater access Implementation bomb-sniffing dogs, and only basic would proliferate through reciprocal passenger name recognition analysis is bilateral agreements as well as conducted. unilateral recognition. An international The components of the Smart database could be created and system (as illustrated in Figure 4) is When each component has advanced overseen by an intergovernmental expected to progress through four to the second phase, select countries body. Use of biometric information and identifiable phases of implementation. would unilaterally recognize certain private visa processors would continue supra-country visas; national visa to increase. Scanning technology would The first phase is the current systems would make some use of be able to screen liquids and certain environment in much of the world, biometric data and private application electronic devices without passengers with national visas awarded through processors, and select airports would having to remove them from their bags. traditional application processes. Within offer PAIPs. Scanning technology would Security monitors would employ some this phase, states do not recognize not dramatically improve, but security behaviour detection abilities and receive visas granted to visitors by neighbouring lanes would be separated by passenger automatic delivery of passengers’ risk countries. Visa applications do not risk level. Additional data sources would scores following the processing of collect biometric data; there is no be used to assign passengers risk passengers’ visas. communication between states on scores for security screening purposes. individual applications; and preapproval

Unlocking Economic Growth and Development through Travel Facilitation 15 Finally, in phase four, the ACIS Smart the region. All airports will have PAIPs passengers to divest themselves of any Travel vision will be complete once and the private application processors electronics because stand-off screening travellers can obtain a single common will transmit a full array of biometric will be possible. Closed-circuit monitors digital visa for each region to which they information to the international visa will conduct a full behavioural analysis of wish to travel. Each region will have its database which will cross-check the all persons within every airport. own application process and approval information against applications filed in criteria common across all states within other regions. There will be no need for

Figure 4: Four Phases of the ACIS Roadmap

Today 2020

1 National visa, 2 Supra-country 3 Multi-country 4 Regional visa, traditional visa, risk-based visa, advanced risk- seamless security systems screening based screening process International No recognition Recognition of Full recognition of One common of other select supra- other countries' digital visa with cooperation countries' visa country visa visa (bilateral) unified criteria/ (unilateral) processes for entire region

Int'l visa DB with Isolated national Isolated national Int'l visa DB with supra- Technological/ supra-national Visa SMA RT Visa visa systems, no visa systems, some national government procedural biometric data used, biometric info used, government body, some body, full biometric info implementation state-driven app. private app. biometric info used, used, private app. process; no PAIP process; PAIP on private app. process; process; PAIP on all selected airports PAIP on selected airports airports

Traditional Traditional scanners Screen liquids and Stand-off screening, Scanner and scanners, explosive but separate lanes tablets without no need to divest security detection dogs or processes per divesting, separate electronics, separate infrastructure risk-level processes per risk- processes per risk- level level

Risk database use Basic PNR data Security screening Automatic behaviour Full behaviour analysis using rule- depending on risk detection, automatic analysis across SMA RT Airport based systems score, inclusion of delivery of risk score entire airport , e.g. additional data to checkpoint via CCTV sources

that efforts to modernize visa policies shared goals for travel policy. From Final and travel security infrastructure are these discussions will come a reshaping standardized but reflect different cultural of the travel environment to create an Recommendations preferences for the protection of data efficient, secure, globally compatible privacy. On a national level, countries and minimally intrusive system for will need to clarify responsibility and On the basis of the outlined policy approving and screening the smart ensure cooperation among the various travellers of the future. challenges, there are two obvious affected internal administrative bodies. obstacles when considering wide Moreover, a number of policy reforms implementation of a national and new cooperation models involving Smart Travel system: financing the different government agencies and infrastructure and ensuring global also public-private partnerships will be operability. Indeed, many countries needed. are currently suffering from severe budgetary constraints and lack the But countries have to begin by resources for significant infrastructure recognizing and responding to investment. For an investment in the economic benefits that can be Smart Travel technology to have the generated by “smarter” travel. Much desired returns, the system must be a can be done on national and bilateral combination of compatible technological levels to scrap visa restrictions. As regimes which do not merely mimic the states pursue new trade and economic existing paper visa regime. International links with their economic partners, they leadership will be critical to ensure should broaden the talks to include

16 Smart Travel Endnotes

1 World Tourism Organization (UNWTO) (2013). Tourism Visa Openness Report: Visa Facilitation as a means to stimulate tourism growth. 2 Homi Kharas, the Brookings Institution. 3 International Air Transport Association (IATA) (2013). Airline Industry Forecast 2013-2017. 4 World Tourism Organization (UNWTO) (2011). Tourism Towards 2030. 5 Ibid. 6 Ibid. 7 UNWTO and World Travel and Tourism Council (WTTC) (2013). The Impact of Visa Facilitation in APEC Economies. 8 WTTC (2013). Economic Impact of Travel &Tourism 2013 Annual Update. 9 Lawson, R. A. and S. Roychoudhury (2013). Do Travel Visa Requirements Impede Tourist Travel? 10 UNWTO and WTTC (2012). The Impact of Visa Facilitation on Job Creation in the G20 Economies. 11 For example, if state A requires visas from state C but state B does not, and states A and B are unable to agree on a common visa approach to state C, citizens from state C could still be permitted to travel to state B without a visa while being required to obtain the standard (common) A/B visa for travel to state A. 12 Such as the standards for approving or denying visa applications, the fee structure and the application form. 13 Including consulates, immigration, border security, customs, air transport security, etc.

Unlocking Economic Growth and Development through Travel Facilitation 17 Acknowledgments

This report has been written by Members of the Global Agenda Council on New Models of Travel and Tourism.

Chair Kathleen Matthews Executive Vice-President Marriott International Inc. USA and Chief Global Communications and Public Affairs Officer MembersChair Giovanni Bisignani Director-General Emeritus International Air Transport Association United Kingdom (IATA) Elizabeth Buse Global Executive, Solutions Visa Inc. USA Brian F. Havel* Distinguished Research De Paul University College of Law USA Professor of Law U Htay Aung Union Minister of and Tourism of Myanmar Tom King Head, Government Affairs British Airways Plc United Kingdom Gerald Lawless President and Group Chief Jumeirah Group UAE Executive Officer Geoffrey Lipman President International Coalition of Tourism Belgium Partners Jonas Neihardt Senior Vice-President, Hilton Worldwide USA Government Affairs Mari Elka Pangestu Minister of Tourism and Creative Economy of Indonesia Richard Prosser Chairman CarTrawler & Audley Travel United Kingdom Alexander Rayner Chief Marketing Officer Pacific Asia Travel Association (PATA) Thailand Taleb Rifai Secretary-General World Tourism Organization (UNWTO) Madrid Claudia Ruiz Massieu Secretary of Tourism of Mexico Jackson Madeiros de Farias Chief Executive Officer, EMBRAER SA Brazil Schneider Embraer Defesa & Segurança David Scowsill President and Chief World Travel & Tourism Council (WTTC) United Kingdom Executive Officer

*Special gratitude to Professor Brian Havel for having given enormous amounts of his time to write and edit this report.

For further information on this report or the work undertaken by the World Economic Forum’s Aviation and Travel Industry team, please contact:

Thea Chiesa, Director, Head of Aviation, Travel and Tourism Industries, [email protected]

Tiffany Misrahi, Community Manager, Aviation, Travel and Tourism Industries, [email protected]

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