Tourism The Growth Industry Where Governments Make 20x to 400x More Money Than They Spend

Tourism
The High Growth Industry
Where Countries Generate 20x to 400x
More Money than they Spend
1

Overview
1. Many underexploited exist around the world.
2. Travel & Tourism generate among the highest ROI.
3. One of the highest impact ways of boosting the economy and
contributing growing prosperity of workers is through tourism.
2
Tourism The Growth Industry

The Fifth Largest
Industry in the World
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, p. 2
3

World’s Second Largest Employer –
8.7% of Workforce
4

Among the Fastest Growing Industries
4.2% CAGR
5

Benefiting Developed AND
Developing Countries
Source: World Travel and Tourism Council (WTTC) 2011
6

Source: http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/2030_global_0.pdf
7
Becoming Even More Popular
In Developing Countries

8
Disparities Of Contribution to GDP
Indicates Opportunities

Destination Marketing
Governments Generate 200x+
More Money Than They Spend!
9
Government Expenditures on Tourism Promotion as a % of Tourism Revenue

Destination Marketing
Governments Generate 200x+
More Money Than They Spend!
10

11
But Represents a Very Small
Fraction of Total Budgets

Sample Tourism Revenues to
Promo Expense Ratio
Source: The Economic Advantages of Travel & Tourism, November 2012, Oxford Economics, pp. 33
12
Denmark 12:1
Scotland 20:1
Australia 64:1
Colorado 193:1
Arizona 180:1
Florida 147:1
Oregon 134:1
Montana 50:1
Michigan 49:1
Missouri 47:1

13
Canada Tourism Revenues and ROI by Country targeted
Sample
Tourism to Promo Expense Ratio (cont’d)

Sample
Tourism Revenue to Promo
Expense Ratio (cont’d)
14
California Tourism Revenues by Country targeted and Return

Demographics Change
15

Demographics Change
16

Demographics Change
17

18
Changes Present New Opportunities

Some Countries Are Better At It Than Others
Some Winners
19
285% 390% 518% 327% 323% 335% 441% 929% 360% 654% 466% 784% 504% 1925%
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
International Tourists 1995-2012
Worldwide Growth: 268%

Some Countries Are Better At It Than Others
Some Laggards
20
95% 89% 155% 130% 130% 173% 160% 168% 132% 98% 101%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
International Tourists 1995-2012
Worldwide Growth: 268%

Some Countries Make A lot of $ Per Tourist
21
1995-2012
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000

22
1995-2012
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Some Countries Make Little Per Tourist

But Change Is Inevitable
23
Countries
2012 Growth
(%)
Countries
2013 – 2023
Growth (%)
Qatar 29.9 Angola 9.7
Kyrgyzstan 26.9 China 9.1
Vanuatu 21.6 India 7.9
Azerbaijan 21.3 Namibia 7.8
Belarus 18 Thailand 7.2
Tunisia 16.4 Philippines 6.9
Uzbekistan 16.3 Vietnam 6.8
Kazakhstan 11.6 Montenegro 6.7
Jordan 10.7 Cape Verde 6.7
Chile 10.7 Mongolia 6.6
Fastest growing: Spending on leisure travel in 2012 (left) and forecast from 2013 – 2023 (right)
Source: http://skift.com/2013/03/13/the-worlds-fastest-growing-countries-in-travel/

24

25Source: http://skift.com/2013/03/13/the-worlds-fastest-growing-countries-in-travel/
Countries
2012 Growth
(%)
Countries
2013 – 2023
Growth (%)
Botswana 21.9 Montenegro 10
Armenia 21.7 China 9.2
Thailand 19.6 Zambia 9
Ivory Coast 19.2 Thailand 8.1
Malaysia 18.4 Gambia 8
Cambodia 18.2 Cape Verde 7.9
Qatar 16.9 Macau 7.8
Malawi 15.5 Pakistan 7.8
Hong Kong 15.1 Brazil 7.8
Congo 13.9 Iraq 7.6
Fastest growing: Capital investment in Travel and Tourism in 2012
(left) and forecast from 2013 – 2023 (right)

26
Cancun Mexico
Source: https://aclarando.wordpress.com/category/antes-y-ahora/

27
Shanghai, China, 1990-2010
Source: http://jpgamboa.com/

28
Dubai
Source: http://www.dubainight.com/mag/dubz/dubai-1980-2012,28,8929.html

Change Is Inevitable
Examples
29
Punta Cana, Dominican Republic 1980-2010
Source: http://puntacanatv.com/punta-cana-history.html; Source: http://media-cdn.tripadvisor.com/media/photo-s/05/a2/2c/be/breathless-
punta-cana.jpg

Elements of Tourism Promotions
30
1. Favorable Political Climate
2. Infrastructure
3. Natural / Historical Resources
4. MARKETING
mike@criticalmissionconsulting.com

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31mike@criticalmissionconsulting.com
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Tourism The Growth Industry Where Governments Make 20x to 400x More Money Than They Spend

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