Watch out for Oman, says WTTC chief

WTTC CEO David Scowsill shared his insights with TTN, talking about trends in the region and the upcoming September 10-11 Americas Summit in Lima, Peru.

How does WTTC make a difference in the travel and tourism industry around the world? Please share a small recap of its major achievements.

In the late 1980s, a dozen Travel & Tourism chief executives formed themselves into a Council to promote worldwide government awareness of the economic and social importance of the sector. Twenty-five years later, Travel & Tourism is recognised as one of the world's largest sectors generating 9 per cent of world GDP and supporting 1 in every 11 jobs on the planet. The World Travel & Tourism Council (WTTC) is made up of more than 120 chief executives, representing every geography and sector of the business.

The Council represents the industry in the “corridors of power”, meeting with Heads of State and governments – working directly with Ministers and tourism officials and representing the sector on intergovernmental bodies such as the UN World Tourism Organisation, Organization of American States, Association of Southeast Asian Nations (ASEAN) and the European Union.

In the last twenty-five years, the Council has helped governments see their way out of global recession – and now leads a global coalition of travel associations, who speak with one voice on the issues facing the industry today. Travel is growing, as a sector, faster than any national economy – and tourism is now a right for many and not just a few. WTTC has been a driving force behind that growth.

Chief amongst WTTC work has been the fight to preserve the “Freedom to Travel” – convincing governments of the economic advantages generated by inbound visitors and facilitating their visa issuance. Governments have also been encouraged to adopt “Policies for Growth” in this vital economic sector and to roll back unproductive taxation regimes.

WTTC also holds annual Tourism for Tomorrow Awards, the world’s top accolade in sustainable tourism, aimed at recognising best practice within the Travel & Tourism sector worldwide. The Awards involve an international judging panel and a transparent, stringent application process. They are the only sustainable tourism Awards in the world which include an on-site inspection of all finalists by independent sustainable tourism experts. This makes them the global best practice benchmark in this field for others to follow.

These are just some of the many things which WTTC does towards its vision of ensuring that governments and wider society appreciate the benefits that the Travel & Tourism sector brings to the world.

What are the top tourism hubs in the Middle East and to what do they owe their popularity?

The Middle East is popular because of its convenient position between Europe, Asia, and Africa and because it is increasingly recognised and used as a global aviation hub.  There has been large scale investment and infrastructure development, especially in the UAE and that is reflected in the fact that Travel & Tourism in the UAE contributes the largest amount of any country in the region to its economy (US$ bn 5.37). Oman is a country to watch. Oman grew its contribution to its economy from Travel & Tourism by 10% last year, the most of any country in the Middle East.

The travel and tourism industries in Thailand, Kenya and certain countries in the Middle East – how can they function well in periods, when tourist influx is down to a minimum?

Clearly, it is a challenge for the sector to operate effectively, when business is low. However with the right action, tourism can bounce back relatively quickly and continue safely. A country needs to send out a clear message that the country is ‘open for business’. Often, it is perceptions that put people off, rather than the reality. This can include making sure that key access points – including airports and roads - are open, movement to the tourist places is not restricted and travel advisories are issued, which are time and location specific, so that they do not blanket a whole country. Government policies should not provide further challenges to the sector such as increasing taxes and levies and the right investment in marketing needs to be made.

Which countries globally do you expect will relax their visa restrictions in the upcoming years? Or rather, which countries do you think ought to relax their visa restrictions?

There is an overall trend towards reducing visa restrictions around the world. For example, there is a special focus on visa facilitation and opening borders among regional cooperation groups, such as ASEAN in Southeast Asia and the Pacific Alliance in Latin America. These groups are either removing visa requirements entirely or a certain group of countries are mutually recognising each other’s visas. These are all great steps in the right direction for “Freedom to Travel”.

Name some untapped tourism markets in the world, that you feel have great potential.

WTTC data estimates that many of the fastest growing markets for future growth over the next decade lie in Africa and Southeast Asia. These are countries with great tourism potential, which have not been fully developed until now. WTTC Economic Impact research forecasts that the direct contribution of Travel & Tourism to a country’s economy (GDP) will grow fastest from 2014-2024 in the following countries; Namibia followed by Montenegro, Zambia, Angola, China, Gabon, Myanmar, Cambodia, Thailand and Cape Verde.

The travel and tourism industry is one of the biggest job providers around the world – why is this? And is this about to change anytime soon?

4.7 million new jobs were created as a result of Travel & Tourism (directly and indirectly) in 2013,  a 1.8% increase from 2012 and, this year, we expect Travel & Tourism to generate around a further 2.5% increase in jobs, which equates to around 6.5 million new jobs.

Jump forward over the next decade and Travel & Tourism should provide a total of 74.5 million new jobs, 23.3 million of which will be provided directly within the sector and of which 46 million will be generated in Asia.

WTTC research from earlier this year shows that Travel & Tourism employs a higher proportion of women and young people than is represented in the workforce as a whole and is a sector that thrives on entrepreneurship and, as such, offers women prospects of self-employment which are less accessible in other sectors. Its flexible nature, requirement for skilled and unskilled employees, and strong growth prospects also means Travel & Tourism holds real opportunities for job creation to address the youth unemployment problems faced by countries across the world. It is an industry which offers great opportunities for people at all levels.

How can governments work together for the growth of the travel and tourism industry? How can the private sector contribute?

Too many governments around the world fail to acknowledge the vast potential of our sector. This leads to deficiencies like destructive border policies, exorbitant taxes and poor long-term infrastructure planning. All of this prevents progress and growth. This needs to change.

Travel & Tourism forecasts over the next ten years look extremely favourable, with predicted growth rates of over 4% annually which continue to be higher than growth rates in other industries.  Capitalising on the opportunities for this growth requires destinations and regional authorities, particularly those in emerging markets, to create favourable business climates for investment in the infrastructure and human resource support necessary to facilitate a successful and sustainable Travel & Tourism sector.  At the national level, governments can do much to implement more open visa regimes and to employ intelligent rather than punitive taxation policies.

Governments need to embrace the private sector at consultation stage and view it as a partner, not a separate entity. Both private and public sector need to speak with One Voice, to coordinate their approach and work together in addressing the issues hampering growth.

It is also important for government departments to work well together. Often the work of many ministries touches on the sector – environment, transport, economy, culture, infrastructure, home affairs  – but rarely do all departments have a full understanding of how tourism functions, its importance and how they impact it.  There are some good examples – like Mexico, the USA and South Korea – where structures have been put in place to ensure that tourism government.

Similarly, cooperation and coordination between governments can help stimulate tourism growth. The best example of this currently is visa agreements, good examples being Schengen, ASEAN and Australia/New Zealand for the 2015 Cricket World Cup.

Why was Peru chosen for the WTTC America’s Summit?

Travel & Tourism – which already accounts for 8.5% of GDP and 1 in 11 jobs in the region - is emerging as a key sector for enhancing trade linkages, stimulating exports, attracting investment and creating jobs. A strong internal market, economic recovery in the USA and Europe, and the growth of new markets in Asia now offer massive opportunities.

Peru is the perfect location for the WTTC 2014 Americas Summit as Travel & Tourism's contribution in Peru to its economy is forecast to grow the fastest of any country in Latin America over the next ten years. It is a similar case for its long term employment growth prospects.

Tell us more about the Summit and its highlights.

The sector has the potential to be far more important for the economies of the region. The key questions at the Summit will be - how can the combined strengths of the sector come together now to leverage more sustainable growth for the region? While some destinations prosper, others struggle. How can collaboration solve problems that market forces alone can’t address? How can competitiveness be strengthened through co-operation? And how can the Americas keep up with growing destinations in Asia?

Speakers taking to the stage to tackle these challenges and find the opportunities include Darren Huston, CEO, Priceline.com;  Jay Jones, Senior Vice President, the Americas, Sabre Travel Network; Ben Leahy, Managing Director, Goldman Sachs and Adam Weissenberg; Vice Chairman, Global Travel, Hospitality & Leisure Leader, Deloitte & Touche LLP.

Over the course of a day and a half, through a series of keynotes, panel sessions and interviews, the Summit will address the most pressing questions facing Travel & Tourism in the Americas today and identify what needs to be done now to ensure the long term sustainable future of our sector.