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Economic Impact Global Heritage Tourism Revenues in Developing and Emerging Countries and Regions October 2010 GHF Es’mates and Published Data Top 50 Global Heritage Sites Country Domes@c Visitors Interna@onal Visitors Total Site Visitors (2009 est.) Total Revenues (in $1,000s) The Great Wall China 16,000,000 8,200,000 24,200,000 $2,888,000,000 Mausoleum of the First Qin Emperor China 10,000,000 8,000,000 18,000,000 $1,920,000,000 Memphis and its Necropolis Egypt 400,000 4,600,000 3,000,000 $936,000,000 Imperial Palaces of the Ming and Qing Dynas@es China 5,200,000 1,800,000 7,000,000 $904,000,000 Historic Cairo Egypt 1,400,000 2,600,000 4,000,000 $576,000,000 Ephesus Turkey 800,000 2,700,000 3,500,000 $572,000,000 Dahshour Egypt 400,000 2,600,000 2,000,000 $536,000,000 Amritsar India 4,000,000 1,500,000 5,500,000 $460,000,000 Angkor Cambodia 400,000 2,100,000 2,500,000 $436,000,000 PreHispanic City of Teo@huacan Mexico 2,200,000 2,000,000 4,200,000 $432,000,000 Machu Picchu Peru 600,000 800,000 1,400,000 $384,000,000 Monte Alban Mexico 1,300,000 1,500,000 2,800,000 $352,000,000 Historic Oaxaca Mexico 1,300,000 1,500,000 2,800,000 $352,000,000 Mitla Mexico 1,300,000 1,500,000 2,800,000 $352,000,000 Abu Simbel Egypt 500,000 1,500,000 2,000,000 $320,000,000 Ancient Thebes Egypt 500,000 1,500,000 2,000,000 $320,000,000 Taj Mahal India 1,200,000 1,200,000 2,400,000 $288,000,000 Petra Jordan 320,000 1,280,000 1,600,000 $268,800,000 Old Havana and its For@fica@ons Cuba 573,986 1,200,000 1,773,986 $262,959,440 Abu Mena Egypt 300,000 1,200,000 1,500,000 $252,000,000 PreHispanic City of ChichenItza Mexico 1,200,000 1,400,000 2,600,000 $248,000,000 Querétaro Mexico 1,200,000 800,000 2,000,000 $224,000,000 Medina of Fez Morocco 500,000 1,000,000 1,500,000 $220,000,000 Mount Wutai China 2,800,000 502,000 3,302,000 $212,400,000 Red Fort Complex India 1,200,000 800,000 2,000,000 $208,000,000 Medina of Marrakesh Morocco 200,000 900,000 1,100,000 $188,000,000

Economic’Impact,’Global’Heritage’Tourism’Revenues…globalheritagefund.org/images/uploads/docs/GHFVanishingValueof... · Economic’Impact,’Global’Heritage’Tourism’Revenues’in’Developing’and

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Page 1: Economic’Impact,’Global’Heritage’Tourism’Revenues…globalheritagefund.org/images/uploads/docs/GHFVanishingValueof... · Economic’Impact,’Global’Heritage’Tourism’Revenues’in’Developing’and

Economic  Impact-­‐  Global  Heritage  Tourism  Revenues  in  Developing  and  Emerging  Countries  and  Regions  October  2010  -­‐  GHF  Es'mates  and  Published  Data

Top  50  Global  Heritage  Sites Country Domes@c  Visitors   Interna@onal  VisitorsTotal  Site  Visitors  

(2009  est.)Total  Revenues  (in  

$1,000s)

The  Great  Wall     China 16,000,000 8,200,000 24,200,000 $2,888,000,000Mausoleum  of  the  First  Qin  Emperor China 10,000,000 8,000,000 18,000,000 $1,920,000,000Memphis  and  its  Necropolis Egypt 400,000 4,600,000 3,000,000 $936,000,000Imperial  Palaces  of  the  Ming  and  Qing  Dynas@es China 5,200,000 1,800,000 7,000,000 $904,000,000Historic  Cairo Egypt 1,400,000 2,600,000 4,000,000 $576,000,000Ephesus Turkey 800,000 2,700,000 3,500,000 $572,000,000Dahshour Egypt 400,000 2,600,000 2,000,000 $536,000,000Amritsar India 4,000,000 1,500,000 5,500,000 $460,000,000Angkor Cambodia 400,000 2,100,000 2,500,000 $436,000,000Pre-­‐Hispanic  City  of  Teo@huacan Mexico 2,200,000 2,000,000 4,200,000 $432,000,000Machu  Picchu Peru 600,000 800,000 1,400,000 $384,000,000Monte  Alban Mexico 1,300,000 1,500,000 2,800,000 $352,000,000Historic  Oaxaca Mexico 1,300,000 1,500,000 2,800,000 $352,000,000Mitla Mexico 1,300,000 1,500,000 2,800,000 $352,000,000Abu  Simbel Egypt 500,000 1,500,000 2,000,000 $320,000,000Ancient  Thebes Egypt 500,000 1,500,000 2,000,000 $320,000,000Taj  Mahal India 1,200,000 1,200,000 2,400,000 $288,000,000Petra Jordan 320,000 1,280,000 1,600,000 $268,800,000Old  Havana  and  its  For@fica@ons Cuba 573,986 1,200,000 1,773,986 $262,959,440Abu  Mena Egypt 300,000 1,200,000 1,500,000 $252,000,000Pre-­‐Hispanic  City  of  Chichen-­‐Itza Mexico 1,200,000 1,400,000 2,600,000 $248,000,000Querétaro Mexico 1,200,000 800,000 2,000,000 $224,000,000Medina  of  Fez Morocco 500,000 1,000,000 1,500,000 $220,000,000Mount  Wutai China 2,800,000 502,000 3,302,000 $212,400,000Red  Fort  Complex India 1,200,000 800,000 2,000,000 $208,000,000Medina  of  Marrakesh Morocco 200,000 900,000 1,100,000 $188,000,000

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City  of  Cuzco Peru 200,000 800,000 1,000,000 $168,000,000Nemrut  Dag Turkey 200,000 800,000 1,000,000 $168,000,000Ancient  City  of  Damascus Syria 200,000 800,000 1,000,000 $168,000,000Pharaonic  Temples  in  Upper  Egypt     Egypt 200,000 800,000 1,000,000 $168,000,000Divriği Turkey 1,500,000 500,000 2,000,000 $160,000,000Ciudad  de  Zaruma Ecuador 500,000 700,000 1,200,000 $160,000,000Old  Town  of  Lijiang China 2,750,000 250,000 3,000,000 $160,000,000Kasbah  of  Algiers Algeria 500,000 630,000 1,130,000 $146,000,000City  of  Safranbolu Turkey 1,600,000 400,000 2,000,000 $144,000,000Ban  Chiang Thailand 500,000 600,000 1,100,000 $140,000,000Amber  Fort  and  Town India 500,000 595,000 1,095,000 $139,000,000Agra  Fort India 500,000 590,722 1,090,722 $138,144,400Hasankeyf Turkey 400,000 600,000 1,000,000 $136,000,000An@phellos Turkey 400,000 600,000 1,000,000 $136,000,000Medina  of  Tétouan   Morocco 400,000 600,000 1,000,000 $136,000,000Zhouzhuang  Ancient  Walled  City China 1,700,000 300,000 2,000,000 $128,000,000Dubrovnik Croa@a 100,000 620,000 720,000 $128,000,000My  Son  Sanctuary Vietnam 166,500 600,000 766,500 $126,660,000Lahore  Fort  and  Shalamar  Gardens Pakistan 1,990,000 210,000 2,200,000 $121,600,000Borobudur Indonesia 2,468,864 111,136 2,580,000 $120,981,760Champaner India 2,000,000 200,000 2,200,000 $120,000,000Kiev  Historic  Centre Ukraine 500,000 500,000 1,000,000 $120,000,000Historic  Sukhothai Thailand 500,000 500,000 1,000,000 $120,000,000Fujian  Tulous China 2,000,000 164,200 2,164,200 $112,840,000

Total  -­‐  Top  50  Global  Heritage  Sites 77,569,350 67,153,058 141,722,408 $17,477,385,600

Other  Global  Heritage  Sites  (approx.  450) 44,670,964 28,612,010 73,403,107 $7,268,988,899

Total  All  Global  Heritage  Sites  (500) 122,240,314 95,765,068 215,125,515 $24,746,374,499

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Global Heritage SitesTotal Revenues Potential for Developing Countries

Oct-10

in US $billions Assumed Growth Rate6% 8% 10% 12%

2009 $24.80 $24.80 $24.80 $24.802010 26.29 26.78 27.28 27.782011 27.87 28.93 30.01 31.112012 29.54 31.24 33.01 34.842013 31.31 33.74 36.31 39.022014 33.19 36.44 39.94 43.712015 35.18 39.35 43.93 48.952016 37.29 42.50 48.33 54.822017 39.53 45.90 53.16 61.402018 41.90 49.58 58.48 68.772019 44.41 53.54 64.32 77.032020 47.08 57.82 70.76 86.272021 49.90 62.45 77.83 96.622022 52.90 67.45 85.62 108.212023 56.07 72.84 94.18 121.202024 59.43 78.67 103.60 135.74

2025 $63.00 $84.96 $113.96 $152.03

Source:  Based  on  Stanford  University  Economics  Graduate  Analysis  by  Shwetha  Shankar  et  al,  2010.  See  www.globalheritagefund.org/vanishing  to  see  the  enDre  site  tourism  database  (500  global  heritage  sites)  with  citaDons.  

Note:  As  we  can  see  from  three  popular  sites  with  mature  growth  rates-­‐    Machu  Picchu,  Petra  and  Angkor  (see  Growth  of  Tourism  Arrivals  2000–2009),  visitaDon  can  double  or  triple  over  ten  years  (8-­‐12  percent  growth  rate).    

Global  heritage  sites  that  are  just  coming  onto  the  internaDonal  and  domesDc  tourism  scene  are  oRen  growing  much  faster  (20-­‐30  percent  a  year).  For  example,  Chavin  de  Huantar  in  Peru,  grew  from  12,000  to  over  100,000  visitors  in  the  same  period.  

Growth  of  Tourism  Arrivals  (2000–2009)                            2000        2009  %  

Growth    Machu  Picchu,  Peru  420,000        960,000    128%    Petra,  Jordan    260,000        892,000                          243%  Angkor,  Cambodi  840,000  2,420,000                    188%  

Source:  Ministries  of  Tourism,  GHF  EsDmates  

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Poten&al  $100  Billion  Opportunity  for  Global  Heritage    for  Developing  and  Emerging  Countries  

DISCUSSION  NOTES  

Source:    Tourist  figure  cita.ons  noted  in  the  500  Site  database  were  researched    by  Ms.  Shweta  Shankar,  an  Economics  MS  Grad  from  Stanford  University.  

IT  SHOULD  BE  NOTED  THAT  ESTIMATES  of  INDIVIDUAL  SITE  REVENUES  MAY  BE    HIGHER  OR  LOWER  THAN  ACTUAL,  BUT  SPREAD  OVER  500  SITES  THIS  DOES  NOT    AFFECT  THE  ECONOMIC  ANALYSIS  TOO  MUCH.  

Four  points:  

1.  We  are  going  to  con.nue  to  collect  visita.on  and  revenue  data  for  each  site  to  improve  accuracy  and  for  our  monitoring  on  GHN  and  will  revise  next  year  for  2010.  

2.  With  current  growth  rates,  many  emerging  countries  and  regions    around  these  sites  will  no  longer  be  developing  countries  by  2025,  ie.  will  communi.es  living  around  the  Great  Wall  in  China  s.ll  be    $3-­‐5  per  day  PCI  in  2025?  

3.  The  $100B  by  2025  number  is  a  rough  'back  of  the  napkin'  analysis    based  on  key  assump.ons  for  both  domes.c  and  interna.onal  tourism    revenues  $$  per  visitor  per  site:  

4.  Average  spend  per  visitor  is  $40  per  person  domes.c    and  $200  per  person  interna.onal  assuming  an  average  stay  of  1.4  days.  

In  most  sites,  local  visita.on  is  underes.mated  as  only  the  paid  .cket  holders  are  counted-­‐  ie.  Guatemalans  all  go  free  on  Sundays  at  Tikal  and  there  are  no  .ckets  sold  or  poorer  locals  will  go  to  a  non-­‐monitored  part  of  the  Great  Wall.  So  $40  per  domes.c  visitor  could  be  high  if  really  local,  or  low  for  Beijing  and  Shanghai  richer  visitors.  Same  for  Taj  Mahal  India  and  many  other  sites.  

Most  cross-­‐checking  on  revenues  show  our  figures  can  underes.mate  or  overes.mate  the  revenues.  For  example,  Machu  Picchu  in  Peru  had  a  es.ma.on  of  $384  million  -­‐    

Machu  Picchu    (600,000  x  $40  domes.c)  +  (1,800,000  x  $200  intl)  =          $384,000,000  es&mate    in  2009  

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$384,000,000  IS  THE  AMOUNT  PERU  SAYS  THE  COUNTRY  LOST  IN  2  MONTHS  OF  CLOSURE  DUE  TO  FLOODS  IN  2010.  SEE  BELOW:  

Machu  Picchu  Reopens  By  Meg  Weaver,  April  1,  2010  NatGeo  An  es.mated  850,000  tourists  visited  Machu  Picchu  in  2008.  This  year's  two-­‐month  closing,  depending  where  you  get  your  numbers,  likely  cost  the  government  between  $160  million  and  $416  million.    hdp://www.larepublica.pe/economia/10/02/2010/peru-­‐lanza-­‐campana-­‐quotcusco-­‐ponequot-­‐con-­‐rebajas-­‐en-­‐paquetes-­‐turis.cos  

Despite  the  loss  in  revenue  both  for  the  government  and  the  175,000  local  people  who  make  their  livings  directly  from  Machu  Picchu  tourism,  the  forced  closing  of  the  site  prompted  a  reconsidera.on  of  how  to  preserve  the  site.  In  fact,  in  2008,  UNESCO  threatened  to  demote  Machu  Picchu  to  being  labeled  an  endangered  site  due  to  disagreements  over  crowd  control  at  the  site  and  UNESCO's  management  plan  for  it,  which  stated  that  no  more  than  917  people  should  visit  the  site  any  given  day  and  no  more  than  385  should  be  there  at  any  .me.    hdp://blogs.na.onalgeographic.com/blogs/intelligendravel/2010/04/machu-­‐picchu-­‐reopens.html  

September  28,  2010  Peru  sees  tourist  revenue  of  $9.15  billion  in  past  four  years  During  the  last  four  years,  Peru  has  received  some  US  $9.15  billion    in  foreign  tourists  expenditures,  says  Eduardo  Ferreyros,  Minister  of  Trade  and  Tourism.    The  Minister  remarked  that  despite  the  interna.onal  financial  crisis  of  2008  and  2009,    Peru  received  2.14  million  visitors  in  2010,  which  represents  a  4%  increase  compared  to  2008.    This  also  means  an  increase  of  US  $2.47  billion  in  foreign  exchange,  2.2%  more  than  in  the  previous  year.    h"p://www.livinginperu.com/news-­‐13236-­‐travel-­‐tourism-­‐peru-­‐sees-­‐tourist-­‐revenue-­‐$9-­‐15-­‐billion-­‐past-­‐four-­‐years  

2  Apr  2010  Peru's  most  famous  archaeological  site,  Machu  Picchu,  has  formally  reopened  aWer  it  was  closed  for  two  months.  Hundreds  of  tourists,  including  US  actress  Susan  Sarandon,  took  the  train  to  the  15th  Century  Inca  ruin  -­‐  the  most-­‐visited  site  in  La.n  America.  Heavy  rains  and  landslides  at  the  end  of  January  cut  rail  access  to  the  site,  trapping  some  4,000  tourists.  Peru  had  lost  some  $200m  (£131m)  in  revenue  because  of  the  closure,  Peru's  tourism  minister  told  the  BBC.  hdp://news.bbc.co.uk/2/hi/8598154.stm  

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