Tourism as an Economic Pillar

Mary Vrolijk 25 September 2015

Tourism Trends. • Tourism: a key role player in economies. Spinoff effects: • Job creation, • New small and medium enterprises(SME’s), • Country competiveness, • Productivity, • Innovation and • Creativity.

Tourism Trends. • Trends over last 6 decades: • Continued expansion and diversification, • Become one of the largest and fastest-growing

economic sectors in the world. • New destinations in addition favorites of Europe and

North America.

• Tourism has shown uninterrupted growth. • International tourist arrivals have increased.

International Tourist Arrivals.

25

278

527

1,100

-

200

400

600

800

1,000

1,200

Tourist arrivals in millions

1950198019952014

International Tourism Receipts.

$2 $104

$415

$1,200

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

Tourist receipts in US$ billions

1950198019952014

Long Term Projections. International Tourist Arrivals Worldwide: • Is expected to increase by 3.3% per year between 2010-2030 • Will reach 1.8 billion by 2030, according to UNWTO. Between 2010 and 2030: • Arrivals in emerging destinations will increase + 4.4% a year. • While those in advanced economies will increase +2.2 % a

year. • The market share of emerging economies increased from 30%

in 1980 to 45% in 2014, and is expected to reach 57% by 2030, equivalent to over 1 billion international tourist arrivals.

Receipts from international visitor spending on

accommodation, food and drink, entertainment, shopping and other services and goods reached

an estimated US$ 1.2 trillion (euro 937 billion) in 2014, an

increase of 3.7% in real terms

Demand continued to be strong in most source markets and destinations, despite ongoing geopolitical, economic and health challenges in some parts of the world.

With 46 million more tourists travelling the world (+4.3%), 2014 marks the fifth consecutive year of robust growth above the long-term average (+3.3% a year) since the financial crisis of 2009.

Travel & Tourism generated US$7.6 trillion (10% of global GDP) and

277 million jobs (1 in 11 jobs) for the global economy in 2014.

Tourism = 10% Global GDP.

Emerging Economies now represent a 46% market share (up from 38% from 2000)

Emerging Economies Now represent a

46% market share up from 38% in 2000

Global Economic Challenges. Slower Global Trading

due to: • Weakness and potential

Volatility of currencies against US $.

• Deep recession in Russia, will slow outbound spending.

• Overall slower world trade in 2015

Increased disposable income due to falling oil prices worldwide.

Falling oil prices

Expansion of Travel & Tourism.

• Travel & Tourism expansion is forecasted

and expected to increase by 3.7% of the GDP.

Caribbean Performance.

Arrivals in the Caribbean were up 6%; • Dominican Republic + 10% • Cuba + 5% • Jamaica + 4% • Puerto Rico + 1% the second largest destination in the sub region;

Source: World Travel & Tourism Council

‘Smaller’ Destinations.

• Turks and Caicos Islands (+50%) • Montserrat (+22%) • Grenada (+15%) • Haiti (+11%) • Cayman Islands (+11%)

All ‘smaller’ Caribbean destinations

posted double-digit increases. Source: World Travel & Tourism Council

The total contribution of Travel & Tourism to Aruba's GDP was

AWG 4,2 billion (88.4% of GDP) in 2014, and

is forecasted to rise by 3.2% in 2015, and to rise

by 2.7% to AWG 5,6 billion (94.0% of GDP) in 2025.

Aruba & Tourism.

In 2014 Travel & Tourism directly supported 16,500 jobs (32.5% of total employment).

This is expected to remain unchanged in 2015 and fall by 0.4% pa to 16,000 jobs (29.6% of total employment) in 2025.

In 2014, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was

90.8% of total employment (46,000 jobs).

This is expected to rise by 2.5% in 2015 to 47,000 jobs and rise by 0.5% pa to 49,000 jobs in 2025 (91.2% of total).

Visitor exports.

• Visitor exports generated AWG 2,9 billion (66.9% of total exports) in 2014.

• This is forecasted to grow by 2.9% in 2015, and grow by 2.8% pa, from 2015-2025, to AWG 3,9 billion in 2025 (64.6% of total).

Travel & Tourism investment in 2014 was AWG 334.8 million, or 31.0% of total investment.

It should rise by

4.8% in 2015,

and rise by 3.0% over the next ten years to

AWG 469.8 million in 2025

(34.0% of total).

International Tourism - Top Spenders

• Chinese travellers spent a record US$ 165 billion abroad in 2014 – an

exceptional 27% increase over 2013 and US$ 36 billion

more in absolute terms

China. China currently generates some

13% of global tourism receipts, Benefitting

many destinations around the world, particularly in

Asia & the Pacific.

United States = 2nd market Spending Gap of US$ 54 billion.

In 2014 the expenditure gap between China and the United States (2nd) , widened to US$ 54 billion, despite a robust 6% increase in tourism spending from the United States, to reach US$ 111 billion.

OTHER TOP SPENDERS. 3rd Germany 1% Increase US$ 92 Billion 4th U.K. 4 % Increase US$ 58 Billion 5th Russian Federation US$ 50 Billion 6th France 11% Increase US$ 48 Billion 7th Canada 3% Increase US$ 34 Billion 8th Italy 7% Increase US$ 29 Billion 9th Australia 2% decrease US$ 26 Billion 10th Brazil US$ 26 Billion

Other source markets which showed double-digit growth in expenditure were:

Saudi Arabia, Norway, Sweden, Spain, India, Taiwan, the Philippines, Qatar, Thailand, Czech Republic & Colombia.

MARKETS WITH DOUBLE DIGIT GROWTH .

Latin American Market.

With an average growth rate of 6% for both

tourism arrivals reached 30 million and tourism

receipts reached in excess $15 billion.

Latin America continues to lead in growth in

international arrivals, which is also sustained

by strong intra-regional demand.

Brazil (+30%), Uruguay (+22%), Paraguay (+13%), Chile (+11%), Panama (+11%).

During the past year, significant growth was experienced by

LATIN AMERICAN GROWTH.

• Forecasts remain positive (+5%) • Tourism’s direct contribution to GDP 7% $140 billion in 2012 and is set to rise to well over

$230 billion by 2020. .

Latin American.

Challenges… As Latin America & Caribbean Economies Grow

Investment flows to the region, Domestic and International Businesses Are struggling to Find Qualified Labor.

• Education directed to demands of this economic sector • A well managed migration in order to control extensive growth of the population not to put pressure on infrastructure & other • Not to ‘loose’ authenticity in culture & heritage • country’s product branding in quality of service • Job creation is necessary to address poverty and to give stability, opportunity and prosperity.

Challenges…

Sustainability within the tourism industry Tools for measuring and criteria for certifying ‘green’

destinations

Consumers & destination’s reputation for social and environment responsibility.

Ecotourism can return as much as 95% of revenues

Sustainability in tourism industry.

Award Winning Tara Beach Resort.

Investor’s Perspective.

• Desired return on capital invested • Global crisis intensifies the need for more

detailed pre-investment analysis, making values more scrutinized in markets with greater macro-economic risks

• Yields may be compared with capital market yields

• Emerging markets are expected to provide greater returns

• Seasonality is generally not perceived well

From Investor’s Perspective.

Operating History Hotels often cannot substantially

outperform its true competitive self

Equally important to investments in new developments or existing hotels

Soundness defines future performance

of hotels (new or existing)

,

Hotel Value – “the appetite of investor”

Statia… Discover & Experience… The Unexpected !

The Mar Linda Resort. The concept.

My vision is to play a key role in developing this project to reach a niche & beyond eco-tourism on the island. By being eco-friendly, self-supportive, by using reusable energy, with low carbon emissions and to guarantee the authenticity of the country's culture and to provide services to the people of Statia by contributing to the preservation of nature.

My Mission.

• My mission is being a key role player in the island's economy to provide resources to stimulate the above, education & economic development, a well skilled employment force, to cater and to provide a high standard service. The geographical situation of the island gives an additional edge of reaching and providing services to other islands as well.

The concept. I hereby present to you 2 video’s

The first video is about the concept of the resort

& a yacht to do island hopping,

and the second video

is about Hotel triple play.

Summary.

This will give the resort the edge of being trendy in technology

advances combined with Eco-Tourism making Statia the

ultimate innovative adventure ever.

Thank You !