Tourism in MauritiusProspects & Challenges

A Presentation to the

Monetary Policy CommitteeBank of Mauritius

Sen RamsamyManaging Director

Tourism Business Intelligence14 July 2014

“The positive results in world tourism show that it is time to position the sector higher up the world trade agenda so as to maximize its capacity to promote trade and regional integration”

Taleb Rifai

Secretary General

United Nations World Tourism Organization

April 2014

World Tourism

International Tourism

29% of world export services

6% of overall exports of goods and services

Rank 5th after fuel, chemicals, food and automobile industry

2013

Tourist Arrivals worldwide - 1,087 bn (5%)

Tourism Receipts worldwide - US$ 1,159 bn (5%)

Growth in arrivals match growth in earnings

World Tourism by Region

2013 Arrivals Receipts

(‘000) (US$ million)

Worldwide 1,087 (5.0%) 1,159 (5.3%)

Europe 563 (5.4%) 489 (3.8%)

Asia & Pacific 248 (6.2%) 359 (8.2%)

Americas 168 (3.2%) 229 (6.4%)

Africa 56 (5.4%) 34 (0.0%)

Middle East 52 (-0.2%) 47 (-1.9%)

World Top Ten Tourist Spenders 2013

Country US$ (billion)China 129

USA 87

Germany 85

Russia 54

United Kingdom 53

France 42

Canada 35

Australia 28

Italy 27

Brazil 25

Tourism in Africa

2013 Arrivals Receipts (million) (US$ billion)

Africa 56.0 34.22

North Africa 20.0 10.24

Southern Africa 36.0 23.98

South Africa 9.5 9.24

Botswana 2.3

Mozambique 2.0

Zimbabwe 1.8 0.85

Kenya 1.6

Uganda 1.2 1.18

Swaziland 1.1

Namibia 1.0

Senegal 1.0

Tanzania 1.0 1.88

Mauritius 1.0 (993,106) 1.32

Tourism in the Indian Ocean Region

DestinationsNumber

of Hotels

Room Capacity

Tourist Arrivals

2008

Tourist Arrivals

2013

% 2013/

12

Receipts 2013 US$

(millions)

Average Expenditure/Tourist 2013

US$

Comoros N/A 350 (18,000) (25,000) (13.6) N/AN/A

Madagascar (2,159) (21,525) 375,010 196,375 -22.0 105 534

Maldives 265 13,050 683,012 1,125,202 17.4 2,200 1,955

Mauritius 114 13,200 930,456 993,106 2.9 1,321 1,330

Reunion  N/A N/A N/A 416,000 -6.8 404 971

Seychelles 247 3,500 158,952 230 000 5.7 430 1,870

Sri Lanka 620 16,223 438,475 1,275,000 26.7 1,715 1,345

Tourist Arrivals January- June 2014

Destination No. of Visitors % Change

Maldives 600,000+ 12.0

Mauritius 490,697 4.0

Seychelles 110,870 -0.02

Sri Lanka 727,353 24.6

Comparative AnalysisGrowth Rate in Tourist Arrivals – Jan to June 2014

Mauritius Sri LankaEurope 0.8 17.0

France -4.3 30.9

Italy -6.5 25.5

UK 10.5 7.7

Germany 2.9 23.0

Spain -0.3 55.4

Russia -14.7 74.8

India 4.2 23.6

China 86.9 137.0

South Africa -2.3 30.7

United Arab Emirates -4.0 22.3

Tourist Arrivals in MauritiusSea Air Total

1952 1,550

1965 746 9,312 10,058

1968 647 14,906 15,553

1970 365 27,285 27,650

1975 554 74,043 74,597

1980 470 114,610 115,080

1985 920 147,940 148,860

1990 1,200 290,350 291,550

1995 6,105 416,358 422,463

2000 10,677 645,776 656,453

2005 13,321 747,742 761,063

2010 23,648 911,179 934,827

2013 23,165 969,941 993,106

Hotels & Room Capacity Building

Year Hotels Rooms 1971 22 811

1975 34 1,499

1980 43 2,201

1985 55 2,630

1990 75 4,603

1995 95 5,977

2000 95 8,657

2005 99 10,497

2010 112 12,075

2011 109 11,925

2012 117 12,527

2013 107 12,376

2014 114 12,653

Tourism For Wealth & Job Creations

Year Employment Earnings Average Spend

(Rs mn) (Rs)

1980 - 360 3,128

1985 4,650 845 5,676

1990 9,670 3,630 12,005

1995 13,855 7,472 17,687

2000 17,433 14,234 21,683

2005 25,377 25,704 33,774

2010 27,161 39,457 42,208

2011 28,181 42,717 44,283• 28,433 44,378 45,967 • 28,356 40,557 40,839 • N/A 44,500 43,204

80s-90s - Mauritius, The Most Cosmopolitan Island in the Sun

2009 - Mauritius, C’est un plaisir

2010 - Mauritius, Simply Divine

2011 - Mauritius, C’est un plaisir

2014 - ???

Brand Positioning

Tourism Development in MauritiusInstitutional Level

Plus Points

Market Diversification - China

Direct Air Links from China

Modern Airport Terminal

New (and scenic) Road Infrastructure

Negative Points

No restructure of the MTPA

No professional body for air access policy/planning/management

No professional hotel classification system

No synergy (public and private) to shape a better future for tourism

No clear vision

Factors constraining Growth & Profitability

– Constant room capacity expansion– Poor market visibility – Poor destination planning (mushrooming of eyesores in tourist zones)

– Lack of air seats – A primarily euro-centric and ageing tourism product - 3 S’s– Mismatch between product offering and new customer expectations– Declining service standards– Change in visitor profile, behavior and spending pattern– Increased competition and price war– Stifling all-inclusive packages in hotels– Product Mix - more of the same (hotels, entertainment, shopping etc)

– Lack of tourist safety & security (a culture of greed and easy money)– Low room occupancy rates and low revenue– Decline in tourism receipts and average tourist spending– Low business profitability– Unprecedented level of hotel indebtedness

Tourism Development in Mauritius

A 60-year old Business Model

Shaping a New Vision for Tourism

Mauritius Tourism – at a cross-road …for too long

From Hotel Industry to Tourism SectorTourism Business Transformation PlanTourism Market Consolidation and DiversificationAdding Value to the Blue EconomyA New Business Model for Mauritius Tourism

Tourism Vision 2030

Future Tourism Development Potentials

Mauritius/Rodrigues/Outer Islands

Reconnecting with Growth & Profitability

•Steering with a sense of direction•Professionalization of tourism institutions•Synergy – Public/Private Sectors•Local Authorities - Tourism Development Agenda•More creative and diversified product mix•Innovative actions in destination marketing•Use of local talents and expertise•Putting the right people in the right place

Investing in the Future

Mauritius

Geo-Strategic Position in the Indian Ocean basin

Gateway to Vanilla Islands

Bridging the New Africa & the Emerging Economies

Mauritius – In a Geo-Strategic Position between the Emerging Economies and the Rising Africa

Mauritius Tourism - Tomorrow

Beyond Sun, Sand & Sea

Stimulating a new tourism business vitality in the region

Air access Regional Trade CentreMaritime CityAviation HubSummits & MICELifestyle & FashionWellness & SportsMedical TourismCulture & HeritageEvents & Concerts

Mauritius Tourism

Towards a New Vision …a New Image

Leadership Role in the Vanilla Islands concept

Ile Maurice - Destination Bien Etre

Mauritius, The Art of Island Living

Mauritius – Lifestyle Destination

Mauritius … Cordially Yours !!!

Synergy – Public & Private Sectors

Clear & Long Term Vision

Strong Leadership

‘Audacity of Dreams’

‘Audacity of Actions’

Thank You