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Part 2 of the SW Associates presentation to the Tourism Working Group of COMCEC of the newly released report "Enabling Tourism Investment Climate:Challenges and Prospects for Tourism Investments in the COMCEC Region." This presentation was made by SW Associates Consultant Manuel Knight and Scott Wayne, President of SW Associates.
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Enabling Tourism Investment Climate in the COMCEC Region:
Challenges and Prospects
Challenges and Prospects for Tourism Investment in the COMCEC Region
Presented by: Scott Wayne and Manuel Knight,
SW Associates, LLC Washington, DC
Agenda
• Enabling Tourism Investment Climate in the COMCEC Region: Challenges, Prospects and Solutions
SW Associates, LLC - Enabling Tourism Investment in COMCEC Countries
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World vs COMCEC: Tourism Capital Investment (2012)
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Three other COMCEC members – Guyana, Suriname and Albania – accounted for an additional US$257 million in 2012 tourism investment.
US$ 97,192 million
Tourism Capital Investment: COMCEC Africa (2012)
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Data was unavailable for Djibouti, Guinea-Bissau, Mauritania, and Somalia.
US$ 14,235 million
International Tourism Arrivals: COMCEC Africa (‘000 - 2012)
SW Associates, LLC - Enabling Tourism Investment in COMCEC Countries
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10
19
60
71
82
106
160
220
235
238
289
536
715
817
1001
1151
2113
2634
5950
9374
11196
0 2000 4000 6000 8000 10000 12000
Guinea-Bissau
Comoros
Sierra Leone
Chad
Niger
Gambia
Mali
Benin
Togo
Burkina-Faso
Cote d'Ivoire
Sudan
Nigeria
Cameroon
Senegal
Uganda
Mozambique
Algeria
Tunisia
Morocco
Egypt
Guinea-Bissau
Comoros
Sierra Leone
Chad
Niger
Gambia
Mali
Benin
Togo
Burkina-Faso
Cote d'Ivoire
Sudan
Nigeria
Cameroon
Senegal
Uganda
Mozambique
Algeria
Tunisia
Morocco
Egypt
No 2012 data available for Djibouti, Gabon, Libya, Mauritania, & Somalia
Tourism Capital Investment: COMCEC Middle East (2012)
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US$ 55,700 million
COMCEC Middle East Other Countries
International Tourism Arrivals: COMCEC Middle East (‘000 - 2012)
SW Associates, LLC - Enabling Tourism Investment in COMCEC Countries
7 0 5000 10000 15000 20000 25000 30000 35000 40000
Kuwait
Palestine
Qatar
Yemen
Lebanon
Iraq
Oman
Iran
Jordan
Bahrain
Syria
UAE
Saudi Arabia
Turkey
300
490
1170
1174
1365
1518
1524
3834
4162
4935
5070
8977
14276
35698 Kuwait
Palestine
Qatar
Yemen
Lebanon
Iraq
Oman
Iran
Jordan
Bahrain
Syria
UAE
Saudi Arabia
Turkey
Tourism Capital Investment: COMCEC Asia (2012)
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US$ 27,000 million
International Tourism Arrivals: COMCEC Asia (‘000 – 2012)
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56 209 244 303 958 966 975 1986 2406
4438
8044
25033
0
5000
10000
15000
20000
25000
30000
2013 WEF TTCI Rankings: COMCEC Regions
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Region (# of countries)
Overall Average rank (/140) and Average Score (1-7)
Regulatory Framework Rankings/Avg. Score
Business Environment, Infrastructure Rankings/Avg. Score
Human, Cultural and Natural Resources Rankings/Avg. Score
World - 140
70.5/4 70.5 70.5 70.5 COMCEC – 41 countries 97.9/3.6 97.7/4 93.7/3.2 95.8/3.6 COMCEC Africa-17
119.7/3.2 118.5/3.6 118.8/2.75 113.6/3.3 COMCEC Middle East-11 68.2/4 77.6/4.4 55.6/4 77.4/3.8 COMCEC Asia-9
90.2/3.8 87.8/4.3 90.6/3.3 88.3/3.7
Best Performing COMCEC Countries (2013)
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Country Overall Index Ranking (/140)
UAE 28
Malaysia 34
Qatar 41
Turkey 46
Oman 57
Bahrain 55
Jordan 60
Saudi Arabia 62
Indonesia 70
Key reasons for best performance in COMCEC
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T&T Regulatory Business Environment T&T human, cultural and natural resources
Albania 63 63 Azerbaijan 46 Bahrain 32 Brunei 57 67 Indonesia 31 Jordan 37 69 Kazakhstan 62 Kuwait 62 Lebanon 65 70 Malaysia 55 41 17 Morocco 68 68 Oman 56 47 Qatar 48 31 Saudi Arabia 38 Turkey 64 52 27 UAE 45 9 35
Key Challenges for Tourism Investment
Governance
Regulatory aspects
Infrastructure
Investment Climate
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Approach: World Economic Forum Travel & Tourism Competitiveness Index
-140 countries ranked
(41 in OIC)
-3 key sub-indexes
–Regulatory framework
–Business environment and infrastructure
–Human, Cultural and Natural Resources
-14 pillars of key issues
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Approach: TTCI’s 14 pillars of Key Issues
Policies (7) and resources (7) measured
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Policy Rules & Regulations,
Prioritization, Price competitiveness,
Affinity for T&T, Sustainability,
Safety & Security Health & Hygiene
Human Natural & Cultural
Resources
Infrastructure: Air and Ground
Transport, Tourism, & ICT
Approach: World Travel & Tourism Council - Economic Impact
GDP, employment, investment, foreign currency
189 countries and 24 groupings
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Approach: World Bank’s Doing Business 2014
Understanding Regulations for SMEs
189 countries
Based on indicators in 11 areas
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Approach: Doing Business 2014 measuring 11 areas in the life of a business
Quantitative indicators
1. Starting a business
2. Dealing with construction permits
3. Getting electricity
4. Registering property
5. Getting credit
6. Protecting investors
7. Paying taxes
8. Trading across borders
9. Enforcing contracts
10.Resolving insolvency
11. Employing workers SW Associates, LLC - Enabling Tourism
Investment in COMCEC Countries 18
Challenges: How competitive is my country for tourism investment?
• Global ranking - Annex F
• Indicators for COMCEC countries -Annex A
• COMCEC and the world - Tables 13-15
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Governance Challenges 1: Tourism missing from plans?
Road/rail/air Infrastructure
networks
SME support Rural development
Environmental management
Long term 5 + year
Regional
Provincial Urban
Corridor
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Governance Challenges 2: Strategic framework for tourism?
New institution needed?
Which markets?
Scale and
cost?
Labor supply?
Locations?
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Governance Challenges 3: Most Common…
1. Lack of strategic framework
2. Lack of awareness of tourism
3. Low priority of tourism in institutions
4. Insufficient coordination among policy makers
5. Few industry statistics
6. Security worries scaring away tourists
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Investment Climate challenges
Laws & regulations
Investment opportunities
Taxes or incentives
Finance sources
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Inadequate information for investors
Regulatory challenges
Restrictive Visa
Regimes
Restrictions on foreign investment
Formalities for New Business
Formalities for new
construction
Incentives for Investment?
Limited information on VAT and Duties
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Infrastructure Challenges
• Poor public systems
• Costly private ones
Deficient utilities
• Duplicate power supplies
• Costly desalination High costs
• Short vehicle lifetime
• High operating costs Poor roads
• Factory next to hotel
• Market/shipping traffic
Conflicting Developments
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Additional Challenges
•Hospitality skills lacking
• Few or no training facilities
Workforce training
•Negative image
• Costly rebuilding
Post disaster &
conflict
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Targeting Prospects for
Tourism Investment
Recommended Solutions SW Associates, LLC - Enabling Tourism
Investment in COMCEC Countries 27
Solutions for Tourism Investment
Governance
Regulatory aspects
Infrastructure
Investment Climate
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Governance Solutions 1: Lack of Tourism Strategy
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Policy
Prepare sector strategy
Launch Tourism Satellite Account
Process
Institutional
Create TSA Unit
Governance Solutions 2: Lack of Policy Coordination
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Policy
Raise profile of tourism
Use new research, TSA results for
project feasibility
Institutional
Inter-ministerial tourism commission
Include tourism business council
Governance Solutions 3: Lack of Data
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Policy
High priority to research, data collection and
analysis
Launch TSA Process
Institutional
Establish NTO market research to track industry performance
and maintain a tourism database.
Governance Solutions 4 Improved Security
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Policy
More collaboration
between tourism
ministry and security
authority
Institutional
Tourism training to police and immigration officials.
Create ‘tourism police’ with foreign language training
Investment Climate Solutions 1: Online Marketing and Market Research
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Institutional
Train NTO/IPA personnel to produce high quality market research and improve online
customer service and marketing.
Investment Climate Solutions 2: Clear information provided
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Policy
Laws & Regulations
Taxes & Incentives
Investment Climate Solution 3: Poor information on opportunities
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Policy
Promote high priority tourism
projects
Financing for studies & projects
Institutional
Training on promotion of
tourism projects
Training on financing
Regulatory Solutions 1: Restrictive visas, low openness
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Policy
Adopt visa-free procedures for
targeted nationalities
Adopt expedited systems for others
Regulatory Solutions 2: Reduce permits, formalities and visas
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Policy
Reduce barriers to establishing business and investment
Institutional
Create one-stop shop in the IPA
Regulatory Solutions 3: Information on incentives for tourism
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Policy
Provide information on key incentives for
tourism projects
Regulatory Solutions 4: Land tenancy problems
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Policy
Consider a land bank agency
policy for tourism
Institutional
Conduct a feasibility study on land banking
for tourism
Regulatory Solutions 5: Restrictions on Foreign Investment
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Policy
Reduced restrictions and barriers on
foreign investment
Infrastructure Solution 1: Inadequate utilities
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Policy
Link tourism to energy and
water policies
Promote sustainability
Institutional
Support privately owned
utilities and PPPs
Infrastructure Solution 2: Poor transportation networks
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Policy
Link tourism policy to
transportation policy: road, air,
sea and rail
Institutional
Inter-ministerial commission to
coordinate
Infrastructure Solution 3: Poor urban planning of destinations
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Policy
Support integrated destination
master planning
Institutional
NTO/IPA Capacity Building on
Master Planning
Additional Solution 1: Inadequate Workforce Preparation
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Policy
Link tourism to vocational
training
Institutional
Extend incentives to training institutions
Additional Challenges: Investment for recovery
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Policy
Contingency Planning and
Emergency Funds for rapid
reconstruction
Institutional
Government ready to activate policy
and provide reconstruction
plans and funding
Technical cooperation solutions Capacity
building for promotion
Improved Incentives
Visa Facilitation
Land Banking
Regional and Master Planning
Use of Cultural and
Natural Assets
Statistics & TSA
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Key Solution: Bring Investment Promotion to a Higher Level
Provide clear updated information
Offer responsive customer service
Conduct organizational assessment
Action Plan
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Pro-Nicaragua case study
Thank you for your attention and best regards from the SW Associates
team! * * *
Merci! شكرا Terima kasih! متشکرم Size teşekkür ederiz! Obrigado!
təşəkkür edirəm! Na gode!
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Discussion Questions
• How do you evaluate the role of government agencies
for attracting tourism investments? What is the situation in your country?
• What are the main challenges faced by your country in attracting tourism investments?
• How can these challenges be overcome and how can the cooperation among the Member States be constituted in order to handle these issues?
• How do you evaluate the impacts of tourism investments in your country on tourism development in general? SW Associates, LLC - Enabling Tourism
Investment in COMCEC Countries 49