The Big Issues & Big Opportunities CHTA Presentation at CHRIS April 28, 2017
Top 20 Global Jurisdictions for Tourism Contribution to GDP Macau British Virgin Islands Seychelles Bahamas Former Netherlands Antilles Cape Verde Malta
St Lucia Cambodia Mauritius Maldives Aruba Anguilla
Vanuatu Antigua and Barbuda Belize Palestinian territories Fiji Croatia US Virgin Islands
Source: World Travel and Tourism Council, 2016 Economic Impact Report
The Caribbean is the World’s #1 Region for Generating Tourism-Related Employment 1. Caribbean 2. Oceana 3. European Union 4. North America 5. Southeast Asia 6. North Africa 7. Northeast Asia 8. Latin America 9. South Asia 10. Middle East 11. Sub Sahara Africa 12. Other Europe
Source: World Travel and Tourism Council, 2016 Economic Impact Report
Caribbean Tourism Will Continue to Grow Caribbean Tourism’s Contribution to GDP Total contribution to GDP
1990
1995
2000
2006
2010
2015
2016
2017
2020
2025
US$ in BN (real)
28.42
32.15
37.72
46.62
43.43
53.40
55.65
57.83
64.16
73.65
Percentage Growth
9.84
-1.08
-1.95
2.29
-3.63
2.89
4.21
3.92
3.39
2.74
Source: World Travel and Tourism Council
Caribbean Tourism Will Continue to Grow Caribbean Leisure Tourism Spending Leisure Tourism Spending
1990
1995
2000
2005
2010
2015
2016
2017
2020
2025
US$ in bn (Real prices)
23.15
25.01
29.33
31.74
31.89
36.67
38.18
39.71
44.28
50.73
Percentage growth
2.17
-2.38
3.94
-1.35
1.37
2.78
4.11
4.02
3.54
2.76
Source: World Travel and Tourism Council
Caribbean Tourism Will Continue to Grow Caribbean Business Tourism Spending Business Tourism Spending
1990
1995
2000
2005
2010
2015
2016
2017
2020
2025
US$ in bn (Real prices)
2.17
3.51
4.25
4.14
3.29
3.85
4.01
4.15
4.56
5.30
Percentage growth
-2.11
4.12
5.12
-10.51
1.04
3.31
3.16
2.74
2.59
2.36
Caribbean Tourism Will Continue to Grow Tourism’s Contribution to Employment Total contribution to Employment
1990
1995
2000
2005
2010
2015
2016
2017
2020
2025
Thousands of jobs
1,273
1,598
1,806
2,013
1,852
2,280
2,345
2,407
2,585
2,788
Source: World Travel and Tourism Council
Caribbean Tourism Arrivals Continue to Grow Disproportionately
Quick Diversion On Cuba…. 2016: Unprecedented Growth
Record 4 Million Arrivals in 2016 Growth of 14.5% Forecasted to increase 200,000 this year Canadian visitor arrival declines of over 300,000 More than offset by European and US arrivals growth Since announcement of move toward normalization with US…. Cuba’s welcomed over 1 million more visitors
CARIBBEAN HOTEL ROOM GROWTH TOP 15 CARIBBEAN DESTINATIONS BY # OF ROOMS Destination Cancun Dominican Republic Cuba *** Jamaica Puerto Rico Bahamas Aruba Barbados Belize US Virgin Islands Martinique Trinidad and Tobago Curacao Cayman Islands St. Lucia
1980 N.A 3,800 7,526 10,092 9,224 11,429 2,235 6,680 1,016 4,834 2,235 2,141 1,668 1,418
2016*
2017 Pipeline** 81,371 66,604 66,547 24,153 15,616 13,190 9,459 5,632 4,766 4,726 4,226 4,055 3,916 3,985 3,950
* STR Census, December 2016 ** STR Pipeline Report March 2017 ***According to Cuba MINTUR
1,761 3,000 3,421 410 2,167 953 636 153 176 177 292
Market Share 2010 NA
Average Annual Tourism Growth 2015 NA
2005 - 2010 3.9%
2030 NA
6.1%
50.6%
5.3%
41.1%
4.2% 3.0%
21.7%
2.4% 10.4%
7.6%
1.7%
Caribbean
Europe
Asia& Pacific
3.9%
3.6%
29.6%
2.1%
2020 - 2030 NA
North American
1.7% 2.5%
1.8%
1.4%
3.2%
South American
SOURCE: United Nations World Tourism Organization
Caribbean
Europe
Asia& Pacific
North American
South American
Caribbean vs Global Tourism GDP Growth Rate 4 3.9 3.8 WORLD CARIBBEAN
3.7 3.6 3.5 3.4 2017 % GROWTH Source: World Travel Tourism Council
2027
Caribbean vs Global….Tourism Employment Growth Rate 3.5 3 2.5 2
WORLD CARIBBEAN
1.5 1 0.5 0 2017 % GROWTH Source: World Travel Tourism Council
2027
COMPETING DESTINATIONS High Product Quality • Aggressive Pricing
15
So…. To Protect and Build Marketshare We Must Recognize and Face our Challenges….
“Our strength grows out of our weaknesses.” – Ralph Waldo Emerson
CHTA Industry Performance and Outlook Study
In January, 2017 CHTA Asked Hotels About their Performance in 2016 vs. 2015 60%
55%
50% 42% 40%
36% 33% 31% 28%
30%
25% 25%
25%
22%
22%
22% 19%
20%
17% 14%
14%
11% 10%
8%
11%
8%
8%
6%
6%
6%
6%
0% Down More Than 10%–
Down Some– Employment
Sales/Revenue
Same– Pricing
Up Some– Profits
Capital Spending
Up More Than 10%–
CHTA Industry Performance and Outlook Study
We Asked Hoteliers About Their Outlook for Tourism in 2017 45%
41%
40%
42%
39% 33%
35%
Most Were Positive
30% 25%
2017
13%
15% 10%
2016
19%
20%
8% 5%
5% 0%
0%
0% Extremely Strong
Strong
Moderate
Weak
Extremely Weak
CHTA Industry Performance and Outlook Study
We Asked About Most Important Issues Affecting Your Business in 2016 Air Cost and Availability Zika Crime Economic-Political Uncertainty Little Destination Marketing Labor Quality High Cost Of Vacation Little Government Support Unregulated-Untaxed Shared Economy Exchange Rates Global Competition Ota Costs Tripadvisor Cost And Service Brexit Poor Infrastructure Competition From Cuba Access To Financing Trump Hotel Plant Condition 0
2
4
6
8
10
12
14
16
18
20
CHALLENGES FOR CARIBBEAN TOURISM Lack of Regional Marketing
Emerging Destinations
Education & Unemployment
Cuba
Tourism Awareness
Investment Initiatives
Product Differentiation and Authenticity
Ease of Travel
Inter-Regional Airlift
Airlift & Airfares: Connectivity and Taxation
Tourism Intelligence (data, Forecasting and Satellite Accounts)
Economical (Brexit, Oil, Exchange Rates)
Crime and Harassment
Zika and Health Threats
CHALLENGES FOR CARIBBEAN TOURISM ENTERPRISE Aging Tourism Plants
High Business Acquisition Cost
High Operating Costs
Comparative Productivity
Energy Efficiency and Water/Waste Management
High Import Bill
Linkages
Sharing Economy
Access to Capital
Competing Destinations with High Product Quality and/or Aggressive Pricing
Training & Development
Customer Service Standards
Despite the Challenges….. • Incredible Product Strength and Product Potential • Growing Willingness by Government and Private Sector to Tackle Them 1. 2. 3. 4. 5. 6. 7. 8. 9.
Proximity – US, Canada, Latin America, Caribbean Core Business – US…Mostly Several States…Great Untapped Potential People – Spirit of Hospitality in Most Beauty - Unmatched History - English, French, Spanish, Dutch, US, African, Amerindian…. Cultures – Steeped in History…Ever-evolving… Creative Arts – Music, crafts, visual, culinary, literary, celebrations Diversity – Unmatched anywhere in the world Brand “Caribbean” – powerful, untapped
THANK YOU! FRANK COMITO Frank@caribbeanhotelandtourism.com www.caribbeanhotelandtourism.com www.caribbeantravel.com