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					Impact of the Global Financial Crisis
on Tourism Destinations & Mitigation
               Efforts


             Mekhak Apresyan & Alan Saffery
                Ministry of Economy / CAPS
 Update –
Jan -Apr 09
  = -8%
Easter 2008 – March
Easter 2009 - April
Air Transportation – January to May 2009
Passenger Traffic = 8% decrease
Capacity = 4% decrease
Load Factors = 4% decrease

 Hotel Stays – January to April 2009
Outlook
Overall Growth = -4 to -6% worldwide
Worst is yet to come!!
Unemployment still rising in key source markets
Exchange rates fluctuating
Influenza A(H1N1)
“Tourism has always demonstrated a
remarkable resilience and has, on the whole,
come out stronger and healthier. This
juncture, however, might be different. This
crisis is truly global and its parameters are
still in many ways unclear.”
                         UNWTO 12th May 2009
Consumer Behavior

•   No holidays          • Less advance
                           bookings
•   Less holidays        • 4* or lower
•   Fewer holidays         accommodation
•   Closer holidays ??     preference
                         • Increased use of Low
•   Off season travel      Cost Carriers
•   Shorter stays        • Business People
•   Special offers         Economizing
Mitigation Efforts

1.   Marketing measures (92%)
2.   Public/private partnerships (71%)
3.   Monetary measures (69%)
4.   Fiscal measures (50%)
5.   Human resource measures (29%)
6.   Transnational cooperation (17%)
7.   Travel facilitation (15%)
8.   Environmental measures (6%)
Marketing Measures
• Allocation of extra funding for promotion – advertising and e-
  marketing – aimed at neighboring and domestic market
• Promotion of domestic destinations and encouragement of local
  visitors to make short trips at home
• Discounts on entrance fees in local attractions and facilities
• Promotion of value added or reduce price packages in major
  source markets
• Promotion of social tourism and group travelling domestically or
  incentives and special discounts for travelling off-peak
• Greater attention to niche products and services
AUSTRALIA – No Leave No Life Campaign
PORTUGAL – Domestic Tourism Portal & Campaign
Private/Public Partnerships
• Financial support for the expansion/maintenance of airline
  capacity
• Organization of co-promotional activities with airlines, hotels,
  travel agents, aimed mainly at hard selling campaigns in source
  markets – including value added/discounted packages
• Discounts or special offers in a wide range of national products,
  leisure activities, restaurants, tourism attractions
• Waiving fees for the participation of travel professionals on
  tourism fairs abroad
• Creation of market monitoring boards within the tourism value
  chain to closely follow up the performance of the sector and its
  source markets and act accordingly
HUNGARY – domestic tourism research followed by campaign
KOREA – VISA and Korean Tourism – discount coupon campaign
  04/09 – 03/10
Monetary Measures

• Special credit lines, and exceptional micro finance
  schemes
• Refund of guarantee deposits for travel agencies and
  tour operators
• Financial benefits for air and sea transportation
  companies to operate routes to remote areas
• Support to foreign investment as well as external
  borrowing
JAMAICA – US$50 million loan facility for domestic
  transportation companies
THAILAND – Micro credit scheme for SMEs
Fiscal Measures
• Air transport tax reductions or exemptions including the
  reduction of landing and parking fees at airports
• Decrease or suspension of taxes in accommodation and/or
  restaurants
• Direct investment in tourism infrastructure, particularly leisure
  facilities, tourism resorts, national parks, cultural attractions,
  accommodation
• Development of general infrastructure – airports, ports, roads,
  railways, etc
MACAU – 5% tourism tax suspended (restaurants)
FRANCE – Restaurant VAT rate reduced from 19.6% to 5.5% from
  July 1
NETHERLANDS – Revoked airport departure tax of EUR 11.25
  (short haul) & EUR 45 (long haul)
Human Resource Measures

• Creation of full & part time jobs for minorities, women & youth
• Development of programs to increase awareness of young
  people on tourism as a career
• Organization of training seminars and improvement of
  recruitment systems
• Development of capacity building campaigns and technical
  assistance programs on marketing, business techniques,
  management and IT
PHILIPPINES – Job creation program for 3000 individuals
PAKISTAN – Expansion of working visa scheme for knowledge and
  skills transfer – up to five years
Transnational Cooperation

• Development and promotion of multi-destination
  itineraries
• Organization of cross border events and festivals
• Travel facilitation within a specific region
• Creation of platforms to exchange know-how and
  share information on source markets
• Marketing partnerships
ITALY, SPAIN & FRANCE – Mutual marketing strategy
MACAO – Common tour packages with China & Hong
  Kong
Travel Facilitation

• Visa facilitation and visa free exemptions or granting
  visa on arrival for visitors from neighboring countries,
  other source markets or special target groups
• Simplification of travel regulations and minimizing the
  restrictions and rules for incoming tourists
CAMBODIA, LAO, VIETNAM – Intra-country visa
  agreements
KENYA – Reduced visa fees
Environmental Measures

• Support to development of systems of low-carbon energy saving
  accommodation
• Developing carbon offsets program
• Funding eco-friendly tourism infrastructure and revitalizing
  transportation aimed at using renewable energies
• Organizing and promoting zero energy events
• Funding mechanisms for the development of green tourism
  products and services
• Increasing awareness of tourism industry on environmental
  issues
KOREA – carbon neutral tourism complex
“Even emerging economies, which at the
beginning seemed to resist better, are rapidly
facing the impact of the economic crisis.”
                           UNWTO April 2009

				
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