2008 World Economic Forum

Value Proposition – Aviation, Travel & Tourism Community February, 2008 World Economic Forum Travel & Tourism Projects 2008 World Economic Forum Mobility Industry Project: Re-shaping Urban Mobility Aviation, Travel & Tourism Community Projects 2008 World Economic Forum 2 Mobility Directorate Groups together 3 industries: • Manufacturing (aircraft, engines) • Transportation Service Providers (airlines, cruise lines, Passenger rail) Aviation, • Public Transport (Mass Transit) Travel & Tourism • Airports • Tour Operators • Hospitality (Hotels, Resorts) • Rentals • Financial Institutions (credit cards) Automotive • • • Manufacturing Suppliers Distribution (dealers) Logistics & Transport • • • • Courrier/ Postal Shipping/ Ports Rails (cargo) AirCargo World Economic Forum 3 Mobility Directorate: Cross Industry Project: Slim Cities Developing solutions for urban transport issues The Project Goal • To measure and improve the sustainability of mobility within Key cities around the world. The Forum’s Role • Facilitate collaboration among industry, crossindustry, governments, and civil society. • Provide neutral dialogue platform for engagement with private and public sector stakeholders to develop holistic views, strategies, and actions on global issues and their resolution. • Identifying and providing access to global thought leaders, innovative approaches, and cuttingedge ideas. • Experience in developing indexes such as the Global Competitiveness Index and the Travel and Tourism Competitiveness index. The Project Deliverables • Best Practices Platform: For business, government, and civil society. • Urban Mobility Index: This index will allow governments and industry to make more informed decisions about the sustainability of their cities. World Economic Forum 4 The initiative developed using the Forum’s multi-stakeholder approach Local Government Mobility Industries NGO • The urbanization of populations will bring greater demands on transportation, energy and infrastructure. The ability to convene with industry, city governments and thought leaders can bring about innovation in the way to build cities, to move into them and to use resources. • While industry brings commerce, trade, energy and mobility, its disconnection with city governance can lead to problems of bureaucracy, pollution, health, investment losses and safety. By working with key stakeholders, industry can develop innovations for urban populations. • The issues of society, academia and development can be brought to light with key stakeholders in government and industry. For mass transit companies: •The platform provides the ability to work with key stakeholders in determining the feasibility of mass transit in cities, and to support innovation in the form of support for mode shifting, technology, or infrastructure improvements. World Economic Forum 5 Mobility Industry Project: Re-shaping Urban Mobility Aviation, Travel & Tourism Community Projects 2008 World Economic Forum 6 1. Climate Change • A priority issue • • • • Recognised as an physical, economic, and political risk to business as usual Addressing this concern from it’s founding 35 years ago, 1992 appointed Official Adviser to the Earth Summit in Rio Current insight is fragmented with numerous agencies and institutions involved. These platforms lack geographical and industry coverage, governmental reach and multistakeholder participation. Ability to convene a multistakeholder platform of dialogue with key thought leaders from industry, government, institutional investors, industry associations and research institutes. • Today’s Challenge: • Forum uniqueness • Recognizing the threat posed by climate change on the world economy, and in particular to the Travel & Tourism industry, the World Economic Forum has decided to engage in addressing this issue in a meaningful way through multi- stakeholder dialogues and the establishment of public-private partnerships. World Economic Forum 7 Gleneagles Dialogue/ Carbon Economy Project: The Policy Proposal Phase Gleneagles Dialogue Multi Industry Project Objectives Carbon Economy: ATT Industry Project Objective 1. Policy Frameworks: Developing a global business statement on long term policy framework for climate change Changing Behaviours: Developing an agenda for practical ideas for Industry for consumers, governments and companies in the G8 +5 economies to encourage lower carbon choices and better procurement policies. Multi-Stakeholder Dialogue: A year long series of cross-industry dialogues to ensure that the industry agenda was integrated into a global, cross-industry framework. International, Intergovernmental Collaboration: Close ties were established with key associations (Pew, WBCSD) and governmental/inter-governmental agencies (UNFCCC, G8/G20) working on issue of Climate Change. 1. 2. The Carbon Economy Project, mirrors the Gleneagles Dialogue process on policy frameworks and changing behaviours and focuses on the ATT contribution to climate change. The statement developed by this industry is then incorporated into the Gleneagles Dialogue business statement. 1. 1. 2. 2. Multi-Stakeholder Dialogue: A year long series of dialogues was developed to identify the key policy options and challenges that would reduce the industry’s carbon emissions. The result is a common industry agenda for action. International, Intergovernmental Collaboration: Close ties were established with key associations (IATA, WTTC) and government/inter-governmental agencies (UNWTO, ICAO, G8/G20) working on issue of Climate Change. Result was endorsement of the UNWTO Davos Declaration and global collaboration. The final policy statement will be ready: For Industry Partner endorsement by March 2008 Presented at the G8 Meeting in July 2008 World Economic Forum 8 The Next Phase: Copenhagen Process: July 2008-Jan 2010 Vision Project Goals Develop a 2012-2020 Collaborative Travel & Tourism Action Plan addressing the achievement of 20% reduction in Co2 emission • • • Mapping global Aviation, Travel & Tourism Co2 footprint, Developing Co2 abatement costs and risk curves, Development of Industry Action Plan to achieve Co2 abatement targets through: • Developing Economic Incentives – to finance low emissions choices • Investing in New Technology –This area may have the greatest impact on carbon reduction. • Achieving reduction in Co2 emission through operational efficiency 1. Copenhagen Process Project Pillars Business input for the Copenhagen UN climate meeting in Dec 2009. A Multi Industry Action Plan for the achievement of the intermediate goal set forth by Gleneagles Dialogue of a 20% reduction in global emissions by 2020. 2. Aviation, Travel & Tourism Industry Specific Input • Provide Carbon footprint of Industry: Develop a global map Co2 footprint and develop a comprehensive cost abatement and risk curve • Facilitate Multi stakeholder Collaboration: The Forum will facilitate dialogue amongst key public and private stakeholders in the Climate Change dialogue to ensure achievement of Co2 abatement targets • Coordinate Industry/Cross Industry Meetings: exchange best practice, and develop industry recommendations to government to improve industry carbon footprint at a national and industry level. • • Provide a neutral platform for dialogue with key Public and Private Stakeholders. Facilitate the development of an T&T collaborative action plan to achieve 2020 Co2 World Economic Forum abatement targets Forum’s Role 9 Climate Change Project Deliverables and Timeline 2008-2009 Meeting ICAO Steering Board – Air Transport IATA Annual General Meeting Date February, 2008 June 1 – 3, 2008 June 2 – 3, 2008 July, 2008 Goal Coordination of Forum’s Climate Change activities into ICAO carbon emission reduction framework of action Coordination of Forum’s Climate Change activities into IATA carbon emission reduction framework of action Development of industry Co2 footprint map, and Co2 Cost Abatement/ Risk curves A high profile event to launch the endorsed Policy Framework Statement and Changing Behaviors action plan, in connection with the G8 Summit and Gleneagles discussions World Economic Forum Strategy Meeting, London Presentation of Policy Statement, Hokkaido, Japan UNWTO Climate Change Summit Sept, 2008 Integration of Forum Industry outcomes into IATA carbon emission reduction framework of action- Davos Declaration- implementation phase Continued development of industry Co2 footprint map, and Co2 Cost Abatement/ Risk curves Continued development of industry Co2 footprint map, and Co2 Cost Abatement/ Risk curves World Economic Forum 10 World Economic Forum, China Summit, Tianjin World Economic Forum, Strategy Meeting, NYC Sept 25-26 2008 22-23 October, 2008 2. Travel & Tourism Competitiveness Report • A priority issue Global Competitiveness Report is the most comprehensive and authoritative assessment of the comparative strengths and weaknesses of national economies, used by governments, academics and business leaders. First published in 1979 its coverage has expanded each year since, now extending to 135 major and emerging economies. • •The industry is currently one of the world largest economic activities. It is Travel & Tourism the leading industry in many countries, as Challenge: well as the fastest growing economic sector in terms of job creation • Why the Forum •Ability to convene a multi-stakeholder platform of dialogue with key thought leaders from industry, government, institutional investors, industry associations and research institutes. The Travel & Tourism industry can leverage the neutral platform provided by the Forum to collaborate with the key stakeholders to explore innovative ways to develop the industry . World Economic Forum 11 The 2008 T&T Competitiveness Index Travel & Tourism Index A. T&T Regulatory Framework B. T&T Business Environment & Infrastructure 6. Air transport Infrastructure 7. Ground transport infrastructure C. T&T Human, Cultural & Natural Resources 1.Policy rules & regulations 2. Environmental Sustainability 11. Human capital 12. National tourism perception 3. Safety & security 8. Tourism infrastructure 13. Natural resources 4. Health & hygiene 9. ICT infrastructure 14. Cultural resources 5. Prioritization of T&T 10. Price competitiveness World Economic Forum 12 Creation of: T&T National Competitiveness Councils Context National Competitiveness Councils (NCCs) have proven to be one of the most successful approaches to institutionalizing private-public dialogue on competitiveness. Objective Create T&T Competitiveness Councils to: - Provide a platform for constructive public-private dialogue in the area of economic competitiveness, - Provide objective information on the state of T&T competitiveness in countries, -Raise awareness for link between national T&T competitiveness, and the population’s prosperity and wellbeing. Pilot Project- Egypt 1st PPP in the field of Travel & Tourism launched by Forum Objective: (i) ensure the sustainable development of the T&T industry, (ii) demonstrate the validity of the Travel & Tourism Competitivness Report as a strategic tool for policy development Launch : Middle East Summit, Sharm El Sheihk, 18th May, under the auspices of the Egyptian Competitiveness Council World Economic Forum 13 New Projects 2008 (in development phase) Following the 2008 Governors Meeting the Steering Board Meeting approved the development of 2 new industry specific projects namely: Revitalizing the image of the Global Travel & Tourism Industry Through Action: Advance the issue of “why does our industry suffer from a negative public perception”. Diagnose the issue, i.e. conduct an analysis (survey) that ranks the key drivers impacting the image/perception of the global Travel & Tourism industry. •What is the public image of the Travel (by mode of transport) & Tourism (by service provided) industry? •· How does this vary by country/region? •· What are the drivers of this perception? •· What can the T&T do collectively to improve the perception of the industry The “Travel Hassle” Factor: life cycle project An in-depth analysis of the travel life cycle to identify the major travel bottlenecks for individuals and provide recommendations to relevant government bodies on how best to ensure security whilst maintaining industry competitiveness. World Economic Forum 14 Knowledge Partners •Geoffrey Kent, Abercrombie & Kent •Martin Broughton, British Airway •Marilyn Carlson, Carlson •Thomas Pritzker, Global Hyatt •Richard Fain, Royal Caribbean •Christoph Franz, Swiss International •Jeff Clarke,Travelport •Jon Alterman, Centre for Strategic & International Studies •Michel-Kerjan Erwann, Wharton School •Rhodri Thomas, Leeds University •David Victor, Stanford University •Daniel Esty, Yale University •Martin Brackenbury, University of Nottinghill •EU Commission (ENV, TRSP) •US Dep’t Transport •US Dep’t Homeland Security •Michael Grubb, The Carbon Trust •Lester Brown, Earth Policy Institute •Eileen Clausen, Pew Centre •James A. Thompson, Rand Corporation •David Rothkopf, Rothkkopf Group • Nick Mabey, E3G •Dan Lewis, Booz Allen Hamilton •Deliotte* (TT GCR) •Brian Pearce, IATA •JC Baumgarten, WTTC • IH&RA •Peter Greenburg, CNBC •Peter Jarvais, BBC •Chris Burns, Bloomberg •Geoff Cuttmore, CNBC •Geoffrey Lipman, UNWTO •David Nabarro, WHO •Yvo De Boer, UNFCC •Taieb Chérif, ICAO •Jim Leape, WWF •Competitiveness Team •Risk Network •Center Strategic Intelligence World Economic Forum 15 Aviation Travel & Tourism Industry Partners 2008 Calendar (as of January 2008) Meeting Davos AM Executive CEO/ Chairman Regional Head/ Strategy Head 2008 JAN 24 Jan Davos ‘07 Governors’ Meeting FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2009 JAN TBC Davos ‘08 Governors’ Meeting World Economic Forum Regional Summits Middle East Summit IP at ME Summit 3-4 June London Strategy Meeting Index Review China, Tianjin IP at SE Summit Sept 3 Geneva Index Review October New York Strategy Meeting India Summit IP at India Summit TT CR Steering Board Review 1. TT GC Report x Launch TT CR ME TT Comp Scenario Launch Comp. Council Workshop TT CR Ed 3 2. Climate Change Senior Executive x Gleneagles Finalisation 1 Climate Change Workshop 1 Climate Climate Change Change Workshop 2 Workshop 3 Reputation 1 Reputation 1 All Industry Activity 3. Reputation Reputation 1 Mobility 1 4. Urban Mobility 5. Travel Hassel Mobility 2 Travel Hassle 2 Travel Hassle 1 Extraordinary Meetings IP Planning Meetings Relevant Senior executive Contact Executive 5-7 March ITB Berlin 20-22 April Dubai, UAE WTTC AM June Forum Regional Meetings IATA AGM 18-20May 3-4 June Egypt London Competitiven Strategy sess Meeting Africa Cancun Egypt 4-6 15-16April 18-20 South Afr. Mexico City May East Asia Sharm El Sheihk 15-16 Malaysia 25-26 Sept China Strategy Meeting 22-23 Oct NYC, USA Strategy meeting India Nov New Delhi