I NTERNATIONAL T OURISM I N O IC M EMBER C OUNTRIES Prospects and Challenges S TATISTICAL, E CONOMIC...

INTERNATIONAL TOURISM IN OIC MEMBER COUNTRIES

Prospects and Challenges

STATISTICAL, ECONOMIC AND SOCIAL RESEARCH AND TRAINING CENTRE FOR ISLAMIC COUNTRIES

(SESRIC)

ORGANIZATION OF ISLAMIC COOPERATION (OIC)

First Investment Forum of the OIC Plan of Action for Cooperation with Central Asia,

27-28 October 2014, Dushanbe, Republic of Tajikistan

DR. CEM TİNTİN RESEARCHER

ContentsI. Highlights on International Tourism Worldwide

II. Highlights on International Tourism in OIC Countries

III. The Economic Role of International Tourism in OIC Countries

IV. Intra-OIC Tourism

V. Highlights on SMEs in OIC Countries and the World

VI. Challenges

VII. Recommendations

Highlights on International Tourism

Worldwide

4

Importance of International Tourism

A remarkable socio-economic phenomena of the past century.

One of the world’s largest industries and categories of international trade.

All the activities that are directly/indirectly involved in providing goods and services to tourists (According to SICTA: 185 supply-side activities).

Transportation and communication, hotels and lodging, food and beverages, cultural and entertainment, banking and finance, promotion and publicity services, etc.

6 First Investment Forum of the OIC Plan of Action for Cooperation with Central Asia, 27-28 October 2014, Dushanbe, Republic of

Tajikistan

Global Tourism Trends: Arrivals and Receipts

Over the last decade, international tourism is growing at substantial and sustainable rates.

From 2007-2013, arrivals are up from 900 to 1087 millions. Similarly, receipts are up from $858 billion to $1159 billion.

During the period under consideration, tourist arrivals increased at an annual average growth of 3.2 per cent whereas annual average growth rate of tourism receipts is around 5.1 per cent.

2007 2008 2009 2010 2011 2012 20130

200

400

600

800

1000

1200

1400Arrivals (Millions) Receipts (Billion US$)

2007 2008 2009 2010 2011 2012 2013-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

Arrivals (% change) Receipts (% change)

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Global Tourism Trends: Regional Performance |2000 vs. 2013|

First Investment Forum of the OIC Plan of Action for Cooperation with Central Asia, 27-28 October 2014, Dushanbe, Republic of Tajikistan

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Global Tourism Trends: Regional Performance |Tourism Receipts|


2006 2007 2008 2009 2010 2011 2012-15

-10

-5

0

5

10

15

20

25

Africa Americas Asia & Pacific

Europe Middle East

Annual % Change

After 2009, tourism receipts has been continuously on the rise in Africa, Americas and Asia & Pacific.

The average rate of growth of tourism receipts between 2006 and 2012 is as follows:

Africa: 7.0% Americas: 6.0% Asia & Pacific: 13.7% Europe: 4.4% Middle East: 9.1%

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Global Tourism Trends: Tourism Receipts per Arrival in 2013 (US$)


The average tourism receipts per arrival is above the world average of $1066 in Asia&Pacific and Americas, whereas, in Middle East, Europe and Africa, it is below the world average.

Asia/Pacific Americas World Middle East Europe Africa0

200

400

600

800

1000

1200

1400

1600

14471365

1066

917868

613

Highlights on International Tourism in

OIC Countries

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OIC Tourism Trends: Arrivals and Receipts


The number of international tourist arrivals in the OIC countries increased from 155.5 million in 2008 to 157.3 million in 2012 corresponding to a 15.2% share in the world. The annual average growth rate is 0.23% between 2008-2012 (impact of recession). However, for the 2000 -2011 period it is 7.2%.

In 2008, these tourists generated $124.1 billion as international tourism receipts in the OIC countries, corresponding to a 14.2% share in the world’s total tourism receipts. In 2012, international tourism receipts amounted to $132.3 billion corresponding to a 12.9% share in world’s total tourism receipts. The annual average growth rate is 1.29%. However, for the 2000 -2011 period it is 10.6%.

2008 2009 2010 2011 20120

20

40

60

80

100

120

140

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180

02468101214161820

Arrivals (Millions) Receipts (Billion US$)

Share in World Arrivals Share in World Receipts

2008 2009 2010 2011 2012-10

0

10

20

30

Arrivals (% change) Receipts (% change)

Tourist Arrivals and Tourism Receipts Annual % Change

Figure 3.1: International Tourism in OIC Countries

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OIC Tourism Trends: Top Tourist Destinations and Earners, 2012

Top-10 countries hosted 124.7 million international tourist , corresponding to a share of 79.2% of the OIC total in 2012.

Top-10 countries earned $110.6 billion as international tourism receipts in 2012, corresponding to a share of 83.5% of the OIC total.

Top 10 OIC Tourism Earners

Top 10 OIC Tourism Destinations


Turk

ey

Mal

aysia

Saudi A

rabia

Egyp

t

Mor

occo

Indon

esia

Tunis

ia

Kuwai

t

Kazak

hstan

Nig

eria

0

5

10

15

20

25

30

35

40

Turk

ey

Mal

aysia

Egyp

t

Indon

esia

Mor

occo

Saudi A

rabia

Qat

ar

Leban

on

Jord

an

Tunis

ia

0

5

10

15

20

25

30

35

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OIC Tourism Trends: International Tourism Receipts per Arrival in OIC Countries in 2012 (US$)


The OIC average tourism receipts per arrival in 2012 amounted to $841.

The highest receipts per tourist arrival were recorded in Lebanon ($4611) followed by Qatar ($2934) and Maldives ($1981).

OIC average

Benin

Yemen

Turkey

Morocco

Uganda

Egypt

Pakistan

Azerbaijan

Jordan

Indonesia

Palestine

Oman

Maldives

Qatar

Lebanon

0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

841

873

900

903

906

923

967

1,050

1,060

1,078

1,176

1,541

1,751

1,981

2,934

4,611

The Economic Role of International Tourism in

OIC Countries

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Tajikistan

OIC Tourism Trends: Balance of International Tourism, Billion US$ 2012

Notably, majority of the countries with highest tourism balance are the main OIC international tourism destinations and earners. Turkey has a surplus of $27.6 billion followed by Malaysia with a surplus of $8.7 billion.

Balance of international tourism is calculated by deducting the international tourism expenditure from the international tourism receipts.

Turkey Total OIC

Balance

Malaysia Egypt Morocco Jordan Tunisia Lebanon Maldives Yemen Bahrain0

5000

10000

15000

20000

25000

30000


Tajikistan

Economic Role of Tourism in OIC CountriesBalance of International Tourism as % of GDP (Av-erage 2008-2012)International Tourism Receipts as % of Exports (Av-erage 2008-2012)

OIC average

Uganda

Albania

Yemen

Comoros

Turkey

Syria

Malaysia

Egypt

Bahrain

Tunisia

Lebanon

Morocco

Gambia

Jordan

Maldives

0 10 20 30 40 50 60 70

1.88

2.01

2.06

2.59

2.72

3.19

3.46

3.95

4.21

4.37

6.00

6.53

7.05

7.95

9.97

60.51 Maldives

Albania

Palestine

Jordan

Lebanon

Morocco

Gambia

Syria

Egypt

Uganda

Kyrgyz R.

Turkey

Senegal

Tunisia

Guinea-Bi.

OIC average

0 10 20 30 40 50 60 70 80 90

54.03

36.41

31.49

30.19

29.48

27.41

24.12

23.70

21.24

19.55

16.32

15.96

14.71

12.65

12.23

Source: WDI.

81.95

Intra-OIC Tourism

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Intra-OIC Tourism Trends: Arrivals and Receipts


Intra-OIC tourist arrivals decreased from 46.9 million in 2008 to 46.3 million in 2012.

In 2012, intra-OIC tourist arrivals accounted for 30.7 % of the total tourists arrivals in OIC.

Intra-OIC tourism receipts are up from US$ 29.9 billion in 2008 to US$ 30.5 billion in 2012.

As of 2012, Intra-OIC tourism receipts accounted for almost 24.6% of the total international tourism receipts in the OIC.

2008 2009 2010 2011 20120

10

20

30

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50

60

0

10

20

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Intra-OIC Tourist Arrivals (Millions)

Share in Total OIC Arrivals

2008 2009 2010 2011 20120

5

10

15

20

25

30

35

40

45

0

10

20

30

40

Intra-OIC Tourism Receipts (Billions)Share in Total OIC Receipts

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Intra-OIC Tourism Trends: Top Tourist Destinations and Earners, 2012


Top-10 countries hosted 41.3 million tourists from the OIC member countries, corresponding to 90.2% of the total intra-OIC tourist arrivals in 2012.

Top-10 countries earned US$ 27.9 billion from intra-OIC tourists corresponding to 91.4% of the total intra-OIC receipts.

Arrivals (Millions)

Receipts (Billion US$)

Saud

i Ara

bia

Turk

ey

Malay

sia

Kazak

hsta

n

Kuwait

Iran

Tunisia

Egyp

t

Jord

an

Indo

nesia

0

2000

4000

6000

8000

10000

12000

14000

Saud

i Ara

bia

Turk

ey

Malay

sia

Leba

non

Egyp

t

Jord

an

Indo

nesia

Tunisia

Kazak

hsta

n

Qatar

0

1000

2000

3000

4000

5000

6000

7000

8000

Highlights on SMEs in OIC Countries

and the World

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MSMEs in OIC Countries and the World (I)


• In 132 countries in the world there are over 125 million formal Micro, Small and Medium Enterprises (MSMEs) …of which 72 per cent are operating in developing countries

• In 34 OIC Countries, with data, there are 48 million formal MSMEs ….accounting for 38 per cent of the world and 54 per cent of the developing countries total MSMEs

• 48 per cent of total MSMEs in OIC operate in three Countries from East Asia and Pacific region namely: Brunei, Indonesia and Malaysia

• Six OIC Countries namely: Indonesia, Nigeria, Bangladesh, Pakistan, Turkey and Egypt are ranked among the top-20 countries with highest number of MSMEs operating in the world

• Indonesia alone accounts for over 18 per cent of the world total MSMEs

• Brunei and Indonesia are ranked First and Second in the world with highest density of MSMEs

Data Source: World Bank International Finance Corporation (IFC), MSME Country Indicators 2010

MSMEs in OIC Countries and the World (II)


• On average, formal MSMEs employ 34 percent of the workforce in OIC Countries, compared to 39 percent in Non-OIC Developing and 41 percent in the world

• MSMEs contribute 47 to 82 percent of total employment in 8 OIC Countries whereas this ratio is 20 to 40 percent for 9 OIC Countries

• 71 per cent of SMEs in 20 OIC Countries, with data, are operating in Services (41%) and Trade (30%) sectors

• Except East Asia & Pacific region, over 40 percent SMEs are operating in Services across the OIC regions

• In South Asia and Sub-Saharan Africa Manufacturing accounts for the second highest share of SMEs compared to Trade in other regions

• Services sector accounted for over 40 percent of total SMEs operating in 15 OIC Countries.


MSMEs in OIC Countries and the World: Challenges


Six Most Commonly Cited Obstacles by Firms in Developing Countries(out of 15 obstacles)

• According to the findings of the World Bank Enterprise Surveys Dataset access to electricity and finance are the most cited obstacles for all businesses including SMEs in the developing countries.


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Challenges


The challenges are diverse as each country has its own tourism features, level of development and national development

priorities and policies.

Technical know-how and weak promotional activity

Tourism-related infrastructures

Tourism investments

Consistent tourism strategies and policies

Tourism diversification

Tourism safety

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Policy Recommendations (I)


At the National Level

Sustainable tourism development strategies and plans

Physical planning of tourism destinations

The quality and efficiency of the basic tourism-related infrastructures and services

Synergies between transport and tourism policies

Private sector involvement including SMEs in tourism development plans and projects

Diversification of tourism products and services

Tourism-oriented education and training programmes

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Policy Recommendations (II)


At the OIC Cooperation Level

OIC Internet Guide for Tourism

OIC Tourism Alliances, Airline Companies

Agreement on Tourism Visa Arrangements

Promote and Encourage public-private joint investment in Tourism

THANK YOU

Statistical, Economic And Social Research And Training Centre For Islamic Countries (SESRIC)

Organisation of Islamic Cooperation (OIC)

www.sesric.org First Investment Forum of the OIC Plan of Action for Cooperation with Central Asia, 27-28 October 2014, Dushanbe, Republic of

Tajikistan

I NTERNATIONAL T OURISM I N O IC M EMBER C OUNTRIES Prospects and Challenges S TATISTICAL, E CONOMIC...

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