New research confirms Mexico’s tourism will remain strong over long term
(August 10, 2009) — WTTC expects Mexico’s Travel & Tourism Economy GDP growth to average around 5% per annum over the next decade (2009-19), generating some 2 million direct industry jobs by the end of the period.
As the first country in the world to experience an outbreak of the now widespread A (H1N1) influenza virus, Mexico has been really hard hit in terms of tourism demand over the past three months. Preliminary estimates from the Mexican Government put the impact so far at around US$200-$300 million, but the final toll could well be much greater. More than 2,000 inbound flights were cancelled during the early stages of the crisis.
“Mexico should be applauded for the way it handled the swine flu crisis,” said Ufi Ibrahim, Chief Operations Officer of the World Travel & Tourism Council (WTTC), speaking at a recent media breakfast organised by the Mexico Tourism Board. “The Mexican Government and other stakeholders in the local Travel & Tourism industry have taught us all a lot because they have shown great leadership during their period of crisis, not to mention responsibility, timeliness and effectiveness.
“This was one of the clear messages that came out of our 9th Global Travel & Tourism Summit, held in Florianópolis, Brazil, in May 2009,” Ms Ibrahim added. “The virus and the need for the global Travel & Tourism industry to prepare for a pandemic were top of the agenda at the Summit, and Mexico’s responsible approach to reporting the outbreak and its impact impressed delegates from around the world.”
In 2008, international tourist arrivals in Mexico grew by 5.9% to 22.6 million while US dollar travel spending by all visitors rose 3.4% to US$13.3 billion. More significantly, WTTC’s research shows that the country’s Travel & Tourism Economy increased its contribution to 13.2% of Mexico’s GDP, growing by 3.8% – as against stagnation in Travel & Tourism Economy GDP posted by the Americas as a whole.
In addition and, even more importantly, given the global economic situation and rising unemployment around the world, an estimated 40,000 additional jobs were created directly last year by Mexico’s Travel & Tourism Industry, raising the total number of people directly employed in the sector to 1.7 million.
Mexico’s Travel & Tourism started 2009 on a positive note …
Despite the intensification of the global recession and continued drug-related violence in Mexico, international tourist arrivals continued to expand (+5.9%) in the first four months of 2009. However, the gains were concentrated in January and February, while April saw just a 0.2% year-on-year rise and the growth is estimated to have come mainly from lower-spending visitors staying near the US border.
For more on this story, visit WTTC’s Tourism News.
Outdoor Industry Association Survey Reveals Industry Cautious About Economic Recovery
Revenue and inventory plans appear appropriately conservative
Boulder, CO, – In a survey released June 1, 2009, by Outdoor Industry Association (OIA), small businesses reported they have lowered revenue expectations, reduced inventory levels, and believe their businesses will rebound later than they expected last fall.
OIA, in conjunction with Piper Jaffray Companies, recently surveyed industry executives with respect to their view of current economic prospects, recovery timeline, cost inflation, and the effect of tightened credit market on near-term business operations. Results of that survey are now available in a new report entitled, The Piper Jaffray Outdoor Industry Survey.
This was the second survey conducted by OIA and Piper Jaffray in the past six months, and reflected a cautious and realistic picture of the economic situation facing the industry.
Nearly all respondents were independent businesses with revenues less than $50M annually, which provides an excellent gauge of the independent channel within the outdoor community. The majority of respondents identified themselves as either vendors or retailers.
Among the highlights:
* Concern has grown: When asked to indicate the level of concern surrounding current economic conditions affecting their business, 98% indicated they are “very” or “somewhat” concerned, up three percentage points from last fall. The level of concern was higher with vendors, where 49% signaled they are “very concerned” versus 36% of retailers. This is a marked increase in the past six months.
* Recovery expectations pushed back: Last fall, the majority of respondents said they expected the recovery to come in late 2009. Nearly half said they believed business would turn in the second half of 2009 and 35% viewed the first half of 2010 as the inflection point. However, based on the results of this more recent survey, that was an optimistic view. Now, only 15% believe the recovery will take place this year. Nearly fifty percent believe the economy will improve in the first half of 2010, one-fourth say the second half of 2010, and 15% believe it will not improve until after 2010.
* Vendors and Retailers are in sync: Last fall, retailers were far more optimistic than vendors about the pace of economic recovery. That disparity has dissipated in this survey with both vendors and retailers having similar perceptions about recovery expectations. This more balanced view is leading to appropriate inventory levels in the channel, which should also lead to improved profitability and pricing integrity as revenues stabilize.
* Businesses prepared for slow-down: Revenue expectations for 2009 have declined since last fall. In the fall survey, more than three-quarters of respondents projected revenues in 2009 would be above 2008. Now, only about one-third expect 2009 revenue to top 2008 and nearly one-fourth expect revenues to decrease significantly.
* Looking Back: The majority of respondents indicated revenues were down over the last three months vs. the prior year. This issue hit retailers harder than vendors, with a majority of retailers saying revenues were down and just over one-third of vendors registering a decline in revenues.
* Looking Ahead: In general, expectations are higher for the next three months, with just under half of respondents expecting revenues to continue declining over the next three months. Overall, we believe a slightly negative outlook on revenues is prudent given that the second quarter of last year was impacted by the federal stimulus package, the personal savings rate is now higher, and the current unemployment rate is higher than in the past.
* Lower sourcing costs: Cost inflation concerns have declined since our last survey as the price of commodities and excess capacity has driven production costs lower.
* Inventory reductions on tap: In response to these economic shifts, respondents report that they have taken appropriate steps in terms of inventory reductions. More than one-half of all businesses are planning inventory levels below last year. Inventory growth below the rate of future sales trends is critical in the current environment to help maintain profitability and keep price integrity.
* Stabilization in the credit markets: There are some encouraging signs in the credit markets with interest rates at historically how levels and some company’s now accessing the market for liquidity. More than three-quarters of all respondents observed no change in their ability to access capital with only a few expressing increased access to capital and 15% seeing a decrease in access to capital.
“This survey reveals that our smaller companies are taking appropriate steps to weather the economic storm,” said Frank Hugelmeyer, OIA President & CEO. “These companies are critical components for our entire industry, and they have made appropriate changes that may accelerate the recovery timeline.”
As the report concludes, “In short, respondents maintain a realistic view of current business trends, sourcing costs, and inventory reductions which should benefit future profitability if sales trends remain stable or improve. While revenue declines are prevalent throughout the sector, for both retailers and vendors, we believe employment reductions; cheaper goods and fewer markdowns will stabilize margins in the second half of the year.”
A copy of the full report, as well as all OIA research is available to members at www.outdoorindustry.org.
About Outdoor Industry Association
Outdoor Industry Association® (OIA) is a national trade association whose mission is to ensure the growth and success of the outdoor industry. OIA provides trade services for over 4000 manufacturers, distributors, suppliers, sales representatives and retailers in the outdoor industry. OIA programs include representation in government/legislative affairs, market and social research, business-to-business services and youth outreach initiatives. Educational events include the annual Rendezvous®, Outdoor University®, and the Capitol Summit. Outdoor Industry Association is based in Boulder, Colorado, and is the title sponsor of the Outdoor Retailer tradeshows. For more information go to www.outdoorindustry.org or call 303.444.3353.
###
TRUSTe Report Reveals Consumer Awareness and Attitudes About Behavioral Targeting
SAN FRANCISCO, CA- Consumer privacy organization TRUSTe announced today the results of a study conducted by global market insight and information group TNS regarding American Internet users’ knowledge, attitudes and concerns about behavioral targeting and its implications on their online privacy. Overall results indicate a high level of awareness that internet activities are being tracked for purposes of targeting advertising, and a high level of concern associated with that tracking, even when it isn’t associated with personally identifiable information.
Behavioral targeting has become a hot button issue recently, as industry enthusiasm for delivering customized experiences and improved marketing metrics runs up against consumer privacy concerns and calls for greater transparency around emerging tracking and targeting techniques. Based on the results of the survey, lack of transparency may factor into privacy concerns. 71 percent of online consumers are aware that their browsing information may be collected by a third party for advertising purposes, but only 40 percent are familiar with the term “behavioral targeting.” 57 percent of respondents say they are not comfortable with advertisers using that browsing history to serve relevant ads, even when that information cannot be tied to their names or any other personal information.
An overwhelming majority (91 percent) of respondents expressed willingness to take necessary steps to assure increased privacy online when presented with the tools to control their internet tracking and advertising experience, suggesting a need for added education, transparency and choices for behavioral targeting. Nearly two-thirds (64 percent) would choose to see online ads only from online stores and brands that they know and trust and 44 percent of respondents would click buttons or icons to make that happen.
To the contrary, a similar proportion of consumers (42 percent) say they would sign up for an online registry to ensure that advertisers are not able to track browsing behaviors, even if it meant that they would receive more ads that are less relevant to their interests. This division poses a serious dilemma for BT practitioners and industry privacy advocates, because consumers say they want more relevant advertising, but don’t want to be tracked in order to get it.
“Education once again appears to be the key to finding a constructive balance between behavioral targeting and consumer privacy, because no matter how much we assure anonymity, there is still significant discomfort with the idea of tracking,” said Fran Maier, executive director of TRUSTe. “We have a solid indication that consumers want us to find a way to get them the advertising that is relevant to them. In order to do this, behavioral targeting is one of the most promising methods, but at the very least, it has to be made more transparent, provide choices, and deliver real value.
For the TRUSTe behavioral tracking study, TNS conducted an online survey among a randomly selected sample of American adults whose households belong to TNS’s online consumer panel. In total, 1,015 interviews were completed between February 1 and 5, 2008. The data were weighted by region, market size, age, gender and household size, composition and income, to reflect the demographic composition of the online adult population in the continental U.S.
The full research results are available to TRUSTe sealholders at no charge. Media can obtain a complete copy of the study by contacting Morgan McDowell of blast! PR.
About TRUSTe:
TRUSTe helps consumers and businesses identify trustworthy online organizations through its Web Privacy Seal, Email Privacy Seal and Trusted Download Programs. Having celebrated its 10th anniversary in 2007, TRUSTe certifies more than 2,400 Web sites, including the major internet portals and leading brands such as AOL, eBay, IBM, Intuit, Microsoft and Oracle. TRUSTe resolves thousands of individual privacy disputes every year. To learn more about internet privacy visit www.truste.org.
About TNS:
TNS is a global market information and insight group. Its strategic goal is to be recognized as the global leader in delivering value-added information and insights that help its clients make more effective business decisions. TNS delivers innovative thinking and excellent service across a network of 80 countries. Working in partnership with clients, TNS provides high-quality information, analysis and insight that improve understanding of consumer behavior. TNS is the world’s leading provider of customized services, combining sector knowledge with expertise in the areas of Product Development & Innovation, Brand & Communications, Stakeholder Management, Retail & Shopper and Customer Intelligence. TNS is a major supplier of consumer panel, media intelligence and audience measurement services.
TNS is the sixth sense of business™. www.tnsglobal.com
39% of tour operators surveyed by the ATTA recorded more than 16% growth in 2007
ATTA’s 2007 industry-wide snapshot represents more than $300,000,000 of adventure travel business and 875,000+ travelers. 57% from North America, last year was 61%. The profile of tour operators that took this year’s survey was very similar (size, number of employees, year started, etc) to those in 2005 and 2006.
Reflecting on 2007 and looking ahead to 2008:
• 86% indicated positive growth rates, with 39% recording more than 16% growth in 2007
• 40% reported more than 11% net margin
• 98% project growth in 2008, with 66% expecting more than 16% growth
• Trends evident to tour operators:
- 34% reported increased competition among adventure operators (marketing, pricing, sales promotions)
- 59% reported increases in demand for custom itineraries/trips
- 38% reported increases in demand shorter duration trips (less than one week long)
- 43% reported increases in demand for eco-tourism/environmental trips
- 35% reported increase in demand for cultural/educational trips
• Most significant threats:
- 45% reported increased cost of operating (capital/infrastructure spending, equipment )
- 39% reported increased cost of marketing due to competition from other adventure travel businesses
- 39% reported reduced client travel due to poor economy
Tour Operators – most productive types of marketing used in 2007:
85% – Word of Mouth/Viral
70% – Repeat Business/Clients
64% – Travel Agents
*Internet (SEO, Web links, emailing, etc.) and PR follow in the 50+% range
According to Leisure Trends Group: 2007 Dive industry sales totaled $804M, up 5%
In 2007, dive industry sales totaled $804 million*, an increase of 5%.
- Scuba Dive equipment sales grew 1% in units, 4% in average retail selling price
- Equipment sales grew 5% in dollars and finished the year with $375M
- With $74M in sales, the dive suit category jumped 8% in units and 10% in dollars
- Equipment sales total nearly half of the $804 million in total sales
*Scuba dive sales are comprised of equipment, apparel, wet and dry suits and dive services
Study Says Nearly Half Say Social Media Tools Becoming More Important Than TV, Radio, Newspapers and Magazines
Social media tools such as Facebook, YouTube and blogs have become an essential component of the communications mix,
according to an overwhelming majority (85 percent) of Canadian business and marketing leaders. Nearly half (46 percent) say social media tools are becoming even more important than television, radio, newspapers and magazines. The results are contained in a survey of 444 business and marketing leaders conducted by Pollara Strategic Insights for com.motion, a new offering from Veritas Communications.
Developing Countries lead Dynamic World Tourism Growth
(Source: UNWTO) Berlin/Madrid, 6 March 2008 — International tourist arrivals exceeded 6% growth in 2007 on the back of strong global economic growth. Developing countries grew by 8%.These figures again underscore UNWTO’s long held view that sustainable tourism can play a major role in helping to achieve the UN Millennium Development Goals, in two way world services trade and in responding positively to climate change imperatives.
2000-2007
The market share of developing countries has grown to 40% of worldwide international arrivals – up from 34% in 2000:
- Worldwide international tourist arrivals increased to 898 million – an overall 32% increase. An average 4% growth a year
- Developing countries international tourist arrivals increased to 360 million. – an overall 54% increase. An average 6% growth a year
- The 50 least developed countries international tourist arrivals increased to 13 million – an overall 110% increase. An average 11% growth a year.
Governments have become increasingly aware of the possibilities opened by tourism for social and economic development and for job creation.
It has encouraged investment in tourism infrastructure in countries from Asia and the Pacific, the Middle East, Africa, Central and South America.
It has at the same time boosted intra regional travel with strong demand from emerging middle classes – with increasing long term potential in all world markets.
2008 Outlook
UNWTO expects international tourist arrivals to continue its positive growth trends this year, but at a moderated rate.
After four consecutive years of strong growth, less favourable global economic prospects, continuing high oil prices and greater uncertainty are key factors. Estimates stay close to the long-term yearly growth rate of 4.1% through 2020, estimated by UNWTO.
Again, developing countries will be among the frontrunners and continue their strength of the past years. Most regions are expected to sustain their current growth trend in 2008, but at a somewhat slower rate.
For further information please contact
UNWTO Media Section
T: (34) 91-567-8194 /8100 – F: (34) 91-567-8218
comm@unwto.org
www.unwto.org
According to WTTC, “Continued growth signalled for travel and leisure industry”
6 March 2008 – Berlin, GERMANY – The latest research for Travel & Tourism anticipates a slowdown in the industry in 2008 but prospects are bright for the coming ten years
World Travel & Tourism is expected to generate close to US$8 trillion in 2008, rising to approximately US$15 trillion over the next ten years, according to the latest Tourism Satellite Accounting (TSA) research launched today by the World Travel & Tourism Council (WTTC) and its strategic partner Accenture.
Overall, the new TSA results reveal a moderate impact on the Travel & Tourism industry as a result of the global economic downturn, with its annual growth rate experiencing a slowdown in 2008, to 3%, in comparison to 3.9% in 2007.
Looking past this present cyclical downturn, the long-term forecasts point to a mature but steady phase of growth for world Travel & Tourism between 2009 and 2018, averaging a growth rate of 4.4% per annum, supporting 297 million jobs and 10.5% of global GDP by 2018.
WTTC President Jean-Claude Baumgarten explained “Challenges come from the US slowdown and the weak dollar, higher fuel costs and concerns about climate change. However, the continued strong expansion in emerging countries – both as tourism destinations and as an increasing source of international visitors – means that the industry’s prospects remain bright into the medium term.”
Regionally Africa, Asia Pacific and the Middle East are experiencing higher growth rates than the world average, at 5.9%, 5.7% and 5.2% respectively, while the mature markets, most notably the Americas and Europe, are falling below the world average with a growth at 2.1% and 2.3 % respectively.
The overall impact of this slowdown for mature markets is expected to be offset by the strength of the emerging markets explains John Walker, Chairman of Oxford Economics “In particular, China, India and other emerging markets are still growing rapidly, which will increase both business and leisure travel, while many countries in the Middle East are undertaking massive tourism-related investment programmes.”
Moreover, even in countries where economic growth slows, there is likely to be a switch from international to domestic travel rather than a contraction in demand for Travel & Tourism.
Among the 176 countries covered in the TSA research, the United States continues to maintain pole position as the largest Travel & Tourism economy, with its total demand accounting for more than US$1,747 billion this year. With a growth rate at 1.1% in 2008 the credit crunch is leading to a marked slowdown in US economic growth and is likely to restrict the business travel of those working in financial markets.
Considerable ground has been made by the emerging markets which are experiencing rapid economic growth. In 2008, China will jump from fourth to second position above Japan and Germany and is forecasted to increase its Travel & Tourism Demand four-fold by 2018, accounting for US$2,465 billion, with an annual growth rate of 8.9%. Among the fastest growers in 2008, Macau leads with a growth rate at 22%.
Highlighting the challenges of market volatility and external events faced by the industry,
Alex Christou, Managing Partner of Accenture’s Transportation & Travel Services said “High performance companies will differentiate themselves by being highly focused on their individual customers. The winners will be companies that take a balanced view, driving customer intimacy and product innovation while driving non-value added costs out of their operations.”
ENDS
Contact
For further information please contact Louise Oram at WTTC on 44 20 7481 8007 or email louise@wttc.travel
WTTC research covers 176 countries, 13 regions and the world. To access the research please go to http://www.wttc.travel/eng/Research/Tourism_Satellite_Accounting/
About WTTC
WTTC is the forum for business leaders in the Travel & Tourism industry. With Chairmen and Chief Executives of one hundred of the world’s leading Travel & Tourism companies as its Members, WTTC has a unique mandate and overview on all matters related to Travel & Tourism.
WTTC works to raise awareness of Travel & Tourism as one of the world’s largest industries, employing approximately 238 million people and generating nearly 10 per cent of world GDP.
Tourism Satellite Accounting research, based on the UN standard for Satellite Accounting, quantifies the wide-ranging economic impact of Travel & Tourism and provides solid, credible and professional statistical information that can assist in informing government policy and business decision processes.
