Daily tourism spend hits US$2 billion daily average Madrid (2006-07-14)

1. Daily tourism spend hits US$2 billion daily averageMadrid (2006-07-14) THE World Tourism Organization says tourism spending now averages US$2 billion a day, up 3.4 per cent from 2005.Last year, the organisation estimates US$682 billion was spent abroad by tourists. If spending on foreign passenger transport of US$130 billion is added, the total export spend is more than US$800 billion, some six per cent of global export of all goods and services.In comparison to receipts, international tourist arrivals grew by 5.6 per cent in 2005. Africa and the Middle East were the fastest growing regions, with arrivals increasing 10 and 9.5 per cent respectively in 2005 over the previous year. Asia and Pacific arrivals grew 7.8 per cent in that period.

2. Airlines(current scheduled for 2006, both directions; total = 1,151,780)

3. Scheduled Weekly Flights(current scheduled for 2006, both directions; total = 5,383)

4. Scheduled Weekly Seats(current scheduled for 2006, both directions; total = 1,151,780)

5. Cambodia

6. Yunnan (1996 – 2005)

7. Guangxi (2000 – 2005)

8. Lao PDR

9. Myanmar

10. Thailand

11. Vietnam

12. Travel & Tourism Measures

13. Mission Statement • To develop & promote the Mekong as a single destination, offering a diversity of good quality & high-yielding sub-regional products that help to distribute the benefits of tourism more widely • To add to the tourism development efforts of each GMS country • To contribute to poverty reduction, gender equality & empowerment of women • To promote sustainable development, while minimising any adverse impacts

14. Why Tourism in GMS? • Major growth engine for socio-economic development and poverty alleviation • Promoter of the conservation of natural and cultural heritage • Harbinger of peace

15. Strategic location Transportation cross road Large regional markets Strategic Position in Region

16. 16 international airports 70 million passengers p.a. 8% growth p.a. Airport expansion –Suvarnabhumi Airport, Bangkok 125 million passengers by 2010 Air Transportation Network

17. Increased number of cross-border access points More access points with visa on arrival Improved access to visa extensions Development of GMS single visa Major Border Access Points

18. Ground Transportation and Other Infrastructure • Rapidly developing road transportation corridors • Implementation of Agreement on Transportation of goods and passengers • Integration of telecommunications services • Interconnection of energy grid

19. 308,500 hotel rooms (5,000 establishments) $18.5 billion in fixed capital Strengthening room occupancies in mid to upper end of market (+75%) Demand growth at up to 8% per annum Hot areas are Cambodia, Lao PDR, and Viet Nam 4,700 travel agencies and tour operators Growing trend for partnerships between foreign and domestic operations Growing trend for cross-border tours based on cultural jewels Growing interest in Mekong River trips Hotel and Tour Operations

20. GMS 7 Core Tourism Challenges • Marketing and Product Development • Tourism Related Infrastructure • Human Resource Development • Managing Heritage Conservation • Pro-Poor and Equitable Tourism Development • Private Sector Participation and Investment • Facilitating Sub-regional Tourism Flows

21. Implementation • 13 spatial priority tourism zone projects • 16 thematic projects • 104 country specific projects • the Mekong Tourism Coordination Office

23. Expected Outcome: Estimated Value of Tourism Expenditure in $ Billions(at 2005 prices) Source: GMS Tourism Sector Strategy, June 2005

24. Estimated Investment Requirements($ Billions) * Includes shopping, entertainment, amusements, resorts, ground transportation, cruise vessels and meeting facilities Source: APPI Estimates. September 2005

25. Priority Areas for Investment in the GMS • 1. Mekong River Tourism Corridor • 2. Golden Quadrangle • 3. East West Tourism Corridor Zone • 4. Emerald Triangle • 5. Southern Tourism Coastal Corridor • 6. Green Development Triangle • 7. Lao PDR – Viet Nam Cross-border • Community-based Tourism Zone • 8. Andaman Coast Tourism Zone • 9. Shangri-la–Tengchong–Myitkyina • Tourism Development Zone • Red River Valley Tourism Zone • 11. Guangxi – Northeast Viet Nam • Borderlands Tourism Zone • Not Shown on the Map are: • Heritage Necklace Circuit • 13. GMS Coastal and River Cruise Lines

26. Investment Opportunities in Country Projects Source: GMS Tourism Sector Strategy, June 2005

27. Tourism Marketing and Promotion Plans Understanding the Dynamics of Mekong Destination Marketing

28. Current Situation Reflected by: • Weak market position • Limited and narrow product base • Uncontrolled growth • Lower yields • Limited poverty alleviation effects • Limited control over negative impacts

29. Possible Strategies and Programmes • Increase efforts to market the subregion as a single destination • Increase and diversifysubregional tourism product • Raisemanagement capacities andservices-facilities quality standards • Confront the negative impacts of tourism development • Broaden the approach to the pro-poor tourism development • Boost private sector participation • Accelerate facilitation efforts

30. Situation Analysis GMS Tourism Cooperation

31. Suggested GMS Objectives and Targets

32. GMS Tourism – Going Forward • Tourism Working Group • Mekong Tourism Office • Mekong Tourism Investment Summit • Mekong Tourism Roundtable • Mekong Tourism Training Workshop

33. Tourism in the Future Be Prepared…..however… • Terrorism will continue to have an effect • Rising energy prices, inflation & interest rates might change the current economic scenario • Avian flu remains a serious concern • Worldwide tourist arrivals expected to grow by 4-5% per annum over the longer-term