Ecotourism in BIMP-EAGA: Outlook and Opportunities

1. Ecotourism in BIMP-EAGA: Outlook and Opportunities By Bernardino Moningka VegaBIMP-EAGA Business Council

2. Source: UNWTO Trends in Tourism • Global 2020 • Arrivals: 1,560 Billion • Receipts: ~$2,000 Billion • Grown from 565M arrivals in 1995 to 843M in 2006, and forecast to rise to 1.6B by 2020 (Source: UNWTO) • Long-term growth forecast of 4.2% per year to 2020 • Rapidly Growing Asia Pacific Tourism • From 79M in 1995, has grown to 167M in • 2006; Forecast of 397M by 2020. (Source: • UNWTO) • Global share has risen from 15% in 1995 to • 19% in 2006, and expected to capture 25% by • 2020 • 7.3% annual growth rate projected to year • 2020; Increase in intra-regional traffic • Strong Growth Prospects for ASEAN • From 29.7 M in 1995, has grown to 52M in • 2006; Forecast of 136M by 2020. (Source: • UNWTO) • Global share has risen from 5.26% in 1995 to • 6.17% in 2005, and expected to capture 9%by • 2020 • 7.7% annual growth rate projected to year • 2020; Increase in intra-regional traffic Global and regional tourism growth prospects look robust

4. Total International Visitor Arrivals to ASEAN (2005)

5. Major Market Share by Region (1991-2005)

6. Top 10 Visitor-Generating Markets of International Visitor Arrivals to ASEAN (2005) Top 10 Generating Markets for ASEAN in 2005

7. Trends in International Arrivals 1995-2006 (In Millions)

8. DRIVERS OF GROWTH INDICATORS Positive Outlook for Global Tourism • Grown from 565M arrivals in 1995 to 843M in 2006, and forecast to rise to 1.6B by 2020 (Source: UNWTO) • Long-term growth forecast of 4.2% per year to 2020 • Continued economic growth • Transport tech. advances • Information tech. advances • Removal of barriers to travel • From 79M in 1995, has grown to 167M in 2006; forecast of 397M by 2020. (Source: UNWTO) • Global share has risen from 15% in 1995 to 19% in 2006, and expected to capture 25% by 2020 • 7.3% annual growth rate projected to year 2020; • Increase in intra-regional traffic • Increasing affluence within region • Rise of new Asian middle class • Entry of China, India & Russia as source markets • Increasing importance of low-cost carriers (LCCs) • Easing of border restrictions Rapidly Growing Asia & Pacific Tourism Growth in Inbound Tourism in the Region Positive Global and Regional Trends Suggest Good Outlook for Tourism in the Region • Improved access and • connectivity • Strong natural and cultural • heritage assets • Road map for tourism • Institutional framework for action • From less than 1million in 1995 to • 3.6 million in 2005, forecast to • increase to +11 million by 2020

9. Key Trends and Drivers of Growth -ASEAN Open Skies Roadmap • (Capital cities in 2008; secondary cities in 2015) • BIMP-EAGA 5th Freedom Traffic Rights Agreement -Increasing Intra Regional Travel in the ASEAN Region

10. Key Trends and Drivers of Growth • Impact of Low Cost Carriers Increasing Connectivity

11. Consumer Trends The “New Tourist” • Experienced and independent • “do it yourself” travel bookings, destination research • Technology Oriented • Quality in tourism products & value for money • Prefers multi-activities and willing to learn from other cultures • Increasingly environmentally and socially sensitive • Wants deeper appreciation of destinations visited • Shorter but more frequent vacations throughout the year Source: Cabrini - UNWTO 2005

12. Consumer Demand and Supply Trendsfor Responsible Tourism • Strong and growing market, but largely passive • Travelers Philanthropy: Rapidly growing corporate & consumer commitment to assisting local communities • Growing concern about environmental impacts of tourism activity • Surveys on willingness to pay more in support of responsible travel products show a growth, though few have measured actual consumer practices • Growth in smaller, less familiar destinations • Variety in tourist demand and destination accessibility Source: TIES 2005

13. Emerging destinations in Asia • Ecotourism • Destinations: • Sabah • Palawan • Laos • NW Viet Nam • NE Cambodia • South Central Sulawesi • Sarawak • Papua • Sumatra • Yunnan PRC • Chilbo, DPRK • Himalayas

14. Emerging destinations in Asia • Culture Tourism • Destinations: • Siem Reap • Hue • Luang Prabang • Central Java • Papua • Yunnan PRC • India • Nepal • Bhutan • Sri Lanka

15. Emerging destinations in Asia • Beach/ Island/Resort Tourism • Destinations: • Bintan • Bunaken • Nexus Karambunai • Langkawi Isl. • El Nido, San • Vicente & Coron • Hamilo Coast • Kerala & Orissa • Sri Lanka • Laguna Viet Nam • Phu Quok Isl. • Koh Chong Isl. • Group

16. Opportunities for Ecotourism in BIMP-EAGA • Development of environmentally and socially sustainable tourism products and themes • Access to new markets as air access and connectivity networks develop as a result of opening of skies • Development of new marine, beach and ecotourism destinations • Strengthening of urban tourism through increased trade (development of MICE facilities)

17. The Coral Triangle

18. Marine eco-destinations in BIMP-EAGA

19. The Heart of Borneo Conservation and sustainable development program aimed at conserving and managing contiguous tropical forest in the island of Borneo.

20. Papua Rainforest Conservation and sustainable development program aimed at conserving and managing contiguous tropical forest in the island of Papua.

21. Sustainable Tourism Product Development Opportunities • Environmentally Responsible • compliant with international standards • ( e.g. TUI, Blue Flag, Green Globe, etc) • neutral or negative carbon footprint • Socially Responsible • participation of local communities • locals given preference in employment • provides livelihood opportunities for locals • Economically Responsible • makes extensive use of local good and services • build capacity of local suppliers

22. Challenge: Access and Connectivity But! Multi-modal network in place… Restrictive Transport Policies Results in.. Limited Access & Connectivity • High access costs • Low service frequency • Low service capacity

23. The Product: Demonstrably sustainable ecotourism and resort product themes New Product Development Opportunities Target Market High net worth environmentally conscious, culture-seeking individuals willing to pay a premium for demonstrably sustainable ecotourism and resort destinations Market size estimated at 5% of global arrivals in 2002 i.e. 35 M (UNWTO, 2002) Probable Market Profile Demographic: • Baby boomers (between ages 35-54) 43% • Generation X & Y (18-34) 30% • Mature (55+) 27% (Source National Geographic Geotourism Study in the USA, 2002) By Type of Traveler : • Geo savvy 29% • Urban Sophisticates 38% • Good Citizens 33% (Source National Geographic Geotourism Study in the USA, 2002) Market Source Areas • North America • Europe • Asia • Middle East Growth Prospects Low: 42.35M in 2006 to ~ 53.6 M in 2012 (UNWTO, 2002) High: 42.35M in 2006 to ~ 108.6 M in 2012 (ABTA Survey, 2004)

24. Competitive Strengths: Rich set of complementary natural and tribal cultural heritage assets Good human resource base Located within a strongly growing economic region Large nearby growth markets Location within the world’s fastest growing tourism region Cooperation framework, road map and institutional arrangements in place Developed marine and land destinations (2 of 4 tropical rainforest and most diverse marine eco-system in the world) Competitive Weaknesses: Inadequate access and connectivity Inadequate marketing and promotion Insufficient policy and regulatory support Insufficient community participation Competitiveness of BIMP-EAGA as an Ecotourism Destination Overall weakness are offset by competitive strengths that make it possible for BIMP-EAGA to compete successfully with other emerging sub regional destinations

25. Good prospects for international tourism to BIMP-EAGA but… Growth of Tourism in the Region Investment Opportunities To improve access and connectivity To develop tourism/ ecotourism products and facilities To enhance Marketing Support Other Opportunities Increase capacity of infrastructure and facilities

26. THANK YOU