1. Impact of the Global Financial Crisis on Tourism Destinations & Mitigation Efforts Mekhak Apresyan & Alan Saffery Ministry of Economy / CAPS

3. Update – Jan -Apr 09 = -8%

4. Easter 2008 – March Easter 2009 - April

6. Air Transportation – January to May 2009 Passenger Traffic = 8% decrease Capacity = 4% decrease Load Factors = 4% decrease Hotel Stays – January to April 2009

7. Outlook Overall Growth = -4 to -6% worldwide Worst is yet to come!! Unemployment still rising in key source markets Exchange rates fluctuating Influenza A(H1N1)

9. Tourism has always demonstrated a remarkable resilience and has, on the whole, come out stronger and healthier. This juncture, however, might be different. This crisis is truly global and its parameters are still in many ways unclear. UNWTO 12 th May 2009

10. Consumer Behavior No holidays Less holidays Fewer holidays Closer holidays ?? Off season travel Shorter stays Special offers Less advance bookings 4* or lower accommodation preference Increased use of Low Cost Carriers Business People Economizing

11. Mitigation Efforts 1.Marketing measures (92%) 2.Public/private partnerships (71%) 3.Monetary measures (69%) 4.Fiscal measures (50%) 5.Human resource measures (29%) 6.Transnational cooperation (17%) 7.Travel facilitation (15%) 8.Environmental measures (6%)

12. Marketing Measures Allocation of extra funding for promotion – advertising and e- marketing – aimed at neighboring and domestic market Promotion of domestic destinations and encouragement of local visitors to make short trips at home Discounts on entrance fees in local attractions and facilities Promotion of value added or reduce price packages in major source markets Promotion of social tourism and group travelling domestically or incentives and special discounts for travelling off-peak Greater attention to niche products and services AUSTRALIA – No Leave No Life Campaign PORTUGAL – Domestic Tourism Portal & Campaign

13. Private/Public Partnerships Financial support for the expansion/maintenance of airline capacity Organization of co-promotional activities with airlines, hotels, travel agents, aimed mainly at hard selling campaigns in source markets – including value added/discounted packages Discounts or special offers in a wide range of national products, leisure activities, restaurants, tourism attractions Waiving fees for the participation of travel professionals on tourism fairs abroad Creation of market monitoring boards within the tourism value chain to closely follow up the performance of the sector and its source markets and act accordingly HUNGARY – domestic tourism research followed by campaign KOREA – VISA and Korean Tourism – discount coupon campaign 04/09 – 03/10

14. Monetary Measures Special credit lines, and exceptional micro finance schemes Refund of guarantee deposits for travel agencies and tour operators Financial benefits for air and sea transportation companies to operate routes to remote areas Support to foreign investment as well as external borrowing JAMAICA – US$50 million loan facility for domestic transportation companies THAILAND – Micro credit scheme for SMEs

15. Fiscal Measures Air transport tax reductions or exemptions including the reduction of landing and parking fees at airports Decrease or suspension of taxes in accommodation and/or restaurants Direct investment in tourism infrastructure, particularly leisure facilities, tourism resorts, national parks, cultural attractions, accommodation Development of general infrastructure – airports, ports, roads, railways, etc MACAU – 5% tourism tax suspended (restaurants) FRANCE – Restaurant VAT rate reduced from 19.6% to 5.5% from July 1 NETHERLANDS – Revoked airport departure tax of EUR 11.25 (short haul) & EUR 45 (long haul)

16. Human Resource Measures Creation of full & part time jobs for minorities, women & youth Development of programs to increase awareness of young people on tourism as a career Organization of training seminars and improvement of recruitment systems Development of capacity building campaigns and technical assistance programs on marketing, business techniques, management and IT PHILIPPINES – Job creation program for 3000 individuals PAKISTAN – Expansion of working visa scheme for knowledge and skills transfer – up to five years

17. Transnational Cooperation Development and promotion of multi-destination itineraries Organization of cross border events and festivals Travel facilitation within a specific region Creation of platforms to exchange know-how and share information on source markets Marketing partnerships ITALY, SPAIN & FRANCE – Mutual marketing strategy MACAO – Common tour packages with China & Hong Kong

18. Travel Facilitation Visa facilitation and visa free exemptions or granting visa on arrival for visitors from neighboring countries, other source markets or special target groups Simplification of travel regulations and minimizing the restrictions and rules for incoming tourists CAMBODIA, LAO, VIETNAM – Intra-country visa agreements KENYA – Reduced visa fees

19. Environmental Measures Support to development of systems of low-carbon energy saving accommodation Developing carbon offsets program Funding eco-friendly tourism infrastructure and revitalizing transportation aimed at using renewable energies Organizing and promoting zero energy events Funding mechanisms for the development of green tourism products and services Increasing awareness of tourism industry on environmental issues KOREA – carbon neutral tourism complex

20. Even emerging economies, which at the beginning seemed to resist better, are rapidly facing the impact of the economic crisis. UNWTO April 2009