2. Global Tourism Trends and Prospects for 2002 Presentation by Andrei Chlevkov, Assistant to WTO Regional Representative for Europe Prague, Czech Republic, 6 th February 2002

3. MICE Benefits and Costs +High level of spending by delegates +Increased employment +Tax revenues +Redevelopment of depressed areas +Improving the image - High development and operating costs - Infrastructure cost - Investment alternatives - Possible local price increases

4. Worldwide Export Earnings, 1999

5. World results, 2001 Growth rate 00/99: 7% Growth rate 01/00: - 1.3 % Growth rate 00/99: 4.9% International Tourist Arrivals (millions) International Tourist Receipts (USD billions)

6. Purpose of visit International tourist arrivals

7. Year 2001 was affected by: - foot and mouth disease - economic slow-down - stocks sliding - decrease in consumer confidence - slight increase in unemployment -pro- and anti- globalization movements - the antrax scare 11th SEPTEMBER TERRORIST ATTACKS

8. The 11th September Impact on Global Tourism: Worst Hit Segments: Long-haul tourism Air carriers Hotels Business Travel Destinations heavily dependent on US traffic

9. Effects on Global Tourism, triggered by 11 th September Airlines: Massive cancellations Global losses for the year 2001: USD10-12 billion (IATA) Bankruptcies Reduction of capacity and staff Curtailment of routes Profit warnings and a slump in share prices Accelerated retirement or sale of aircraft and cancellation or delay of aircraft orders Major insurance problems

10. Accommodation: Massive cancellations and job losses Worst hit: up-market hotels, particularly, hotels catering for individual businessmen, conventions and incentives and which have a high proportion of North American clients Income per room dropped 19.4 per cent in the US and 8.2 per cent elsewhere in the world At the end of 2001 occupancy rates were still 13 per cent down on 2000

11. Sectors and Segments Least Affected by the Crisis Redistribution of tourist flows in favour of: - destinations perceived as safe - domestic tourism - destinations reached by alternative transport (car) Special interest tourism (sports, culture, ecotourism)

12. Remedial Actions proposed by the WTO Tourism Recovery Committee Preserve the industry’s operational capacity Institutional measures: government coordination Rebuild consumer confidence Enhance safety and security Improve communication Better targeted products Vigorous marketing (including cooperative action) Public-private partnerships Understanding the economic impact of tourism (by markets, segments, sectors, etc.)

13. The Crisis as a Catalyst: Encouraging the development of new products Targeting new market segments Improving product quality and competitiveness Eliminating rigidities and inefficiencies Speeding up changes (direct bookings, Internet, closure of travel agencies, consolidation in the air transport sector) Underlining the role of tourism as a wealth generator, job creator and promoter of peace and understanding

14. International Tourism Key Words Growth Globalization Vulnerability Resilience

15. Second oil crisis / crisis (Afghanistan, Poland,...) Gulf War / Yugoslavia Asian crisis / Problems in the Eastern Mediterranean Growth / Performance

16. Vulnerability / resilience

17. Growth

24. Internet Use for MICE Organizers Features of a MICE site: General editorial material to help raise awareness of the destination Detailed practical information Information about travel options Details of the services provided Full details of MICE products Access to the full leisure product database Online reservations Special promotions for MICE organizers to offer their clients Details of DMO personnel Optional registration to receive future information and offers

26. Prospects for Central European Destinations (1) Joining the European Union Huge benefits: - joining most economically and socially developed nations - free movement of capitals, goods, services and people - joining the euro zone Factors to take into account: - increased competition - the need to harmonize legal frameworks in tourism (The EU package tour directive, the Bill of air passenger rights, etc.)

27. Prospects for Central European Destinations (2) Rich and varied heritage (natural and man-made tourism resources) Living folk traditions and hospitality Relatively developed tourism infrastructure Potential for varied and high quality tourism offer Proximity to major European markets Positive image Institutional support and public awareness

28. www.world-tourism.org achlevkov@world-tourism.org