March 23, 2011

Tourism Industry Profile

Overview
In this paper I shall be providing a recap of how the World’s Tourism is currently
performing based on UNWTO World Toursim Barometer (2011). It’s within certainty
that the World Tourism in the past year has hit high tides in many regions (in contrast
to what the effect might be in 2011 due to the mass demonstrations throughout the
Middle East and North Africa).

What else’s in this report?

I shall also be looking into last year’s (2010) performance of this sector and the
predicted continued growth in the year of 2011, followed by my views on how
established small and medium sized businesses (in particular regions can take
advantage based on the overall trends) as well as individual entrepreneurs could
venture into untapped niche tourism markets that have high probability of bringing in
good business. These regions are the Middle East and Central Asia.

Keywords: Tourism, Tourists, SMEs, Tourism Start-ups, Entrepreneurship,

Middle East, Central Asia
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Sector Tourism
ISIC Sector Tourism comprises the activities of persons traveling to and staying in places outside
Definition: their usual environment for not more than one consecutive year for leisure, business
and other purposes. “Visitors” are defined as those people who travel to a country
other than that in which they have their usual residence for a period not exceeding
twelve months and whose main purpose of visit is other than the exercise of an activity
remunerated from within the place visited.

Significance Tourism is a key to development, prosperity and well being of any country. A growth in
of Tourism tourism sector contributes to employment, raises national income, and can improve the
Balance of Payments. Thus this sector is an important driver for growth and prosperity.
Sector : Tourism has become one of the major international trade categories.

World Tourism Overview

2010: Fast-forward Recovery

According to the UNWTO’s

Advance Release and
Statistical Annex of the World
Tourism Barometer the
international tourism recovered
strongly in 2010 from the blow
if suffered due to the global
financial crisis and economic
recession. International tourist
arrivals were up by almost 7%
to 935 million, following the
exceptional 4% decline in
2009. However, recovery
came at different speeds and
was primarily driven by
emerging economies.

Asia & Pacific (+13%): According to the Africas (6%): This growth is an increase
UNWTO it’s the first region to recover. With based on the positive results of 2009. According
many of the international tourists arriving at a to the UNWTO this achievement is attributed to
historic new level of 204 million in 2010 alone. the exposure FIFA World Football Cup has
Usually a double-digit growth is common in created for the African region. The region
this region where such increase in tourism is maintained momentum in 2010, achieving a total
fueled by a strong development of the local of 49 million arrivals.
economies.
Europe (+3%): The European region was the
Middle East (+14%): This figured is hardest hit, the closure of its airspace in April and
boosted by intraregional travel which is uncertainty about the economy have not helped
supported by high oil prices. The region to speed ip the recovery in the region. In contrast,
reached 60 million arrivals. there have been outstanding performances in
some large countries such as Germany (+12%)
Americas (+8%): This figure can be and Turkey (6%).
explained mostly by economic factors, namely
the signs that the US economy is recovering.
According to the UNWTO the regional
integration in Central and South America has
also favored the recovery.

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Review of 2010 (compared to previous years)

2010 was a year of mega-events such
as China’s Shanghai World Expo, FIFA
World Cup in South Africa and the
Winter Olympics in Canada where such
events have the ability to attract a great
amount of visitors where it actually
positions a nation as an attractive
tourist destination.

Overall, based on UNWTO’s

Barometer, the International Tourism
held up well in 2010, despite persistent
economic uncertainty in some major
markets, the natural disasters suffered
in some countries, political and social
unrest in others, the serious disruption
of air travel following the volcanic
eruption in Iceland last April and the
problematic weather conditions in parts
of Europe in December.

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Potential Areas and Niche Markets for SME Growth

As means of travelling around the world is 2) Central Asia
only getting easier, I believe that there are
many entrepreneurial opportunities within the I believe that this area has a huge potential
tourism sector that can be exploited in many in becoming an attractive tourist
different parts of the world. desitnation. Ever since the Silk Road
Toursim Project was adopted in 1994,
It is in my opinion that the regions such as 1) conciding with the independence of the five
Middle East, 2) Central Asia can still attract central Asian republics, the Project was
a large number of tourists. proposed to serve as a fundamental
platform for cultural exchange, trade and
1) Middle East: toursim.

This region has proved to be already But unfortunately this area still largely
attracting tourists but due to the recent remains unattractive to tourists mainly
protests (since January 2011); there might because of:
be a sharp decline of visitors in countries that a) Lack of promotion: Toursim
usually enjoy hosting many guests (e.g., authorities must brand their
Egypt, Tunisia, Bahrain and Oman). destinations. Many of the successful
Tourist destinations have
Nevertheless, SMEs can capitalize if they established ‘Branding Offices’.
are willing to operate in special interest b) Ease of access: Its upto the
tourism markets such as: country’s respective authorities to
develop their airline industry.
1. Aboriginal Tourism c) Online resources in English:
2. Backpacker Tourism Referencing is an important tool for
3. Cruise Tourism any tourist and the first place they
4. Cultural Tourism access to see what the country has
to offer is on the Internet.
To those who are familiar with this topic and
region might have noticed that I excluded However, I believe that SMEs can profit if
Business Tourism in the list above as I they are to promote and operate in the
believe that the Middle East has already following toursim markets:
achieved a reputable status as business hub
among the Arab nations. The United Arab 1. Aboriginal Toursim
Emirates (Dubai), Qatar (Doha) and Saudi 2. Backpacker Toursim
Arabia (Riyadh), just to name a few, are 3. Cultural Toursim
places that are synonymous when dealing 4. Accessible Toursim
business in the Middle East. 5. Business Toursim
6. Food Toursim
7. Nature in Toursim
8. Halal Toursim
9. Music Toursim
10. Village Toursim

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Terms of Reference
Aboriginal Tourism Cultural Tourism
Aboriginal tourism product is either The cultural and heritage tourism sector
Aboriginal owned or operated, employs a includes activities such as attending the
majority of Aboriginal people, or provides theatre or concerts, visiting museums or art
consenting contact with Aboriginal people, galleries, attending festivals, fairs, or
culture or land. cultural events, experiencing Aboriginal art,
craft and cultural displays and visiting
Accessible Tourism historical heritage buildings.
Accessible tourism is about making it easy
for all people to enjoy tourism experiences. Food Tourism
Food tourism is an important element of
Backpacker Tourism the visitor experience and the aim of our
Backpackers spend more, travel further and work is to build those experiences into the
stay longer than other travellers. The wider cultural and lifestyle marketing
backpacking sector (according to the NSW, activities in key domestic and international
Australia) is about attracting more markets.
adventurous and independent international
travellers into regional areas, through the Nature Tourism (Ecotoursim)
development of more 'must see and do Ecotourism is responsible travel to fragile,
experiences'. pristine, and usually protected areas that
strive to be low impact and (often) small
Business Tourism scale (as an alternative to mass tourism).
International and domestic meetings and Its purpose is to educate the traveler;
conferences, congresses, exhibitions and provide funds for ecological conservation;
tradeshows are extremely valuable to an directly benefit the economic development
economy. and political empowerment of local
communities; and foster respect for
Cruise Tourism different cultures and for human rights.
The cruise sector generates many tourism
opportunities and the numerous regional
ports.

Halal Tourism
Halal tourism is a new product in the tourism
industry which provides holiday destinations
for Muslim families who abide by Sharia
rules. The hotels in such destinations do not
serve alcohol and have separate swimming
pools and spa facilities for men and women.

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References
1. UNTWO World Toursim Barometer, Advance Release (2011)
2. Study on Visa Facilitation in Silk Road Countries, World Tourism Organization (2001)
3. Working in Niche Markets, Toursim of North South Wales - Australia (2011). Website:
http://corporate.tourism.nsw.gov.au/Working-in-Niche-Markets_p583.aspx
4. Definition of Ecotoursim, Wikipedia (2011). Website: http://en.wikipedia.org/wiki/Ecotourism
5. Definition of Halal Toursim, Wikipedia (2011). Website:
http://en.wikipedia.org/wiki/Halal_tourism

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