Portugal s T&T Competitiveness. Findings from the T&T Competitiveness Report 2015
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1 Portugal s T&T Competitiveness Findings from the T&T Competitiveness Report 2015
2 About the World Economic Forum What do we do in the context of the Travel & Tourism Industry The Aviation & Travel Community: The Aviation & Travel Community comprises select member companies from the entire travel ecosystem, ranging from aerospace manufacturers and passenger transport to hospitality and travel services that are actively involved in pursuing the Forum s mission at the industry level. The community brings visibility and insight to strategic decisionmaking on the most important industry and cross-industry related issues, as well as the opportunity to engage in global corporate citizenship. The Global Competitiveness and Risks team: Develops a number of reports and studies looking at various drivers of economic competitiveness and productivity. This work serves as policy tool and platform for dialogue, where business, government and civil society leaders are brought together to provide high and rising living standards for their citizens. The team publishes the Global Competitiveness Report annually, and the Travel and Tourism Report every other year since 2007 covering 141 economies.
3 Why producing a Travel & Tourism Competitiveness Report? Number of people USD Tourism is a large economic sector representing 10% of Global GDP and 6% of the world s exports. It employs 277 million people globally. And it is estimated to support an addition 80 million new jobs. Sustainable tourism also promotes environmental protection and cross cultural awareness. 1,200,000,000 1,000,000, ,000, ,000, ,000, ,000,000 0 World tourism (arrivals and receipts) World International tourist arrivals 1,600,000,000,000 1,400,000,000,000 1,200,000,000,000 1,000,000,000, ,000,000, ,000,000, ,000,000, ,000,000,000 World International tourism receipts (USD) 0
4 The T&T Competitiveness Index Definition: The TTCI measures the set of factors and polices that enable the sustainable development of the T&T sector, in turn contributing to the development and competitiveness of a Methodology: The index combines: Statistical indicators from international organizations: Indicators derived from the Forum s annual Executive Opinion Survey country. 4
5 Index Structure Enabling environment T&T Competitiveness Index T&T Policy and enabling conditions Infrastructure Natural and cultural resources Business environment Prioritization of T&T Air transport Natural resources Safety and security International openness Ground and port infrastructure Cultural res. and business travel Health and hygiene Environmental sustainability Tourism service infrastructure Human capital and labor market Price competitiveness ICT readiness
6 2015 Index Ranking Top 20 and selected economies 1 Spain 2 3 Germany 4 United States 5 United Kingdom 6 Switzerland 7 Australia 8 Italy 9 Japan 10 Canada 11 Singapore 12 Austria 13 Hong Kong 14 Netherlands 15 Portugal 16 New Zealand 17 China 18 Iceland 19 Ireland 20 Norway 24 United Arab Emirates 28 Brazil 30 Mexico 31 Greece 33 Croatia 36 Cyprus 39 Slovenia 40 Malta 44 Turkey 62 Morocco 65 Oman 72 Israel 79 Tunisia 82 Macedonia, FYR 83 Egypt 86 Cape Verde 94 Lebanon 106 Albania 123 Algeria 139 Angola
7 Different models of development Portugal Spain Italy Greece Turkey Morocco Egypt Luxembourg Developing the Tourism sector can follow different models depending on the characteristics and preferences of each country. Portugal is developing balancing mass tourism locations with lowerpresences/higher value offers. As a consequence Portugal has a better ratio of tourism receipts for each international arrival Average spending per intenational tourist (US$ per arrival)
8 Mediterranean Countries performance overview APillar score (1-7 scale) Business Environment Safety and Security Health and Hygiene Human Resources and Labour Market ICT Readiness Prioritization of T&T International Openness Price Competitiveness Environmental Sustainability Air transport Infrastructure Ground and port infrastructure Tourist Service Infrastructure Natural Resources Cultural Resources and Business Travel 7 6 Cyprus Greece Portugal Egypt Malta Spain 5 Malta Portugal Slovenia Morocco 4 Lebanon 3 Italy Egypt Algeria Algeria Lebanon Algeria 2 1 Algeria Algeria Algeria Lebanon Albania Best Mediterranean Average Mediterranean Global best Portugal Worst Mediterranean
9 Portugal s strengths and weaknesses vis-à-vis main competitors Compared to Spain and Italy Portugal trails especially in terms of natural and cultural resources promotion and air transport infrastructure. Overall rank 15th 17 th 36 th Cultural Resources and Business Travel Natural Resources 58 th Business Environment Safety and Security 10 th Health and Hygiene 35 th ICT readiness is a third area for improvement. Portugal ranks the lowest on the business environment, but it performers better than Spain and Italy. It can become a competitiveness advantage if improved. 10 th Tourist Service Infrastructure Human Resources and Labour Market Ground and port ICT 34 th 40 infrastructure Readiness th 34 th Air transport Infrastructure 36 th Environmental Sustainability Price Competitiveness 104 th International Openness Prioritization of T&T 14 th 18 th 18 th Spain Portugal Italy
10 Sub-optimal air transport infrastructure Available seat kilometres, international Number of operating airlines UAE Spain Italy Turkey Portugal Egypt Greece Israel Morocco Cyprus Croatia Italy Spain Turkey UAE Greece Egypt Israel Portugal Croatia Morocco Cyprus Number of airlines with scheduled flights Number of airlines with scheduled flights
11 Under-developed ICT broadband technology Compared to other Countries in the Region, Portugal s internet use is high. However the ICT infrastructure, especially broadband technology should be expanded further.
12 The impact of digital presence to drive tourists arrivals Number of online searches (Natural+Cultural) A developed ICT infrastructure impacts destinations attractiveness. 3,000,000 Arrivals and online searches Online presence and marketing will be increasingly important as tourists use the internet not only to book tickets but also to choose destinations. 2,500,000 2,000,000 1,500,000 1,000, ,000 R² = ,000 20,000 30,000 40,000 50,000 Interntional tourists arrivals
13 The importance of enhancing Cultural resources UNESCO Cultural, oral and intangible heritage Cultural and entertainment digital demand Italy Spain Turkey Greece Portugal Morocco Malta Spain Italy Portugal Turkey Greece Morocco Malta Number of sites and practices in UNESCO's lists Number of internet searches
14 Marketing can help to enhance a country s resources How effective is your country s marketing and branding campaigns at attracting tourists? (1 = not effective at all, 7 = extremely effective) How much of a priority is the development of the T&T industry for your government? (1 = Not a priority at all; 7 = Top priority) Portugal Italy Spain Iceland Turkey Portugal Spain Italy Turkey
15 Conclusions Portugal has a well-balanced tourism strategy and has several competitiveness strengths, achieving the 15 th place in the T&T Competitiveness Index Ranking To further enhance its tourism industry Portugal should offer better connectivity (both physical and virtual). Communication and marketing campaigns should be reinforced to better value remarkable but somewhat under-appreciated natural and cultural resources. Developing the Tourism sector requires long-term planning and strategy to drive structural transformation of the industry. A multi-stakeholder approach is key to overcome bottlenecks and coordinate across: a) ministries, b) national and local authorities and c) public and private actors.
16 Q&A Next edition: April 2017 Visit our website for further information and to download the Report: World Economic Forum 2016 All rights reserved.
41 T Korea, Rep. 52.3. 42 T Netherlands 51.4. 43 T Japan 51.1. 44 E Bulgaria 51.1. 45 T Argentina 50.8. 46 T Czech Republic 50.4. 47 T Greece 50.
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