Proceedings of the First GMS Tourism Ministers’ Meeting

8/9/2019 Proceedings of the First GMS Tourism Ministers’ Meeting

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GMS TOURISM MINISTERS’ MEETINGBangkok, Thailand, 21 January 2008

SUMMARY OF PROCEEDINGS

Introduction

1. The Ministers of Tourism of the 6 GMS countries (Cambodia, People’s Republicof China, Lao PDR, Myanmar, Thailand, and Viet Nam) met in Bangkok, Thailand on 21January 2008. Senior officials from the GMS National Tourism Organizations (NTOs),representatives from the Mekong Tourism Coordinating Office (MTCO), anddevelopment partners including the Asian Development Bank, the Governments of

France, GTZ, and Japan, the Netherlands Development Organization (SNV), UNESCO,UNESCAP, UNWTO ST-EP Foundation, and PATA also attended the meeting. Themeeting was held in conjunction with the ASEAN Tourism Forum 2008 and ASEANTourism Ministers’ Meeting. A list of participants appears in Appendix 1, and a copy ofthe Agenda appears in Appendix 2.

Opening Session

2. H. E. Dr. Suvit Yodmani, Minister of Tourism and Sports, Kingdom of Thailand,extended his warm welcome to all the participants and expressed his thanks to the ADBfor its strong support to the tourism cooperation framework. He also acknowledged thesupport that key development partners have provided to sub-regional cooperation. He

proposed the holding of a Visit the GMS Year in 2009 and looked forward to getting thesupport from the other GMS countries to the proposal.

3. In his remarks, Mr. Arjun Thapan, Director-General, Southeast Asia Department, Asian Development Bank, noted that sub-regional cooperation in the tourism sector hasput the GMS firmly on the world’s tourism map and is contributing to the realization ofthe vision and goals of the GMS Program. He mentioned the major programs andinitiatives under the tourism sector that the ADB has supported in collaboration with keydevelopment partners. He congratulated the GMS Tourism Working Group forsuccessfully steering tourism cooperation to an unprecedented level of maturity. Henoted that the decisions of the Ministers’ Meeting with regard to the Tourism MarketingPlan and the Tourism Development Plan are important inputs to ongoing preparations

for the Third GMS Summit to be held in Vientiane, Lao PDR in March 2008.

4. Copies of the statements made at the opening session appear in Appendix 3.

Meeting Proper

5. The meeting was chaired by H. E. Dr. Suvit Yodmani, Thailand, and co-chairedby Mr. Arjun Thapan, ADB.

Greater Mekong Subregion Economic Cooperation Program


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Overview of the GMS Tourism Sector Strategy

6. Mr. Alfredo Perdiguero, Senior Economist, Social Sectors Division, Southeast Asia Department, ADB, gave an overview of the GMS Tourism Sector Strategy. The

Strategy aims to “develop and promote the Mekong as a single destination, offering adiversity of good quality and high-yielding sub-regional products that help to distributethe benefits of tourism more widely; add to the tourism development efforts of each GMScountry; and contribute to poverty reduction, gender equality, and sustainabledevelopment, while minimizing any adverse social impacts.” It covers 7 strategicprograms and 29 priority projects (13 spatial projects and 16 thematic projects), with atotal estimated cost of US $429.9 Million, with infrastructure representing US $361.3million. A copy of his presentation is in Appendix 4.

Tourism Marketing Plan

7. Mr. Peter Semone, Senior Adviser, MTCO, presented the Tourism Marketing

Plan covering the period 2008-2011. The Plan was developed in consultation with aPrivate Sector Advisory Group (PSAG) and communicated widely among private andpublic sector stakeholders in the seven GMS destinations. In addition, country missionswere undertaken for consultations with representatives of respective NTOs and privatesector entities.

8. The Plan aims to provide strategic advice and direction on how to advance theMTCO’s marketing agenda in two specific areas: (i) institutional development andmanagement of the MTCO as the lead agent for marketing GMS tourism; and (ii)marketing implementation plan recommending specific marketing-related actions to beundertaken by the MTCO in the short (2008), medium (2009) and long (2010-2011)term. The Plan outlines 3 key marketing objectives for the MTCO in the short and

medium terms, including: developing and strengthening sub-regional institutionalcapacity to market the sub-region as a single destination; enhancing sub-regionalproduct development and product quality; and enhancing the promotion of the sub-region as a single destination. Mr. Semone emphasized that the Plan should be treatedas a living document and should be continually revised and updated. The Plan requiresa budget of about US $700,000 proposed to be funded by the NTOs and the privatesector. A copy of Mr. Semone’s presentation appears in Appendix 5.

Tourism Development Plan

9. Ms. Christine Jacquemin, Project Coordinator, MTCO, recalled the earlierdecision of the TWG to focus the actions of the MTCO for the next 2 years on a selected

number of projects. Toward this end, the MTCO Project Coordinator was requested tocarry out a prioritization exercise. The Tourism Development Plan embodies a 2-yearaction plan presented to the TWG at its meeting in Vientiane in December 2007. Theprojects under the plan have been divided into 3 categories: short-term (2008-2010),medium-term (2008-2012), and longer-term (2010-2015).

10. Ms. Jacquemin explained the process and the criteria used (country priorities,current status of the projects, feasibility, and sustainability) in arriving at the prioritizationof the projects under the Tourism Sector Strategy, as well as the main activities planned


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under each category/phase. The selection of projects was done in close consultationwith the NTOs, key development partners, and other stakeholders. She emphasizedthat the Plan’s success depends not only on the TWG, but also on the activeparticipation and support from the main actors of tourism development in the GMS,

namely, the governments, private sector, and development partners. The Plan will beevaluated regularly and readjusted, depending on available funding resources. In 2009,another 2-year plan will be developed. A copy of Ms. Jacquemin’s presentation appearsin Appendix 6.

Discussion

11. The representative of the French Government reaffirmed his government’scontinuing support to the GMS countries on such areas as sustainable tourismdevelopment, tourism human resource development, and conservation of cultural andnatural heritage sites, among others.

12. The representative of the UNWTO ST-EP Foundation noted the intangible goodsarising from tourism development. She mentioned the forthcoming meeting of theFoundation’s Board during which she will discuss GMS tourism cooperation, hopefullywith the assistance of an invited GMS TWG representative. She looked forward tohaving the Foundation fund some of the small projects under the Tourism SectorStrategy.

13. H. E. Dr. Thong Khon, Minister of Tourism of the Kingdom of Cambodia,expressed his support for the 2 plans and emphasized the need for the countries to workmore closely to implement the priority projects under the Tourism Sector Strategy. Heencouraged the mobilization of additional support from the development partners. Hestressed that more should be done in HRD and Product development, and that there

should be a country representative within MTCO.

14. H.E. Dr. Du Jiang, Vice Chairman, China National Tourism Administration of thePeople’s Republic of China, expressed his appreciation for the opportunity to shareviews with the other GMS countries and his government’s continuing commitment tofurther deepen sub-regional cooperation in the sector to develop regional projects.

15. H. E. Mr. Somphong Mongkhonvilay, Minister and Chairman of the Lao NationalTourism Administration, Lao People’s Democratic Republic, noted the substantiveprogress that has been achieved in sub-regional cooperation in the tourism sector whichhas benefited the country tremendously. He expressed support for the 2 plans andemphasized the need to conserve the natural heritage sites as well as the biodiversity of

the sub-region. He also suggested that another GMS Tourism Ministers’ Meeting beheld in the near future. He stressed the fact that the ADB/ MTDP apart from all theprojects undertaken, raised awareness at the higher state level on the important role thattourism can play.

16. H. E. Brigadier General Aye Myint Kyu, Deputy Minister of Hotels and Tourism,Union of Myanmar, emphasized sustainable tourism development in the sub-region andnoted that the GMS countries shared the same identity and common natural resources.He noted that continued support from the development partners is critical and looked


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forward to more support being provided to Myanmar. He invited all to visit Myanmar andenjoy the warm hospitality of its people.

17. Mr. Pham Quang Hung, Director, International Cooperation Department, National

Tourism Administration of the Socialist Republic of Viet Nam, designated representativeof the Minister, expressed support for the 2 plans. He acknowledged the achievementsof the MTCO but emphasized that the MTCO needs to play a more proactive role inimplementing the Strategy and action plans, as well as in mobilizing support from thedevelopment partners. He also expressed support for the proposed Visit the GMS Yearand noted the need for the GMS countries to work harder for more substantiveachievements to celebrate the year. He also supported the holding of the GMS TourismMinisters’ Meeting on a regular basis in conjunction with the ASEAN Tourism Ministers’Meeting.

18. The Meeting unanimously agreed to endorse the Tourism Marketing Plan and theTourism Development Plan.

Adoption of Jo in t Min is ter ial Statement

19. The Ministers adopted the Joint Ministerial Statement as it appears in Appendix 7.

20. The Ministers noted that the decisions arising from their meeting will serve asinputs to the preparations for the Third GMS Summit to be held on 30-31 March 2008 inVientiane, Lao PDR.

Press Conference

21. The Minister of Thailand joined his counterparts from other GMS countries and

the ADB in the press conference immediately following the meeting.

Concluding Session

22. The Chairperson expressed his thanks to all the participants for their valuableinputs to the meeting. In turn, the participants expressed their appreciation to theGovernment of the Kingdom of Thailand for the warm hospitality and efficientarrangements made for the meeting. The participants also expressed thanks to the ADBfor its assistance in organizing the meeting.


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Append

Meetings of GMS Meeting of GMS Tourism Ministers21 January 2008

Sofitel Centara Grand Bangkok Hotel, Bangkok, Thailand

LIST OF DELEGATION

CAMBODIA 1. H.E. Mr. DR. THONG KHONMinister of Tourism, Ministry of tourism of CambodiaE-mail: [email protected] Tel: 855 12 821 114 or 855 16 345 000Fax: 855 23 215 491

2. H.E. Mr. SO MARAUnder Secretary of StateE-mail: [email protected] Tel: 855 12 821 114 or 855 16 345 000Fax: 855 23 215 491

3. Mr. TITH CHANTHADeputy Director General, Ministry of Tourism of Cambodia

4. Ms. MEAS SINE Assistant to Minister

5. Ms. TROUY LINDAOfficer

6. Ms. SO LYNA Assistant to Under Secretary of State

7. Mr. IN THOEUNDirector, International Cooperation Department

8. Mr. HOY PHIREAKDeputy Director, International Cooperation Department

9. Mr. PAK SOKHOMDirector, Marketing and Promotion Dept.

10. Mr. SOK SOKUNDeputy Director, Planning Development Dept.

11. Mr. SOM BUNNATChief of International Cooperation Office

12. Mr. SIENG NEAKDeputy Chief of ASEAN OfficeDeputy Chief of ASEAN OfficeE-mail: [email protected] Tel: 855 12 821 114 or 855 16 345 000Fax: 855 23 215 491

13. Mrs. POCH VORLEAKDeputy Chief of International Cooperation Office


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CHINA 14. Mr. DU JIANGVice Chairman, China National Tourism AdministrationE-mail: [email protected] Tel: 86-10-65201121

Fax: 86-10-65201055

15. Ms. LI YAYINGDeputy Director-General, China National Tourism AdministrationE-mail: [email protected] Tel: 86-10-65201121Fax: 86-10-65201055

16. Mr. HE MING Assistant Director, China National Tourism AdministrationE-mail: [email protected]

Tel: 65-9829-8301Fax: 65-63380777

17. Mr. WANG CHENGZHIDeputy Director, China National Tourism AdministrationE-mail: [email protected] Tel: 86-10-65201010Fax: 86-10-65201055

18. Ms. WANG YANJIEDeputy Director, China National Tourism AdministrationE-mail: [email protected]

Tel: 86-10-65201828Fax: 86-10-65122851

19. Mr. MU YUWEISecretary, China National Tourism AdministrationE-mail: [email protected] Tel: 86-10-65201121Fax: 86-10-65201055

20. Mr. YUAN GUANGHAN Deputy Director-GeneralYunnan Provincial Tourism AdministrationE-mail: [email protected] Tel: 0086-871-4608318Fax: 0086-8714608319

21. Ms. MOU XUE Section Chief of Yunnan Tourism Information CenterYunnan Provincial Tourism AdministrationE-mail: [email protected] Tel: 0086-871-4608318Fax: 0086-8714608319


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Append

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LAO PDR 22. H.E. Mr. SOMPHONG MONGKHONVILAYMinister, ChairmanLao National Tourism AdministrationE-mail: [email protected]

Tel: +856 21 212 251Fax: +856 21 212 769

23. Mr. SOUNH MANIVONGDirector General of Tourism Planning and CooperationDepartmentE-mail: [email protected] Tel: +856 21 212 251Fax: +856 21 212 769

24. Mr. SULIVONG LUANG APHAYDeputy Chief of Cabinet

General Administrative DepartmentE-mail: [email protected]

25. Mr. KHOM DOUNGCHANTHADirector of International Relations DivisionE-mail: [email protected] Tel: +856 21 212 251Fax: +856 21 212 769

26. Ms. CHANVILAY RASSAVONGStaffGeneral Administrative Department

MYANMAR 27. H.E.Brig . GENERAL AYE MYINT KYUDeputy Minister of Hotels & Tourism, Myanmar

28. Mr. U HTAY AUNGDirector-GeneralDirectorate of Hotels and Tourism, MyanmarE-mail: [email protected] Tel: 95 67 406056/ 406057Fax: 95 67 406057

29. Mr. MAUNG MAUNG SWEMinistry of Hotels and Tourism

30. Mr. KHIN ZAWMinistry of Hotels and Tourism

31. Dr. AUNG MYAT KYAWMinistry of Hotels and Tourism

32. Mr. THEIN THANMinistry of Hotels and Tourism

33. Mr. THIHA AUNGMinistry of Hotels and Tourism


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47. Ms. PRAPA TANTASUPARUKChief, International Cooperation SectionOffice of Tourism DevelopmentMinistry of Tourism and Sports, ThailandE-mail: [email protected], [email protected]: 66-2-219-4024 Fax: 66-2216-6658

48. Mr. VUDTHIDECH CHAMNIKITPlan and Policy analystThe Office of the National Economic and SocialDevelopment BoardE-mail: [email protected]: 66-2280-4085 Ext: 3710 Fax: 66-2282-1475

49. Mr. ARTHYUDH SRISAMOOTDeputy Director-General

Department of ASEAN Affairs,Ministry of Foreign AffairsE-mail: [email protected] Tel: 66-2-643-5000 ext 4433Fax: 66-2-643-5223

50. Ms. SIRIN SURATHINFirst SecretaryDepartment of ASEAN Affairs,Ministry of Foreign AffairsE-mail: [email protected] Tel: 66-2-643-5000 ext 4463

Fax: 66-2-643-5230

51. Mr. PORNSITH PIBULNAKARITRFirst SecretaryDepartment of ASEAN Affairs,Ministry of Foreign AffairsE-mail: [email protected] Tel: 66-2-643-5000 ext 4467Fax: 66-2-643-5230

VIETNAM 52. Mr. PHAM QUANG HUNG Director of International Cooperation Dept.

Vietnam National Administration of TourismMinistry of Culture, Sports and TourismE-mail: [email protected]: 84-4-99422070 Fax: 84-4-9424115

53. MRS. NGUYEN THI HONG DIEP Officer of International Cooperation DeptVietnam National Administration of TourismMinistry of Culture, Sports and TourismE-mail:[email protected]: 84-4-9421061 Fax: 84-4-9426860


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54. Ms. TRAN THI PHUONG NHUNG Officer of International Cooperation DeptVietnam National Administration of TourismMinistry of Culture, Sports and TourismE-mail: [email protected]: 84-4-9421061 Fax: 84-4-9426860

MTCO 55. Mr. PETER SEMONESenior AdvisorMekong Tourism Coordination Office (MTCO)

56. Ms. JACQUEMIN CHRISTINEProject Coordinator ADB/ Mekong Tourism Coordination Office (MTCO)

57. Ms. PARIYANUD TRINIKORNOperations ManagerMekong Tourism Coordination Office (MTCO)

58. Ms. SAENGRAWEE THONGDEEOffice ManagerMekong Tourism Coordination Office (MTCO)

ADB 59. Mr. ARJUN THAPAN

Director General, Southeast Asia Department Asian Development Bank

60. Ms. SHIREEN LATEEFDirector, Social Sectors DivisionSoutheast Asia Department, Asian Development Bank

61. Mr. JEAN-PIERRE VERBIESTCountry Director, ADB Bangkok

62. Mr. ALFREDO PERDIGUEROSenior Economist, Social Sectors Division

Southeast Asia Department, Asian Development Bank

63. Ms. FLORDELIZA S. MELENDEZConsultant, GMS Unit,Regional Cooperation & Country Coordination Division,Southeast Asia Department, Asian Development Bank

64. Mr. PRAVIT RAMACHANDRANEnvironmental Assessment Specialist ADB-GMS Enviormental Operations Center

SNV 65. Mr. DOUGLAS HAINSWORTHSenior Advisor, SNVE-mail: [email protected] T l 84 48463791 F 84 48463794


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GTZ 66. Ms. KIRSTEN FOCKENMarketing Advisor, GTZLao National Tourism AdministrationE-mail: [email protected]

Tel: +856202465340

UNESCO 67. Mrs. MONTIRA UNAKULE-mail: [email protected] Tel: 0-2391-0577 Fax: 0-2391-0866 Ext: 503

68. Mrs. HEATHER PETERE-mail: [email protected] Tel: 0-2391-0577 Fax: 0-2391-0866 Ext: 506

UNESCAP 69. Mr. RYUJI YAMAKAWAChief, Tourism Unit

UNESCAPTTD, UN Building, Rajdamnern AvenueBangkok 10200E-mail: [email protected] Tel: 66-2288-1426 Fax: 66-2288-1067

PATA 70. M.L. HATHAIJANOK KRITAKARAHonorary Secretary-GeneralPacific Asia Travel Association (PATA Thailand Chapter)36 Fl, Office at the CentralworldE-mail: [email protected] Tel: 0-2659-4500 Fax: 0-2264-5758

UNWTO ST-EP 71. Madam YOUNG-SHIM DHOChairperson of Board of DirectorsUNWTO ST-EP FoundationE-mail: [email protected]: 82 2 318-5005 Fax: 82 2 318-6005

Embassy of France 72. Mr. PASCAL LE DEUNFFFirst CounsellorEmbassy of FranceTel: 0-2657-5106 Fax: 0-2651-5114

73. Mr. MAURICE SIVETONRegional Counselor for CooperationEmbassy of FranceE-mail: [email protected] Tel: 0-2627-2140 Fax: 0-2627-2144

74. Ms. HARVET CLARISSE Assistant to Regional Counselor for CooperationEmbassy of FranceE-mail: [email protected]: 66-2627-2143 Fax: 66-2627-2144

Embassy of Japan 75. Mr. KATSUYA IKKATAICounsellor


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76. Mr. KENSUKE KOBAYASHIFirst SecretaryThe Embassy of Japan, Bangkok

Embassy ofGermany 77. Mr. MICHAEL BANZHAFDeputy, Head of MissionThe Embassy of Germany, Bangkok


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Appendix 2


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Address by H.E. Dr. Suvit Yodmani

Minister of Tourism and Sports of Thailand

At the 1st Meeting of GMS Tourism Ministers of Tourism

21 January 2008, Bangkok

…………………………………..

Excellencies Tourism Ministers of Greater Mekong Sub-region,

Mr. Arjun Thapan, Director General, Southeast Asia Department,

Asian Development Bank,

Distinguished Delegates,

Thailand is honoured to host the first Meeting of Tourism

Ministers of the Greater Mekong Sub-region in conjunction with the ASEAN

Tourism Ministers’ Meeting. We acknowledge the presence of various

international organizations and donor countries and would like to express our

appreciation to the Asian Development Bank for the strong support to the

cooperation framework. May I also express my wish that Thailand will

consider to host the Visit GMS Year in 2009 and wish to receive participation

from Member Countries. Thailand also appreciates assistance from the

Republic of France in providing technical assistance for the Mekong Tourism

Coordinating Office and allowing 2 – year contract to Ms. Christine Jacquemin

to help coordinate GMS projects. I note with appreciation the presence of

Madam Dho Young Shim, Chairperson of ST-EP Foundation of the World

Tourism Organization and I am certain that Sustainable Tourism Development

and Tourism to Eliminate Poverty will be on her agenda for the cooperation in

the sub-region.

May I give the floor to Mr. Arjun Thapan, Director General,

Southeast Asia Department, Asian Development Bank for his remarks.

Appendix 3


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As of 16 January 2008

GMS TOURISM MINISTERS’ MEETING21 January 2008, Bangkok, Thailand

Draft Remarks byDirector General, Southeast Asia Department, ADB

Excellencies – Tourism Ministers of the GMS Countries,

Heads of the GMS National Tourism Organizations,

Distinguished Guests,

Ladies and Gentlemen,

I am honored to address this distinguished gathering this afternoon. Let me, on

behalf of the Asian Development Bank, and the rest of the delegates, express our deep

appreciation to the Royal Thai Government, particularly the Ministry of Tourism and

Sports, for organizing and hosting this important meeting.

Subregional cooperation in the tourism sector has played a very significant role in

putting the GMS firmly on the world’s tourism map and in contributing to the realization

of the vision and goals of the GMS Program. ADB is pleased to have been an active

partner of the GMS countries in pursuing a tourism development agenda since the

establishment of the GMS Tourism Working Group in 1995.

One of the programs that ADB supported together with the United Nations

Economic and Social Commission for Asia and the Pacific (UNESCAP) was the Mekong

Tourism Forum which was held annually from 1996 to 2005 in collaboration with the

Pacific Asia Travel Association. The Mekong Tourism Forum was aimed to market the

GMS as a tourism destination, with the active participation of the private sector.

Another major initiative supported by ADB is the GMS Mekong Tourism

Development Project that has provided financing support to Cambodia, Lao PDR and

Viet Nam. The project, amounting to $47 million, is helping promote sustainable tourism

in the lower Mekong basin countries through infrastructure improvements, community

and private sector participation, and subregional cooperation. It is supporting the

improvement of high priority, tourism-related infrastructure in Cambodia, Lao PDR, and

Viet Nam; the promotion of pro-poor, community-based sustainable tourism in rural

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Appendix 3


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areas; and the strengthening of subregional cooperation. The project is also supporting

components that will help mitigate environmental degradation, develop human

resources, and promote cooperation between private and public sectors within the GMS

by establishing tourism marketing and promotion boards.

A GMS Mekong Tourism Sector Strategy has been prepared and is now

providing the strategic road map for subregional cooperation in the tourism sector. The

strategy focuses on marketing and product development, tourism human resource

development, heritage conservation and social impact management, pro-poor tourism

development, private sector participation, facilitating the movement of tourists, and

development of tourism-related infrastructure in priority tourism development zones.

We must congratulate the GMS Tourism Working Group for successfully bringing

subregional cooperation in this sector to a level of maturity not yet seen in other sectors.

A Mekong Tourism Coordinating Office has been set up in Bangkok, whose operations

are sustained by annual contributions from the GMS countries. Participation of

representatives of national tourism organizations in meetings of the TWG continue to be

financed by the countries themselves. To complement the limited staff of the MTCO, the

French Government has seconded a tourism expert to ADB to assist the MTCO in

coordinating the implementation of priority projects. These positive developments augur

well for the continued strengthening of tourism cooperation in the subregion.

Our meeting today is crucial in further defining the concrete action plans that will

translate the vision and goals of the GMS Mekong Tourism Sector Strategy into doable

and realistic projects in the next few years. As we prepare for the Third GMS Summit to

be held in March 2008, the outcome of our meeting today will feed into the overall

direction of the GMS Program that the GMS Leaders will emphasize in their Joint

Summit Declaration. In this regard, we look forward to hearing the presentations of the

Mekong Tourism Coordinating Office regarding the Tourism Marketing Plan and theTourism Development Plan. These two key presentations represent in capsule form the

essence and substance of subregional cooperation in tourism that will be pursued over

the next few years, hopefully with increased resources and support from other

development partners.

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Appendix 3


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Indeed, our gathering today, no matter how brief, has very significant implications

for the future work of the GMS Tourism Working Group and the Mekong Tourism

Coordinating Office.

Excellencies,

Ladies and Gentlemen,

The GMS is one of the fastest growing tourism destinations in the world today.

Tourism is bringing in much-needed foreign exchange, creating jobs, and contributing to

economic growth in the subregion. However, growth in tourism is constrained, among

others, by difficulties in access, lack of investment in tourist infrastructure, absence of

new products to attract visitors, and weaknesses in policy and institutional capacities.

The sector also needs to increase its contribution to the reduction of poverty, while

managing any potential negative environmental or social impacts. For this reason, we

must intensify our collective resolve to further strengthen subregional cooperation in this

sector. Subregional cooperation in tourism is central to the GMS existence, particularly

in light of the highly competitive world tourism market.

I look forward to our intensive discussions over the next couple of hours and wish

all of us a successful meeting.

Appendix 3


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The Greater Mekong Subregion (GMS)Tourism Strategy

Al fredo Perd igueroSenior Economist

As ian Development Bank21 January 2008

The Greater Mekong Subregion ’sStrategic Position

The GMS has a very strategiclocation, transportationcrossroad, and potential toattract large regional markets

Appendix 4Page 1 of 5


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Strong Tourism Assets

The GMS has unique & precious natural assets, with diverseand rich blend of cu lture, nature, and his tory

GMS Tourism Strategy: Why

Tourism is recognized by the GMS countries as a priority sector under theGMS Economic Cooperation Program

Potential to contribute to socioeconomic development, conservation ofnatural and cultural heritage

Strong tourism growth prospects (world, Asia-Pacific and GMS)

New opportunities: Rapid interconnection of GMS through development oftransportation network, Chinese and Indian Tourism

New challenges: competition from other regions, high oil prices, newdemands from tourists, new epidemics, potential negative impacts on theenvironment and cultural heritage

Need to build on previous 10 years of cooperation, face the newchallenges and use the new opportunities working together with acommon Strategy



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THE STRATEGY

Overall GoalTo contribute toward the vision of the ten-year strategic

framework of the GMS Economic Cooperation Program,

of achieving substantial poverty reduction, greater

gender equality and women’s empowerment, and

sustainable development

THE STRATEGY

Expected Outcome“Develop and promote the

Mekong as a single

destination, offering a diversity

of good quality and high-

yielding sub-regional products

that help to distribute the

benefits of tourism more

widely; add to the tourism

development efforts of eachGMS country; and contribute to

poverty reduction, gender

equality, and sustainable

development, while minimizing

any adverse social impacts.”



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The strategy will be implemented bythe GMS countries through:

29 Projects including: 13 spatial projects dealing with the planning and

development of priority tourism zones

16 thematic projects dealing with specific GMS-wideinterventions

Each project has a lead country

The Mekong Tourism Coordination Office (MTCO) assistthe Tourism Working Group to implement the Strategy

The cost of implementing the Strategy is estimated at

$429.9 Million, with infrastructure representing $361.3million

THANK YOU



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Mekong TourismMekong TourismMarketing PlanMarketing Plan

21January 200821January 2008

A Living Document

Prepared by:Prepared by:

Peter SemonePeter Semone

Senior AdvisorSenior AdvisorMekong Tourism OfficeMekong Tourism Office

Presentation Outline

1. The Mekong Tourism (Coordinating) Office(MTO / MTCO)

2. Global Travel and Tourism

3. Tourism in the Greater Mekong Subregion

4. The GMS Tourism Marketing Plan



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1. The MTO / MTCO

MARKETING

Mekong Tourism Office(MTO)

Marketing Expert

Market GMS in order toincrease long-stay above

average spendingsubregional travellers

Private Sector Partnerships

DEVELOPMENT

Mekong Tourism Coordinating Office(MTCO)

Development Expert

Orchestrate implementation andfunding of 28-Development Projects as

prescribed TSS

Donor Partnerships



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Available Resources

• Annual Government Contribution forOperating Budget = US$90,000 ($15,000each country)

• Marketing Fund: = US$25,000

• Private Sector Cash and In-KindContributions

• Support by Thailand Ministry of Tourism andSports and French Government / ADB

Critical Success FactorsCritical Success Factors

Internal communication between the MTO / MTCO andInternal communication between the MTO / MTCO and

member NTOs;member NTOs;

Awareness of the MTO / MTCO among GMS private and Awareness of the MTO / MTCO among GMS private and

public sector tourism stakeholders;public sector tourism stakeholders;

Simple, focussed, cost effective and well managedSimple, focussed, cost effective and well managed

marketing activities must be implemented in the short term;marketing activities must be implemented in the short term;

The private sector must be fully engaged, initially as aThe private sector must be fully engaged, initially as a

dialogue partner and later potentially as a financialdialogue partner and later potentially as a financialsupporter;supporter;

Improved information content and flow to the internationalImproved information content and flow to the international

trade, media and consumer is essential;trade, media and consumer is essential;



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2. Global Travel and Tourism Trends2. Global Travel and Tourism Trends

Tourism is a Globally Competitive Business

GMS



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By 2020 Tourism Demand willBy 2020 Tourism Demand will DOUBLEDOUBLE

Expenditure Expected to be >Expenditure Expected to be > US$1 TrillionUS$1 Trillion

2121stst Century Travel TrendsCentury Travel Trends

The Leisure SocietyThe Leisure Society

EE--Savvy Consumer (increased B2C transactions)Savvy Consumer (increased B2C transactions)

The Rise of Lifestyle FocusedThe Rise of Lifestyle Focused ‘ ‘NicheNiche’ ’ ProductsProducts

Targeting and Segmentation Essential in aTargeting and Segmentation Essential in a

Crowded MarketplaceCrowded Marketplace

Destination Image to Create Brand AppealDestination Image to Create Brand Appeal

Concern for Social and Environmental IssuesConcern for Social and Environmental Issues



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ourism in the GMSSection Three

Overall GMS Tourism ArrivalsOverall GMS Tourism ArrivalsVisitor Arrivals to GMS

1996-2006

0

5

10

15

20

25

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

No. in MNS

2006 - 22 million 2010 – 32 million (f) 2015 – 52 million (f)

Source: Respective NTO’s, ADB TSS and PATA Strategic Intelligence Centre



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GMS Tourism Arrivals by DestinationGMS Tourism Arrivals by Destination


Visi tor Arrivals to GMS

1996-2006

0

2

4

6

8

10

12

14

16

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

No.

Cambodia Lao P DR Myanmar T hailand Viet nam Yunnan

Top Markets to GMSTop Markets to GMS

Market Arrivals % of TotalOverall (GMS) 1.Japan

2.Malaysia

3.Korea

4.China

5.USA

6.United Kingdom

7.Thailand

8.Singapore9.Australia

10.Taiwan

2,120,731

2,022,222

1,903,153

1,764,819

1,587,801

1,109,407

1,030,649

910,184876,768

855,746

14,181,480

9.6%

9.2%

8.7%

8.0%

7.2%

5.0%

4.7%

4.1%4.0%

3.9%

64.5%



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4. The Tourism Marketing Plan4. The Tourism Marketing Plan

Three PhasesThree Phases

I. Partnership and InformationConsolidation (short term - 2008)

II. Awareness Building and Brand Expansion(medium term - 2009)

III. Celebration (long term - 2010/2011)



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Phase OnePhase One -- 20082008Partnership and Information Consolidation Partnership and Information Consolidation

Country Coordinator Program Private Sector Advisory Group

Other Marketing Tools: International Mekong TourismFunctions and GMS Networking Meetings

Phase TwoPhase Two – – 20092009

Awareness Building and Brand Expansion Awareness Building and Brand Expansion

Engage Social Media

Engage

Travel Distributors

Actively Blog

Develop Video for Internet

Re-establish

The Mekong Tourism Forum



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Phase ThreePhase Three – – 2010/20112010/2011Celebration Celebration

VISIT MEKONG YEAR 2010

Thank You



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Mekong Tourism Office Marketing Plan Page 1

Executive Summary

The Board of Directors of the Mekong Tourism Coordinating Office (MTCO), also known asthe Tourism Working Group (TWG), has asked the Senior Advisor to prepare this MarketingPlan (the Plan) to be presented to the Greater Mekong Subregion (GMS) National TourismOrganisation (NTO) leaders and Tourism Ministers.

The Plan has been developed with the view of providing strategic advice and direction on howto advance the MTCO’s marketing agenda in two specific areas:

First, the Plan provides an analysis of the MTCO in its current state and makes specificrecommendations of how institutionally the MTCO should be managed and developed toundertake its responsibility as the lead agent for marketing Greater Mekong Subregion (GMS)tourism. This issue is outlined in detail in Section 1 of the Plan and is entitled The Institution.

Secondly, the Plan provides a general analysis of Greater Mekong Subregion (GMS) tourismvis-à-vis global trends in the international travel and tourism industry. GMS tourism strengths

and weaknesses are considered and opportunities and threats identified in a SWOT analysis.Section 4 of the Plan entitled The Marketing Implementation Plan recommends specificmarketing-related actions that should be undertaken by the MTCO in the short (2008),medium (2009) and long (2010-2011) term.

In developing the Plan, the Senior Advisor has enlisted a Private Sector Advisory Group(PSAG) and communicated widely among private and public sector stakeholders in the sevenGMS destinations. In addition, country missions were undertaken in which face-to-facemeetings were conducted with representatives of respective NTOs and private sector entities.

The GMS Tourism Sector Strategy (TSS) has also been referred to extensively. The TSSincludes a sub-regional Marketing Strategy that identifies the mission of the MTCO marketingprogram to be to increase the number of high yield sub-regional travellers. A subregional

traveller is defined as any person that visits two or more GMS countries during any single visitto the subregion.

Furthermore, the Marketing Strategy outlines three key marketing objectives for the MTCO inthe short and medium terms, including: developing and strengthening sub-regionalinstitutional capacity to market the subregion as a single destination; enhancing subregionalproduct development and product quality; and enhancing the promotion of the subregion as asingle destination.

Based on a 2000+ respondent survey undertaken in 2004 during the development of the TSS,the following key sub-regional tourism offerings have been identified: nature, culture andadventure products. Accordingly, it is important that any ‘single destination’ or subregional’approach to marketing must embrace market segments that are attracted to these core

products. However, it is strongly recommended that further market research be conducted toverify the findings of the 2004 TSS survey and integrate emerging tourism developmentissues such as improved knowledge of value-chain tourism economics.

This Plan seeks to embrace the findings of the TSS, complement the individual promotionefforts of the GMS member countries and promote sub-regional tourism around a ‘MekongBrand’. The overall approach to achieving these objectives is presented in The Plan as a firststep towards developing an effective, coordinated and tangible marketing program for theGMS. This Plan should be treated as a Living Document and should be continually revisedand updated.

The MTCO sits at a critical juncture in its development; it is therefore essential that theorganization act and be seen to be delivering a higher return on investment (ROI) on

government as well as future private sector contributions to the MTCO.



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Table of ContentsExecutive Summary................................................................................................................... 1

Table of Contents ...................................................................................................................... 2

1. The Institution ................................................................................................................... 3Evolution of the MTCO as a Subregional Marketing Platform.......................................... 3MTCO Finances................................................................................................................ 4Going Forward with the MTCO Marketing Agenda........................................................... 4Comparable Regional Tourism Organizations.................................................................. 5Institutional Recommendations......................................................................................... 7

2. Global Travel and Tourism................................................................................................ 8Issues and Trends ............................................................................................................ 8Luring Today’s Discerning Traveller ................................................................................. 9

3. Tourism in the Greater Mekong Sub-Region.................................................................. 11

Visitor Arrivals ................................................................................................................. 11Existing Markets.............................................................................................................. 12Key Segments................................................................................................................. 15GMS Product Offerings................................................................................................... 17Market Positioning and Branding.................................................................................... 19GMS Tourism SWOT...................................................................................................... 20

4. The Marketing Implementation Plan ............................................................................... 20The Marketing Phases .................................................................................................... 21Marketing Principles and Tools....................................................................................... 21Short, Medium and Long Term Action Plan.................................................................... 21Implementation Schedule ............................................................................................... 24Marketing Budget 2008-2011.......................................................................................... 24

Appendix One: Minutes Private Sector Advisory Group.......................................................... 25



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1. The InstitutionThis section undertakes to provide an evaluation of the current state of the MTCO as asubregional institution for marketing. The history of the organization, its current state ofexistence from a financial and management perspective, and comparative marketing

organizations are all analysed. The chapter concludes with specific recommendations forconsideration by the Tourism Working Group (TWG) and respective NTO and Ministry leaderson a ‘best way forward’ for the MTCO in terms of its marketing responsibilities.

Evolution of the MTCO as a Subregional Marketing Platform

The Mekong Tourism Coordinating Office was formed in January 2006 as the coordinatinginstitution for the implementation of the GMS development and marketing agenda as outlinedin the GMS Tourism Sector Strategy (TSS). The institutional mission of the MTCO ascurrently presented on www.mekongtourism.org is ‘to develop and promote the Mekong as asingle destination, offering a diversity of good quality and high-yielding subregional productsthat help to distribute the benefits of tourism more widely; add to the tourism developmentefforts of each GMS country; and contribute primarily to poverty reduction, gender equalityand empowerment of women, and sustainable development, while minimizing any adverseimpacts’.

Prior to the establishment of the MTCO, the Agency for Mekong Tourism Activities (AMTA)was charged with orchestrating sub-regional marketing. AMTA, which was headquartered atthe Tourism Authority of Thailand (TAT), was discontinued in late 2005 and the responsibilityof GMS subregional tourism marketing was assumed by the MTCO. At the time, there wasno specific development agenda linked to AMTA.

The marketing mission statement of the MTCO, as outlined in the GMS Tourism SectorStrategy, is “to increase the number of high yield sub-regional travellers”. Whereby high yieldis defined as someone who stays for 10+ days and/or has per diem expenditures of US$100plus per day and subregional traveller is defined as any person that visits two or more GMS

countries during any single visit to the subregion. The Plan slightly modifies the marketingmission by defining the focus market as long stay and above average spending visitors ratherthan high yield.

In the context of the overall marketing strategies for the subregion to 2015, the key marketingobjectives to 2010 as set out in the TSS Action Plan are to:

• develop and strengthen the subregional institutional capacity to market the subregionas a single destination;

• enhance subregional product development and product quality; and• enhance the promotion of the subregion as a single destination.

In recognition of resource limitations and capacity constraints when the MTCO was

launched in 2006, a modest step-by-step approach in implementing the marketing programwas proposed in the TSS Action Plan. These steps involved:

1) Launching a modest campaign to present a unified Mekong tourism brandingthrough a consistently updated web page presence, collateral developmentengaging the services of a professional PR/Advertising group, arranging travel tradefamiliarization tours, presenting ‘The Mekong’ at regional trade shows, and re-branding AMTA as the Mekong Tourism Coordinating Office;

2) Organizing interactions with core interest groups of the private sector (e.g. investors,ground tour operators, tour operators of generating markets, infrastructuredevelopers etc.) to engage them in dialogue, present views of the potentials ofMekong tourism and seek support for the program as partners; and



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3) Energizing and staging a re-launch of ‘Mekong Tourism’ as the new thematictourism products and the private sector-driven initiatives are put in place.

At the time of the writing of this Plan in November 2007, the above stated marketing steps (asprescribed in the TSS) had been implemented either partially or not at all.

MTCO FinancesSince its inception, the operational costs of the MTCO have been underwritten by an annualcontribution of US$15,000 by each of the member governments (Cambodia, China, Lao PDR,Myanmar, Thailand and Vietnam). At the close of 2007, the MTCO account held an operatingsurplus of some US$40,000.

In addition to this US$90,000 in annual operational funding, Thailand’s Ministry of Tourismand Sport has provided office space (including utility costs). In addition, since August 2007,the French Government has seconded a senior level tourism expert to coordinate andoversee implementation of the 28-development projects identified in the GMS Tourism SectorStrategy which are part of the MTCO development agenda.

In addition to the operating budget, the MTCO has a marketing budget of US$25,000 which iscomprised of residual AMTA marketing funds which were transferred to the MTCO in 2006.This money is earmarked to be spent in 2008 on enhancing the MTCO website and collateral.

Going Forward with the MTCO Marketing Agenda

The limited marketing budget of the MTCO dictates that in the short term the subregion willnot have the luxury of the massive spending power enjoyed by many competitive destinationsto draw visitors to the sub-region.

Any marketing projects undertaken by the MTCO in the short term need to be highly focussedand aimed at developing a strong marketing framework. In order to attract private sectorsupport for its marketing programs, the MTCO needs to revitalize its institutional credibilitywhich is currently viewed as ‘weak’ at best.

A Private Sector Advisory Group (PSAG) comprised of senior executives of regional privatesector organizations has been formed to provide advice and direction to the MTCO’smarketing program. During a 31 October 2007 meeting of the Advisory Group, membersexpressed concern that the MTCO’s reputation had been seriously diminished as a result ofinactivity and lack of continuity. It was unanimously agreed that if the MTCO is to everreceive financial support from the private sector as prescribed in the TSS Marketing Strategy,it must establish its relevance and authority as the ‘lead marketing organization forcooperative GMS tourism’. It was furthermore expressed that in order to be realistic, anyfinancial contributions by the private sector to the MTCO’s marketing activities must provideclear and tangible returns on investment. Minutes of the first meeting of the PSAG areattached in the appendices of this Plan.

In addition to heeding the advice of the PSAG, the MTCO should carefully abide by thefollowing marketing guidelines which are incorporated in the Marketing Action Plan which isoutlined in Section 4 of this document:

• To maximize the potential of the internet as an effective marketing tool and source ofcomprehensive visitor information;

• To facilitate coordinated joint marketing and promotional activities with allstakeholders and partners;

• To encourage more effective and targeted sub-regional tourism marketing based onsound market research and understanding of consumer needs;



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• To establish a stronger, more systematic and coordinated basis for sub-regionaldestination marketing by MTCO member countries and the private sector;

• To increase awareness of the GMS by creating a strong and distinct image (brand)and clear positioning in target markets;

• To facilitate awareness of the sub-region; and

• To complement existing national tourism marketing and promotion campaigns with aunified sub-regional program.

Comparable Regional Tourism Organizations

Many stakeholders have suggested that there are lessons to be learned from understandinghow comparable regional tourism organizations market their respective subregions. Aninternet search using key words such as ‘tourism association’, ‘regional tourism marketingorganization’, and ‘regional tourism cooperation’ produced links to a number of comparabletourism organizations similar to the MTCO. They include:

The African Travel and Tourism Association ATTA creates a hub for the positive development of travel and tourism in Africa. With over350 members the African Travel and Tourism Association (ATTA) is Europe’s largest tradeassociation promoting Africa. Membership covers all sections of the tourism industry. Theyare drawn from those who supply the product including hotels, lodges, camps, airlines andground operators and those who service the market throughout the world, tour and web-based operators, travel agents, representation companies, tourist boards and all sectors ofthe media. The prime role of the association is to channel information and breaking news toits wide membership through its sophisticated web distribution email service “ATTAK”.National tourist boards, the media, the British Foreign Office and the membership itself usethis distribution facility, to keep the industry informed. Response time is fast and information isquickly distributed. ATTAK enables members throughout Africa and the UK to keep abreast ofthe rapidly changing affairs of tourism.

The Baltic Sea Tourism CommissionBTC is a networking marketing association with the aim to promote tourism to the Baltic Searegion in North America, Asia and Spain. The main activities of BTC include: press- andtrade familiarization trips, an annual tourism conference, participation in tourism relatedprojects, advocacy of the tourism industry among political decision makers, cooperation withother Baltic Sea organizations and the provision of tourism information.

The European QuartetThe European Quartet is a group of central European countries including: the Czech Republic,Hungary, Poland and Slovakia. The organization has an annual budget of 200,000 to400,000 Euros which is funded by member governments and to a lesser degree the privatesector. Activities include: maintenance of a common Web-site www.european-quartet.com;

multi-language promotional brochure (Chinese, Japanese and English); statistical Informationpress releases and photo library; a common promotional video; road shows to key markets;marketing workshops; and special interest promotions.

Greater Tumen Initiative (Joint Tourism Promotion)Tumen River Region Development Area comprising China, North Korea, the RussianFederation and Mongolia offering cultural and natural heritage, historic and wildlife-basedtourism products targeting mainly North East Asian and European markets seeking soft andhard adventure experiences in this once secluded area. The UNDP and the TumenProgramme supported a familiarisation tour of the Tumen Region for selected tour operatorsand travel journalists in October-November 1999. The participants from China, ROK andEuropean countries assessed the tourist attractions, facilities and services of the area. Theyalso had meetings with local tourism officials and inbound tour operators and travel agents to

generate ideas about multi-destination tours in the region. The project included publication of



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a promotional brochure for the Tumen Region entitled The Tumen River Area - New Horizonsin Travel, which has been translated into Chinese, Japanese, Korean and Russian and widelydistributed to local tourism agencies, tour operators and travel journalists. The project hasbeen successful in increasing awareness of the Tumen Region’s tourism resources in keymarkets, and has been helpful in terms of development of tourism products in the area. Theproject has been complemented by Tumen Programme participation in a number of

international tourism fairs in Asia, which are good opportunities to draw international attentionto the attractions of the Tumen Region as a tourist destination. Total Budget of US$ 70,000

The South Pacific Tourism Organization (SPTO)The SPTO is the mandated inter-governmental organization for the tourism sector in theSouth Pacific. In the early 1980’s an informal association of South Pacific national tourismorganizations was formed, which subsequently became the SPTO. SPTO is an organizationwith a membership that substantially represents both the public and private sectors. Currentfull government member countries include The Cook Islands, Fiji, French Polynesia, Kiribati,New Caledonia, Niue, Papua New Guinea, People's Republic of China, Samoa, SolomonIslands, Tonga, Tuvalu and Vanuatu. Private sector members include over 200 of the majortourism operators in the region. The SPTO ’s mission statement is: "To be an internationallydynamic and leading tourism organization in the development of public and private sector

tourism businesses in the South Pacific.’ Key marketing activities of the SPTO include:Regional Branding; Overseas Representation; Travel Show/Road Show Coordination andFacilitation; Regional Collateral Material; Regional Tourism Magazine; Web site developmentand promotion; Internet Marketing; Lead Generation; Tourism Products Database; and Internet and Marketing Training / Consulting

Tourism Vancouver IslandTourism Vancouver Island is a destination marketing organization whose vision is “ToPosition the Vancouver Island Region as a Premier Destination”. The organization is a not forprofit association representing the tourism stakeholders within the Vancouver Island region,which includes all the islands located between Vancouver Island and the mainland coast andalso includes coastal areas of the mainland coast between Moses and Bute Inlets. TourismVancouver Island is one of six regional destination marketing organizations (DMO) in British

Columbia that are contracted by Tourism British Columbia to deliver marketing initiatives onbehalf of the region. As part of this contract each region administers the Tourism PartnerProgram for their respective region. Through the Tourism Partner Program, TourismVancouver Island is able to offer tourism stakeholders within the region the opportunity toparticipate in marketing initiatives at greatly reduced costs. In partnership with tourismstakeholders and Tourism BC, Tourism Vancouver Island coordinates over $1.5 million inadvertising and promotional campaigns targeted at driving tourism business to the VancouverIsland Region. The association is governed by a board of directors that is made up of industryprofessionals from various parts of the Vancouver Island region. The marketing committeemeets regularly to evaluate and recommend strategies and tactics that are focused onreaching the vision of the association.

The above subregional groupings as well as other individual competing destinations’

positioning concepts range from landscape, sightseeing and urban tourism based onshopping and nightlife of Hong Kong, Macau, Zuhai and Canton in the Pearl River Delta; softand hard adventure and Buddhist culture in the SASEC; relaxation and fun in tropical islandresorts of the South Pacific and Caribbean; hard and soft adventure in the Tumen River Area;and wildlife tourism in SADC. In ASEAN, Malaysia positions itself as a microcosm of Asiawhile Singapore positions itself as an urban tourism destination and gateway to Asia. Withinthe broad positioning framework among potential competing regional destinations for itsmarkets, the GMS is distinctive in its ownership of the Mekong River and its rich array ofethnic peoples and cultures.

What is clear from seeing what comparable organizations are doing in terms of marketingactivities is that any MTCO marketing plan must include consideration of several corechannels, including: Trade Marketing, Consumer Marketing, Market Research and



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Intelligence, Media and Public Relations, Global Branding, and Internet Marketing. Thesevarious channels will be explored for their individual merit later in this Plan.

Institutional RecommendationsIn consideration of the input provided by the PSAG, consultations with individuals involved intourism marketing and promotion in GMS countries and a review of the marketing activities ofcomparable organizations, the following institutional recommendations have been developed.

These recommendations should be seen as ‘critical success factors’ which will enable theMTCO to overcome the current problems and issues which are symptomatic of theorganization’s weaknesses. These recommendations will provide the necessary institutionalfoundation for the MTCO to implement the marketing program outlined in this marketing plan.

For the purposes of marketing, the institution should be referred to as the‘Mekong Tourism Office’ - (the ‘C’ in MTCO is confusing and dilutes thebrand);

A clear demarcation and distinction between the marketing and development

functions of the MTCO should be established (MTO for the marketing roleand MTCO for the development role). For hereon, this Plan refers to theMTO and MTCO in these respective roles.

A dedicated tourism marketing professional should be retained to lead andorganize the MTO marketing program;

It should be agreed that the MTO marketing mission statement is to increaselong stay and above average spending subregional travellers to the GMS (itis estimated that there were approximately 1,000,000 such travellers in 2006or 4.5 percent of the 22 million visitors to the region);

The ongoing financial commitment by member governments in the form of

annual membership dues is essential;

Internal communication between the MTO, the MTCO and member NTOsmust improve through consistent and regular national updates from the NTOsto the MTO and MTCO;

Greater awareness of the MTO and the MTCO among GMS private andpublic sector tourism stakeholders needs to be developed;

Simple, focussed, cost effective and well managed marketing activities mustbe implemented in the short term;

The private sector must be fully engaged, initially as a dialogue partner and

later potentially as a financial supporter, particularly for the MTO. The sameholds true for the MTCO and the donor community;

Improved information content and flow to the international trade, media andconsumer is essential;

The short, medium and long term marketing plan provided in this MTO Planshould be agreed upon and from thereon fully embraced by all membercountries.



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2. Global Travel and TourismThis section of the report explores the dynamics of tourism in the new millennium. As manyreaders of this Plan will know, travel and tourism is an internationally competitive industry thatin recent years has been increasingly recognized for its ability to attract foreign revenue, lure

international investment, reduce poverty and help preserve the natural and cultural heritagesat the national, provincial (state) and municipal levels of many countries. Nowhere is thepotential of tourism more evident than in the GMS. Only two decades ago a worn torn region,today the countries of the GMS are experiencing some of the most robust tourism growthrates on the planet.

Issues and Trends

Travel and tourism will grow to new heights in the 21st century as it becomes more accessibleto a larger cross section of the global population. This will result in commensurate economicopportunities for developed and emerging destinations around the world. It will also createmajor challenges, not only in attracting and serving increased tourism demand, but also inmitigating the numerous potential negative externalities that will emerge as a result oftourism’s rapid growth. Successful destinations will strike a balance in developing theirtourism industries by monitoring international trends, engaging tourism stakeholders, ensuringthat the benefits of tourism outweigh any potential negative impacts and pledging a moreequitable distribution of tourism revenue.

There is good reason for countries to focus on honing their abilities in tourism: it is a bigbusiness. According to the UNWTO, 846 million international visitor arrivals generatedUS$733 billion (US$2 billion/day) in tourism revenue in 2006. Tourism represents 35 percentthe world’s export of services and over 70 percent in the Least Development Countries. TheUNWTO predicts that international tourism demand will double by 2020 to an astronomical1.6 billion visitors generating well over US$1 trillion.

Currently, the tourism industry is characterized by a variety of issues and trends, which

present a range of inherent threats and opportunities. These include, but are not necessarilylimited to:

There has been an increase in the perception of terrorist threats in many countriesmost graphically embodied in the Bali bombings in 2002 and 2005. There have alsobeen subsequent terrorism scares and attacks in London, Glasgow, Madrid, Bangkokand other destinations.

The notable growth of China into one of the largest source markets in the Asia Pacificregion has become a primary focus of the world’s tourism industry. Chinese nationalshave been increasingly visiting international destinations; a trend the industry widelyagrees will continue to increase in the foreseeable future. Equally phenomenalgrowth is also evident from the Indian outbound market.

New destination branding campaigns from relative newcomers such as India, SouthKorea, New Zealand, Egypt, South Africa, Vietnam, Eastern Europe and thePhilippines have been recently launched, adding increased competition to mainstaydestinations such as Australia, Singapore, Thailand and Malaysia.

Technology such as the internet has made booking travel-related products easy andconvenient, empowering the consumer to be less reliant upon the traditional tourismsupply chain. This disintermediation opens many possibilities for consumer-directmarketing and distribution.

In what many refer to as the emergence of a Leisure Society, tourism is seen as abasic right – as opposed to an activity for a privileged few - and has become widely

accessible for a more diverse global demographic. The rise of low-cost airlines andcut-rate travel deals is fuelling a new wave of demand for tourism in the new



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millennium. A similar boom last occurred in the early 1970’s with the launch of theBoeing 747 and other technological advancements in transport creating a wave ofmass international tourism demand by increasing affordability and access.

The emergence of sub-regional cooperative agreements in which neighbouringcountries jointly market multi-nation itineraries in an attempt to increase the value and

synergy for the tourist and the participating economies is on the rise.

Demand is rapidly increasing for niche tourism products that are customised to satisfythe tastes of an increasingly discerning traveller, particularly among business andaffluent leisure travellers. Many of these new niches are narrowly defined, but shouldnot be overlooked.

An increased awareness and consciousness among travellers of the social andenvironmental impacts of tourism which is fuelling a rapidly increasing interest inresponsible, sustainable and green tourism.

Luring Today’s Discerning Traveller

The emergence of mass tourism since the 1960s is a dominant feature in the internationalexpansion of world travel creating a fundamental shift in the industry. The 1990s saw a movefrom industry-based standardized packages toward greater personalised and flexibleitineraries, a difference in the nature of experiences sought and concern with issues such asthe environment and sustainability. As a result, a great range of niche products has beendeveloped and marketed to fulfil the demand for increasingly sophisticated travel tastes.

One of the most complicated factors to emerge in international travel is how to attract anincreasingly discerning consumer to select one destination over another when making holidayplans. It is generally acknowledged that most consumers will select a range of destinations(often three to five) when considering where to go on holiday. A major element in thisdecision is the destination’s image. Potential tourists select destinations through a process ofelimination, which is often not a straight linear process from A to B to C. Travellers survey themany options, analyse and evaluate them and consider specific places based on theirknowledge, the images portrayed in the media, value, and opinions of friends, family andcolleagues. This can make travel decisions a lengthy and complex process often based oncompromises.

Image and perception can be powerful tools in enticing travellers to a destination. Elementsfor memorable experiences such as the landscape, culture and interaction with the people ofa country can feature as focal points in promoting awareness of a destination, (e.g. Paris’Eiffel Tower, China’s Great Wall and San Francisco’s Golden Gate Bridge). These icons andexperiences can lead tourists to associate positive, must-see reasons to travel to adestination. This makes it imperative for a destination to create images of their tourismofferings that differentiate them from the competition. Obviously, negative images andpublicity can be counter productive and present a major challenge to this process.

It is important to reflect on some of the many consumer trends now affecting touristconsumption, which may shape the quality as well as the nature of tourism demand in thecoming years:

Consumers are more discerning in their tourism purchases, irrespective of what theypay, and have high expectations of quality.

Increasing numbers of global consumers are becoming more e-savvy and able to usenew technologies to uncover the range and extent of available travel and holidayoptions, leading to a greater demand for value-adding in the purchase andconsumption process.

Increasing numbers of experienced travellers are seeking more innovative, unusualand finely targeted products which match their lifestyles, perception of their lifestyle,



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interests and needs. The traditional annual holiday of one to two weeks, purchasedthrough a travel agent from a mass produced brochure, will no longer be the norm.

The tourism industry is now faced with more discriminating clients, a proportion ofwhich are willing to purchase a portfolio of products that appeal to their time-poor,cash-rich lifestyles. Ease of consumption is the new buzzword: the holiday or trip is

now seen as an opportunity to unwind and relax, and travellers will not tolerate stress,disorganization and lack of attention to detail.

Marketing techniques, which stress targeting, segmentation and client identification tocapture the individual needs of the traveller, provide optimal profits for the tourismprovider.

Low-cost, high-volume mass products such as low-cost airline travel will continue tofill a niche for independent price-sensitive travellers.

Consumers continue to be heavily influenced by the image created by branding andadvertising which establishes market position, defines value-added consumerbenefits and builds confidence in tourism products. This trend is likely to continue,

with destinations and operators using the brand image to create a unique appeal tomore pinpointed markets and groups.

New product development to appeal to individualized aspects of demand (e.g. healthand wellness tourism) will see further growth, as niche products aimed at specificgroups with these interests are developed.

As consumer preferences and behaviour shift with emerging technologies and lifestyle trends,it is essential that the tourism industry is able to adapt these changes into its product offeringsand marketing approach.

Amadeus, a leading Global Distribution System (GDS), recently commissioned a reportentitled Future Traveller Tribes 2020 which brings together major macro, consumer and

technology trends in order to understand what the future of air travel may hold. The reportidentified four tribes that will have the most impact on the travel business in the future. Theyinclude: active seniors, global clans, cosmopolitan commuters and global executives.

Of particularly pertinence to the GMS, is the Active Seniors category which will be agedbetween 50 and 75 in 2020. As the global population ages, there will be an unprecedentednumber of older people travelling. With advances in science and medicine, this group will behealthier and more active than previous generations of the same age, and with higherdisposable incomes, many will be taking holidays and short breaks to relax and enjoy thefreedom of retirement. This will further stimulate demand for health and wellness holidays. Another key finding of the report is the increasing desire among consumers for ‘experience’and the need to get away from the routines of every day life.



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3. Tourism in the Greater Mekong Sub-RegionThis section of the Plan takes a closer look at GMS tourism and provides an analysis ofexisting tourism demand, key segments, the subregion’s tourism product offerings, and issuesrelated to market position and branding. Much of the data used here has been extrapolated

from the 2004 market research conducted in conjunction with the Tourism Sector Strategyand is therefore understandably outdated. The section concludes with a SWOT analysis ofGMS tourism marketing.

Visitor Arrivals

Tourism arrivals to the GMS as set in the Tourism Sector Strategy are forecast to increasefrom 16.4 million in 2004 to 31.9 million in 2010 and 52 million in 2015. In 2006, totalinternational arrivals to the sub-region reached 22.28 million

1, an increase of 9.4% on 2005

indicating continued strong recovery from the difficult years of 2003 and the Tsunami affected2005, putting the sub-region on track with regard to the 2010 target of 31.9 millioninternational arrivals set in the Tourism Sector Strategy.

Visitor Arrivals to GMS1996-2006

0

5

10

15

20

25

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

No. in MNS


After a moderate but steady trend towards convergence in the share of arrivals between theGMS countries between 1996 and 2004, the trend flattened off in 2005 and reversed in 2006.This reflects both the opening of the new Suvarnabumi Airport coupled with big investment inthe marketing of Thailand which has fueled tourism growth in the Kingdom. The emergingcapacity constraints in the other GMS countries in the area of cross border facilitation, airservices, accommodations, tours and the basic support infrastructure needed to ensure asustainable and attractive environment for tourists has created limitations in growth in otherGMS destinations. However, the trend to convergence of market shares should receive aboost from the additional capacity being developed as a result of various road and airinfrastructure connectivity and tourist facility projects expected to come on line in 2009 and2010.

Visitor Arrivals to GMS

1996-2006

0

2

4

6

8

10

12

14

16

1996 1997 1998 1999 2000 20 01 2002 2003 2004 200 5 2006

No.

Cambodia Lao P DR Myanmar T hailand Viet nam Yunnan


1 This data excludes the data for Guangxi Zhuang Autonomous Region for which data was not available.



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Existing Markets

In reviewing the independent and collective key national source markets for MTO memberdestinations, several markets stand out for their significant contribution to visitor numbers.

For Cambodia and Vietnam the top ten source markets is clearly predominated by travellersoriginating from Northeast Asian countries, particularly Korea, Japan and China (PRC). Whilethe data for China’s Yunnan and Guangxi Provinces was incomplete, it appears that after theconsiderable demand generated by domestic Chinese visitors, there is strong interest amongnumerous North American and European markets. Tourism demand for Laos is highlyslanted to cross boarder visitors from neighbouring Thailand. Thailand’s tourism demand iswell balanced with no single market predominating except Malaysia due to heavy crossborder activities in the south of the country. While tourism arrivals to Myanmar remainrelatively low at just over a quarter of a million visitors there is strong penetration into a varietyof markets with considerable interest by high yield visitors.

Notably, four markets appear on each of the top ten source markets lists: Japan, the USA,China and Thailand.



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Country Top Ten Source Markets Number of Arri valsin 2006

Percent ofTotal Arr ivals

Cambodia 1. Korea2. Japan3. USA4. Taiwan

5. China PRC6. Vietnam7. Malaysia8. Thailand9. United Kingdom10. France

Total

216,584158,353123,84785,139

80,54077,52477,02876,95373,76771,978

1.041,713

17.9%10.0%7.8%5.4%

5.1%4.9%4.8%4.8%4.6%4.5%

65.5% China (Guangxi) 1. Vietnam

2. Malaysia3. Japan4. USA5. France6. Korea7. Thailand8. United Kingdom

9. Germany10. Australia

Total

195,900135,600115,90087,50066,50052,60051,60037,000

35,50027,300

805,400

19.6%13.6%11.6%8.8%6.6%5.3%5.2%3.7%

3.6%2.7%

80.5%

China (Yunnan) 1. Malaysia2. Japan3. Korea4. USA5. Thailand6. Singapore7. France8. Australia9. Germany10. Netherlands

Total

112,708108,50390,18075,23472,04766,12545,36831,38129,52124,319

655,386

10.1%9.8%8.1%6.8%6.5%5.9%4.1%2.8%2.7%2.2%

58.9%

Laos 1. Thailand2. Vietnam3. China PRC4. USA5. France6. United Kingdom7. Japan8. Australia9. Germany10. Canada

Total

675,845190,44250,31746,82932,45331,68423,14722,02118,00412,419

1,103,161

55.6%15.7%4.1%3.9%2.7%2.6%1.9%1.8%1.5%1.0%

90.8%


Percent ofTotal Arr ivals

Thailand 1. Malaysia2. Japan3. Korea4. China PRC5. United Kingdom6. USA7. Singapore8. Australia9. Germany10. Taiwan

Total

1,591,3281,311,9871,092,783

949,117850,685694,258687,160549,547516,659475,117

8,085,653

11.8%9.7%8.1%7.0%6.3%5.1%5.1%4.1%3.8%3.5%

54.9%

Vietnam

1. China PRC2. Korea3. USA4. Japan5. Taiwan6. Australia7. Cambodia8. France9. Thailand

516,286421,741385,654383,896274,663172,519154,956132,304123,804

14.4%11.8%10.8%10.7%7.7%4.8%4.3%3.7%3.5%



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For the GMS as a whole, there is a good balance in tourism demand with the top ten marketscontributing only 64 percent of the region’s 22 million visitors. The remaining 36 percent ofthe sub-region’s tourism demand is broadly penetrated into a variety of other markets. Japanis one of the world’s top tourism spending markets and produces the most visitors to the GMS

at nearly 10 percent of all tourism demand. Other markets that are recognized as producinghigh yield visitors are the USA, the United Kingdom, Singapore and Australia. The marketsfrom China PRC, Korea and Taiwan, while delivering high volumes of visitors to the GMS,tend to produce lower yields due to short lengths of stay and low per diem expenditures.Thailand, because of its central location in the GMS and emerging middle class represents animportant market within the sub-region.

Source: Senior Advisor Estimations, Respective NTO’s, ADB TSS and PATA Strategic Intelligence Centre

According to data provided in the Tourism Sector Strategy, it is estimated that internationalvisitors to the GMS stay an average of 7.6 nights and spend around $97.42 per day. Thesenumbers are based on limited information and further research is required to understand theactual economic impact of the top source markets and segments to the GMS. Internationalvisitors tend to come mostly for leisure and holiday travel purposes (65%), use mainly airtransportation to get to and travel within the sub-region (75% of arrivals), and 20% are on apackage tour.

As shown in the below chart, Northeast Asia clearly produced the highest number of visitorarrivals to the GMS in 2006 (33%). This is followed by Europe with 22 percent of all visitorarrivals. Impressively, the GMS produced 16 percent of its own visitors lead by Thailand, amarket included in all of the top ten source market lists. The Americas, the Pacific andSoutheast Asia (other than GMS) each respectively produced 7 percent of all GMS tourismdemand with another 8 percent contributed by a variety of other countries in Asia and theworld.


Percent ofTotal Arrivals

Overall (GMS)

1. Japan2. Malaysia3. Korea4. China5. USA6. United Kingdom7. Thailand8. Singapore9. Australia10. Taiwan

2,120,7312,022,2221,903,1531,764,8191,587,8011,109,4071,030,649

910,184876,768855,746

14,181,480

9.6%9.2%8.7%8.0%7.2%5.0%4.7%4.1%4.0%3.9%

64.5%



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Arrivals by Region

7%

22%

33%

7%

16%

4%4%

7%

Americas

Europe

NE Asia

SE Asia

GMS

Other Asia

Pacific

Others

Key Segments

A survey of 2,208 international tourists departing the subregion at its main international exitpoints was undertaken as part of the GMS Tourism Sector Strategy. The study aimed todevelop a profile of the tourists, their visitation and expenditure patterns, and their attitudes

and opinions towards the GMS as a single destination.

Respondents were asked to identify, from a given list, the specific tourist activities that theyengaged in during their visit in the GMS. Sightseeing (75%) and eating local food (82%) werethe two most common activities of the respondents. Hiking (17%) and visiting culturalcommunities (21%) were relatively less popular tourist activities.

82%

75%

56%

55%

52%

40%

33%

21%

17%

12%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Eat local food

Sightseeing

Shop for traditional arts and craft

Visit cultural sites

Shop for other kinds of products

Swimming

Visit natural parks

Visit cultural communities

Hiking

Trade, Business and Investment

Research

Source: ADB TSS

One key research objective of the survey was to develop a profile of the subregional traveller,or the tourist who visits more than one GMS country in a given trip. There appear to besignificant differences between subregional and single-destination visitors in terms of theirparticipation in other tourist or recreational activities. As shown in the figure below,significantly greater proportions of subregional travellers participate in hiking and visits tonatural parks, cultural sites, and cultural communities compared to those who visit only onecountry at a time. Interestingly, the findings also showed that those tourists engaged inbeach-type holidays were least likely to engage in multi-country visits.



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23%

37% 38%

67%

28%

0%

20%

40%

60%

80%

100%

Hiking Swimming Visit natural

parks

Visit cultural

sites

Visit cultural

communities

Single Destination

Subregional Traveler

Source: ADB TSS

Of those surveyed, seven out of ten (71.65%) of the visitors to the GMS did not visit any othercountries in the sub-region. About eighty-percent of visitors to Thailand (79.6%) and YunnanProvince (83.9%) visited those GMS destinations exclusively. In contrast, almost all visitors toLaos, and about three-fourths of the visitors to Siem Reap, Cambodia said that they visitedother GMS countries in the same trip. The following chart highlights these findings.

20.77%

30.43%

38.41%40.87% 41.67%

98.83%

75.45%

16.28%

0%

20%

40%

60%

80%

100%

Kunming Bangkok Ho Chi Minh

City

Yangon Phnom

Penh

Hanoi Siem Reap Vientiane

Source: ADB TSS

The survey found that: 47 percent visited just one additional country, while another 17 percentreported visiti

Proceedings of the First GMS Tourism Ministers’ Meeting

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