Richard R. Miller Executive Vice President World Travel & Tourism Council

Richard R. Miller

Executive Vice President

World Travel & Tourism Council

Caribbean Travel & TourismMoving Forward…..Together

June 25, 2004Rodney Bay, St. Lucia

Tourism Satellite Accounting

TSA Milestone

Tourism Satellite Account:

Recommended Methodological

Framework

WTO, OECD, Eurostat and UN

May 2001

The Tourism Satellite Accounting System links Demand for

Tourism to the Industries that Produce these Goods and Services.

An Accounting Tool for Making

Informed Business and Government Policy Decisions

What is Tourism Satellite Accounting?

WTTC / OEF

From Strategy and Concepts to

Implementation, Model Building,

Hard Data, Research, Analysis

And Reporting

14 Years of Commitment

WTTC’s TSA Research

The Caribbean TSA Estimates

2004

Personal Travel & Tourism

Business Travel

Government Expenditures

Capital Investment

Visitor Exports

Other Exports

Caribbean - T&T Demand

2004 Travel & Tourism Spending by

Caribbean Residents

US$8.0 billion in 2004

6.5% of Total Personal

Consumption in 2004

6.0% Real Growth in 2004

3.8% Real Growth per annum

(2005-2014)

Caribbean - Personal T&T

2004

T&T Spending by Caribbean

Companies and Government

Agencies




(2005-2014)

Caribbean - Business Travel

Caribbean - Personal and Business T&T

Personal and Business Travel & Tourism

(US$ mn)

US Virgin IslandsTrinidad and Tobago

St Vincent and the GrenadinesSaint Lucia

Saint Kitts and NevisPuerto Rico

MartiniqueJamaica

HaitiGuadeloupe

GrenadaDominican Republic

DominicaCuraçao

CubaCayman Islands

British Virgin IslandsBermudaBarbadosBahamas

ArubaAntigua and Barbuda

Anguilla

0 500 1,000 1,500 2,000 2,500 3,000

2004 Government Travel & Tourism

Services Provided to Individual

Visitors and the Community-at-large


8.2% of Total Government

Expenditures in 2004



(2005-2014)

Caribbean - Gov’t T&T Expenditures

Caribbean - Gov’t T&T Expenditures




MartiniqueJamaica

HaitiGuadeloupe


DominicaCuraçao

CubaCayman Islands



Anguilla 13.427.4

20.913.8

14.618.3

26.628.9

5.74.8

6.020.6

11.720.4

2.915.8

7.93.9

14.423.8

8.64.1

19.5

Travel & Tourism Government Expenditures

(% of Total)

2004 T&T Facilities, Equipment and

Infrastructure by Public and

Private Sectors


21.7% of Total Capital Investment

in 2004



(2005-2014)

Caribbean - T&T Capital Investment

Caribbean - T&T Capital Investment




MartiniqueJamaica

HaitiGuadeloupe


DominicaCuraçao

CubaCayman Islands



Anguilla 4.13.83.9

3.53.7

2.73.2

3.72.2

1.92.8

3.03.63.6

1.12.4

3.52.5

6.34.44.54.5

3.1

Travel & Tourism Capital Investment(2005-2014 Real Growth Annualized,

%)

2004

T&T Spending by International

Visitors


16.1% of Total Exports in 2004



(2005-2014)

Caribbean - Visitor Exports

2004 Consumer and Capital Goods

Exported for Visitors and Travel &

Tourism Companies Abroad


2.3% of Total Exports in 2004



(2005-2014)

Caribbean - Other T&T Exports

Caribbean - T&T Exports

Travel & Tourism Visitor and Other Exports

(US$ mn)




MartiniqueJamaica

HaitiGuadeloupe


DominicaCuraçao

CubaCayman Islands



Anguilla

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Caribbean - T&T Exports

Travel & Tourism Visitor and Other Exports

(% of Total Exports)




MartiniqueJamaica

HaitiGuadeloupe


DominicaCuraçao

CubaCayman Islands



Anguilla

0 10 20 30 40 50 60 70 80

Caribbean - T&T Visitor Exports

Travel & Tourism Visitor Exports (2005-2014 Real Growth Annualized,

%)




MartiniqueJamaica

HaitiGuadeloupe


DominicaCuraçao

CubaCayman Islands



Anguilla 5.84.6

2.16.4

4.65.5

5.04.6

4.05.0

5.51.8

5.58.5

6.84.8

2.95.2

5.85.5

3.35.8

5.1

21

22

23

24

25

26

1999 2000 2001 2002 2003 2004

1990 Constant US$ Bn Cumulative Real Growth %

0

10

20

30

40

50

60

70

80

Caribbean - T&T Demand

1990 201020011995 2005

T&T Industry and EconomyConsumption(Industry)

Demand(Economy)

2004 Travel & Tourism GDP Associated

with Visitor Consumption (Direct)


4.5% of Total Gross Domestic

Production in 2004



(2005-2014)

Caribbean - T&T Industry GDP

2004 Travel & Tourism GDP

Associated with T&T Demand

(Direct and Indirect)


14.8% of Total Gross Domestic

Production in 2004



(2005-2014)

Caribbean - T&T Economy* GDP

*WTTC Concept

Caribbean - T&T GDP




MartiniqueJamaica

HaitiGuadeloupe


DominicaCuraçao

CubaCayman Islands



Anguilla

0 10 20 30 40 50 60 70 80 90 100

Travel & Tourism Industry and Economy GDP (% of Total GDP)

2004 Travel & Tourism Employment

Associated with Visitor

Consumption (Direct)

814,600 Jobs in 2004

5.2% of Total Employment in 2004



(2005-2014)

Caribbean - T&T Industry Employment

2004 Travel & Tourism Employment

Associated with T&T Demand

(Direct and Indirect)

2.4 million Jobs in 2004

15.5% of Total Employment in 2004



(2005-2014)

Caribbean - T&T Economy* Empl.

*WTTC Concept

Caribbean - T&T Employment




MartiniqueJamaica

HaitiGuadeloupe


DominicaCuraçao

CubaCayman Islands



Anguilla

0 10 20 30 40 50 60 70 80 90 100Travel & Tourism Industry and Economy

Employment (% of Total Employment)

Adventure Jeep TourAir Jamaica, Ltd

American AirlinesAsesor Económico, Secretaría de Estado de Turismo

Asoc Hoteles de Juan DolioAsoc Hoteles de Santo DomingoAsoc Hoteles Romana-Bayahibe

ASONAHORESAtlantis Adventures

Bahamas Hotel AssociationBahamas Hotel Employers Association

Bahamas Ministry of TourismBahamas Taxi Cab Union

Bakers ChoiceBarbados Chamber of Commerce

Barbados Ministry of TourismBarbados Tourism Authority

Barbados Tourism Investment IncBarbados Workers' Union

British Airways (Barbados)Caribbean Producers Jamaica LtdCaribbean Tourism Organization

Central Bank of The BahamasCentro de Estrategias

Centro de Investigación Económica de las Antillas (CENANTILLAS)Coco Kreole Resorts

Comfort Suites Paradise IslandCourtesy Rent-A-Car

Cox & CompanyCreative Travel Consultants

Cuentas Nacionales Banco CentralCuracao Hospitality & Tourism Association

De Marchena Kaluche & AsociadosDeloitte & Touche

Foster & Ince Cruise Services IncGrenada Board of TourismGrenada Hotel & Tourism

AssociationGrenada Industrial Development Corporation

Grenada Ministry of TourismHanschell Inniss Ltd

Harmony SuitesHorned Dorset Primavera

Horwath ConsultingHotel Development Corporation

Hyatt Hotels & ResortsInternational Hospitality EnterprisesJamaica Hotel & Tourist Association

Jamaica Ministry of Finance & Planning

Jamaica Ministry of Industry & TourismJamaica Tourist Board

Jamaica ToursKerzner International

Minister of Tourism (St Lucia)Nassau Paradise Island Promotion Board

Nature Heritage TourismOrganisation of Eastern Caribbean States

Pas PurchasingPricewaterhouseCoopers

Puerto Rico Convention BureauPuerto Rico Convention Center District

Puerto Rico Department of Economic Development & CommercePuerto Rico Government Development Bank

Puerto Rico Hotel & Tourism AssociationPuerto Rico Tourism Company

Round Hill HotelSandals Halcyon

Sol Meliá Hotels & ResortsSt Lucia Ministry of Finance

St Lucia Air & Sea Ports AuthoritySt Lucia Department of LabourSt Lucia Golf & Country Club

St Lucia Ground HandlersSt Lucia Hotel & Tourism Association

St Lucia Ministry of TourismSt Lucia National Economic CouncilSt Lucia Representative Services

St Lucia Taxi CouncilSt Lucia Tourist Board

St Lucia Yachting AssociationSunset Beach Resort

SuperClubsSymonette Marketing Group

The Barbados Hotel & Tourism AssociationThe Flamboyant HotelThe New York TimesThe Sandpiper Hotel

USAir, BahamasUS Airways

United States Virgin Islands Department of TourismVilla Montaña Resort

Viva ResortsWavecrest Apartments

Wexford Court HotelWindjammer Landing

Wyndham El San Juan HotelWyndham Hotels & Resort

Caribbean Steering Committee

Public / Private Focus Groups

Desk Research and Analysis

Review and Debate

Recommendations

Dialog

The Importance of Travel & Tourism to the Caribbean is Indisputable.

•The Industry’s Potential is a Long Way

from Being Fully Tapped•

A Number of Challenges Will Have to Be Overcome to Ensure Sustainable

Long-Term Growth

Raising Awareness

The impact of the industry is generally not understood by public officials, the industry itself, or the communities where it takes place.

Tourism Planning

Long-term planning at both the national and regional levels is a

prerequisite for generating investor confidence and organizing the

successful development of Travel & Tourism in the Caribbean.

Industry Measurement

The Caribbean’s economic- and marketing-related Travel & Tourism research and

forecasting are generally inadequate, both in terms of quality and quantity.

Marketing and Promotion

Experience has shown that demand for any tourism destination grows sharply if

marketing and promotions are well funded and effective. WTTC recommends that the

marketing initiative be presented as an addendum in the Strategic Plan with

consideration for possible later implementation.

HIV/AIDS

Travel & Tourism stakeholders should seek help and assistance and follow celebrated

examples of education and HIV/AIDS management strategies.

Natural Environment

The quality and success of the Caribbean tourism product is dependent, in large

measure, on the maintenance of a healthy and attractive natural environment.

Safety, Security and Health

Crime, harassment and other forms of anti-social behaviour, along with

hazardous and unhealthy facilities, are major threats – real or perceived – to the

development of the industry.

Community Development

Travel & Tourism, as the region’s leading industry, must be a key

element of any national strategy to alleviate poverty and build resilience

and sustainability into rural andurban communities.

Linkages

A dedicated effort and resources must be organized by each NTO or tourism

ministry to guarantee a focused approachto establishing effective linkages

between Travel & Tourism and therest of the economy.

Investment

Because of the fundamental importanceof tourism to the economies of almost

all Caribbean countries and the well-being of their people, it is crucial to put inplace an operating climate that will encourage growth and investment in

the tourism sector.

Taxation

It is important that Caribbean authorities recall the WTTC Principles and Guidelines

of Intelligent Taxation and refer to these principles when they consider new taxes or

adjustments to existing tax structures.

Air Access

There is a need for the creation of aviable Caribbean air transport system to supplement the services being providedby the external carriers and to guarantee

sustainability of air transport servicesfor the region.

Cruise Tourism

The regional authorities, public and private sector, should undertake to

develop and agree a regional cruise line strategy that addresses the multitude of

issues of concern to the industry.

Timeshare

It is imperative for the Caribbeancountries to draw up sound regulationsfor timeshare that protect the consumer

and allow legitimate developers togrow their businesses.

Human Resource Management

Tourism is a labour-intensive, quality-driven service profession. It depends

crucially on the skills level and professionalism of the workforce to make

the sector productive and competitive.

Richard R. Miller Executive Vice President World Travel & Tourism Council

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