SECTORAL ROUNDTABLE - Argentina.gob.ar...2016 despite terrorism –Tourism is “resilient”...
Transcript of SECTORAL ROUNDTABLE - Argentina.gob.ar...2016 despite terrorism –Tourism is “resilient”...
SECTORAL ROUNDTABLE
SEPT 13TH, 2016
Tourism
AGENDA
15 min. Introduction: Global and Regional Context
Presented by Jean-Claude Ramirez, Managing Partner,
Bain & Company
30 min. The Government’s Agenda
Presented by Gustavo Santos, Minister of Tourism
25 min. The Private Sector Perspective
Panelists include:
Isela Costantini, Aerolineas Argentinas
Francisco Gutiérrez de Arrechea, NH Hotels
Daniel Reigl, Howard Johnson Argentina
20 min. Q&A
Introduction
Presented by Jean-Claude Ramirez,
Managing Partner, Bain & Company
GLOBALLY, TOURISM IS GROWING AT 4.6%
4.6%
Worldwide
Note: In volume of trips; nominal value’s CAGR is 3.8%
Source: Euromonitor
Outbound trips(Millions)
GLOBAL TRENDS DRIVING TOURISM
• Asia Pacific growing
at 7.5% (outbound
tourists; 2011-2015
period)
- China 16.4% (2015:
76M trips)
• Latin America growing
at 6.4%
• Within developed,
middle classes also
gaining share
• Global growth of
4.4% in 2015 and
positive outlook for
2016 despite
terrorism – Tourism is
“resilient”
• Shift to safer
destinations - i.e. Med
region: Spain, Italy,
Croatia vs. North
Africa
• Average spending per
trip falling ~2%*, but
there is
+premiunization
• Growth of low cost-
airlines (also in
emerging countries)
• New business models
– i.e. Airbnb
• Growth of online
distribution, and social
media
• In Leisure off-season
city travel (Europe),
cruises …
• … And ecotourism &
adventure/active
travel, examples in
Latam:
- Machu Pichu
- Amazonas
- Patagonia
- Antarctica, …
(*) Real terms, 2011-2015 CAGR
Source: UNWTO, Euromonitor, IPK
Worldwide
TOURISM IS RELEVANT FOR ARGENTINA
ARGENTINA IN SOUTH AMERICA
• Revenues of 3.8% GDP*
(US$15B)
• Represents 5.4% of
employment*
• 53.4M of trips
- 47.7M Domestic
(~65% of spending)
- 5.7M Inbound
(~35% of spending)
In 2011 used to
be #1 with 25%
Figures as of 2015; except (*) from 2014; Argentina Domestic using EVyTH survey (extrapolated to total population). Source:
Ministry of Tourism, Euromonitor, EIU
Share in %(2015)
ARG. HAS LAGGED VERSUS THE REGION
DOMESTIC INBOUND OUTBOUND
3% 5% 6%
Note: Argentina Domestic using EVyTH survey (extrapolated to total population); Source: Ministry of Tourism, Euromonitor
Argentina & S. America
Domestic trips(Millions)
Inbound trips(Millions)
Outbound trips(Millions)
LOWER GROWTH IMPACTED INVESTMENT
Argentina & S. America
CAGR 2011 vs. 2015
CHANGE IN HOTELS CAPACITYDEVELOPMENT OF DOMESTIC
AIR TRANSPORTATIONAs a proxy
for hotel
investments
Source: Euromonitor; Indec (ARG); ANAC (BRA); Junta Aeronáutica Civil (CHL); UAEAC (COL); Ministerio de Transporte y
Comunicaciones (PER)
CAGR 2000 vs. 2015
1.5% 7.0% 6.8% 6.3% 8.4%
Increase in hotel beds(2011-2015 variation, ‘000s)
Passengers / 100 inhabitants
ARGENTINA HAS STRONG FUNDAMENTALS
Argentina
Humahuaca
Dakar
Source: Ministry of Tourism, EIU, United Nations, OVUM
Iguazú
WineriesSki resorts Tango Barbecue
Perito Moreno
Ecotourism FishingHeritage Jesuit
Ushuaia
STRONG & DIVERSIFIED PRODUCTEXAMPLES
Argentina
ARGENTINA’S FUTURE PERSPECTIVES
Recover #1 Inbound position in South America
Return Domestic to growth in
line with South America
Better
connectivity/
Eliminate
bottlenecks
Improve
Competiti-
veness
Develop
transportation
and Tourism
resources
Promote
Argentina
The Government’sAgenda
Presented by Gustavo Santos,
Minister of Tourism
INTERNATIONAL DOMESTICAnnual tourist arrivals Annual tourist arrivals Annual tourist expenseAnnual tourist expense
These targets imply increasing jobs by +300,000 (or +28%)
TOURISM GOALS FOR 2019
50%
90%
47%58%
WE HAVE CLEAR GOALS BY REGION
Inbound trips
2015-2019 growth by market
North America Neighbor countries Rest of the world
EuropeBrazilRest of America
INITIATIVE STATUS
USA Reciprocity Fee elimination +18% of arrivals in 1st
semester Done
Cross-border integration In progress
Proposal to China to improve bilateral trade balance through Tourism In progress
Electronic travel authorization for Chinese tourists who have USA or
Shengen visaDone
VISA Reciprocity with Brazil and Chile In progress
Accommodation tax return (21%) for foreign tourists To be started
1
6
2
3
4
5
WE ARE WORKING TO MEET THESE TARGETS
WE ARE DEVELOPING NEW DESTINATIONS
National plan of touristic investments
Eco-sustainable municipalities
Strategic investments to be financed
International financing
• Iguazú
• San Ignacio
• Moconá
• Iberá
• Impenetrable
• La Estrella
1
2
National plan of touristic investments
Eco-sustainable municipalities
Strategic investments to be financed
International financing
• NATIONAL
PARKS
• ROUTE OF THE
JESUITS
• INCA
PATHWAY
• RIVER CRUISES
NEA ECO-TOURISM CORRIDOR
OTHER DESTINATIONS
PUNA CORRIDOR
• North of Argentina
• Chile
• Bolivia
International Flights(New routes and frequencies)
ARGENTINA IS INCREASING CONNECTIVITY
2XDomestic
flights
PLAN: INCREASE AND RECOVER STRATEGIC MARKETS
• Countries from the
region
• USA
• Europe
• Middle East
• Africa
• Asia (China)
• Oceania
INVESTMENTS IN ARGENTINA
Argentina
US$ +1,000Minvestments already being executed
US$ +2,000Minvestment opportunities in new destinations
The Private Sector’s Perspective
Moderated by Jean-Claude Ramirez,
Managing Partner, Bain & Company
THE PRIVATE SECTOR’S PERSPECTIVE
ISELA
COSTANTINI
AEROLINEAS
ARGENTINAS
CEO, Argentina
DANIEL
REIGL
HOWARD JOHNSON
ARGENTINA
Director of Operations,
Argentina
FRANCISCO
GUTIÉRREZ DE ARRECHEA
NH HOTELS
Director of Projects,
America
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