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Ethiopia, Rwanda and Uganda: Top 10 improved world travel destinations

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Three Eastern African nations have emerged among the top ten fastest-growing destinations for tourism in the world.

The 2019 annual report compiled by the World Travel and Tourism Council (WTTC) shows that Ethiopia is the fastest-growing travel destination in the world with Rwanda in sixth place and Uganda holding a twelfth position on the list.

Ethiopia’s tourism sector grew by a staggering 48.6 percent in 2018, making up 9.4 percent of the economy and creating 2.2 million jobs. Over 8 percent of Ethiopia’s total workforce now works in tourism.

Rwanda also saw growth rates of 13.8 percent and Uganda 11.3 percent, with all 3 showing the pull of East Africa both in terms of its wildlife, history, and beaches, the Nation Media Group reported from Nairobi.

Kenya also saw a big growth in 2018  at 5.6 percent  which had created 1.46 million jobs and made up 8.8 percent of the total annual economy.

Kenya stands as the leading tourist hub in Eastern Africa, taking an advantage of its rich wildlife, historical sites, and beaches on the Indian Ocean coast and improved tourist services, mostly hotels and air transport facilities.

In its annual analysis quantifying the global economic and employment impact of travel and tourism in 185 countries and 25 regions, the World Travel and Tourism Council’s research reveals that the sector accounted for 10.4 percent of global GDP and 319 million jobs, or 10 percent of total employment in 2018.

It adds that travel and tourism’s growth in 2019 is expected “to remain resilient” despite a slowing global economy.

“Our forecasts point to a 3.6 percent expansion for travel and tourism, faster than an expected global economy growth of 2.9 percent in 2019,” the report says.

It adds that one in 5 of all new jobs were created by travel and tourism over the past 5 years showing the growing importance of the sector to the global economy.

Travel and tourism GDP grew by 5.6 percent in 2018, significantly above the African economic growth rate of 3.2 percent.

This places Africa as the second fastest-growing region in 2018, behind only Asia-Pacific.

Such growth is partly explained by North Africa’s rebound from security crises as well as the development and implementation of policies that stimulate travel promotion.

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Air freight demand still spiraling down

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For the fourth consecutive month, global air freight performance has reported a negative year-on-year growth and the worst performance in the last three years. The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight ton kilometers (FTKs), decreased 4.7% in February 2019, compared to the same period in 2018.

Freight capacity, measured in available freight ton kilometers (AFTKs), rose by 2.7% year-on-year in February 2019. This was the twelfth month in a row that capacity growth outstripped demand growth.

Demand for air cargo continues to face significant headwinds:

  • Trade tensions weigh on the industry;
  • Global economic activity and consumer confidence have weakened;
  • And the Purchasing Managers Index (PMI) for manufacturing and export orders has indicated falling global export orders since September 2018.

“Cargo is in the doldrums with smaller volumes being shipped over the last four months than a year ago. And with order books weakening, consumer confidence deteriorating and trade tensions hanging over the industry, it is difficult to see an early turnaround. The industry is adapting to new markets for e-commerce and special cargo shipments. But the bigger challenge is trade is slowing. Governments need to realize the damage being done by protectionist measures. Nobody wins a trade war. We all do better when borders are open to people and to trade,” said Alexandre de Juniac, IATA’s Director General and CEO.

 

Regional Performance

All regions reported a contraction in year-on-year demand growth in February 2019 except for Latin America.

  • Asia-Pacific airlines saw demand for air freight contract by 11.6% in February 2019, compared to the same period in 2018. Weaker manufacturing conditions for exporters in the region, ongoing trade tensions and a slowing of the Chinese economy impacted the market. Capacity decreased by 3.7%.

 

  • North American airlines saw demand contract by 0.7% in February 2019, compared to the same period a year earlier. This was the first month of negative year-on-year growth recorded since mid-2016, reflecting the sharp fall in trade with China. North American carriers have benefited from the strength of the US economy and consumer spending over the past year. Capacity increased by 7.1%.

 

  • European airlines experienced a contraction in freight demand of 1.0% in February 2019 compared to a year ago. The decline is consistent with weaker manufacturing conditions for exporters in Germany, one of Europe’s major economies. Trade tensions and uncertainty over Brexit also contributed to a weakening in demand. Capacity increased by 4.0% year-on-year.

 

  • Middle Eastern airlines’ freight volumes contracted 1.6% in February 2019 compared to the year-ago period. Capacity increased by 3.1%. A clear downward trend in seasonally-adjusted international air cargo demand is now evident with weakening trade to/from North America contributing to the decrease.

 

  • Latin American airlines posted the fastest growth of any region in February 2019 versus last year with demand up 2.8%. Despite the economic uncertainty in the region, a number of key markets are performing strongly. Seasonally-adjusted international freight demand achieved growth for the first time in six months. Capacity increased by 14.1%.

 

  • African carriers saw freight demand decrease by 8.5% in February 2019, compared to the same month in 2018. Seasonally-adjusted international freight volumes are lower than their peak in mid-2017; despite this, they are still 25% higher than their most recent trough in late-2015. Capacity grew 6.8% year-on-year.

View full February freight results (pdf).

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Destinations need new resources to tackle the “invisible burden” of tourism

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A report published today by the Travel Foundation, Cornell University’s Centre for Sustainable Global Enterprise and EplerWood International describes how destinations must uncover and account for tourism’s hidden costs, referred to as the “invisible burden,” to protect and manage vital destination assets worldwide. Failing to do so puts ecosystems, cultural wonders, and community life at increasing risk, and places the tourism industry on a weak foundation that could crack under its own weight.

The range of costs not currently accounted for include those needed to:

  • upgrade infrastructure beyond resident needs, to meet tourism demand;
  • manage and protect public spaces, monuments, the environment and natural habitats;
  • mitigate exposure to climate change risks; and
  • address the needs of locals affected by rising real estate prices, driven by the demand from tourism.

Either residents are left to pay these costs, or they are simply not paid, increasingly leading to environmental crises, spoiled tourism assets, and growing dissatisfaction among local residents. Destination authorities urgently need access to new resources, systems and expertise to ensure that, as tourism grows, the true costs of every new visitor are fully covered.

Amid increasing concern about “overtourism” and calls from within the travel industry for improved destination management, the report, Destinations at Risk: The Invisible Burden of Tourism, was commissioned by the Travel Foundation to better understand the challenges and constraints that national and municipal authorities face. It provides a thorough review of the risks that destinations face and the solutions urgently needed, including:

  • New local accounting systems that capture the full range of costs stemming from the growth of tourism, in place of an incomplete set of economic impact measures.
  • New skills and cross sector collaboration, underpinned by data and technology, to achieve effective spatial planning, manage demand for public utilities and services, and evaluate the availability of vital, local resources.
  • New valuation and financing mechanisms to redress debilitating underinvestment in infrastructure and local asset management and enable the transition to low-carbon destination economies.

Principal report author, Megan Epler Wood, said: “The Earth’s greatest treasures are cracking under the weight of the soaring tourism economy.  New data-driven systems to identify the cost of managing tourism’s most valued assets are required to stem a growing crisis in global tourism management.  With the right leadership, finance and analysis in place, a whole new generation of tourism professionals can move forward and erase the invisible burden while benefiting millions around the globe.”

Salli Felton, CEO of the Travel Foundation, said: “The invisible burden goes a long way to explain why we are now witnessing destinations failing to cope with tourism growth, despite the economic benefits it brings. It’s not enough to call on governments and municipalities to manage tourism better, if they don’t have access to the right skills and resources to do so. Destination managers need support to develop new skills and new ways of working that will enable them to move beyond tourism marketing.”

Dr Mark Milstein, co-author of the report, said: “This is a challenge of investing for the long-term health of a critical global economic sector. Future success will require collaboration among business, government, and civil society so that destinations are managed as the valuable, yet vulnerable, assets that they are.”

The authors conclude that some destinations are more vulnerable to the invisible burden and should be prioritised. For instance:

  1. Where there is a high risk of climate change impacts (which would disproportionately affect a visitor economy) – for instance, island states.
  2. Where the rise of the global middle class is driving tourism growth at unsustainable levels – for instance, in Southern and Southeast Asia.
  3. Where there is a high percentage of economic dependence on tourism – for instance, in the Caribbean.
  4. Where the ability of local government to manage tourism growth is low, in terms of budgets and human capital – a problem that has been found in both advanced and emerging economies.

The analysis draws upon academic literature, case studies, expert interviews and media reports, and provides a wealth of examples of the invisible burden.  Cases are drawn from Thailand, Mexico, and the Maldives, as well as Europe, Africa, and Latin America. The report also gives insights into types of data-driven systems, such as GIS mapping tools and the Smart Cities concept, which can address growth issues and facilitate new forms of investment.

The free report is available at invisibleburden.org.

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IMEX Policy Forum puts future city development front and center

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Policy makers from national and regional governments worldwide will explore The Business of Placemaking with leading business events industry professionals at this year’s IMEX Policy Forum.

This year the annual Forum will take place at the InterContinental Hotel Frankfurt on Tuesday 21 May, the first day of IMEX in Frankfurt 2019.

The IMEX Policy Forum is where the business events world and public policy makers annually connect and share insights into how events such as conferences, meetings and incentive travel can make a major contribution to national and regional economies.

The enormity of this contribution has now been quantified. According to the Global Economic Significance of Business Events, the first ever worldwide study from the Events Industry Council (EIC) and conducted by Oxford Economics, the direct spend of the meeting and event industry worldwide in 2017 was more than US$1.03 trillion, matching the consumer electronics sector in size.

Leveraging the link between business events and the innovation economy

All participants have the opportunity to visit the IMEX exhibition in the morning. In the afternoon, invited ministers and senior political representatives will take part in a national government discussion in collaboration with the United Nations World Tourism Organization (UNWTO) chaired by Martin Sirk of Sirk Serendipity. At the same time Professor Greg Clark CBE, the world-renowned advisor on cities will facilitate a city workshop specifically designed for local, municipal and regional policy makers and destination representatives, exploring ‘business meetings and the innovation economy.’

Analyzing the business opportunity for urban placemaking

The Business of Placemaking will be put into the spotlight when the keynote speech is presented by Dr Julie Grail, a leading expert and commentator on partnership and place management and a special adviser on Business Improvement Districts at the Institute of Place Management at Manchester Metropolitan University. Julie, who has been involved in managing places for two and a half decades, has in recent years worked on international assignments in Australia, New Zealand, South America, Europe and the United States.

New this year, the interactive Leadership Discussion will feature an invited panel who will present case studies from the perspective of political, urban planning and destinations stakeholders who have all played influential roles in placemaking success stories. The discussion will be moderated by leading business journalist and media advisor Ursula Errington and will provide plenty of opportunity for everyone present to contribute to the discussions.

Each year the political representatives who take part acclaim the event, saying how valuable it is to learn from their peers in other countries and from the meetings industry experts about the benefits to economic development and business tourism that investment in business events can bring.

Carina Bauer, CEO of the IMEX Group commented; “Placemaking is a concept that’s long been understood and embraced by some city planners and developers alike but now the meetings and events industry understands the power and importance of being part of these conversations. This year’s agenda reflects what feels like a tipping point: a recognition that the business events industry can – and should – speak up to influence any city planning or placemaking decisions. This year’s Forum will guide by example and show the way. With its new format everyone can contribute fully to a lively discussion and gain valuable insights from the case studies.”

Organized under the auspices of the Joint Meetings Industry Council (JMIC), the IMEX Policy Forum’s advocacy partners are Association Internationale des Palais de Congres (AIPC), European Cities Marketing (ECM), ICCA, The Iceberg and UNWTO. The Forum is sponsored by Turisme de Barcelona, Business Events Sydney, German Convention Bureau, Geneva Convention Bureau, Messe Frankfurt and the Meetings Mean Business Coalition.

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