Insight Report The Travel & Tourism Competitiveness …

1 Insight ReportThe Travel & Tourism Competitiveness Report 2019 Travel and Tourism at a Tipping PointInsight ReportThe Travel & Tourism Competitiveness Report 2019 Travel and Tourism at a Tipping PointThe Travel & Tourism Competitiveness Report 2019 is published by the World Economic Forum s Platform for Shaping the Future of Mobility. Professor Klaus SchwabFounder and Executive ChairmanAnil MenonManaging Director, Head of Centre for Global Industries, Member of the Managing BoardChristoph WolffHead of Mobility Member of the Executive CommitteeAUTHORSL auren Uppink CalderwoodHead of Aviation, Travel and Tourism Industries, Global Leadership FellowMaksim SoshkinResearch and Analysis Specialist, Aerospace, Aviation, Travel and TourismCopyediting: Mike FisherDesign and layout: Neil WeinbergA special thanks goes to the Global Competitiveness and Risks OF USE AND DISCLAIMERThe analysis presented in the Travel & Tourism Competitiveness Report 2019 (herein: Report ) is based on a methodology integrating the latest statistics from international organizations and a survey of findings, interpretations and conclusions expressed in this work do not necessarily reflect the views of the World Economic Forum.

2 The Report presents information and data that were compiled and/or collected by the World Economic Forum (all information and data referred herein as Data ). Data in this Report is subject to change without terms country and nation as used in this Report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The terms cover well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on a separate and independent the World Economic Forum takes every reasonable step to ensure that the Data thus compiled and/or collected is accurately reflected in this Report , the World Economic Forum, its agents, officers, and employees: (i) provide the Data as is, as available and without warranty of any kind, either express or implied, including, without limitation, warranties of merchantability, fitness for a particular purpose and non-infringement; (ii) make no representations, express or implied, as to the accuracy of the Data contained in this Report or its suitability for any particular purpose.

3 (iii) accept no liability for any use of the said Data or reliance placed on it, in particular, for any interpretation, decisions, or actions based on the Data in this parties may have ownership interests in some of the Data contained in this Report . The World Economic Forum in no way represents or warrants that it owns or controls all rights in all Data, and the World Economic Forum will not be liable to users for any claims brought against users by third parties in connection with their use of any World Economic Forum, its agents, officers, and employees do not endorse or in any respect warrant any third-party products or services by virtue of any Data, material, or content referred to or included in this shall not infringe upon the integrity of the Data and in particular shall refrain from any act of alteration of the Data that intentionally affects its nature or accuracy. If the Data is materially transformed by the user, this must be stated explicitly along with the required source Data compiled by parties other than the World Economic Forum, as specified in Appendix C of this Report , users must refer to these parties terms of use, in particular concerning the attribution, distribution, and reproduction of the Data for which the World Economic Forum is the source (herein World Economic Forum ), as specified in Appendix C of this Report , is distributed or reproduced, it must appear accurately and be attributed to the World Economic Forum.

4 This source attribution requirement is attached to any use of Data, whether obtained directly from the World Economic Forum or from a who make World Economic Forum Data available to other users through any type of distribution or download environment agree to make reasonable efforts to communicate and promote compliance by their end users with these who intend to sell World Economic Forum Data as part of a database or as a standalone product must first obtain the permission from the World Economic Forum Economic ForumGenevaCopyright 2019 by the World Economic ForumAll rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise without the prior permission of the World Economic : 978-2-940631-01-8 ContentsPreface vby Anil Menon and Christoph WolffExecutive Summary viiAbout the Travel & Tourism Competitiveness Report 2019 ixAt a Glance: Travel & Tourism Competitiveness Index 2019 Overall Rankings xiiiPart 1: The Travel & Tourism Competitiveness Index 2019 1 Travel & Tourism at a Tipping Point 32019 Results and Analysis 6 Part 2: Regional Analysis 11 How to Read the Regional Profiles 13 ISO-2 Code Lookup Tables 16 Regional Profiles 18 Part 3: Country/Economy Profiles 57 How to Read the Country/Economy Profiles 59 Index of Country/Economy Profiles 61 Country/Economy Profiles 63 Appendix A: Travel & Tourism Competitiveness Index 2019 Rankings 65 Appendix B.

5 Methodology of the TTCI 2019 85 Appendix C: Data Definitions and Sources 91 Appendix D: Income Group and Regional Classifications 101 Contributors and AcknowledgementsAbout the Authors 103 Data Partners 105 Partner Institutes 107 Explore additional features of the Report at MENONM anaging Director, Head of Centre for Global Industries, World Economic ForumCHRISTOPH WOLFFHead of Mobility, Member of the Executive Committee, World Economic ForumExplore additional features of the Report at 2018, according to the World Tourism Organization, the number of international tourist arrivals worldwide reached billion, two years before it was predicted to do so. That year also marked the seventh year in a row where the growth in Tourism exports (+4%) exceeded the growth in merchandise exports (+3%). Given this rapid pace of growth, the prediction that international arrivals will reach billion by 2030 may be presents enormous potential for the sector and economies globally as Travel is further democratized.

6 Emerging economies are contributing larger proportions of travellers to this global trend and are becoming increasingly desirable as destinations as they show greater Competitiveness in Travel and is also since the previous publication of our biennial Travel & Tourism Competitiveness Report in April 2017, that the term overtourism has become common currency. Used to depict the negative impact Tourism can have on a destination, its residents and visitors alike, and often the result of congestion and overcrowding from poor Tourism management , overtourism can be considered the outcome of destinations exceeding their Tourism carrying capacity. Tourism carrying capacity is defined by the World Tourism Organisation (UNWTO) as the maximum number of people that may visit a tourist destination at the same time, without causing destruction of the physical, economic, and sociocultural environment and an unacceptable decrease in the quality of visitors satisfaction.

7 It is within this context of enormous growth potential, and increasing pressure on Tourism infrastructure and services, that Travel & Tourism Competitiveness can be seen simultaneously as a powerful economic growth driver, or a risk to ongoing development of the industry if not managed in T&T Competitiveness has traditionally offered tremendous returns, from increases to GDP and labour absorption, to local economic development for more remote communities. However, Competitiveness for Competitiveness sake may become a burgeoning constraint on the sector as a whole. For this reason, the theme of this year s edition of the Travel & Tourism Competitiveness Report 2019 is Travel and Tourism at a Tipping Point .The Travel & Tourism Competitiveness Report is a flagship product of the Platform for Shaping the Future of Mobility, which brings together world leaders to ensure Travel and transportation systems meet 21st century demands. The rapid proliferation of new modes of mobility and disruptive business models provides us with the opportunity to reinvent mobility systems by using policy and technological innovations to address societal, economic and environmental risks.

8 This Report provides a valuable tool for policy-makers, companies and complementary sectors to understand and anticipate emerging trends and risks in global Travel and Tourism , adapt their policies and practices, and accelerate new models that ensure the longevity of this important sector. This combination allows stakeholders to combine Insight and action into accelerating change, and we invite leaders to engage with our , this Report relies on the dedicated collaboration of a network of distinguished thinkers who provide their knowledge and insights towards its production. We are grateful to our community of Data Partners: the International Air Transport Association (IATA), the International Union for Conservation of Nature (IUCN), the World Tourism Organization (UNWTO), the World Travel & Tourism Council (WTTC), Bloom Consulting and STR for helping us to design and develop the TTCI, and for providing much of the industry-relevant data used in its calculation.

9 We thank our Industry Partners namely Airport Authority Hong Kong, Al Nippon Airways, , Corporaci n Am rica, , Deutsche Lufthansa, Emirates Airline, Expedia Group, Heathrow Airport, Iberostar Group, Intercontinental Hotel Group, Jumeirah Group, Marriott International, Royal Schiphol Group, SAP, SpiceJet, Swiss International Air Lines and VISA for their continuous Insight and perspectives on industry transformations and also wish to thank the authors of the Report , Lauren Uppink Calderwood and Maksim Soshkin, for their leadership, energy and commitment demonstrated in the delivery of this Report . Additionally, appreciation goes to the Global Competitiveness and Risks team and Platform for Shaping the Future of Mobility colleagues for their guidance and expertise. Finally, we thank the 160 Partner Institutes worldwide, which help administer the Executive Opinion Survey, the results of which provide invaluable data for the index and this SummaryExplore additional features of the Report at 2019 edition of the Travel & Tourism Competitiveness Report features the latest iteration of the Travel & Tourism Competitiveness Index (TTCI).

10 Published biennially, the TTCI benchmarks the T&T Competitiveness of 140 economies and measures the set of factors and policies that enable the sustainable development of the Travel & Tourism (T&T) sector, which in turn, contributes to the development and Competitiveness of a country. The Travel & Tourism Competitiveness Report is a flagship product of the World Economic Forum s Platform for Shaping the Future of Mobility, which brings together world leaders to ensure Travel and transportation systems meet 21st century demands. This Report serves as a strategic benchmarking tool for policy-makers, companies and complementary sectors to advance the future development of the T&T sector by providing unique Insight into the strengths and development areas of each country/economy to enhance industry Competitiveness . Further, it serves as a platform for multistakeholder dialogue to understand and anticipate emerging trends and risks in global Travel and Tourism , adapt their policies, practices and investment decisions, and accelerate new models that ensure the longevity of this important sector.