Face to Face: Taleb Rifai
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
We pick the tourism expert for his thoughts on emerging markets, technology and tourism trends
What are currently the key game changers for tourism?
One is definitely technology which has changed the rules of the game and market place. It will continue to be game changer.
The next is the demographic change, as people are becoming older / younger, more active and more educated. The profile is changing.
The next is very important which is rise of emerging destinations. The world geo-economic centre of gravity is shifting east and south and that is changing the rules of the game.
The environment challenge is equally important as it is going to be major driver of how this industry is going to grow. This industry cannot grow, if it does not align itself with sustainability.
Finally, it is basically, tourism is an economic sector. If the economy goes up, the industry benefits and vice versa.
The traveller today is more experienced and technologically driven, do you see this changing travel trends?
Today, the traveller is in control of their own itineraries and plans. One of three people in the world make their own bookings and tailor-make itineraries directly between them and service providers. They also use the internet extensively. This point to the fact that traditional role of packaged tours are quickly disappearing. The pattern is more towards empowerment of the traveller or the customer.
Secondly, the demographic changes of the traveller are now becoming very clear. We are having now a new category of travelers above 70 or 80 years. They are healthier and want to explore destinations but need special care.
There are even younger travellers as young as 13 years; the demographic have changed which in turn are changing attitudes. There is also a change in the source of travellers, it is not anymore the domain of the west and north but travellers from everywhere.
The over-riding change was introduced by technology which has empowered the traveller. Mobile and smart phones have changed the way people function. Technology has also made experiences more real. Nonetheless, trends are going to be led by demographic and technological changes.
What are the characteristic of a good country?
It basically boils down to political will. It is not what you have; but what you do with what you have. You can have all the assets in the world but if you don’t have political will determination to put the policies in place to make what you have accessible, open, reachable and attractive to the rest of the world. You need to have a direct policy priority.
Tourism must never be a sectoral policy agenda. It should be a national policy agenda where the head of states and state’s policy must be all tourism centric that is the only way it can work. Success stories around the world have been centered around these key issues.
Some examples are Dubai which been successful because it has a leadership that believes in tourism; China is another key example as 10 years ago they decided that tourism is one of its key pillars and everything else falls in place.
Do you thinks visas are an issue that countries need to work upon?
This is a big issue, not big in terms of it being difficult to solve, but on its impact. Visas are becoming real barriers to healthier growth of tourism, traffic and mobility of people.
Visas are still being handled in a 19th century attitude and state of mind. What we are trying to do at UNWTO is making countries aware that they cannot really be spending so much of funds and resources on promoting their destinations, while at the same time, spending even more money by telling people not to come to their countries by creating obstacles to visit.
I think there is a contradiction in this definition in a work that is against the interest of countries. According to UNWTO, countries need to work together to work around this issue. Right now, visas are worked upon by countries in terms of reciprocity. This is not beneficial.
Do you see certain regions that are performing better than the rest globally?
Our figures are very clear that Asia is the star player; while the world average was about 4%, Asia grew at an average of 7% and it will continue to be a star operator of the world.
The trends are going west to east and north to south. This is very clear and particularly South East Asia.
Do you see new emerging markets that are yet to be tapped?
Of course, you have South America, Central America which is clear from the numbers.
The Middle East is another promising region for both business and leisure.
We should also not underestimate the changes that Africa is going through. Africa has been the only region in the world that has not been affected by the current economic crisis and continued to grow at an average of 4-5% every year. One has to understand that yes, it is starting from a modest and nominal base as Africa is attracting less than 5% of tourists around 52-53m out of one billion. However, at this rate of growth if it continues for the next 20 years, it will become a very important destination. Interestingly, Africa has a lot to offer and it is beginning to discover itself.
You mentioned the Middle East there, which has been through an interesting period of tourism with the Arab Spring. What key trends emerging from this region which would lead to development and growth?
The Middle East region is a promising one despite all that is happening now. What is happening now will have a short term effect but for the medium and long term, we will stick to our forecast. We are expecting tourism in the Arab world to almost triple to a 195 million. All in all, the region will grow well-above the world average. The reason cited is because the region is anyhow below its potential and has a great space for growth unlike matured destinations.
The region is also developing an important phenomenon. It is developing an aviation hub between east and west; north and south. It is one of the few regions of the world, where aviation is 100% correctly and directly in the support of tourism. Despite the gloomy news that comes out of the region off and on, we are very optimistic about it.
Inter-regional traffic is still very limited that by itself can create tremendous energy. This is because travelers of the region are spending their money outside of the region in a very significant way. A part of that energy if directed to inter-regional will make a big difference.
Finally, do you think the tourism potential of India is being explored both for inbound and outbound?
India has been a remarkably special phenomenon as a country. It started in the last decade by trying to become a destination and attracting attention to itself with the Incredible India campaign and serious government efforts.
In the last few years, it has become an even valuable source market. Tourists are being sought for in many parts of the world. The rise of the middle class, the accumulated wealth and years of economic prosperity are beginning to pay off. India is growing very well as source market.
We count India as one of the most promising source markets along with China and Russia. They will be the travellers of the future.
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