Keenjhar Lake Resort Project - Sindh Board Of Investment ...

4 The Tourism Industry
4.1 International Tourism
Tourism had been rising steadily internationally, especially in the Asia-Pacific region until
2008 when, following global economic meltdown, there was a fall in demand, with implications
for some of the region’s developing economies.
According to United Nations Economic and Social Commission for Asia and the Pacific (the
“UNESCAP”) the global growth in international tourist arrivals fell from 6.7% to 2.0% between
2007 and 2008, thus reflecting an extremely volatile and unfavorable global economy.
However, as the world comes out of recession, tourism growth is also likely to be modest in
the coming years.
Over the period 1995-2007, tourism around the globe continued to experience steady growth
of 4.2% per year, thus confirming its status as the world’s largest growth industry. Between
the years 2006 and 2007, international tourist arrivals increased by 6.7% to 900 million. All
regions of the world registered increases in tourist activity during such period with the Asia-
Pacific region leading the rankings with a 10.4% increase.
Between 1995 and 2007, the
Asia-Pacific region’s share of
total arrivals increased from
18.7% to 25.7%. Steady growth
was also recorded in Africa:
Over the same period, its share
grew from 4.2 to 6.0%. North
America and Europe, on the
other hand, despite increases
in their absolute number of
tourist arrivals, saw their shares
of the market decline as
depicted by the adjacent chart.
Between 1995 and 2007, the
Asia-Pacific region’s share of
total tourist arrivals increased
Percentage Share
60%
50%
40%
30%
20%
10%
0%
1995 2005 2007
Asia and the Pacific
Africa
Europe
Latin America and Carib.
North America
Source: UNESCAP Statistical Yearbook for Asia and the Pacific 2009
from 18.7% to 25.7%. Steady growth was also recorded in Africa over the same period – with
its share growing from 4.2 to 6.0%. However, North America and Europe, on the other hand,
despite increases in their absolute number of tourist arrivals, saw their shares of the market
decline. The aforementioned statistics relating to the global tourist arrivals in various regions
are depicted by the adjacent chart.
Within the Asia-Pacific region, the strongest performance was in the South and South-West
Asia sub region, with a hefty increase in tourist arrivals in 2007 of 14.4%. This growth was
sustained by the robust performances of Nepal (+37.2%), Turkey (+17.6%), India (+14.3%)
and Maldives (+12.3%). The South-East Asia sub region, which used to be the region’s
leader, became the second best performer with a 11.7% increase with major contributors
being Malaysia
The East and North East-Asia sub region, led the growth in tourist arrivals with an increase of
21.1% in 2007. China’s growth in arrivals (+9.6%) also contributed to the sub region’s
continuing high performance. Indeed, in recent years China has become a world tourism
leader – both inbound and outbound. Since 1995, tourist departures from China have grown
tenfold. Among the beneficiaries of China’s outbound travel growth were Japan with a 13.8%
increase of visitors in 2007 and Hong Kong with an 8.4% increase.
The North and Central Asia sub region also had a solid performance, averaging a 7.7%
annual growth in arrivals over the period 1995-2007. Kyrgyzstan, Kazakhstan and Azerbaijan
were major contributors to this growth.
The growth in arrivals has been accompanied by a large growth in income. Between 1995
and 2007 worldwide receipts from international tourism more than doubled to $1,028 billion.
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Keenjhar Lake Resort Project - Project Information Memorandum