3- Tourism Satellite Accounts in Egypt: The Way Forward - Siyaha

INTRODUCTION• Tourism is an industry focusing on demand side more thansupply side , it is defined by the consumer/ visitor• TSA is now recognised as a standard to measure tourism in theeconomy• It has been developed jointly by UNWTO- OECD and Eurostatin cooperation with United Nations• TSA makes the link between industry supply and visitordemand

WHAT IS TSA ?TSA= Ten Tables provide an Anatomy for Tourism

TABLE 1Inbound Tourism , includes non-resident visitors’ activities in the economy ofrefernce within an inbound tourist trip ..-Business and Conferences-Vacations and entertainment- Visit relatives and friends- Education and training- Treatment and health care- The performance of ritualsand religious shrines-Shopping-OthersPurposesInbound VisitorsInbound TravelersNon-touristicPassengersSame-day Visitors Visitors- Workers (seasonal / permanent ...)- Immigrants- Transit PassengersStudents and patients (long interval,more than 1 year)- Members of diplomatic missionsForeign Visitors(Non-resident)Citizens of thestate living abroad- Members of the armed forces- Crews working at aircraft, ships andpublic transport4

TABLE 2TABLE 3TABLE 4+* Excluding Outbound Visitor Expenditure (during trips)Table 2Domestic TourismExpenditure=Table 4Internal TourismConsumption*

TABLE 5SUPPLY STRUCTUREProduction Accounts of Tourism& Other IndustriesTABLE 6MAJOR AGGREGATESTotal Domestic Supply &Internal Tourism Consumptionby products (at purchasers’ prices)

BENEFITS OF TSA-TABLES1) Identify contribution to the economy in terms of GDP2) Determine Foreign exchange earnings &Tax revenues3) Determine tourism expenditure incurred by various categories4) Provide information about main visitors (households, business, govt.employees ,non-residents, same-day visitors)5) Provide information on Employment and their profiles6) Offer to policy makers insights into tourism /socio-economic functionsand impacts7) Understand how visitor demand is matched by domestic supply8) Identify industries benefiting from tourism development9) Determine Tourism importance compared to other sectors10) Create awareness of importance of tourism

TSA AROUND THE WORLD‣ 70 countries have a consolidated TSA /developing TSA Exercise‣ Canada remains the pioneer.‣ New Zealand, Australia, USA and Mexico are well advancedImplementation of TSA in EUGroup Level of TSA implementation Number CountriesGroup 1Group 2Group 3Group 4[regularly] updated fullyfledged national TSA figures“comprehensible” fully fledgednational TSA pilot studies„First Compilation Started“,and first empirical results„First Compilation Started",and no empirical results13 Austria, Cyprus, Czech Republic, Denmark,Estonia, Finland, Hungary, Lithuania,Netherlands, Poland, Portugal, Spain, Sweden8 France, Germany, Greece, Ireland, Latvia,Slovakia, Slovenia United Kingdom3 Bulgaria, Italy, Romania3 Belgium, Luxemburg, MaltaSource: (EUROSTAT, 2010).

TSA IN THE ARAB REGION‣According to the UNWTO reports, only 4 Arab countries has embarked onbuilding TSA: (Morocco, Saudi Arabia, Oman, Egypt).‣However, other Arab countries are interested in implementation of TSA: Jordan,Yemen, Syria, UAE, Qatar and other countries.Implementation Status on TSA in the Arab RegionCountry Level of TSA implementation Contribution to GVA(2010)MoroccoSaudi ArabiaOmanEgyptExperimental results for the reference years1998, 2001, 2003 and updated for 2005 and 2008.[regularly] updated national TSA figures.the first Arab state to apply to this account asconsistent with the recommendations of the UNWTO„First Compilation Started“,and first empirical results[regularly] updated fully fledged national TSA figures.The only country in the Middle East which has fullyfledged TSA.6.7%3.7%2.9%6%

WHY TSA FOR EGYPT?Tourism is among the leading sectors in the Egyptian economy:-Chief contributor to GDP growth - Major job provider-Principal generator of foreign exchange earnings and public revenues-Main achiever of balanced spatial developmentHoweverNational Tourism Statistical System does not reflectthe real significance of tourismto the Egyptian economy

TOURISM DATA LIMITATIONSIncomplete Fragmented Inconsistent• H&R only• Hotel Residents• Inbound Tourism• Licensed Establishments• Full-time Workforce• Hotel & Tourist Villages Investments

TOURISM DATA LIMITATIONSIncomplete Fragmented Inconsistent• Local Administration• Private Associations• Official Bodies(MOT, CBE, CAPMAS, GAFI, MOED, etc…)

TOURISM DATA LIMITATIONSIncomplete Fragmented InconsistentDifferences in:•Coverage•Methodology

INSTITUTIONAL PLATFORMLaunching TSA Project• Conclusion of Protocol of cooperation (MOT & MOED) : Feb. 2008• Issuance of MOT Ministerial Decree• Creation of MOT specialized unit for TSA projectEstablishing Policy Working Group (PWG)“Steering Committee”Forming Technical Working Group (TWG)

KEY PLAYERSDataProducersData UsersQualityAssuranceBodies• Ministry of Tourism• Ministry of Planning• CAPMAS*• IDSC**• Central Bank of Egypt• Passport & ImmigrationAuthority of the Ministry ofInterior (MOI)• Ministries: Civil Aviation,Transport, Culture, EnvironmentManpower & Immigration,Finance and the SupremeCouncil of Antiquities• Tourism affiliated bodiesand federations.• Universities and researchinstitutions• Investors in the TourismBusiness• Governmental bodies• Centre for Survey andStatistical Applications(CSSA), Faculty ofEconomics and PoliticalScience, Cairo University(*) Central Agency for Public Mobilization and Statistics.(**) Cabinet’s Information and Decision Support Center.

Organizational Structure of the TSA ProjectMinistry of TourismSteering CommitteeGeneral CoordinatorTechnical WorkingGroupsAdministrative &Technical SecretariatExpatriate & NationalConsultantsProject ManagerLegislative & ITSecretariatProject Experts• MOT• MOT• IDSC• MOI• MOT• MOT• CAPMAS• MOP• FEPS• MOP• ETF*• CBE(*) Egyptian Tourism Federation

DATA SOURCES (I)IDSC

DATA SOURCES (II)FEPS

MAJOR TSA AGGREGATES IN EGYPTInternal Tourism Consumption2010(EGP Billion)128(US$ Billion)22.5Internal Tourism Expenditure114.7Other Components of Tourism Consumption13.3Gross Value Added of the Tourism Industries152.726.8Tourism Direct Gross Value Added74.713.1Tourism Direct Gross Domestic Product79.513.9Employment in Tourism IndustriesMillion1.64(%)Tourism Industries Contribution to GDP12.2Tourism Direct Contribution to GDP6.1Tourism contribution to Total Employment7

CHALLENGES• Unbundling package tours• Inclusive price of composite services• International Same-day Visitors / Excursionists• Other components of tourism consumption:• Time-share• Second Homes and Furnished Rented Apartments• Payments paid by Employers for tourism trips provided toemployees and their families• Tourism social transfers in kind (Individual non-market services)• Other Contributions

TREATMENT OF EGYPT TSA CHALLENGES1- “Unbundling” Package ToursBy compiling the following:1)Tour operators & Egyptian tourism companies abroad Surveys2)Secondary data of Intern. Federation of Tour Operators.3)Adapting % of all expenditure items of individual inbound to the touristson package tours deals.2- Inclusive price of composite servicesMany difficulties face visitors surveys to estimate the allocation of inclusiveprice among different outlays items, the TSA team had resorted in thisrespect to experts opinions as well as results of surveys:- Accommodation - Railway Accommodation Wagons - Nile CruiseServices - Safari tours

Treatment of Egypt TSA Challenges cont.3- International Same Day Visitors/ExcursionistsInternational Same-day visitors in Egypt are of special nature where most ofthem are passengers by international shipsTo cover their expenditures and determine items breakdown:- A survey was carried out at the main seaports (Alexandria and Port-said)- Another survey targeting companies specialized in organized same-day tripsin Egypt4- Other Components in tourism consumptioni.Time-shareA survey was conducted on Timeshare resorts to explore the average imputedrent value; occupancy days ; fees for use of time-share facilities by owners(linen service, cleaning, etc.)

TREATMENT OF EGYPT TSA CHALLENGESCONT.ii. Second Homes and Furnished Rented ApartmentsUsing the data of of Households Expenditure & Consumption Survey to calculate the numberof each kind of units, time of usage and average rent.iii. Payments paid by Employers for tourism trips provided to employees and theirfamiliesA survey was designed for ministries, syndicates and unions to estimate the paymentprovided by producers for the benefit of their employees for tourism trips inside as wellas outside Egypt.iv. Tourism social transfers in kind (Individual Non-Market Services)Subsidized Activities by GOE: Museums’ Fees for nationals = Revenues generated bynationals - Government consumption expenditures on museumsv. Other ContributionsTSA Unit addressed relevant entities to estimate their contributions in school trips,employees benefit costs (Ministry of Education, Higher Council of Youth, otherMinistries,,,,,).

OTHER COMPONENTSOF TOURISM CONSUMPTION1 2 3 4-Aggregate Total = EGP 13.3 Billion= US$ 2.3 BillionSources: National Accounts Estimates, Survey on Timeshare units, Survey onMinistries and Syndicates, Ministry of Education and National Council of Youth Data.=

TSA PUBLICATIONSFirst detailed Arabic TSA Manual covering methodological & operationalaspects.2 Executive Summary ( English & Arabic)It includes 7 chapters:Chapter 1: Methodological Framework of the TSAChapter 2: Lessons Learnt from International ExperiencesChapter 3: Importance of TSA Compilation for EgyptChapter 4: Data sources for Egyptian TSAChapter 5: Treatment of Egypt’s TSA Methodological Issues.Chapter 6: TSA Results in EgyptChapter 7: Challenges and Future ActionsAnnexes: Surveys’ Questionnaire (14)

TSA BY- PRODUCTSIn Focus Series provide in‐depthanalysis of inbound visitors bymarkets29 Market Profiles :‐ Demographic characteristics (Age,Sex, Annual Income,….);‐ Purpose of Visit; Number of Visits‐Organizing and Booking Methods;‐Type &place of Accommodation;‐ Average length of stay‐ Average Expenditure per night

FUTURE ACTIONS FOR TSA IN EGYPT‣ Incorporating TSA results as main pillars in MOT’s strategy.‣ Sustainability of TSA activities through conducting regular surveys toprovide continues stream of tourism statistics.‣ Building TSA’s extensionso Tourism Human Resources Moduleo Regional TSA ( By governorate)o Advanced use of Tourism Statistics (Tourist Behavior)o Advanced decision making models based on TSAo indicators beyond TSA Meetings Industry Satellite Account

Ministry of TourismAdla Ragabadlaragab@tourism.gov.eg