Transcript Cover and Agenda Slides

How Important is Tourism in The Bahamas?
The Tourism Satellite Account Perspective
Bahamas Tourism in 2003
May 17, 2006
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 Tourism Market Analysis
 Feasibility & Risk Assessment
 Destination Analysis & Impact
•
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Benefits of a TSA
• Compares government support of the tourism
sector with government revenue generated by
tourism.
• Allows policy-makers to compare the size
& growth of tourism to other
industrial sectors.
• Enables analysts to assess long-term
health of the tourism sector via
capital investment and
government support.
• Provides an accepted
international standard for benchmarking.
• Quantifies how other industry sectors
benefit from tourism.
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Tourism Satellite Accounting
• The Tourism Satellite Account is the
international (UN/WTO, OECD) standard for
measuring the contribution of tourism to an
economy
• The tourism ‘industry’ is not measured in
standard economic accounting systems.
• ‘Industry’ is a supply-side concept: the focus
is on what is being produced.
• But ‘Tourism’ is a demand-side concept:
the focus is on who’s buying products - the
visitor.
• Tourism affects parts of many industries
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T&T Industry and Economy
• Travel & Tourism Industry
 The direct effect of
travel demand
 Focus of the TSA
• Travel & Tourism Economy
 The flow-through effect of
travel demand across the
economy
The TSA provides both a narrow & a broad understanding of the Tourism “Industry”
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2003 Bahamas Tourism
TSA Results
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Direct Tourism Accounts for 21.3% of Total
Bahamas GDP
Industry
Value Added
(‘000)
Percentage of
Industry
Contribution to
Total Value Added
Percentage of
Industry Contribution
to Tourism Value
Added
Hotels & Restaurant
Real Estate
Other Tourism Services
Air & Other Transport
Mfg. & Retail Trade
Public Administration
Total Non-Tourism Industries
488,704.9
274,131.8
225,705.1
107,251.6
65,280.6
11,627.4
4,330,932.3
8.9
5.0
4.1
1.9
1.2
0.2
78.7
41.7
23.4
19.2
9.1
5.6
1.0
2.55
Tourism Gross Value Added
1,172,701.4
21.3
100.0
Total Gross Value Added
5,503,633.7
100.0
1,244.62
At $1.17billion, core tourism
accounts for 21.3% of total
Bahamas GDP in 2003
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600
S TO RAG E
800
RE S TAUR ANTS
1400
S E R V IC E S
O THE R
F IS H E R IE S
A G R IC U L T U R E &
TRANS P O RT
C O M M U N I C A T IO N
C O N S T R U C T IO N
IN D U S T R Y
R E T A IL T R A D E
W HO LE S A LE &
IN S U R A N C E
B A N K IN G &
B U S S E R V IC E S
RE AL E S T ATE &
DE FE NS E
P U B L IC A D M IN &
G ro ss V al u e A d d ed ('000)
Tourism Is The Largest Single Industry In
The Bahamas
Tourism outranks the
next largest industry
(public administration)
by a multiple of 1.6.
1200
1000
Ot h e r In d u s t r ie s
T o u r is m
400
200
0
Note: Tourism has been removed from those industries containing tourism.
8
Tourism Touches Many Industries
Distribution of Direct Tourism GDP by Industry
• Tourism generates direct
economic value in various
sectors such as hotels,
restaurants, and
transportation.
• However, tourism also
generates direct economic
output in other sectors such
as real estate, government,
and manufacturing.
M a n u fa c tu rin g
R e ta il T ra d e
1%
5%
R e c re a tio n
19%
G o v e rn m e n t
1%
$1.17
Billion
Tourism
GDP
H o te ls
34%
R e a l E s ta te
23%
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T ra n s p o rt
R e s ta u ra n ts
9%
8%
9
Tourism Share of Related Industries
Tourism generates
substantial shares of the
hotel, restaurant,
services, transportation
and real estate sectors.
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Breaking Down Tourism Expenditures
•
Domestic Personal – In-country travel expenditures of
Bahamas residents
•
Domestic Business Travel – Bahamas businesses’
spending within the local economy on travel
•
Government Spending – Bahamas Ministry of Tourism
Budget, transportation functions related to tourism, publicly
funded attractions and funding for security in tourismintensive areas
•
Investment – Construction of hotels, attractions, tourism
infrastructure, operating and transportation equipment
•
International – Spending of international visitors to the
Bahamas
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Breaking Down Tourism Expenditures –
$2.2 Billion
International visitors represent by far the largest portion of tourism
expenditures in the Bahamas with 82% of spending.
Millions
Domestic Personal
Domestic Business
Government
Investment
Int'l Visitor
Total
$109
$22
$88
$189
$1,838
$2,246
* Numbers may differ due to rounding
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Tourism GDP: An Engine of Growth
Tourism GDP has expanded 44%
over the past ten years
20%and 30%
within the past five.
1,400
T o u rism G D P
% C h a n g e (rig h t)
1,200
15%
M illio n s
1,000
10%
800
5%
600
0%
400
-5%
200
-10%
-
-15%
1989
1991
1993
1995
1997
1999
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2001
2003
13
Tourism GDP: Losing Share Due To
Diversification
Due to diversification and a stronger
local supply chain, direct tourism has
declined as a share of the economy .
1,400
30%
1,200
25%
M illio n s
1,000
20%
800
15%
600
10%
400
5%
200
-
0%
1989
1991
1993
1995
T o u rism G D P
1997
1999
2001
2003
% o f E co n o my (rig h t)
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Tourism Also Generates Employment
Distribution of Direct Tourism
Employment by Industry
M a n u f.
• Tourism generated 43,260
jobs in the Bahamas in 2003,
28% of all jobs.
• $699 million in wages are
related to tourism jobs, 27%
of all wages.
1%
R e ta il T ra d e
4%
R e c re a tio n
26%
43,260
Tourism
Jobs
G o v e rn m e n t
2%
H o te ls
33%
R e a l E s ta te
9%
T ra n s p o rt
4%
R e s ta u ra n ts
21%
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Core Tourism -- Summary
• In 2003, the direct impact of travel & tourism
was $1.17 billion.
 21.3% of Gross Domestic Product
• 43,260 jobs were created by travel & tourism
economic activity.
 28% of total employment
• Approximately $699 million in wages &
salaries was generated by travel & tourism in
2003.
 27% of all wages
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2003 Bahamas Tourism
Total Impact Results
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Total Tourism Economic Impact:
$2.8 billion
35%
D ire ct
In d ire ct
30%
In d u ce d
25%
20%
15%
10%
5%
0%
G DP
W a ge s
Em p lo ym e n t
• Tourism’s total economic contribution tallied $2.8 billion in 2003,
comprising 51% of Bahamas GDP.
• This economic activity generated $1.6 billion in local wages or
61% of all wages.
• In terms of employment, tourism is the catalyst for 97,383 jobs,
or 63% of the employment base.
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Tourism Generated Taxes
Tourism generated $468 million in taxes in 2003.
Tourism Generated Taxes
Category
Import Duties
Departure Tax
Import Stamp Tax
Immigration Fees
Hotel Occupancy
Realty
Transactions
Business License
Casino
Property Tax
All Other
Total
Tourism Tax $
$223,274,957
$70,279,661
$52,538,701
$23,121,440
$22,266,964
% of Total
48%
15%
11%
5%
5%
$16,463,208
4%
$15,240,845
$13,522,586
$10,132,333
$20,888,968
$467,729,665
3%
3%
2%
4%
100%
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Thank You!
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