WTTC's Global Summit Addresses Priorities For Driving Change In Travel And Tourism

The 4th World Travel & Tourism Council (WTTC) Global Summit, hosted by Qatar Airways in Doha from 1-3 May, attracted more than 800 public and private sector decision-makers and journalists from over 40 countries around the world. Said Jean-Claude Baumgarten, WTTC president, "Over the past couple of years, the series of crises that have affected travel and tourism has increased awareness, more than ever before, of the contribution of travel and tourism to the creation of wealth, jobs and prosperity at all levels of the economy. The industry is uniquely placed to encourage close contact between people and cultures, thereby promoting greater international understanding, tolerance and respect of different cultures, religions and values."

Under the theme 'Driving Change', the Summit featured an impressive list of well-known speakers from different sectors of the industry and government, and representing all regions of the world. But, while the speakers and panelists set the scene for each session, the unique format of this year's Summit ensured that all participants also contributed to the lively debates that followed.

The good news for the industry is that the current prospects for Travel & Tourism growth are better than they have been for a long time, thanks to the improved global economy - one of the main drivers of demand. "However, the governments need to recognise the fact that this is where travel and tourism can help, since it takes up unemployment at a much faster rate than other economic sectors," added Baumgarten.

Other areas - cited at the Summit - in which governments can and should act to facilitate the sustainable growth of travel and tourism and drive change included:

• Safety and security measures need to be continuously enhanced - in consultation with the industry - but key to the success of these measures is the way in which they are delivered. Attention must also be paid to understanding and eliminating the root cause of terrorism.
• More care and consideration should be given to issuing travel advisories, and they should be more specific in terms of both geography and the nature of threat in a particular location. They should also be continuously reviewed and updated so as to minimise their impact on tourism, trade and development.
• Certain key factors need to be assured to facilitate the growth of travel and tourism. These include a favourable government fiscal policy, a climate that is conducive to business - offering incentives for investment - sustained and effective marketing and promotion, and policies that respect the environment and local cultures.
• A destination's travel and tourism can also only flourish in open market conditions, so governments should improve access by liberalising air transport and removing all other barriers to sustainable growth.
• There was nonetheless a consensus at the Summit that, while governments can do a lot to facilitate travel and tourism, at the same time providing much needed infrastructure and human capital, change can only be driven by the private sector. It is up to the industry to:
• Harness technology, including the Internet, to drive new business strategies and develop new business and pricing models.
• Understand people as a resource rather than as a cost, and ensure they get the people equation right - in relations with customers and staff, as well as in staff development, training and leadership generally.
• Provide a strong value proposition. Achieving this will require tough choices, specially-given that old business models do not work any longer.
• The key success factors are operational efficiency, flexibility to match the cyclical nature of the industry and branding to combat acommoditisation.
• Budget airlines and hotels can co-exist with full-service airlines and luxury hotels; the key is proper segmentation of the market and an offer that provides value for money.