Speech for AGM of AHRIM 17 June 2013 President of the Executive Council of AHRIM Chief Executive Officer of AHRIM Members of the Executive Council of AHRIM Captains of the Tourism Industry Members of the Press Distinguished Guests Ladies and Gentlemen Good Evening. First of all, I would like to congratulate Mr. Eynaud on his reelection as President of AHRIM at its 40th Annual General Meeting. During these past 40 years, AHRIM has contributed immensely to tourism development in Mauritius. Also, as the privileged partner of Government in the formulation and implementation of tourism policies and strategies, AHRIM is called upon to play an even greater role, particularly at this critical juncture when we all need to join forces, in pursuance of our common goal of achieving growth. Ladies and Gentlemen Today, more than ever, the tourism sector is called upon to strive really hard so as to sustain growth and employment levels. The industry has been hit by a constellation of events, some with short term consequences and others of a more enduring nature. The prolonged economic slowdown and the downturn in our traditional tourism source markets, the political instability in Middle East and sovereign debt concerns in some European countries are among the factors that have adversely affected the performance of our tourism sector. Fundamental changes in the global tourism environment such as the emergence of low cost destinations and the rising cost of air tickets are also taking their toll on our tourism industry. Nevertheless, in spite of all the odds, our Tourism Sector has shown considerable resilience, and tourist arrivals have continued to increase, although at a much lower pace than projected, registering a figure of 965,441 last year as opposed to 761,063 arrivals in 2005. We are targeting the one million mark this year. Also, Tourism receipts reached an all time record of Rs 44.4 billion in 2012 compared to Rs 25.7 billion in 2005. Ladies and Gentlemen These results clearly demonstrate that the policy measures adopted by this Government are starting to reap benefits. Moreover, there is consensus among industry partners that the new challenges looming ahead can only be confronted through the exploitation of opportunities emanating from the BRICS Countries and the awakening of Africa. Also, this new operating environment requires tourism stakeholders to fundamentally shift their strategic approach not only to effectively address current challenges and capitalize on new opportunities but more importantly to reconcile growth with quality offer. At the level of my Ministry, we have, following consultations with all stakeholders, including AHRIM, elaborated a 10-year Economic and Social Transformation plan for the Tourism Sector. The plan aims at pursuing growth at an average annual rate of at least 5% with a more diversified portfolio of source markets while consolidating, enhancing and reinforcing the destination as a leading island resort. The ways and means for achieving this goal have also been identified in the 10-year plan. They include among others a review of legislative and institutional framework for tourism promotion and development, business facilitation, markets intelligence, HRD policies, visibility and product enhancement, reinforcement of safety and security measures and air access facilitation. The roles of the private sector, civil society and other government agencies in the transformation process have also been clearly defined. Over and above, Ladies and Gentlemen, my Ministry has drawn up a 3-year PBB Strategic Plan covering the period 2014-2016 to reposition the Tourism Sector in the new business environment. It is based on a shared vision of enhancing the global competitiveness of the destination. The strategic plan articulates the policies, strategies, projects and programmes that would be implemented over a period of three years to respond to the emerging challenges and enhance the visibility and attractiveness of the destination. Ladies and Gentlemen The success of our tourism industry has for decades rested on the Euro Zone countries, accounting for more than 50% of our total tourist arrivals with France being the leading market. The Euro Zone crisis has demonstrated to what extent the Euro-centric strategy is risky. With the emergence of Brazil, Russia, India, China and South Africa as the new economic powers, market diversification constitutes the only solution to sustain growth in the Industry . I therefore strongly urge operators to re-orient their marketing strategy, adapt their product and adopt new business practices to take full advantage of the new opportunities arising from the Chinese and Indian markets which represent vast tourist potentials for Mauritius. Last year 20,885 tourists from China visited Mauritius. Our objective is to double the number of Chinese tourists this year. To realize this objective, the active support of all tourism stakeholders is imperative. Hoteliers, tour operators and DMC are urged to acquire an in depth knowledge of these markets in order to tailor the product to the needs of these travelers. In CHINA, Mauritius is being positioned as a destination of choice for honeymooners, Golfers and movie producers. Already, Chinese movie producers have selected Mauritius to shoot two movies featuring Chinese stars. This medium should create good visibility for the destination in China, over and above current promotional campaigns being undertaken by Air Mauritius, MTPA and hoteliers. With the imminent introduction of a third direct flight from Beijing, Mauritius will be more accessible to the different regions and liable to attract more visitors. In India, our focus is primarily on the MICE segment where Mauritius is being marketed as the venue of choice to host high profile weddings. At least six high net worth Indian weddings are scheduled over the next seven months. -Prospection of new markets in niche segments with the right product offerings are the order of the day. Actions at that level have been initiated is South Korea, Turkey, Scandinavia., Middle East and CIS countries- On the regional front, acute attention is being paid to Proximity markets like Reunion Island and South Africa. Ladies and Gentlemen Our market diversification strategy requires that Mauritius broadens its tourism product portfolio and develop specific niche segments. Eco-tourism, medical tourism, business tourism, shopping tourism, cultural tourism, sport tourism, MICE and grey tourism offer tremendous opportunities for broadening our tourism product and would be promoted more aggressively. There is scope for our rich cultural heritage to be promoted according to the World Tourism Organisation and cultural tourism will account for 20% of all travels in the next 20 years. In this context, the development of the Port Louis Heritage Trail to enhance the visibility of our historical buildings and sites and provide an authentic experience and ambience to our visitors to be completed in the course of the year will constitute a value addition. This project will be followed by a National Heritage Trail programme. Sports tourism is another fast growing segment within the global travel and tourism industry. Sailing competition, Kite Surfing competition and Golf International are a few sports activities that are being promoted aggressively by MTPA to give a boost to sport tourism. Regional Tourism within the purview of RETOSA or The Vanilla Islands project constitute yet another avenue for offering a different package through the twin destination centre concept. This project is also being pursued with Emirates Holidays. Ladies and Gentlemen I will fail in my duty, if I do not touch upon this sensitive issue. Over the years, our promotional campaigns in all major source markets have depicted Mauritius as a safe and secure up market tourist destination. This selling proposition of a safe haven has contributed immensely towards the growth of our tourism sector. It is imperative that the solid reputation forged for Mauritius as a welcoming, appealing and secure holiday destination for families be preserved at all costs. Ladies and Gentlemen Air connectivity is a live subject and let me reassure you that developments are expected on a number of markets. Other than the successful introduction of direct flights to China, since the beginning of the year and negotiations are ongoing with Transaero and Aeroflot to resume operations on the Moscow/ Mauritius Route.. Negotiations are also being undertaken with Turkish airlines and Dreamliner of UK to improve connectivity to these destinations. On the regional front, MK will introduce 2 new flights to Durban. Our existing flights to Kenya and Perth are being aggressively marketed to improve yield. Considerable emphasis is being placed on Reunion and South Africa which are our proximity market. Ladies and Gentlemen We have to reckon with the fact that today, our tourist enterprises have to operate in a fast changing world that is characterized by unpredictability and inherent risks. To survive, our operators should imperatively re-orient their business models, reinvent themselves and harness their strengths to capitalize on emerging opportunities. Our entrepreneurs should be resilient, adaptable and decisive in dealing with uncertainties and crisis situations. In this context, each enterprise has to develop its own game plan to reposition itself in the new business environment. The institutions of my Ministry will continue to provide the necessary back up support and services in terms of destination promotion, product diversification, destination attractiveness and training to frontline operators. Our institutional support framework also needs to be relevant to adequately respond to new imperatives of the sector. The MTPA will shortly be restructured and provided with flexible structures to be able to quick turn strategies into action and make rapid decisions to address new challenges facing the sector. Ladies and Gentlemen The Tourism industry is currently undergoing difficult phase of its development. But I am confident that the genuine spirit of cooperation between Government, AHRIM and the industry at large, will reinforce our ability to overcome adversities. We are committed to taking immediate measures to address your needs as your priority is our priority when it comes to growing visitors numbers. I am confident that to turn the market around we will implement together activities that are impactful and innovative, and that will uphold the quality of service delivery which has so far been our trademark. Thank you for your commitment to the Tourism Industry and thank you for your attention. Hon. Michael Yeung Sik Yuen Minister of Tourism & Leisure 17 Juin 2013
Posted on: Mon, 17 Jun 2013 20:45:55 +0000
Trending Topics
Recently Viewed Topics
© 2015