at the
Second ASEAN Tourism Investment Forum
Bali, Indonesia, 21 September 2007

I wish to congratulate the Government of Indonesia for hosting this Second ASEAN Tourism Investment Forum (ATIF) to showcase investment opportunities and latest developments to further boost tourism development in the region.

Tourism is now playing an increasingly important role in the ASEAN economy. In 2006, the region benefited from a staggering USD 40.7 billion in tourism receipts representing a 20% increase to 2005 . Therefore, allow me to take this opportunity to highlight key advantages of ASEAN as the best place for investment in tourism sector.

Diverse Attractions

ASEAN is endowed with rich and diverse tourism attractions and cultures: from snow-capped mountains to beaches, from nature to man-made, from pre-historic to modern. This corner of the world is also remarkable for its incredible combination of ethnic groups, each of which has its own language, customs, mores, and religious belief. Our region is blessed with abundant sunshine and plentiful rain. Traveller could visit ASEAN destinations throughout the year.

Market Potential

Despite several challenges like terrorism, natural disasters, SARS/AI and high oil prices – the region remained resilient in attracting international tourist arrivals. In the past ten years, the region grew by an annual growth of 6.2 per cent.

In 2006, ASEAN received more than 54 million international visitor arrivals with intra-ASEAN Travel as the biggest contributors of 46 per cent (or 25 million arrivals). With the ASEAN GDP growing between 5.5 to 6 per cent, the number of intra-ASEAN travel arrivals would further increase in the future. 

ASEAN is also strategically located in between two major emerging source markets – China and India with average arrivals growth to ASEAN of 9 per cent and 13 per cent, respectively in the past ten years. We are confident that the influx of middle-class travellers from these source markets into ASEAN would increase.

ASEAN Integration

Investing in ASEAN Member Country means, in effect investment in all ASEAN as you will have access to all others. As you may know, ASEAN is integrating the ten economies into a single market and an ASEAN Economic Community (AEC) will be established by 2015. 

The tourism sector, which has high inter-industry and cross-country linkages, is well suited to be the leading sector to accelerate regional economic growth and integration.  Recognizing its major contribution to economic growth and development, ASEAN has identified tourism as one of the priority sectors for integration within the ASEAN Economic Community.

The process of integration is guided by the Roadmap for Integration of Tourism Sector with the aims of enhancing the competitiveness of tourism sector and ensuring that the region becomes a world class tourism destination by 2010. The measures cover marketing, manpower, investment, standards, crisis communications and cruise.

On tourism manpower development, ASEAN National Tourism Organizations are currently finalising Mutual Recognition Arrangement covering 32 job-titles in tourism sector that would eventually allow movement of tourism workers within ASEAN based on certain quality of qualifications. On tourism standards, the ASEAN NTOs has developed regional criteria and requirements for major tourism establishments such as hotel and local food & beverages services to provide the excellent experience to travellers visiting destinations in the region and to ensure the sustainability of destination appeal.

Air Accessibility

Integrated, efficient and secure transport system contributes to tourism development in the region. In realising this, the Ministers of Transport have agreed to intensify regional cooperation in facilitating transport and tourism integration and in realizing a single air transport market in ASEAN by 2015. As the first step, the ASEAN Multilateral Agreement on Air Services is being finalized by transport officials. This liberalisation on air services would be important milestones for a more liberal environment and promote many new services in ASEAN including the development of low-cost air carriers (LCCs).

Collectively, LCCs are also an important actor in boosting international tourist arrival in the region. LCCs have brought tremendous benefits to travellers. They have stimulated new travel patterns, adding much growth and dynamism to tourism industry. The potential for growth in the region is tremendous. A vast proportion of ASEAN’s 550 million people have never flown before, presenting a huge potential pool of travellers. And if we add the combined population of 2.3 billion in China and India, there is an exciting possibility of ASEAN tourism industry in the near future.

Diverse attractions, the potential growth of ASEAN Tourism Market, integration of ASEAN tourism and enhanced air access are the strong bases for a promising future for tourism in the region. Therefore, ASEAN should be the place for your investment in tourism. 

Thank you for your attention.