LIVE AT WTTC JAPAN GLOBAL SUMMIT 2012
Our Rapidly Changing World
Prompt: What are the global megatrends that will ultimately impact Travel & Tourism? The tectonic plates of global politics, economics and business are in a state of dynamic flux, which will have profound implications for our industry as a major driver of the world economy. What’s next for interest rates, currencies, GDP, sovereign debt, credit, liquidity and the financial sector? What is the impact of the current global trend towards individual empowerment and mass protests against perceived inequalities? If we can answer these questions, we are in a better position to understand what they mean for our industry.
Moderator: Nick Ross, TV Presenter is there a paradigm shift? The psychological ramifications are more impactful than the actual danger.
Speakers and panelists: LU Zhiyuan (assistant governor of People’s Government of Hainan Province), Parag Khanna (director, Hybrid Reality Institute), CHEN Feng (chairman, HNA Group), Ray N Bickson (managing director & CEO, The Indian Hotels Company Ltd), Manfredi Lefebvre d’Ovidio (chairman, Silversea Cruises), Frits van Paasschen (president & CEO, Starwood Hotels & Resorts Worldwide), Sebastián Escarrer (vice chairman, Meliá Hotels International), Jabu Mabuza (deputy chairman, Tsogo Sun Group Board), Mark Harms (chairman and CEO, Global Leisure Partners), Stephen Cloobeck (CEO & chairman, Diamond Resorts Holdings), and Chris Nassetta (president and CEO, Hilton Worldwide).
LU Zhiyuan: The world economy is in an economy trend. Risk factors growth include decline in developed nations and slow down in emerging economies. Three points affecting Hainan tourism include European debt crisis, high domestic inflation, and world economy is unclear as international growth is slowing down. The numbers from various markets are all on the decline. Countermeasures are to develop domestic tourism, to promote tourism products (such as resorts, development is being promoted, eco-tours included), to adjust the location of tourism developments, and to implement proper regulations of illegal actions.
Parag Khanna: The IT industry does not necessarily share the interests of the travel and tourism industry. Travel is a lifestyle, a necessity for learning. No longer is globalization a US-centered. Every region matters now, every region is building alliances with everyone else. World is connecting by land, air, sea and in cyberspace. We will have universal connectivity in a very short period of time. "The "South is growing faster. Slow-growing, tropical countries, traditionally belong to what we call "the South." Three factors affecting the trade and tourism industry--infrastructure, generational change and urbanization. "Smart cities" are becoming more and more important. More "impatient" towards accountability. New countries are being born. Today there are more refugees because of climate change than because of political reasons. Travel industry needs to be ambassadors for infrastructure, openness, and environmental sustainability.
Mark Harms: Stagnation in the US and UK. Major structural challenges remain, so there's no money for growth. Protectionism and regulations are increase political risks, Good news, we still have growth in the BRICS. There's a massive amount of cash in the global economy.
Sebastián Escarrer: What are the capabilities to develop to adapt top changing industry. Better listening to with each other, establish pure mechanism of multi-level dialogues. Make sure organizations understand to our guests, clients, tour operators. It is a need to listen to our whole society that is around us.
CHEN Feng: We have to face the challenges of today's world. Capitalism has to change. Tourism industry by the whole situation for the whole world.
Jabu Mabuza: We need to recognize not only our profitability but to our GDP. We need to find the balance the domestic, regional and international. People are traveling to find their profound place within themselves. We also need to find between linkages and tourism. At the end of the day the industry is about people.
Frits van Paasschen; We are on the verge of high-end travel. Technology is changing people's lives--the way they relate to the world and the way they relate to each other, inspiring revolutions in the world. Consequence is increase in demand. Good times ahead.
Ray N Bickson; Taxation is the challenge on our industry. Some governments get policy and regulations. If we want to continue additional growth, de-regulation is key.
Manfredi Lefebvre d’Ovidio: There is a lot of growth than can be expected from cursing industry.
Chris Nassetta: Are we going to adapt our products and serves to meet the demands. Taxation and youth population will have an impact on our industry. There are opportunities and risks.
Stephen Cloobeck: Guest service is a large hole in our industry. I don't believe technology will hamper us, it will only help us. Technologies help us create memories. Memories are the most important aspect in travel and tourism.