Share of International Visitors Arrivals to ASEAN 2014
Oceania 4 % America 4 %
Others / Unspecified 4 %
Europe 12 %
Intra-ASEAN 46 %
Asia( exc. ASEAN) 30 %
by 2020 and 187 million by 2030, it is important that the SMEs strive to strike the right balance between profit, people and planet to ensure long-term sustainability of the industry. This does not necessarily have to be a trade-off between profitability and cost. Today’ s consumers are more inclined to businesses that are sensitive to the environment in which they operate in. TripAdvisor reports that more than half of travel consumers indicate eco-friendliness and sustainablity as factors impacting their decision when booking accommodation. In fact, both elements ranked higher than brand name of the accommodation, special offer and loyalty programmes.
Naturally, many pioneering SMEs in the region have embraced ecotourism as the model of their business venture. The International Ecotourism Society( TIES) defines eco-tourism as“ responsible travel to natural areas that conserves the environment and improves the well-being of the local people”. This type of tourism brings together conservation, communities and sustainable travel.
This commitment on sustainability and inclusivity is affirmed in the vision of the ASEAN Tourism Strategic Plan 2016-2025 which envisages that come 2025, ASEAN will be a quality tourism destination offering a unique, diverse ASEAN
Source: ASEAN Tourism Strategic Plan 2016-2025
By 2025, ASEAN will be a quality tourism destination offering a unique, diverse ASEAN experience, and will be committed to responsible, sustainable, inclusive and balanced tourism development, so as to contribute significantly to the socio-economic well-being of ASEAN people.- ASEAN Tourism Strategic Plan 2016-2025
experience, and will be committed to responsible, sustainable, inclusive and balanced tourism development, so as to contribute significantly to the socio-economic well-being of ASEAN people”.
Muslim friendly or halal tourism, which caters to the faith-based needs of Muslim travellers also presents huge potential for SMEs in the region. The global Muslim travel expenditure is estimated to be worth US $ 142 billion in 2014 or 11 % of the total global travel expenditure with only China( US $ 160 billion) and the United States( US $ 143 billion) ranking higher. By the year 2020, this segment is expected to grow to US $ 233 billion. Countries in the region, including non-Organisation of Islamic Countries( OIC) members like Singapore and Thailand, are well-positioned to draw Muslim guests as a result of strong halal governance and their proximity to neighbouring Muslim countries.
In essence, ASEAN definitely has the edge in the tourism sector. With its rich natural and cultural resources, coupled with strategic government support in term of infrastructure investments and business-friendly policies, the stage is set for the SMEs in the region to set sail and embark on their journey to success.
Ahmad Azuar Zainuddin is a Senior Associate at the Centre for Entrepreneur Development and Research( CEDAR), a wholly owned subsidiary of the SME Bank Malaysia. He can be reached at ahmad. azuar @ smebank. com. my.
ISSUE 2: 2016 | ASEAN COMMUNITY OF ENTREPRENEURS 57