TOWARDS AN INTEGRATED

1

• TOWARDS AN INTEGRATED
• SYSTEM OF TOURISM STATISTICS
• Keynote Address
• IBGE Second National Meeting
• of Producers and Users of Social Economical
• and Territorial Information
• Prepared by
• Scott M. Meis, UNWTO Consultant
• Rio de Janeiro, Brazil
• 25 August, 2006

2
Introduction

• Thank you
• Eduardo, for the invitation
• Roberto, for the hospitality advice
• Neiva, for the help
• Pepe a mentor, I keep following in his
  footstepswith this topics as with others!
• Initial challenge intimidating!
• Realization Statistics systems development and
  integration have been the focus of my whole
  career!

3
Overview

• Focus
• Identify, specify explain the case for, and
  concepts, of a System of Tourism Statistics
  (STS), and
• An Integrated system (ISTS)
• Purpose
• Specify the meaning and significance of
  integration for STS
• Objectives
• Demonstrate contributions of TSA to ISTS
• Identify the benefits of ISTS

4
Overview

• Rationale
• Key Concepts
• Information/data Needs
• Users Uses
• Data Sources
• Organizing the Data TSA Role
• Illustrative Examples
• Management, Collaboration Coordination
• Conclusions

5
Rationale Why Systems of Tourism Statistics
Research?
WHAT ARE THE TOOLS?
JUSTIFICATIONS FOR STATE TOURISM INTERVENTION
Social integration
New Growth theory
Welfare economics
Transaction costs

• Assumptions
• Pereto efficiency
• Perfect competition
• Market failure
• Approaches
• Correct market failure by
• external effects
• production of public
• goods
• information deficits

• Assumptions
• Growth endogenous
• to economic systems
• Approaches
• Strengthening human
• resources by education
• training
• Strengthening research
• development

• Assumptions
• High transaction
• costs for tourism SMEs
• Resulting supply shortages
• Approaches
• Reduction of
• transaction costs
• Collaborative promotion
• Uncertainty reduction

• Assumptions
• Travel promotes
• interpersonal growth,
• knowledge
• understanding
• Approaches
• Support domestic
• travel of youth
• Support cultural
• education potential
• of 2 way international
• travel

Source Adapted from Smeral Prilisauer, 2005
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JUSTIFICATIONS FOR STATE TOURISM INTERVENTION
Rationale Why State Systems of Tourism
Statistics Research?

• Tourism promotion/development provides
• Stimulating effects of tourism marketing
• e.g. evidence of minor positive elasticities
  of relating
• to foreign tourism demand
• Above average high value added effects
• High general employment growth effects
• Relative locational security (i.e.comparative
  advantage)
• A significant factor in some economies, ensuring
  peoples livelihood and means of subsistence
• --especially SMEs in rural areas

Source Smeral, 2006
7
CHARACTERISTIC FEATURES OF TOURISM
Rationale What is Tourism Anyway?

• A social domain a particular human activity
• Defined as a demand-side phenomenon
• Temporary mobility of people from usual place of
  residence to temporary destinations
• Particular subset of travelers called visitors
• An amalgam of industries providing commodities
  and services directly to the visitor
• Related expenditures create economic significance
• Localization of impacts
• A field of study
• A collection of knowledge

Source Adapted from NTFTD, 1989
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Rationale What is Tourism Anyway?
DEFINITION SCOPE OF TOURISM DEMAND

• WTO and UN definitions (developed at Ottawa
  Conference on Tourism Statistics, Canada
  (1991))
• the activities of persons traveling to and
  staying in places outside their usual environment
  for no more than one consecutive year for
  leisure, business and other purposes
• Includes
• Day trips (excursions) plus tourist trips (1
  nights)
• Travel to visit friends relatives
• Travel for business
• Travel for personal reason (education LT 1yr,
  religious health)
• Excludes
• Commuting to/from work
• Study or job relocation
• Diplomats or armed forces on assignment

Source Adapted from WTO, 1993
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FORMS OF TOURISM
Rationale What is Tourism Anyway?

• Inbound tourism non-residences visiting a given
  country/state (exports)
• Outbound tourism residence visiting in another
  country/state (imports)
• Domestic tourism residence visiting within their
  own country/state
• Internal tourism domestic inbound
• National tourism domestic outbound
• International tourism inbound outbound

Source Adapted from NTFTD, 1989
10
Rationale How much is that?
230 MILLION TRIPS 7 X CANADIAN POPULATION (30
MILLION)

• Total tourism
• 233.5 million person-trips (2004)
• 127.3 million tourist person-trips (2004)
• Domestic tourism
• 88.7 million overnight person-trips
• 86.4 million same day
• Outbound tourism
• US 13.8 million person-trips
• Overseas 5.7 million person-trips
• Inbound Tourism
• US15.0 million overnight person-trips19.6
  million same day
• Overseas 4.1 million overnight person-trips
  0.2 million same day
  Tourist 1nights Not comparable with
  2001

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Previous (Pre-1989)Views of Tourism Data

• NO measures of the core economic phenomena
• Tourism consumption
• Tourism products
• Tourism industries
• NO credible measures of the economic role and
  significance of tourism in the national economy
• NO core source of data on articulation of tourism
  markets industries
• NO overview the whole of tourism
• A dispersed and disorganized collection of
  information fragments
• The whole is less than the sum of its parts
  Martin Wilke,1985
• NO system at all!

Source NTFTD, 1989
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What is the System of Tourism Statistics?
SYSTEM OF TOURISM STATISTICS (STS)

• 1st reference --Tourism Satellite Account (TSA)
  Recommended Methodological Framework (1993)
• Introduction beyond being a new statistical
  instrument, the TSA must be analyzed as a as a
  building process to guide countries in the
  development of their own system of tourism
  statistics, the main objective being the
  completion of the TSA, which could be viewed as
  the synthesis of the system.
• That part of the National Statistical System
  whose aim is to provide the user with reliable,
  consistent and appropriate statistical
  information on the socio-economic structure and
  developments of the tourism phenomenon and which
  can, in turn be integrated with all the other
  economic and social statistics at different
  territorial levels (state, infra-state, and
  international).

Source Massieu, 2001
13
Concepts TS History
TOURISM STATISTICS OTHER SYSTEMATIC SEMINAL
REFERENCES

• Definition of international tourist for
  statistical purposes, Council of the League of
  Nations, 1937
• Revised definition of international tourist and
  concept of international visitor,
  International Union of Travel Organizations,
  1950, 1953
• Recommended definition for the terms visitor,
  tourist and excursionist, IUOTO, 1963
• Provisional Guidelines on Statistics for
  International Tourism, United Nations
  Statistical Commission, 1976
• Le compte satellte du tourisme presentation des
  cadres comtables et de la premiere estimations de
  la defense interieure de tourisme, Ministere du
  Commerce, de l Artisanat ed du Tourisme, 1979
• Determination of the importance of tourism as an
  economic activity within the framework of the
  national accounting system, WTO , 1983
• Le Compte Satellite du Tourisme, CREDOC, INSEE
  , 1983
• Tourism and Economics the Inclusion of Tourism
  in Standard Economic Statistics, OECD, 1984

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Concepts TS History
TOURISM STATISTICS OTHER SYSTEMATIC
REFERENCES (Contd.)

• Towards A Tourism Research and Statistics
  System, Gordon Taylor, Tourism Canada, 1984
• Tourism Statistics Program, Shaila Nijhowne,
  Statistics Canada, 1985
• Working Paper 2 Current Data Bases, Stephen
  Smith, NTFTD, Statistics Canada, 1985
• Working Paper 3 A Satellite Account for
  Tourism, Claude Simard Janet Swinamer, NTFD,
  Statistics Canada, 1985
• Working Paper 5 Characterizing Tourism Demand
  Standard Definitions and Classification, Peter
  Fairchild, NTFD, Statistics Canada, 1985
• Working Paper 6 A Report on the Prospects for
  Establishing Local Area Tourism Data Bases in
  Canada, Frank Hart, NTFD, Statistics Canada,
  1985
• Working Paper 4 A Proposed Integrated Framework
  for the Demand-side Tourism Data Collection in
  Canada, Brent Ritchie, NTFD, Statistics Canada,
  1985
• National Task Force on Tourism Data Final
  Report, Statistics Canada, 1989

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Concepts TS History
TOURISM STATISTICS OTHER SYSTEMATIC
REFERENCES (Contd.)

• A Proposal for a Tourism Satelite Account and
  Information System for Tourism, Jocelyn
  Lapierre, Stewart Wells, Kishori Lal, Kathleen
  Campbell John Joisce, 1991
• WTO-UN Recommendations on Tourism Statistics ,
  UN- WTO-OECD, 1993
• Technical Manual 2 The Collection of Tourism
  Expenditure Statistics WTO, 1995
• System of Statistical Indicators for Analysing
  the Economy of Tourism (SINTUR) Progrramme of
  work for the period 1998-2000, Working Document
  No. 5, Instituto de Estudios Turisticos, 1997
• A Satellite Account for Tourism (4th Draft),
  WTO, 1998
• A Tourism Satellite Account for OECD Countries
  (Draft), OECD, 1998A Research and Development
  Program for Improved Tourism Industry Decision
  Making Technical Paper, Canadian Tourism
  Commission, 1999
• Les Comptes Satellites du Tourisme Une
  proposition de lOrganization mondiale du
  tourisme pour integrer lanalyze du tourisme dans
  le cadre de la Cmpatabilite Nationale, Marion
  Libreros, 2000

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Concepts STS Scope
STS SCOPE AND COVERAGE

• A series of statistical functions relating to
  tourism including
• Organization and legal structure of the
  institutional units
• that produce tourism statistics (mostly
  public but some significant private and micro
  levels)
• Administrative mechanisms and (legally)
  established links between these and a central
  unit (if one exists)
• Statutory and non-statutory nature of certain
  statistical sources and administrative controls
  which generate information that is liable to used
  for statistical purposes, (border controls, sales
  taxes, registers)
• Human and material resources assigned to tasks in
  these producing units

Source Massieu, 2001
17
Concepts STS Structure
STS STRUCTURE

• Elements
• To fulfill its aims (and as subset of the NSS)
  STS must include
• Statistical Sources Travel surveys, household
  resident surveys, business data, systemic
  syntheses (IO, BOP, SNA), administrative data,
  etc.
• Methodological references Concepts,
  classifications, methods and procedures
• Instrumental means available Collection,
  storage, dissemination and application of the
  obtained data
• Data bases of detailed final results, micro-data
  files, summary results
• Publications (paper electronic information
  products)
• Analytical applications and transformations
  impact models, econometric forecasts, etc.

Source Adapted from Massieu, 2001
18
Concepts STS Structure
STS STRUCTURE (Contd.)

• Focus
• Marketing aspects of tourism
• Social aspects of tourism
• Economic aspect of tourism
• Financial aspects of tourism
• Operating aspects of tourism
• Environmental aspects of tourism
• Legal aspects of tourism
• Political aspects of tourism
• Others

Source Adapted from Massieu, 2001
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Concepts STS
STS FUNCTIONAL REQUIREMENTS

• Reconciliation
• Controlling ensuring that a particular process
  meets its assigned purpose and user requirements
• Controlling consistency/harmonization of
  statistical information systems at
  state/,infra-state and international levels
• Coordination Balancing tourism
  statistical/research programmes in terms of
  ongoing activities, projects and financial and
  human resources
• Integration Controlling ensuring the
  connection and assembly of the different
  statistical products

Source Adapted from Massieu, 2001 and Quevedo,
1990
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Concepts Integration
INTEGRATION ELEMENTS

• Instrumental Elements National and international
  tourism concepts, definitions, classifications,
  and standards for tourism
• Integrated Statistical Information Systems
• Tourism Satellite Account Information Systems
• Tourism Marketing Research Information Systems
• Systems of National Accounts
• Socio-demographic Information Systems

Source Adapted from Massieu, 2001 and Quevedo,
1990
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Concepts Integration
INTEGRATION SIGNIFICANCE

• Level of integrated system development a function
  of number, type and complexity of functions
• Integrated systems require consistency, rigour in
  preparation of basic tourism statistics
• Integrated systems provide the conceptual
  framework required to designte instrumental
  elements concepts, defintions, classifications
  standars
• Integrated systems provided the key leverage
  point for statistical work in all areas

Source Adapted from Massieu, 2001 and Quevedo,
1990
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What kinds of data relate to tourism?

• DATA NEEDS FOR STS

• Overall general need to improve knowledge of
• tourism reality
• Specific purposes
• Aid improved public private decision
• industry related decision making relating to
• Advocacy, planning and public awareness
• Marketing
• Investment, operations and management
• Manpower, education and training
• Facilitate international comparisons for
• regulatory and other policy, planning and
• management purposes
• To facilitate pure and applied research

Source Adapted from Massieu, 2001 and NTFD, 1989
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What kinds of data relate to tourism?

• TOURISM DATA NEEDS

• National macro level data to establish the
  economic
• and social significance of tourism
• Macro regional data as well to assess and assist
  
• regional development policies
• National data relating to specific policy
  developments, eg.
• taxes, exchange rate fluctuations on tourism
  business
• National data relating to sector industry
  strategic plans
• Micro data on specific market places
  operations of
• firms
• Local data on the strength of attractions and
  local
• tourism activities at specific destinations

Source NTFTD, 1989
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What kinds of data relate to tourism?

• DATA TECHNICAL REQUIREMENTS

• Credibility, reliability and validity in
  representing
• claimed aspects of tourism reality
• Timeliness and relevance if intended to aid
  decision
• making
• Produced on a regular basis
• Consistent comparable over time, between
  regions
• regions, with other fields of economic
  social activity
• (i.e. concepts, definitions, classifications,
  units of analysis,
• reference populations)

Source Adapted from NTFTD, 1989 and Massieu, 2001
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What kinds of data relate to tourism?

• DATA TECHNICAL REQUIREMENTS (Contd.)

• Sufficient breadth and depth of subject matter
  to meet
• most decision-makers requirements
• Internally consistent with recognized economic
  socal
• frameworks
• Accessibility, transparency and affordability
• Associated communications and education
• Objective and scientific (i.e. reproducible)
• Minimal duplication

Source Adapted from NTFTD, 1989 and Massieu, 2001
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What tourism data sources are there?

• DATA SOURCES

• Multiple, diverse sources Canada found 275
  different
• Majority in public sector central statistics
  agencies
• with national international or regional scope
• Primarily individual resident and visitor
  surveys
• Also business surveys of operating
  characteristics
• of tourism sector firms (both public
  private)
• Provincial/state exit surveys specialized
  surveys
• of events attractions

Source NTFTD, 1989
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What tourism data sources are there?

• DATA SOURCES (Contd.)

• Administrative data (both public private)
• Micro data on specific market places
  operations of
• firms
• Local data on the strength of attractions and
  local
• tourism activities at specific destinations
• Private sector micro data of operating
  characteristics
• firms, establishments, branches, products,
  market
• segments

Source NTFTD, 1989
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TSA Defines Scope of Tourism Industry

• TSA defines the scope of the tourism sector
  (industries) to include the direct supply of
  goods and services to facilitate business,
  pleasure and leisure activities away from the
  home environment
• TSA defines the core supply-side facets of
  tourism
• Tourism expenditures
• Tourism products
• Tourism industries
• Tourism demand
• Tourism GDP
• Tourism Employment
• Tourism enterprises
• TSA provides credible aggregate measures of the
  role and significance of tourism in the national
  economy in terms of total demand, Tourism GDP and
  employment
• TSA provides a core source of data on the
  articulation of tourism industries with markets
• TSA provides tourism interests with a self-view

Source NTFTD, 1989
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The TSA Integration

• TSA CONTRIBUTIONS TO
• INTEGRATING TOURISM STATISTICS
• A conceptual framework
• An information system linking source and
  derivative databases
• A source of consistency
• A tool for reconciliation
• A tool for comparisons
• A tool for coordination and collaboration
• A template for discovery

Source Adapted from NTFTD, 1989
30
TSA Data Integration
Link to SNA/I-O
Source NTFTD, 1989
31
CTSA Data Organization
Multi-layered Vision
Source NTFTD, 1989
32
TSA Information System Vision
Transportation Surveys
Input Output System
Survey of Household Spending
Accommodation Survey
System of National Accounts
Canadian Travel Survey
Food and Beverage Survey
Canadian Tourism Satellite Account
Recreation Surveys
International Travel Survey
3 Demand Surveys
Travel Arrangement Services Survey
Govt. Support
Planning Analysis
13 Supply Surveys
Source NTFTD, 1989
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Data Organization Demand-Supply Link
Linkage Between Commodities Industries

• Demand is estimated for groups of goods and
• services (commodities)
• GDP and employment, however, must be calculated
• by industry
• Supply can be calculated either for groups of
  commodities
• or by industry/sub-industry categories,
  establishing the
• link between demand and GDP
• The link is a demand/supply ratio for each
• commodity
• This ratio is then applied to each industry
  category
• to calculate GDP and employment in the
  industry space

Source NTFTD, 1989
34
TSA Integration 1 Way Reconciliation
Canadian Tourism Satellite Account
All Other Areas of System of National Accounts
Tax information
Other Information Such as Manufacturing
data International Trade data
Reconciliation Process
Labour Force Survey
Input Output System
Business information Such as Profits, capital
investment, revenues, expenses
System of National Accounts
Supply Surveys
Survey of Employment, Payroll and Hours
Demand Surveys
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TSA Integration 1 Way Reconciliation
Balance supply demand

• Commodities expenditures VS
• industry revenues
• Tourism demand VS supply by
• commodity
• Tourism inputs VS outputs by
• industry
• Gross outputs VS all inputs
• Iterative interactive process

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ILLUSTRATIONS
STS-TSA Integration Examples

• Comparable Key Aggregates
• Comparable Detailed Aggregates
• Economic Impact Models
• Economic Indicators
• Characteristics of the Industry
• Government Revenues
• Forecasts
• Media analysis templates

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STS-TSA Key Aggregate Comparisons
VIEW OF MAJOR EXPENDITURE FLOWS
2000 Change 2000/1998
Tourism Spending 53.7 B 17
Foreign Spending (Exports) 17.8 B 15
Canadian Spending 35.3 B 18
Canadian Spending Abroad (Imports) 21.0 B 18
Travel Account Deficit 3.1 B 0.0
38
STS-TSA Key Aggregate Comparisons
TOURISM GDP SHARES WITHIN SECTOR

• Tourism GDP 20.4 Billion (2000)

• Air transportation most value added

39
TSS-TSA Key Aggregate Comparisons-PTTSA 1996
40
STS-TSA Key Aggregate Comparisons
41
TSS-TSA Cross Market Comparisons
42
Sectoral Linkages Extra-sectoral purchases
1994 External Inputs to Canadian Tourism Sector
Selected Industries
Selected Commodity Purchases
43
STS-TSA Seasonal Comparisons Total Demand

44
Long Term Trends Cycles (1986 Q1 to 2001 Q2)
45
STS-TSA Detailed Quarterly Comparisons
Total Tourism Spending in Canada by
KeyCommodities 2nd Quarter 2001
46
Structural Linkages Business Characteristics
Distribution of Tourism Businesses by Industry
and Size
Food and beverage service (92) 57
99.0 Recreation and entertainment (85,96) 19
99.0 Accommodation (91) 12
97.6 Transportation (45) 6
98.9 Travel services (96) 5
99.5 Other 1 ---
47
Government Revenue Comparisons
TOTAL 15.4 Billion (1999) Adjusted 30
/100
48
Media Content Analysis Media Content Analysis
49
Latest Integrative Innovation A Canadian Tourism
Industry Industrial Outlook

• Resulting supply-side forecasts are provided
  quarterly for a five-year period following from
  the current year.
• Combines information from the preceding
  instruments and analysis to assess the current
  and future profitability of the Canadian tourism
  sector.
• New economic model has been developed
  specifically to forecast profitability within the
  various key industry components.

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ISTS Collaborative Organization
Multi-lateral Technical Partnership

• Statistics Canada Canadian Tourism Commission
• 20 Other partners
• Objective independent statistics agency
• Industry champion, leadership, resources, uses
• Shared goals and objectives
• Interdependence
• Regular meetings, fora working group
• Leadership, flexibility firmness
• Mutual respect understanding

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Key Requirements of Integrated STS

• Collaborative organization platform, leadership
• vision
• Consistent standard concepts
• Harmonized definitions and measures of
• key aggregates
• Common integrating conceptual and data framework
• Tightly integrated Core Account data bases
• Loosely integrated feeder data bases and
  derivative
• data bases
• Independent quality and separate integrity of
• linked data sources

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Conclusions

• Canada has an integrated System of Tourism
  Statistics
• The TSA is the integrating instrument
• Defines tourism products/services
• Defines tourism industries
• Developed credible consistent measures
• Consistent (broadly) with international
  standards
• Reveals total economic effects
• Comparability with total economy
• Comparability with other industries
• Reveals structural linkages
• Tracks tourism trends and performance
• Enables industry forecasting future scenarios

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