PATA Annual Summit 2024 "Reimaging Tourism": Key Insights & Learnings from the Conference
The PATA Annual Summit 2024, hosted by the Macao Government Tourism Office (MGTO) and SJM Resorts, S.A., brought together over 450 delegates from nearly 200 organisations across 29 destinations. This three-day event at the Grand Lisboa Palace Resort served as a dynamic platform for dialogue, collaboration, and action, propelling the tourism industry towards a future of resilience, inclusivity, and sustainable development.
Under the theme “Reimagining Tourism,” the summit featured a diverse programme that included PATA internal meetings, an engaging conference with more than 20 diverse sessions, the PATA Youth Symposium, and a destination experience programme complete with options to join cultural workshops and tours of your choice. The event also showcased PATA’s latest initiatives and introduced new elements to the summit!
Key topics that dominated conversations throughout the conference revolved around the pressing need for destinations and businesses to strategise and adapt in preparation for the road ahead, ranging from the fluctuating states of the economic and political environments to the evolving consumer preferences. The insights offered proved insightful and stimulating to tourism stakeholders aiming to navigate and stay ahead in the Asia Pacific travel and tourism industry.
Check out the conference’s key takeaways right here
Opening Remarks by MGTO: Macao’s Tourism Development Path
Macao’s visitor arrivals in the first 4 months of 2024 surpassed 11.4 million, an 83% recovery rate compared to 2019. The government is focused on leveraging the integrated tourism and leisure industry to create synergies and diversify the economy through the ‘1+4 strategy’. Led by the diversified development of the tourism and leisure industry, MGTO emphasises the advancements of 4 emerging industry, namely health and wellness, modern financial services, innovative technology, and exhibitions and conventions, commerce and trade, and culture and sports.
Opening Remarks by SJM: How Private Sectors Propel Tourism Growth
Guided by the principles of People, Planet, and Prosperity, SJM Resorts has undertaken significant initiatives in sustainable development and career growth. In the past year, it provided over 410,000 hours of career development training and invested USD 23 million in green procurements. SJM Resorts have pivoted towards quality, authentic experiences, and thoughtful hospitality to promote sustainable luxury. Additionally, efforts have also been made to ensure an even distribution of tourist flow and drive economic benefits to local SMEs by revitalising tourism attractions in the old city centre.
Opening Remarks by PATA: Reimaging Tourism
The Summit’s theme, "Reimagining Tourism," involves a fundamental shift in how tourism activities are conceived, planned, and engaged in. It aims to transform the industry to be more sustainable, responsible, and inclusive by incorporating principles of ecotourism, promoting cultural exchange, leveraging technology for immersive experiences, and prioritising local community and environmental well-being before sheer economic gains. Collaboration and partnerships among governments, businesses, NGOs, and communities are crucial for effective tourism management and achieving common goals.
State of the World Economy presented by Economist Impact
The global economy is projected to grow by approximately 2.4% in 2024, with Asia contributing around 60% of global GDP growth. This growth is driven by the continuous rise of the middle class and increased access to disposable income, which spurs consumption. There are, however, potential risks to the global economy, such as changes in U.S. Administration affecting foreign policy and straining alliances, which could impact the economies of other destinations. Additionally, there is an expectation for China’s major policy change, shifting away from infrastructure development to focus on consumer demands to drive the economy forward.
Marketing and Branding in Asia Pacific Tourism
Adaptability and the ability to cater to travellers' preferences are crucial for destination success. Travel agencies must craft tailored itineraries for various market segments, such as the younger generation's preference for immersive experiences over luxury. Capturing tourists' attention now relies on consistently creating compelling content and engaging storytelling. Destinations should leverage social media not only through Key Opinion Leaders (KOL) but also by empowering all users to become content creators, spreading positive images more effectively. Moreover, the pandemic underscores the use of diverse social media platforms to perform targeted marketing—such as Weibo and WeChat to connect with Chinese travellers—to be as vital as maintaining a physical market presence via roadshows and travel fairs.
Reimagining Your Business Model
Opportunities in the new age require business owners to expand their horizons across industry borders, thereby fostering flexibility and accommodating ample space for growth within their business blueprint. Plaza Premium Group thrived during the pandemic by expanding into new markets, diversifying its services and improving its services through digitalisation. Business owners today must look beyond traditional industry boundaries to uncover new opportunities for growth and resilience. By doing so, they can create an adaptable business capable of thriving in the face of adversity and evolving market conditions.
Leaders Dialogue: Future-Proofing Travel and Tourism Policies
Public-Private Partnership are important combination that contributes to constructing policies and long-term developments. For example, Azerbaijan hotel industry association’s collaboration with State Tourism Agency, tourism board and industry experts to ensure quality and proper certification of more than 200 hotels. Similarly, India's federal government enables various states to promote their unique tourism by providing adaptable strategic guidelines and investing in infrastructure to support lesser-known destinations and private industry players.
Cross-border cooperation is essential for creating frictionless travel experiences, unlocking the full potential of the travel and tourism industry. For instance, Ras Al Khaimah has found rapid success through a cross-border tourism campaign in cooperation with Oman and providing visa-free access for Chinese and Indian travellers. Additionally, destination associations can establish Schengen-style visas to encourage tourism among neighboring regions, as seen with the Gulf Cooperation Council (GCC) approving such a visa to take effect at the end of 2024.
Strategies addressing climate change, such as sustainable tourism and green energy, should be integrated into tourism policies. For destinations with vast green areas like Sarawak, it is crucial to include policies that preserve these lands while promoting tourism. Sarawak's Post COVID-19 Development Strategy 2030 serves as a model in this regard.
In Conversations with Pansy Ho: Tourism, Heritage, and Human Potential
Macao is shifting its focus from infrastructure development to software and human capacity advancement, elevating sectors such as MICE, entertainment, arts, culture, and wellness. Enhancing and adapting strategies periodically is crucial to ensure Macao remains a desirable destination where the 'Tourism Plus' concept thrives. Tourism is key for visitors to learn about a destination from a variety of perspectives, and Macao has always developed cultural programmes alongside tourism as a way to preserve, protect and promote its cultural and historical heritage.
Key Travel and Tourism Trends to Watch
According to Euromonitor International, 65% of Asian consumers seek curated experiences, highlighting the importance of customisation. Additionally, eco-adventurer travellers are on the rise within the Asia Pacific region, with the highest representation in China, Thailand, and Vietnam. Data also revealed that 23% of Asia-Pacific travellers prefer purpose-driven brands that prioritise people, planet, and profit, while 54% trust certifications such as eco-friendly or environmentally conscious labels. More than ⅔ of Asia Pacific consumers are concerned about climate change, however, only 64% of them are only making deliberate efforts to be sustainable. This Say-Do gap is what the industry should focus on reducing.
Where Are We Heading?
According to the World Travel and Tourism Council (WTTC), the global travel and tourism GDP is projected to reach $11 trillion by the end of 2024, surpassing pre-pandemic levels. The industry is forecasted to experience an annual growth rate of 3.7% over the next decade, outpacing the global economy's expected annual growth rate of 2.4%. Tourism enterprises are seen to make changes to their business models and strategies, broadening their market reach to areas such as sports and festivals. Meanwhile, industry players must find and explore niche markets at length when it comes to China to deal with varied interests amongst its huge population.
To support tourism, the central government can issue policies to assist local tourism authorities and enterprises. These include increasing investment and offering financial incentives such as tax cuts or rewards for attracting international tourists. Additionally, the government should focus on educating and training tourism talents to ensure a skilled workforce.
Hotel Industry Trends presented by STR
Global hotel occupancy is experiencing slower growth, leading to less drastic fluctuations. Events continue to significantly drive hotel bookings, with noticeable effects from the moment concert or festival dates are announced [read more]. Over the past 12 months, hotel performance has exceeded historical levels, generating substantial revenue that offsets rising costs though balancing high revenue and expenses cannot be overlooked. Because of the sector’s high cash flow and resiliency, hotels are increasingly becoming an attractive asset class for investors. Upper-mid scale hotels with 180-200 rooms are particularly on the rise across Asia, with India having some of the youngest hotel assets and great potential for the international market. Additionally, the Asia Pacific region is trending towards having two-thirds of its hotels branded, making independent hotels increasingly rare.
Air Travel Trends & Outlook in APAC presented by ForwardKeys
Asia Pacific destinations saw an increased by 7% between Q1 of 2024 and to Q4 of 2023 in terms of air capacity. Amongst Asia Pacific subregions, South Asia's international arrivals have transitioned from recovery to growth, with a 6% increase. Destinations in Central Asia, including Kazakhstan and Azerbaijan, have also emerged as leaders in this trend towards growth. The driving force behind this surge includes long-haul market sources such as Turkiye, Spain, UAE, Saudi Arabia, and Germany. In Q2 2024, Macao and mainland China are expected to make great recovery. Additionally, non-tier 1 Chinese cities, such as Hangzhou and Chengdu, show potential as both destinations and source markets. Effective methods to facilitate travel include lifting visa requirements, hosting events, and implementing innovative promotional strategies.
Navigating the Skyline: Aviation's Evolution in Asia Pacific
While Central and South Asia have fully recovered their seat capacities, East, North, Southeast Asia, and the Pacific are still on the path to recovery. Central Asia's growth is driven by its early reopening and recovery, becoming a hub for Russian tourists, and experiencing economic and inbound growth. Meanwhile, Northeast Asia’s strong domestic recovery, exceeding 100%, contrasts with its slower international recovery. For Southeast Asia, airlines are intentionally limiting domestic capacity to focus on the more profitable international sector, as rising costs make cheap domestic airfare unrealistic.
Remarkably, Asia Pacific region dominates with 7 out of the top 10 busiest international airline routes, led by Hong Kong SAR - Taipei, and 9 out of the top 10 busiest domestic airline routes, with Seoul’s Gimpo International Airport - Jeju taking the top spot.
Key Learnings from Upcoming PATA Human Capital Development Report
The latest report by Pear Anderson and PATA reveals private sector’s key challenges when it comes to human capital development are 1) attracting, 2) retaining, and 3) training workers while 4) making sure they are equipped to deal with sustainability. There is also a significant disconnect between public and private tourism stakeholders, educational institutions, and young talent; around 30% of tourism students believe their education adequately readies them for the industry, yet over 50% of private sector stakeholders find students unprepared for its demands. It is crucial to initiate dialogues that shape the future of the tourism workforce, fostering understanding and bridging the gap between the industry and its emerging talents.
Deep Dive into the Future of the Tourism Workforce
Data analytics is undoubtedly a key skill for tourism professionals in this era. However, it is equally crucial to hone less automated abilities such as empathy, problem-solving, and creativity to add a personal touch to the services provided to travellers. Additionally, organisations can implement strategic upskilling programmes to directly contribute to the development of the tourism workforce.
Training programmes that last for around 6 months or above would provide a more adequate period for learning. The programme should also align with the educational curriculum to ensure that youths can apply what they learn on the job, rather than merely fulfilling roles that benefit the company. As Artificial Intelligence (AI) becomes increasingly integrated into the tourism industry, courses on AI and technological advancements should be introduced into curricula. These approaches not only enhance the educational experience but also ensure students gain practical skills relevant to their studies and future careers.
Gastronomy Tourism: Balancing Innovation with Local Preservation
Gastronomy tourism is key to creating employment opportunities in various destinations, including Macao, where approximately 16% of the labour force depends on restaurant and hotel businesses. It also helps craft a destination’s unique brand identity, distinguishing it in an era of increasingly similar cityscapes. Governments can promote traditional cuisines by setting up online databases and making publications and books accessible. Additionally, organising workshops, cooking competitions, and other activities around traditional food can further enhance its appeal to visitors, effectively introducing the cuisine to the world. Innovating traditional cuisine by incorporating unusual ingredients or novel combinations can enhance flavour and presentation, breathing new life into traditional recipes.
Tourism Synergies to Diversify Economy
To successfully diversify tourism in each destination, governments must lead by creating an integrated strategy that guides industry players in a unified direction. The private sector can then contribute its unique expertise, fostering a multifaceted tourism industry. This involves educating locals on promoting unique local experiences, spreading tourism to lesser-known destinations to address over-tourism, boosting the local economy, and transitioning from onsite to online platforms for greater accessibility.
Tourists cannot be neatly categorised into single types such as luxury, gastronomy, or adventure. To engage younger and increasingly unpredictable travellers, it is essential to present itineraries with diverse options that showcase a wide range of experiences to be had at that destination. Governments should view all sectors as interconnected and continue to strategise toward synergies where different sectors contribute to advance tourism.
Closing Keynote: The Future of Travel and Tourism
The travel industry is nearing an age to be driven by AI and advanced technology, creating seamless and personalised digital experiences. This shift includes booking trips, secure biometric transactions, and real-time tailored recommendations, making the travel experience more efficient and enjoyable. Adapting to this digital-first approach is essential for businesses to meet modern travellers' expectations and success in the competitive travel market.
Collaboration across sectors, including travel, banking, and local tourism, is vital for a cohesive experience. The industry must cater to diverse preferences, including budget-friendly and local options, to meet changing travel habits.
Closing: Appreciation
"Reimagining Tourism" transcends the mere gathering of tourism experts to discuss and formulate future industry strategies. It embodies PATA and its key stakeholders' collaborative effort to reshape the Association, collectively advancing towards shared goals.
The Association aspires to foster meaningful connections and ignite transformative conversations among industry players. In doing so, it honours and embraces the rich cultural diversity and varied backgrounds of its global membership, ensuring a holistic and inclusive approach to the future of tourism.
More event highlights include:
PATA - WTCF: China Dialogue
Presentations by Tourism Bureaus from Beijing, Nanjing, Qingdao, and Sanya showcased destination-specific strategies, while UTour's CGO offered industry insights on inbound tourism to China.
Panel discussions focused on enhancing payment convenience, showcasing China's robust mobile payment ecosystem and efforts to bridge the digital divide for foreign tourists. Talks also emphasised collaborative tourism efforts outlined in the Greater Bay Area Development Plan led by Guangdong, Hong Kong SAR, and Macao, China.
PATA Kind Hearts initiative
Nearly 100 children's books were collected throughout PAS 2024 and donated to libraries of Instituto Cultural de Macau (Macao Cultural Institute) as part of the recently launched PATA Kind Hearts Initiative.
The Initiative is the latest additional to the Association’s sustainability and social responsibility initiative, aimed to underscore PATA's commitment to advancing sustainable tourism development and positively impacting local communities in the destinations where the Association’s events are hosted. We thank all those who have donated!
PATA Signed MoUs
During the Partnerships for Tomorrow session, two Memorandums of Understandings between PATA and the Sarawak Tourism Board (STB) and between PATA and the East Asia Inter-Regional Tourism Federation (EATOF) were signed, honouring the bond between the organisations and strengthening the commitment to advancing responsible tourism for the years to come.
The PATA Life Membership, the PATA Award of Merit and the PATA Chairman’s Award were presented on May 16 at PAS 2024 Welcome Dinner & Awards Presentation. On this wonderful occasion, PATA also honoured the appointment of the first-ever PATA Ambassador for Greater China.
Tours and workshops
During the final two days of the programme, delegates enjoyed a delightful array of destination experiences. On May 17, they had the chance to dive into local culture through engaging workshops. Participants learned to make traditional Portuguese and Macanese desserts, including “Pastel de Nata” (Egg Tart) and “Genete” (Caterpillar Cookie), and got creative with Portuguese Blue Tile "Azulejo" Painting.
In addition, delegates could choose from a variety of exciting tours organised by MGTO, such as sightseeing Macao’s vibrant night skyline or exploring the city's iconic sites and heritage. Another fantastic option was a tour of Hong Kong SAR, offered by the Hong Kong Tourism Board, adding even more excitement to the event.
PATA extend its thanks to the hosts, sponsors, esteemed speakers, and delegates for making this event a success. We look forward to welcoming you to the upcoming PATA event, PATA Travel Mart 2024 in Bangkok, Thailand!
Photos of the event available here
The PATA Annual Summit 2024 was hosted by the Macao Government Tourism Office (MGTO) and co-hosted by SJM Resorts, S.A. The event was supported by China Dialogue partner, World Tourism Cities Federation and sponsor Dragon Trail International; PATA Youth Sponsors, PATA Thailand Chapter and Macao University of Tourism (UTM); VIP lunch Sponsor, BBC News; Coffee Cart Sponsor & Supporting Media Partner, South China Morning Post; Event Tech Partners, Cvent and the Thailand Convention and Exhibition Bureau (TCEB); Official Carrier, Air Macau; and Supporting Media Partners, Jacobs Media Group / Travel Weekly, Macao News, TravelDailyNews Asia-Pacific, TravelIndex, Travel Press Korea, TravTalk India, TTG Asia, Travel & Tourism News Middle East (TTN), and TTR Weekly.