1 PATA ANNUAL REPORT 2017

CHAIRPERSON’S MESSAGE
BY SARAH MATHEWS
It has been an honour to serve as Chairperson for PATA’s During the year, we made great progress in engaging with the
Executive Board and I am privileged to report that in 2017 the next generation of leaders and will continue in this endeavour.
Association remains an important voice for the travel and tourism
industry. PATA continues to be widely recognised, respected As we move forward to 2018 and beyond, PATA will continue to
and appreciated by many tourism bodies, practitioners and act as a thought leader in this region and it is no exaggeration
communities in the region. to say that PATA would not be where we are today without the
ongoing and unwavering support of our Board Members, Life
The continued growth of the Asia Pacific region as both a receiver Members, Partners, Members, Chapters Members and Industry
and generator of international visitors, not just into Asia Pacific colleagues.
but globally, only reaffirms the importance of the Association
moving forward as we work in partnership with our private and I would also like to thank the other members of the PATA Executive
public sector members for the responsible development of travel Board who have supported me during my tenure. Their diverse
and tourism to, from and within the region. backgrounds and in-depth expertise have helped the Association
maintain its long term financial sustainability, through a stronger
This does not however mean that we can relax our commitment membership structure and more diverse sources of income.
to delivering continually improving services to our members.
We must remember that ultimately we are in the business of I wish you all safe travels and I look forward to working with all of
delivering positive benefits for our members which requires an you at PATA in contributing to a more sustainable and profitable
innovative mindset that caters to the very different needs of our travel and tourism industry.
diverse membership.

Furthermore, PATA alongside our members need to ensure

that the positive and real benefits of sustainable tourism can
be applied equally to both visitors to Asia Pacific and the local
communities in the region.

In 2017, we made a commitment to focus on the ‘Young Tourism

Professional’ to not only empower them for their future, but to
endow them with these same core principles of the Association.

PATA EXECUTIVE
BOARD MEMBERS:

Dr Chris Bottrill
Stephen Pearce
Andrew Jones
Hiran Cooray
Jon Nathan Denight
Mohamed Sallauddin H.j. Mat Sah
Peter Semone
Maria Helena de Senna Fernandes
Pilar Laguana
Ben Montgomery
Anthony Lau
Soon-Hwa Wong
Faeez Fadhlillah

PATA ANNUAL REPORT 2017 2

CEO’S MESSAGE
BY MARIO HARDY
It is my pleasure to present the Pacific Asia Travel Association At PATA, we recognise that in order to maintain the long-
(PATA) Annual Report for 2017. I am proud to report that due to our term sustainability of our industry it is our responsibility
achievements over the past 12 months we are now able to show to enhance the knowledge and skills of students and
long-term financial sustainability. young professionals. That is why in 2017, we placed major
emphasis on the development and recruitment of ‘Young
During the past few years, we have made some tough decisions and Tourism Professionals’ (YTP) and launched the YTP student
remained sharply focussed to ensure the financial sustainability of membership category. Our commitment towards this issue,
the organisation. We had to adapt, be agile and be creative in order to was highlighted by the organisation of two PATAcademy-HCD
serve the best interests of our members and the industry as a whole. training programmes in Bangkok and two successful Human
Capacity Building Programmes in the Maldives and Huzhou,
We began the year with our highly successful PATA Adventure Travel China.
Conference and Mart 2017 in Luoyang, China and the well-received
PATA Annual Summit 2017, with the theme ‘Disruption. Innovation. From our Strategic Intelligence Centre, we produced 23 in-
Transformation: The Future of Tourism’, in Negombo, Sri Lanka house publications including two editions of Issues and
Trends, the Asia Pacific Visitor Forecasts 2017-2021 Executive
In the second half of the year, we celebrated the 40th anniversary of Summary and Full Report, and the Annual Tourism Monitor
PATA Travel Mart in Macao, China with more than 1,1000 delegates Early Edition. Meanwhile the monthly PATA Visitor Economy
in attendance and staged three successful events in the Pacific: the Bulletin once again covered a wide range of issues that are
third PATA Global Insights Conference in Auckland, New Zealand; relevant to our industry.
the first Pacific Tourism Insights Conference in Port Vila, Vanuatu;
and the PATA New Tourism Frontiers Forum in Palau. In addition, we With 12 events organised, 30 research publications released,
also held our annual UNWTO/PATA Forum on Tourism Trends and 151 members recruited, 4 training programmes organised and
Outlook in Guilin, China in October. the launch of the ‘Young Tourism Professional’ initiative, the
Association continued to provide various opportunities for our
members and industry colleagues to grow their network and
gain further insights into the latest trends and issues facing
our industry. Furthermore, our slew of activities reinforced
our brand identity as thought leaders within the community.

Our achievements were not possible without the support of

the PATA Executive Board, PATA members, industry partners
and our teams in Bangkok, Beijing, Sydney and London.

As we look forward to 2018 and beyond, our desire will be to

create an agenda and lead a discussion that will ensure the
long-term sustainability of our industry. In order to achieve
this goal, the Association will look to create new sponsor-
driven insight forums and increase our emphasis on Human
Capital Development. In addition, by focussing on essential
technology upgrades and a renewed organisational culture
and identity, we plan to create a more efficient and effective
Association that best serves the needs of our members

I am positive that with your continued support we can

remain a powerful voice in working towards the responsible
development of the travel and tourism industry in Asia Pacific
and beyond.

3 PATA ANNUAL REPORT 2017

 SPOTLIGHT ON
YOUNG TOURISM
PROFESSIONALS 
Looking to the next decade, 100 million new jobs could be created in the
travel and tourism industry by 2028 – 64.5 million of these jobs will be in the
Asia Pacific region. This continued growth of travel and tourism depends
on having the right people with the right skills being available to meet this
additional demand.

The development of human capital is one of the industry’s biggest challenges.

It is essential to engage and inspire the next generation of leaders by making
further substantial investments in developing and enhancing the knowledge
and skills of students engaged in tourism, hospitality management and
related degree courses.

Furthermore, it is vital to develop and implement effective training platforms

for young tourism professionals as they seek to advance their careers and
enhance their skills.

In line with the United Nations (UN) General Assembly’s adoption of 2017
as the International Year of Sustainable Tourism for Development, the
Association has made its primary focus on the ‘Young Tourism Professional’
(YTP) during the year.

With the appointment of Ms Jie Cheng Wong as PATA’s first Young Tourism
Professional Ambassador and the launch of the YTP student membership
category at the beginning of the year, the Association provided an
opportunity for young industry professionals and university students to
connect with PATA’s broad industry network.

Through this campaign, PATA welcomed over 100 PATA YTP members in 2017,
launched six major initiatives focussed on YTPs and welcomed three new
PATA Student Chapters from Canada, Indonesia and New Zealand.

PATA is committed to raising the voices of tomorrow’s tourism leaders and

will continue to encourage all students looking to grow their respective
networks, insights and careers to join the Association to help develop a more
responsible and sustainable travel and tourism industry within the Asia
Pacific region and beyond.

PATA ANNUAL REPORT 2017 4

PATA YTP
INITIATIVES

THE MALAYSIA TRAVEL STUDENT DISCOUNTS YOUTH ENGAGEMENT

ENTREPRENEURSHIP & ACCESS TO AT PATA TRAVEL MART
CHALLENGE PATA EVENTS 2017
In partnership with PATA and Students were able to benefit PATA Travel Mart 2017 welcomed
PATA member Triip.me, the from discounted tickets to PATA 37 YTP’s and students across 11
Malaysia Travel Entrepreneurship events as well as access to PATA educational institutions, including
Challenge 2017 was launched to committee meetings as observers. 6 PATA Student Chapter members,
promote local destinations and of whom four presented their
inspire entrepreneurial mindsets. ideas on stage

PATA-IGLTA STUDENTS INTERN ASSOCIATE

FOUNDATION ON STAGE PROGRAMME
SPONSORSHIP
PATA continues to facilitate
Students were given opportunities students’ first foray into the
Through this initiative, students
to present their ideas on stage at professional working world
were eligible to win a fully
PGIC 2017, and alongside high- by supporting and accepting
hosted trip to attend the IGLTA
profiled individuals such as AirAsia 3-month long internship
Convention in 2017 & 2018 held in
Founder & CEO Tony Fernandes at programmes at PATA
Florida and Toronto respectively.
PTM 2017. Headquarters in Bangkok.

5 PATA ANNUAL REPORT 2017

HIGHLIGHTS

WALKING THE TALK ON

SUSTAINABILITY
PATA believes that in order for the complete visitor Furthermore over the course of the year, PATA
economy to thrive for generations, all activities organised four workshops for staff, with the goal
should be conducted in the most socially responsible of providing more education, awareness and
and holistically sustainable way possible. The appreciation for the environment. With guest
Association is committed to treading lightly on the speakers from Paper Rangers, the Thailand
planet; we empower our members to leave a positive Institute of Packaging and Recycling Management
impact on the surrounding environments in which for Sustainable Environment, SIG Combiloc, the
they operate. As 2017 was designated by the United BIGTrees Project, The Sustainable Self initiative, and
Nations as the International Year of Sustainable Khiri Travel, the training programmes focussed on the
Tourism for Development, the Association aimed to three R’s – recycle, reuse and recycle, all in an effort
demonstrate leadership by making a commitment to to cut down on the amount of waste thrown away
lead by example. while conserving natural resources, landfill space and
energy.
For the second consecutive year, the Association’s
headquarters in Bangkok retained its EarthCheck As 2017 came to an end, staff made a pledge to assist
Silver-level Sustainability Certification. Working the less fortunate in Bangkok and donated unwanted
with guidance from EarthCheck, a leading scientific clothes, books and other items in good condition
benchmarking, certification and advisory group to Second Chance Bangkok, an organisation that
for the travel and tourism industry, PATA collected provides second hand items to residents of Bangkok’s
and collated operational data on daily practices largest slum, Klong Toey. Second Chance Bangkok
including water and energy consumption, waste also upcycles unwanted clothing by creatively
management, community contributions/activities using them to design great bags and gift wares.
and risk management as well as the use of paper and This innovative programme simultaneously creates
cleaning products. The data was then benchmarked employment for women in the area.
against EarthCheck’s global sustainability
standard. The head office first received Bronze
Benchmarked Sustainability Certification in 2015
and Silver Certification was first awarded during the
Association’s Annual Summit in Guam in May 2016.

PATA ANNUAL REPORT 2017 6

HIGH PROFILE SPEAKERS REINFORCING
THE ‘P’ IN PATA
The aim of the Association is to lead a In 2017, PATA took part in a range of activities
discussion that will ensure the long-term designed to support its position in the Pacific
sustainability of the travel and tourism industry. region and maximise the Association’s visibility,
During 2017, the Association was honoured to with an extensive speaking calendar that
welcome several influential thought leaders to touched on a wide range of topics such as
various events in order to inspire, educate and culture, aviation, economics, and technological
empower the industry to influence change. and industry trends.

At the PATA Annual Summit in May in Negombo, In addition, the Association hosted the PATA
Sri Lanka, PATA was fortunate to welcome Global Insights Conference (PGIC) in Auckland,
the Secretary General of the World Tourism New Zealand. With the theme ‘R U Future
Organisation, Dr Taleb Rifai, and CEO and Ready’, the insightful programme brought
founder of Skift, Rafat Ali, as speakers at the together a diverse range of international
event. Both speakers touched on the topic of speakers who focused on two clear agendas
disruption in the industry and the remarkable (Technological Advancement and Destination
opportunities for those who embrace the Brand Building) and attracted more than 180
technology and content alongside a profound industry delegates.
understanding of the new traveller. In addition,
other speakers at the event included senior The day before PGIC, PATA hosted a Tourism
representatives from Beautiful Destinations, Leaders Forum, which brought together
Tourism Australia, Airbnb, Microsoft, comScore the CEOs of Auckland Tourism, Events and
and Visa Worldwide, to name a few. Economic Development (ATEED); Tourism New
Zealand, Tourism Industry Aotearoa (TIA), and
During PATA Travel Mart in Macao, China, the Chief Revenue Officer of Air New Zealand
AirAsia Group CEO Tony Fernandes provided for a panel discussion that addressed the
an inspring speech to the next generation challenges and opportunities facing public and
of tourism professionals at the PATA Youth private organisations as the nation seeks to
Symposium, hosted by the Institute for Tourism maximise the sector’s economic benefits. The
Studies (IFT). Mr. Fernandes presented on panel session was moderated by BBC World
the topic of “Enabling Air Travel for All: How News, while former TIA Chief Executive Martin
Air Asia has Become the World Leading Low Snedden, who masterminded the country’s
Cost Carrier” and held an informal chat with Tourism 2025 Plan, opened the forum with an
the student delegates. PATA Travel Mart overview of the Plan’s objectives.
also once again welcome heads and senior
representatives of NTOs from around the region Following PGIC, PATA hosted the inaugural
including Abu Dhabi, Guam, Hong Kong SAR, Pacific Tourism Insights Conference (PTIC)
Indonesia, Malaysia, Nepal, Palau and Thailand, in partnership with South Pacific Tourism
to name a few. Organisation (SPTO) and the Vanuatu Tourism
Office (VTO). The event, held in Port Vila,
The annual Aligned Advocacy Dinner, held on Vanuatu, brought together over 180 delegates
the opening night of World Travel Market in to explore the key influences that will drive
London, once again brought together nearly and shape future thinking in terms of tourism
200 Asia Pacific and European ministers, marketing, destination development and the
heads of NTOs and leaders from global travel challenges of crisis and recovery in the South
companies. The special keynote at the dinner Pacific region. The success of the event has
was the President of the Board of Directors of drawn interest from other Pacific nations keen
Petra National Trust, HRH Princess Dana Firas. to host the next PTIC.
The organisation’s mission is to promote the
preservation, protection, and conservation of The various activities in the Pacific region has
the UNESCO World Heritage site of Petra. She provided the perfect opportunity for PATA to
inspired the guests with her keynote speech re-engage with industry stakeholders in the
on the importance of the development of a Pacific.
responsible travel and tourism industry and
provided insights into her experiences working
with the Jordanian government.

7 PATA ANNUAL REPORT 2017

FACTS &
FIGURES
FORECASTS
FOR ASIA PACIFIC IVA’S*

*SOURCE: PATA ASIA PACIFIC VISITOR FORECASTS 2018-2022

OUR REACH IN 2017

Events organised or managed by PATA Delegates that attended PATA events

12 4,000+
Training programmes organised by PATA Publications released

4 30
PATA ANNUAL REPORT 2017 8
PATA members Destinations represented by PATA members

800+
New members acquired
95+
Membership growth rate

151
Revenue retention rate
21%
Member retention rate

98%
PATA Chapters
86%
PATA Chapter members

36
PATA Student Chapters
5,000+
PATA Student Chapter members

20 7,000+
Articles online mentioning PATA Online reach (number of unique impressions)

2,130 391M+
PR value by Advertising Value Equivalency (AVE) in USD

$3M+ 9 PATA ANNUAL REPORT 2017

MEMBERSHIP
“ Small– and medium-sized PATA continues to maintain its status within the
enterprises continue Asia Pacific region as an important organisation
to be a growing base of with which to associate and one that supports
the development of organisational and
PATA members, professional networks, knowledge sharing and
further supporting business growth. As such, interest in PATA ‘s
membership and connecting with the global
the fast-growing PATA family continues to grow.
entrepreneurship
sector in Asia. In 2017, the focus for membership was to

” strengthen the connections with members, and

to develop synergies to better understand the
full extent of their business and expertise to
ensure that PATA’s benefits and network were

151
leveraged to their full extent. This translated
into more in-depth discussions and more
frequent communications to ensure members
NEW MEMBERS recognised the full scope of benefits available
to them.
of which:
Ensuring that members were utilising the

40%
research, data and services provided, was an
additional benefit in maintaining a strong
focus on the retention of existing members.
The development of a supportive community
TRAVEL AGENTS requires having a network of highly-engaged
members, who hold a level of expertise within

24
their area of business and influence in their
immediate communities. These passionate
professionals are willing to share their
knowledge and will celebrate the growth of
SME’S those within the network.

PATA ANNUAL REPORT 2017 10

Calendar year 2017 also saw the highest of 1.5%, with a 98% revenue retention rate and
number of new corporate members in recent 86% retention of overall member organisations,
years, with a growth of 21% of new members a 1.5% improvement over the previous year.
over previous years with representation from
both the industry and hospitality categories. PATA continues to diversify its membership
PATA also welcomed two new airline carriers base and grow representation in different
into the membership family – FINNAIR – the first regions by actively engaging in conferences
European carrier to join PATA and Royal Brunei and trade shows, and speaking opportunities
Airlines. outside of PATA’s events. For the second year
in a row, the Association participated in events
Overall, PATA welcomed 151 new members into in Kazakhstan in an effort to share its expertise
the PATA community, who represent a diverse and knowledge on the Asian markets and
range of industries including government, to raise its profile within Central Asia. After
hospitality, education and travel technology. many years, PATA joined forces with the PATA
Small– and medium-sized enterprises continue Germany Chapter to co-share a stand at ITB
to be a growing base of PATA members, further Berlin to facilitate meetings and connections
supporting the fast-growing entrepreneurship with members, Chapters and prospective
sector in Asia, with 24 new SMEs joining the members to ensure that PATA continues to have
Association in 2017. Travel agents, many of a presence at key global industry events.
whom fall under the SME category, remain the
largest base of PATA membership. Despite the PATA will continue to ensure that it provides
prevalence of OTA’s and an increase in self- value-adding services and benefits to its
booked holidays, the value that PATA brings to membership community and remains open
travel agents in our region is evidenced in the to feedback and recommendations from
number of new members in this category, with members.
40% of new member recruits in 2017 coming
from this category.

The membership community remains

strong at over 800 members, which includes
partnerships and agreements with other
industry associations and global trade bodies.
2017 saw a continued growth of membership

11 PATA ANNUAL REPORT 2017

EVENTS
“ PATA and its management
PATA events remain an integral part of the
Association, allowing members the opportunity team remained engaged
to engage and network, gain insights into the with the travel and tourism
latest industry trends and issues, and explore
new developments in a different destination. industry by speaking and
attending nearly 80 global
The total number of delegates for PATA
organised and managed events attracted events throughout the year,
over 4,000 delegates. In addition, PATA and its with 20 events in China and
management team remained engaged with the
10 in the Pacific region.
travel and tourism industry by speaking and
attending nearly 80 global events throughout
the year, with 20 events in China and 10 in the
”
4,000+
Pacific region.

PATA endeavoured to keep its events as

sustainable as possible with the Association’s
signature events (PAS 2017 and PTM 2017) held DELEGATES ATTENDED
at two very eco-friendly properties – Jetwing
Blue and the Venetian Macao Resort Hotel,
PATA EVENTS
respectively. Both venues offered back of the
house tours for members allowing them to
see the sustainability initiatives of two very PATA ENGAGED WITH

80
different properties.

Furthermore, the Association also launched the

PATA Explore Local Challenge at PTM 2017 to
raise awareness about responsible tourism and EVENTS WORLDWIDE
how travellers should leave a positive impact
on the places they visit and the people they
connect with. With regards to sustainability,
of which:

20
the most significant initiative taken at PATA
events was the move from plastic to eco-
friendly cardboard badges that can be deposed
at recycling stations at the conclusion of the
event. EVENTS IN CHINA

10
Of special note, the Association also celebrated
the 40th edition of PATA Travel Mart in 2017
through various activities that encouraged
engagement between the Association and
event delegates.
EVENTS IN PACIFIC REGION

PATA ANNUAL REPORT 2017 12

During the year, the Association
maintained eight fixed events:
PATA In addition to the eight fixed
events, the Association also
GLOBAL INSIGHTS assisted in organising four
PATA CONFERENCE additional events, including:

ADVENTURE (PGIC) 2017

TRAVEL ‘R U Future Ready’ RENDEZ-VOUS
CONFERENCE DE VIENTIANE
September 28-29,
AND MART Auckland, New Zealand
January 23-27,
(ATCM) 2017 Vientiane, Lao PDR
Create.Connect.Conserve. Total delegates:

April 1-4
180+
Luoyang, Henan Province,
China
THE SECOND
THE 11TH UNWTO/ INTERNATIONAL
Total delegates:
PATA FORUM ON RURAL TOURISM
500+ TOURISM TRENDS CONFERENCE
July 16 – 18,
AND OUTLOOK Huzhou, China
PATA ANNUAL ‘Sustainable Tourism:
SUMMIT Beyond Being Green’
(PAS) 2017 October 10-12,
‘Disruption. Innovation. Guilin, China THAILAND MICE
Transformation: INTELLIGENCE
The Future of Tourism’ Total delegates:
CONFERENCE
150+ (TMIC) 2017
May 18-21, ‘Numbers, Notions
Negombo, Sri Lanka & Nations’
October 6,
Total delegates: ALIGNED Bangkok, Thailand
400+ ADVOCACY DINNER
November 6,
PATA TRAVEL MART London, UK
PACIFIC
(PTM) 2017 Total delegates:
TOURISM
September 13-15, 170 INSIGHTS
Macao, China CONFERENCE
Total delegates:
(PTIC) 2017
October 25,
1,160+ PATA NEW Port Vila, Vanuatu
TOURISM
FRONTIERS FORUM
(NTFF) 2017
EMEI GLOBAL ‘Protect. Preserve. Promote:
SUMMIT 2017 A Pledge for our Future’
September 17, Leshan, China November 15-17, Palau
Total delegates: Total delegates:
220+
120

13 PATA ANNUAL REPORT 2017

STRATEGIC
INTELLIGENCE
“
PATA continues to provide authoritative research
and data to its members, providing comprehensive
insights into the latest issues and trends shaping the In partnership with
industry in the Asia Pacific region. external consultants and
In 2017, the Association released 30 publications analysts, PATA produced
which were all made available online at the PATA
Store. In partnership with external consultants and
23 research reports that
analysts, PATA produced 23 research reports that covered a wide range
covered a wide range of issues including community-
based tourism (CBT), accessible tourism, growth of issues including
hacking, technology, and marketing. community-based
PATA also reviews, endorses and co-brands externally tourism (CBT), accessible
produced studies. During the year, the Association
endorsed a three-series publication that examined tourism, growth hacking,
the UN Sustainable Development Goals (SDGs)
and their relation and application in the travel and
technology,
tourism industry - The Olive Tree, and secured two and marketing.
proprietary research white papers from business
transformation consultants, The B Hive, to share with
members at no cost.
”
In addition, the Association signed a publication
agreement with two research organisations (Ivy
Alliance Tourism and with COTRI China Outbound
Tourism Research Institute) to provide discounted
publications that offer detailed insights into the
lucrative Chinese outbound market.

Business-critical information and data continues to

be available for members through PATAmPOWER,
a user-friendly only data platform that delivers a
wealth of authoritative information about the Asia
Pacific visitor economy.

Renewed partnership agreements with STR,

comScore and Flight Global allowed the Association
to continue to provide vital data on PATAmPOWER
for its members. With easy access to real-time data,
information and analysis, members can make
smarter decisions more quickly.

PATA is committed to seeking partnerships that can

provide relevant content, data and insights into the
latest trends and issues for its members. In addition,
the Association will continue to enhance the online
user experience on both the PATAmPOWER and the
PATA Store.

PATA ANNUAL REPORT 2017 14

PATA’s Strategic Intelligence Unit partnered with the following external Open Destinations
organisations to produce 10 Connected Visitor Economy (VE) Bulletins ‘Tour Operator Technology:
that explored topical issues within the industry and are available for 5 Quick Wins for 2017’
download for free at the PATA Store: February 2017

OAG My TravelResearch Beautiful

‘Asia’s Catalysts: Driving ‘The Changing of the Destinations
Change in the Aviation World’ (Generational) Guard’
‘Visual Analytics Driving
March 2017 April 2017 Content Marketing Decisions’
May 2017

Be and Become Audit Diagnostic My TravelResearch

‘Excited or excited? Do’s and Solutions Tourism ‘Accessible Tourism’
Don’t When Speaking to August 2017
Multi-cultural Audiences’ ‘Walk (on eggs) with Elephants’
July 2017
June 2017

GSTC ASAP+ Upthink

‘Boosting Sustainability ‘The Digital Journey: ‘Growth Hacking: Reaching
Skills, Expanding Business Connecting with the Chinese an Online Audience of Tech
Opportunities’ Consumer Before, During Savvy Consumers’
September/October 2017 and After Travel’ December 2017
November 2017

As CHINA emerges as one of the most important source countries for the Asia Pacific tourism industry,
PATA signed an agreement with two China-focused research organisations (Ivy Alliance Tourism and the COTRI
China Outbound Tourism Research Institute) to enable discounted access to the following publications:

COTRI Market Report, Autumn 2017

The COTRI Market Report provides expert insights into the development of China’s outbound tourism
market by offering qualitative analysis, numbers and information plus several special topics in each
issue.

China Outbound-Tourism Price Index Monthly Report

The China Outbound-Tourism Price Index (OPI) is the first monthly monitoring system of Chinese
outbound tour products and market prices to global destinations. The OPI monthly report is developed
with the aim of tracking the price trends of Chinese outbound tourism and to report the changes in
consumer prices on Chinese outbound travel to worldwide destinations.

15 PATA ANNUAL REPORT 2017

HUMAN CAPITAL
DEVELOPMENT
PATA seeks to support the industry in developing and
enhancing the skills of young tourism professionals
and students enrolled in travel and tourism related
degrees. The Association believes that human
capital development (HCD) is the foundation for any
industry and supporting an individual’s growth is the
strongest way of ensuring a sustainable future. “ Leveraging the
Association’s network
The Association’s Intern Associate Programme
continues to provide students with the opportunity of talented industry
to learn about the organisation and gain a deeper leaders worldwide,
understanding about the travel and tourism industry.
In 2017, PATA welcomed 18 interns from various the Human Capacity
countries including Canada, China, Indonesia, Korea Building Programme
(ROK), Germany and USA.
designs and implements
PATA’s commitment towards this issue was customised training
strengthened with two highly successful
PATAcademy-HCD workshops, an initiative first workshops for diverse
introduced in December 2013 and held twice organisations including
annually at the PATA Engagement Hub in Bangkok,
Thailand. government agencies,
non-governmental
The interactive three-day programme combines
a series of intensive classroom interactions with organisations (NGO’s),
leading travel industry practitioners with field visits educational institutions
in and around Bangkok. The two programmes in
2017 focussed on two specific topics, public speaking and private sector
businesses.
”
and digital marketing through growth hacking, and
attracted a total of 25 young tourism professionals
from both the public and private sector worldwide.

In response to the success of PATAcademy-HCD,

PATA launched its Human Capacity Building
Programme in 2017. Leveraging the Association’s
network of talented industry leaders worldwide, the
programme designs and implements customised
training workshops for diverse organisations
including government agencies, non-governmental
organisations (NGO’s), educational institutions and
private sector businesses.

PATA ANNUAL REPORT 2017 16

In July, PATA organised its first programme co-founder of Tripfez for exhibiting initiative
in the Maldives which focused on ‘The Art of and leadership in the advancement of tourism,
Storytelling’. The event, hosted by the Maldives as well as demonstrating a commitment to the
Association of Travel Agents and Tour Operators sustainable development of the Asia Pacific
(MATATO), coincided with Travel Trade Maldives travel industry in line with PATA’s mission.
(TTM) in Dharubaaruge, Maldives. In the same
month, a second programme, hosted by The PATA Gold Awards continued to be
Huzhou City and Zhejiang Province, was held in supported and sponsored by the Macao
Huzhou, China and concentrated on the subject Government Tourism Office (MGTO) and
of rural tourism. recognised the achievements of 28 separate
organisations and individuals in 2017 as part of
Once again in 2017, the PATA Youth Symposium PATA Travel Mart 2017.
provided opportunities for students to
discuss and exchange their ideas with travel The Association’s dedication to HCD was
professionals as part of the PATA Annual highlighted by its focus on the ‘Young Tourism
Summit in May and PATA Travel Mart in Professional’ (YTP) in 2017 and PATA will
September. The first symposium in May, hosted continue to remain committed to empowering
generously by the Sri Lanka Institute of Tourism the next generation of young tourism
& Hotel Management (SLITHM) and supported professionals for their future.
by the Sri Lanka Convention Bureau, was held
under the theme ‘No Barriers: Millennials and
the Future of Tourism’. The second symposium
in September took place under theme ‘Enabling
Travel and Managing a Complex’ and was
generously hosted by the Institute for Tourism
Studies (IFT).

In addition to helping to develop young

talent, PATA also continues to recognise the
accomplishments of the industry though the
PATA Face of the Future award and the PATA
Gold Awards. The PATA Face of the Future 2017
was bestowed to Faeez Fadhlillah, CEO and

17 PATA ANNUAL REPORT 2017

SUSTAINABILITY
AND SOCIAL
RESPONSIBILITY

“ The Association also forged new partnerships

with OzHarvest, Scholars of Sustenance Thailand,
and Futouris, as it worked to launch the food waste
campaign in early 2018, The BUFFET (Building an
Understanding For Food Excess in Tourism) Initiative.
”

PATA ANNUAL REPORT 2017 18

PATA continues to demonstrate its commitment In line with the United Nations (UN) Sustainable
to the issues of sustainability and social Development Goals (SDGs), PATA will advocate
responsibility by forging relationships with for increased gender equality in the travel
like-minded organisations. and tourism industry in 2018. As noted in the
SDGs, gender equality is the primary focus of
In 2017, the Association partnered with Sustainable Development Goal 5 – Achieve
TripAdvisor in highlighting the issue of animal gender equality and empower all women and
welfare in tourism. Several articles were created girls. Gender equality is not only a fundamental
by PATA and published by TripAdvisor which human right, but a necessary foundation for a
primarily focused on elephant attractions. peaceful, prosperous and sustainable world.

PATA continues to examine this issue by

working alongside Travelife to support their
development of elephant camp standards,
in addition to their development of animal
welfare and child safe tourism training
modules.

The Association also forged new partnerships

with OzHarvest, Scholars of Sustenance
Thailand, and Futouris, as it worked to launch
the food waste campaign in early 2018, The
BUFFET (Building an Understanding For Food
Excess in Tourism) Initiative.

19 PATA ANNUAL REPORT 2017

FINANCIALS
THE FULL DETAILED AUDITED REPORT IS AVAILABLE TO MEMBERS UPON REQUEST.

TREASURER’S REPORT

The Association finished 2017 with a cash position

of $1.54 million, which was slightly less than 2016.
This was primarily due to the difference of timing
in membership fee collection during year end.

PATA’s unrestricted net assets position decreased

in 2017 from $1.02 million to $0.83 million, however
in conjunction with the provision of $300,785 for
employee benefit (note 5 of the audited financial
statement), the reserve available increased to
$1.13 million. The Association aims for a target of
$2 million in reserves in order to place PATA on a
more stable financial foundation.
On the revenue front, a strong PATA Travel Mart
was the primary driver of year over year revenue
growth. Although there was conservative growth
PATA ended 2017 in a healthy financial position. in Membership with only a net addition of 45
With the Association’s priorities on growing the members versus 53 in 2016, net membership
industry membership, diversifying the portfolio of revenue was $35,500 higher than the previous
organized events, and maintaining an optimum year. Growing PATA’s base of industry members
level of operating cost structure, PATA achieved a and strengthening its value proposition to retain
net positive surplus for the third consecutive year. existing members will continue to be priorities for
2018.
In the 2017 financial year, the Association has
seen 3% organic growth in revenue, resulting I would like to thank the PATA Audit and Finance
in total revenue of $2.87 million. This was offset Committee for their commitment and efforts in
by expenses of $2.76 leading to a net surplus of the finance of the Association and acknowledge
$110,433. the work, guidance and support of the external
auditors PKF Audit (Thailand) Ltd.
During the year, PATA was significantly impacted
by unfavourable foreign exchange rates compared
to the previous year. This led to an increase in
operating expenses of $90K. The strong Baht
continued to the end of the year, or 10% stronger
compared to the last fiscal year.

Stephen Pearce
Secretary/Treasurer
PATA Executive Board Director

PATA ANNUAL REPORT 2017 20

AUDITOR’S REPORT
We have audited the accompanying financial also includes evaluating the appropriateness of
statements of Pacific Asia Travel Association accounting policies used and the reasonableness
(PATA), which comprise the statements of of significant accounting estimates made by
financial position as of December 31, 2017 and management, as well as evaluating the overall
2016 and the related statements of activities presentation of the financial statements.
and cash flows for the years then ended, and the
related notes to the financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide
Management’s Responsibility for Financial a basis for our audit opinion.
Statements
Management is responsible for the preparation Opinion
and fair presentation of these financial In our opinion, the financial statements referred
statements in accordance with accounting to above present fairly, in all material respects,
principles generally accepted in the United the financial position of Pacific Asia Travel
States of America; this includes the design, Association as of December 31, 2017 and 2016
implementation and maintenance of internal and the changes in its net assets and its cash
control relevant to the preparation and fair flows for the years then ended in accordance with
presentation of financial statements that are accounting principles generally accepted in the
free from material misstatement, whether due to United States of America.
fraud or error.
Report on Supplementary Information
Auditor’s Responsibility Our audits were conducted for the purpose of
Our responsibility is to express an opinion on these forming an opinion on the financial statements as
financial statements based on our audits. We a whole. The information on page 11 is presented
conducted our audits in accordance with auditing for the purposes of additional analysis and is not
standards generally accepted in the United States a required part of the financial statements. Such
of America. Those standards require that we information is the responsibility of management
plan and perform the audit to obtain reasonable and was derived from and relates directly to the
assurance about whether the financial statements underlying accounting and other records used to
are free from material misstatement. prepare the financial statements. The information
has been subjected to the auditing procedures
An audit involves performing procedures to applied in the audits of the financial statements
obtain audit evidence about the amounts and and certain additional procedures, including
disclosures in the financial statements. The comparing and reconciling such information
procedures selected depend on the auditor’s directly to the underlying accounting and other
judgment, including the assessment of the records used to prepare the financial statements
risks of material misstatement of the financial or to the financial statements themselves, and
statements, whether due to fraud or error. In other additional procedures in accordance with
making those risk assessments, the auditor auditing standards generally accepted in the
considers internal control relevant to the entity’s United States of America. In our opinion, the
preparation and fair presentation of the financial information is fairly stated in all material respects
statements in order to design audit procedures in relation to the financial statements as a whole.
that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control.
Accordingly, we express no such opinion. An audit

PKF Audit (Thailand) Ltd.

Bangkok, Thailand
April 19, 2018

21 PATA ANNUAL REPORT 2017

STATEMENTS OF
FINANCIAL POSITION
For the years ended 31 December 2017 & 2016 2017 2016
ASSETS
Current assets
Cash and cash equivalents (Note 2) $ 1,554,951 $ 1,564,319
Accounts receivable 89,029 19,072
Due from affiliates (Note 3) 5,950 29,416
Prepaid expenses 75,697 65,199
Total current assets 1,725,627 1,678,006

Property and equipment (Note 4) 793,143 778,534

Less accumulated depreciation (690,830) (664,182)
Total Property and equipment 102,313 114,352
Total assets $ 1,827,940 $ 1,792,358

LIABILITIES AND NET ASSETS

Liabilities
Accounts payable $ 49,556 $ 21,136
Accrued liabilities 52,844 104,693
Membership dues paid in advance 514,702 617,843
Deferred revenue 77,398 25,679
Provision for employee benefit (Note 5) 300,785 -
Total liabilities 995,285 769,351

Net assets
Unrestricted
Undesignated 654,155 844,507
Designated - Sam N. Mercer Education Fund 178,500 178,500
Total net assets 832,655 1,023,007
Total liabilities and net assets $ 1,827,940 $ 1,792,358

PATA ANNUAL REPORT 2017 22

STATEMENTS OF
ACTIVITIES
For the years ended 31 December 2017 & 2016 2017 2016
Operating activities:

REVENUE:
Membership $ 1,637,807 $ 1,615,446
Traditional program 859,536 859,797
Other programs 286,791 220,314
Research and Intelligence 14,939 31,978
Other income 73,447 61,242
Total revenue 2,872,520 2,788,777

EXPENSE:
Direct expense
Membership 842,576 761,719
Traditional program 430,489 384,411
Research and Intelligence 116,243 125,520
Other programs 176,383 158,849
1,565,691 1,430,499

Indirect expense 816,255 750,401

Staff cost 69,512 64,782
Travel and representation 100,867 68,929
Professional fees 76,336 73,062
Occupacy 51,748 44,939
Meeting and seminar 81,678 67,077
Others 1,196,396 1,069,190
Total expense 2,762,087 2,499,689
Increase in net assets as a result of 110,433 289,088
operations

Non operating activities:

Employee benefit (Note 5) (300,785) -

Change in net assets (190,352) 289,088

Unrestricted net assets, beginning of year 1,023,007 733,919

Unrestricted net assets, end of year $ 832,655 $ 1,023,007

23 PATA ANNUAL REPORT 2017

SCHEDULES OF
FUNCTIONAL REVENUE & EXPENDITURES
For the years ended 31 December 2017 & 2016

Membership
Research and
and Regional Event
Intelligence
Program

Revenue
Program revenue $ 141,406 $ 859,536 $ 14,939
Membership income 1,637,807 - -

Other revenue
Interest income 100 - -
Other income 18,563 12,439 19,370
Total revenue 1,797,876 871,975 34,309

Expenses
Direct expenses
63,550 102,196 48,726
Other expenses
Staff cost 474,666 230,833 50,103
Travel and representation 72,763 19,422 406
Professional fees 107,633 - -
Occupancy 52,422 36,561 10,723
Communication 4,259 1,592 346
EDP cost 10,594 12,689 1,282
General and administrative 50,857 21,746 3,032
Depreciation and 5,832 5,450 1,625
amortization
Total other expenses 779,026 328,293 67,517

Total expenses 842,576 430,489 116,243

Increase in net assets

as a result of operations 955,300 441,485 (81,934)

Non operating activities:

Employee benefit - - -

Excess (deficiency) of revenue

over expenses $ 955,300 $ 441,486 $ (81,934)

PATA ANNUAL REPORT 2017 24

 Human Management
Capital Total and 2017 2016
Development Administrative

$ 145,385 $ 1,161,266 $ - $ 1,161,266 $ 1,112,089

- 1,637,807 - 1,637,807 1,615,446

- 100 4,095 4,195 1,197

688 51,060 18,192 69,252 60,045
146,073 2,850,233 22,287 2,872,520 2,788,777

80,963 295,435 51,748 347,183 302,086

58,212 813,814 816,255 1,630,069 1,492,734
7,151 99,742 69,512 169,254 164,407
- 107,633 100,867 208,500 163,920
15,115 114,821 76,336 191,157 166,858
604 6,801 4,802 11,603 9,400
8,713 33,278 21,751 55,029 51,723
3,255 78,890 43,754 122,644 108,634
2,370 15,277 11,371 26,648 39,927

95,420 1,270,256 1,144,648 2,414,904 2,195,440

176,383 1,565,691 1,196,396 2,762,087 2,499,689

(30,310) 1,284,542 (1,174,109) 110,433 289,088

- - 300,785 300,785 -

$ (30,310) $ 1,284,542 $ (1,474,894) $ (190,352) $ 289,088

25 PATA ANNUAL REPORT 2017

PATA
MISSION STATEMENT:
“ The Pacific Asia Travel
Association (PATA) is a
membership association
acting as a catalyst for the
responsible development of
the Asia Pacific travel and
tourism industry.
In partnership with PATA’s
private and public sector
members, we enhance the
sustainable growth, value
and quality of travel and
tourism to, from and
within the region. ”

PATA ANNUAL REPORT 2017 26

ORGANISATIONAL
VALUE STATEMENT:
“ We believe Asia Pacific’s
travel industry is
stronger as one.
Our potential is
powered by
our connections
to the world. ”

27 PATA ANNUAL REPORT 2017

 Competent
Financial

WHAT TO
Baseline

EXPECT IN +

2018 Proper
Digital
Emphasis

A TRANSITIONAL YEAR
+
After four years of prudent financial
stewardship and organisational stabilisation, Bold
PATA is well-optimised to achieve top-line and New
bottom-line revenue goals. Even with ambitious Initiatives
target increases, calendar year 2018 is actually
transitional and experimental in nature. With
various new initiatives to be launched and

=
learned from, the tactical plan will set up the
Association for pivotal years of growth in 2019
and beyond.

Simply improving on past achievements is no

longer sufficient for long-term prosperity in
light of emerging disruptive technologies and Increased
business models around the world, especially Brand
in the travel and tourism industry. Value
Therefore, 2018 will see the Association take
advantage of its hard-earned financial baseline
to pursue new and bold initiatives, including
essential IT upgrades, renewed organisational
+
culture and identity initiatives, sponsor-driven
insight forums, and greater emphasis on
Human Capital Development (HCD).
Greater
Organisational
Resilience

PATA ANNUAL REPORT 2017 28

KEY INTERNAL KEY EXTERNAL
INITIATIVES FOR 2018: INITIATIVES:
Essential Technology New Sponsor-Driven
Upgrades and Renewed Insight Forums and
Organisational Culture & Increased Emphasis on
Identity HCD
Calendar year 2018 will see the completion PATA must be regularly seen alongside other
of three major technology initiatives at PATA, well-known and emerging leaders as both a
including: stable voice and a “trailblazer”, undertaking
innovative initiatives that pave the way forward
1. Becoming General Data Protection for the entire industry to follow.
Regulation (GDPR) compliant and
ensuring on-going data securitisation In this regard, the Association will focus on two
2. Essential upgrades to existing web assets key tactical areas in 2018 to enhance this image:
to fortify security and scalability Sponsorship and Human Capital Development
3. Launch of the Customer Relationship (HCD).
Management System (CRM) to support
business growth and collaboration Sponsorship has emerged as one of PATA’s
greatest underutilised resources. The Association
All three will have a drastic impact on how the will give greater focus to nurturing valued
Association interfaces with it members. relationships in an effort to provide greater
visibility for them and more insightful content
In addition to the creation of an organisational for members. With the support of sponsors,
value statement, a recent brand audit resulted partners, and member organisations, PATA
in the formation of a newly established list of plans to co-host at least two fully-sponsored
organisational core principles exemplifying ‘micro-forums’ before the end of the year. The
the current and aspirational attitudes of the invite-only event for industry leaders would
Association. be intimate yet highly engaging and insightful
with the content edited and published for wider
Represented by the acronym GAIN-PC, they consumption on social media via high quality
include: video.
• Growth Mindset
Human Capital Development is a challenge for
• Accountable all sectors of the travel and tourism industry
• INclusive and has been an issue that PATA has and will
• Passionate continue to address. The aim of the Association
• Curious is to be seen as an organisation whose training
has a real impact on its members’ businesses.
Through the combination of the new In 2018, PATA plans on delivering a minimum
organisational value statement and core of three Capacity Building Programmes and
principles, the Association will be able to link its two PATAcademy-HCD workshops focussed on
activities to a coherent value system in order to leading topics and advanced technologies as
better serve its members and industry partners. requested by members and partners. Future
topics will address all facets of digital marketing
and the use of technology for better small- and
medium-sized enterprise (SME) management.

29 PATA ANNUAL REPORT 2017

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