Canadean rates potential of 60 major tourism markets
09 March 2015
According to Canadean’s Tourism Potential Index, Singapore is the only country that holds a five star rating, Iceland will see the fastest growth in terms of international arrivals and Brazil’s tourism industry will grow steadily despite low tourism potential.
Canadean’s Tourism Potential Index ranks the potential of the 60 major tourism markets around the world. The model is divided into two parts: the first part provides a ranking of the average annual growth in international arrivals from 2013 up to 2018. The second part, a star rating, provides an analysis of current conditions and a risk-adjusted assessment of growth potential. Factors such as a competitive currency, lenient visa policies and political stability are in favour of a country’s tourism potential.
Singapore the only country that scores five star rating
The Index shows that Singapore is the only country that holds a five star rating, with a score of 60 points*. The second highest rated country is the United States (55.2), followed by Iceland (52.2) and the United Arab Emirates (50.6). Arnie van Groesen, analyst at Canadean says: “The Singapore government and Tourism Board continue to be effective with promotional initiatives, positioning the country as one of the world’s key business centers. On top of that, Singapore has world-class transport infrastructure, with Changi airport topping a number of recent polls for the quality of its services.”
Iceland to witness fastest growth in arrivals
According to the Canadean Index, Iceland not only holds a 4 star rating, but is also expected to witness the fastest growth in terms of international arrivals, with a CAGR of 11.6% up until 2018. Van Groesen says: “The eruption of the Eyjafjallajökull volcano in 2010 sparked increased interest in Iceland as a tourism destination. The country scores well in terms of attractiveness and is considered to be the friendliest nation in the world to foreign visitors, according to the World Economic Forum. Its location in the middle of the Atlantic Ocean is also beneficial, with Keflavik International Airport offering scheduled flights to and from 31 cities across Europe and 14 locations in North America.”
Brazil tourism has lowest tourism potential of top ten
Brazil’s tourism industry will continue to grow strongly at an average annual growth of 8% in terms of international arrivals. However, the countries tourism potential is the lowest ranking country in the top ten, only scoring 2 stars with 33.2 points. “Although the 2016 Olympic Games in Rio de Janeiro will attract a large number of foreign visitors to the country, Brazil has a weak currency and strong inflation, while high hotel prices remain a problem. In June and July 2014, hotel prices soared up to 300% from normal levels in all cities hosting games for the World Cup,” adds Van Groesen.
*Score of 60+ (five stars) means very high potential, 50-60 (four stars) is high potential, 40-50 (three stars) moderate potential and 30-40 (two stars) equals low potential.
The famous blue lagoon near Reykjavik, Iceland.
All information used in this text is based on Canadean's Travel & Tourism Intelligence Center.
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