STD/TBS/Trade and Competitiveness Section The Travel flash Survey Background and summary results OECD Statistics Directorate Agenda Item 4fii1 Agenda 3rd WPTGS meeting 4-6 October 2010, OECD

STD/TBS/Trade and Competitiveness Section Background for the flash survey on Travel Following a request by WPTGS delegates, OECD has asked country delegates to check travel metadata and, if necessary, describe in one page the current and any alternative methods being considered for estimating in the balance of payments (i) inward and outward travel spending estimates; and, (ii) inward and outward travelers transportation costs (included in passenger transportation). 2 3rd WPTGS meeting 4-6 October 2010, OECD

STD/TBS/Trade and Competitiveness Section Travel and passenger transportation services 1.Definitions and relation to tourism statistics. 2.A substantial share of total trade in services is still covered by Travel (even if declining). 3.Most Travel services fall under GATS mode 2 consumption abroad 4.In a general context of resource constraints, a large number of sources is used which are increasingly innovative. (i.e., credit card info, mobile phone localisation of foreigners) 3

STD/TBS/Trade and Competitiveness Section Definition and relation to tourism statistics. In MSITS 2010 and BPM6, the travel component covers on the credit side, goods and services for own use or to give away acquired from an economy by non-residents during visits to that economy, and on the debit side goods and services, for own use or to give away acquired from other economies by residents during visits to other economies. Travel covers any length of stay provided there is no change of residence Other transactions related to these visits are included in passenger transport services. 4

STD/TBS/Trade and Competitiveness Section Passenger transport services Passenger transportation services cover the transport of people. It covers all services in the international transport of non resident by resident carriers (credit) and that of residents by non residents carriers (debit). Also included are passenger services performed within a territory by non resident carriers. 5

STD/TBS/Trade and Competitiveness Section MSITS 2010 and International Recommendations for Tourism Statistics (IRTS 2008) The annex V of MSITS describes the relation of the travel component (and transportation passenger services) of EBOPS as defined in MSITS 2010 and the concept of tourism expenditure as defined in ITRS Bridge table that separate two basic issues (i) the scope of individuals to which BoP relates and visitors (ii) the scope of expenditures considered within travel and tourism consumption. Also BPM6 proposes a supplementary item, Tourism- related services in travel and passenger transport, as an estimate of tourism as an international traded service. 6

STD/TBS/Trade and Competitiveness Section Substantial share of trade in services still covered by travel in OECD total… Sources: IMF; OECD; Eurostat 7

STD/TBS/Trade and Competitiveness Section …but slightly declining both in imports… 8

STD/TBS/Trade and Competitiveness Section …and exports where other business Services and transportation are slowly growing. 9

STD/TBS/Trade and Competitiveness Section Most services under travel fall under GATS mode 2 (consumption abroad) However, the travel component of the balance of payments classifications also includes the purchase of goods, for own use or to give away… This good portion should not be allocated to any mode of supply. Supporting and auxiliary services (provided by non-residents port to domestic carriers..), maintenance and repairs and manufacturing services are also covered by mode 2 as the property of the consumer is moving for the service to be supplied. 10

STD/TBS/Trade and Competitiveness Section Breakdown of Travel in EBOPS 2010 Travel –Business Acquisition of goods and services by border, seasonal, and other short-term workers Other –Personal Health-related Education-related Other 11

STD/TBS/Trade and Competitiveness Section EBOPS 2010 alternative breakdown of travel. Goods Local transport services Accommodation services Food-serving services Other services Of which – Health services –Education services 12

STD/TBS/Trade and Competitiveness Section Diverse and Innovative data collection methods. Reference Room Document 3 Very diverse methodologies across countries Collection Methods can slightly differ for debit and credit. Increasingly innovative 13

STD/TBS/Trade and Competitiveness Section Travel credits Administrative data on number of non residents entering the country Border Surveys on tourist/business visitor expenditures Surveys on supply side - accommodation (number of nights by nationality), travel agencies… Currency exchange offices for transactions in cash Credit card information Use of Models Use of international sources (UNWTO, European Travel Monitor) Mobile phone localisation of non residents in the country 14

STD/TBS/Trade and Competitiveness Section Travel debit Administrative data on resident entering the country International Transaction Reporting System (ITRS) Household surveys Border Surveys on residents entering the country Mirror data Currency exchange offices for transactions in cash Credit card information Use of Models Telephone localisation of resident abroad 15

STD/TBS/Trade and Competitiveness Section Transportation cost credits/debits Surveys Credit card information with airline merchants Direct reporting from main transportation operators Administrative data Settlement statistics reported by Banks. 16

STD/TBS/Trade and Competitiveness Section Thank you for your attention 17