Project Title

Develop Air Connectivity in the APEC Region 

Project Year

2014   

Project Number

TWG 01 2014A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Completed Project   
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Project No.

TWG 01 2014A 

Project Title

Develop Air Connectivity in the APEC Region 

Project Status

Completed Project 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: General Fund 

Project Year

2014 

Project Session

Session 2 

APEC Funding

145,000 

Co-funding Amount

60,000 

Total Project Value

205,000 

Sponsoring Forum

Tourism Working Group (TWG) 

Topics

Tourism 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Thailand 

Co-Sponsoring Economies

Australia; Indonesia; Malaysia; Peru; Philippines; Chinese Taipei 

Expected Start Date

01/10/2014 

Expected Completion Date

31/12/2015 

Project Proponent Name 1

Urairatana Naothaworn 

Job Title 1

Director of International Affairs 

Organization 1

Ministry of Tourism and Sports 

Postal Address 1

4 Ratchadamnoen nok Road, Watsomanas, Pom Prap Sattru Phai, Bangkok 10100, Thailand 

Telephone 1

66-2 2831500 

Fax 1

Not Applicable 

Email 1

unaothaworn@gmail.com 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Urairatana Naothaworn 

Project Summary

Improved air connectivity can be a catalyst for growth of travel and trade, ultimately enhancing economic and social development, and creating jobs, especially for women, young people and in rural areas. This important research project aims to develop air connectivity in the APEC Region and in turn stimulate a more efficient flow of goods, services, capital and people. 

Commencing in January 2015, a market demand assessment and analysis of true Origin/Destination air traffic demand between the APEC economies will be calibrated with existing flights, seat capacity and flight schedules, using travel intelligence software. The results will then be aligned with an analysis of new aircraft with increased flying range. 

In December 2015 a comprehensive report will make market demand driven recommendations for new non-stop flights, hubs, and improved flight schedule connection times, that will help airlines and regulators make faster decisions to improve air connectivity across the APEC Region.

Relevance

Relevance - Benefits to Region:

· The efficient flow of goods, services, capital and people in the APEC Region is restricted and blocked by numerous air connectivity limitations and gaps that exist between the APEC Region economies. The small share in air connectivity between Americas and Asia/Pacific in global air transport is still largely driven by geography.

· This project has been developed to identify the gaps in air connectivity, based on market demand, within the APEC Region and to recommend possible solutions.

· In today's competitive environment, airlines are constantly being proactively approached by destinations and airports to consider new routes supported with comprehensive business cases supported by assessments and analytics. APEC needs to compete, especially with non-APEC destinations, for airline attention and resources.

· This project will make APEC pro-active in identifying air connectivity opportunities, providing compelling APEC focused data, market based assessments and analytics to Airline Network Planners for consideration to help airlines improve air connectivity in the APEC region.

· New market opportunities are becoming available due to new aircraft with increased range able to connect new routes and open sky agreements such as in ASEAN.   

· Improving air connectivity between APEC economies can stimulate growth of tourism and trade, leading to economic and social development, and in particular create jobs, especially for women, young people, and in rural areas.

· Every APEC economy can benefit from improved air connectivity. Although this project will be focused on people connectivity, significant benefits will automatically be generated for air cargo that can improve supply chains across the APEC Region.

Relevance – Rank:     

This project is Rank 1 as it specifically and significantly contributes to promoting regional economic integration via free and open trade and investment in Trade Facilitation and Liberalisation, Travel Facilitation, and in Promoting Connectivity, including enhancing physical infrastructure, institutional and people-to-people connectivity by improving air connectivity in the APEC Region.

Objectives

·  To develop market demand based recommendations for potential new routes, improved flight schedule connection times, and hubs between APEC economies based on analysis of air passenger flow, schedules and new aircraft range capability, including analysis of the number of seats, flights and air traffic.

· To help airlines and regulators develop more accurate demand predictions so they can in turn help APEC economies by providing better air connectivity services, capacity and schedules.

Alignment

Alignment - APEC:

· Air connectivity is a cross-cutting activity that benefits multiple working groups, with direct improvements for the Tourism Working Group and the Transport Working Group.

· APEC Priority 3 is Strengthening Comprehensive Connectivity and Infrastructure Development, and strengthened air connectivity can be a key new source of growth by improving people-to-people and goods and services connectivity within APEC economies.

· The 2013 Bali Leaders’ Declaration recognized, under promoting connectivity, the increasing need for more efficient flow of goods, services, capital and people by shaping the strategic landscape of our region through a long-term commitment that will accelerate physical, institutional, and people-to-people connectivity.

Alignment – Forum:

APEC Tourism Strategic Plan 2011-2015, Strategic Directions and Actions item 4 is to promote efficiency and regional economic integration through policy alignment and structural reform - facilitate access and connectivity (air transport, infrastructure etc.) and to address opportunities for cross-border tourism flows.

The main theme for the TWG for 2014 will be promoting connectivity and travel facilitation to stimulate tourism growth in the Asia-Pacific Region in response to Leaders/Ministers/SOMSCE Priorities and Decisions, and to ABAC recommendations.

TILF/ASF Justification

All economies shall receive a market demand based assessment and analysis of the true origin/destination air traffic demand with the other 20 economies. This valuable data shall provide insight and a baseline for the future development of air connectivity with APEC economies and also provide a framework for development of air connectivity beyond the APEC region.

The recommendations will provide the foundation for engagement with airlines, airports, tourism organisations to boost tourism and trade for developing economies, and to ultimately enhance economic and social development and to create jobs, especially for women, young people and in rural areas.

Developing economies are expected to benefit more from these outputs especially the economies that have resource limitations and do not have advanced levels of data and information collection and analysis. Further air connectivity is an important component of development and improvements to air connectivity in developing countries can have a greater impact for tourism growth and job creation.

Developing will be able to engage during this project, as all other economies will be able to, with the opportunity to provide additional input, feedback, and to discuss any issues and ask questions, upon completion of the assessments, analysis and draft recommendations.

Beneficiaries and Outputs

Outputs: 

A report for each economy containing a market demand based assessment and analysis, using the most complete travel intelligence software available, that identifies "true" Origin/Destination air traffic demand and supply, with the other APEC economies, that will enable assessment of air traffic demand in the APEC Region.

The scope of this project is focused on the APEC region and only the true inter-APEC air traffic will be assessed and analysed. True means the where both the actual origin and destination of the passenger are in the APEC region. This excludes travel originating from outside the APEC region, travel destined to outside the APEC region, and travel through the APEC region where both origin and destination are outside of the APEC region.

Market demand, Air Traffic historical data, for intra-APEC travel over a 5 year period, on an annual basis, and the last 1 year period, on a monthly basis, will be assessed and analysed.

This valuable data shall provide insight and a baseline for the future development of air connectivity with APEC economies and also provide a framework for development of air connectivity beyond the APEC region.

A Project Workshop will be conducted at both the TPTWG 41 and TWG 46 meetings to align with TWG and TPTWG activities and priorities.

Market based recommendations will be made for:

·  New non-stop flights between APEC economies

·  More efficient and effective hubs in the APEC region

· Improvements to existing flight schedule connection times between the APEC region

Feedback from consultation at events and during economy visits shall be collated and included in each country and final report.

Outcomes:  

The key outcome is to identify, and increase awareness of, market demand based opportunities that exist for the development of air connectivity in the APEC region. 

Time is considered the most important asset by many travellers, so reducing the time spent on air travel, is a key component of improving air connectivity that will focus on 3 areas:

· Improved flight schedule connection times;

· More efficient and effective hubs to connect;

· Non-stop flights.

When travellers have to connect from one flight to another to reach their destination, they experience a "transit tolerance" level, which means that if the traveller has to wait for more than 3 hours for a connecting flight, the traveller will look for alternatives and may change the destination. This means that for a destination to be attractive to travellers, the flight connection times need to be within the transit tolerance level for potential visitors.

Improving air connectivity in the APEC region, through more non-stop flights, more efficient and effective hubs and short flight connection times will stimulate people to people connectivity as well as flow of goods. Resulting in growth in tourism and trade, and ultimately enhance economic and social development and to create jobs, especially for women, young people and in rural areas.

Beneficiaries:

This project's beneficiaries will have the opportunity to stimulate growth of tourism and trade by adopting recommendations to introduce new direct non-stop flights, improve flight connection schedules making travel more convenient and less time consuming. Beneficiaries include:

· Ministries and governmental agencies responsible for tourism, transport and civil aviation, National, Regional and City tourism organisations and destination marketing organisations, Travel and Tourism organisations and associations (PATA, ASEAN)

·   Aviation industry, Airlines, Airports and Associations (IATA)

·   Regulators, Air Navigation service providers, Airport Authorities

Co-sponsoring economies are not required to undertake any tasks, however, have the opportunity to engage throughout the project.

The beneficiaries of the Project Workshop that will be conducted at both the TPTWG 41 and TWG 46 meetings to align with TWG and TPTWG activities and priorities will be the members of both working groups, the persons that attend the workshop and the project manager. The workshop is expected to increase and improve the collaboration between the TPTWG and TWG.

Dissemination

The initial assessment and analysis shall be shared with each economy, an opportunity shall be provided for feedback from each economy and their stakeholders.

Each economy shall receive an economy specific report in electronic PDF format that it can share with their stakeholders for consideration, follow up and implementation of recommendations. 

The final report, in electronic PDF format, shall combine all economy reports and made regional recommendations.

A high level summary of the final report, highlighting key recommendations, shall be produced in electronic PDF format for distribution to each economy and key stakeholders.

The outputs of this project shall be communicated through the TWG and TPT-WG meetings where the contractors are expected to provide updates and progress reports.

The recommendations will be publicised and shared with Airlines, Airports, National, Regional and Destinations Marketing Organisations, Regulators, Air Navigation Service Providers in the APEC economies. Events such as ROUTES shall be used to gain awareness of the recommendations.

Recognising the cross-sectorial impact of air connectivity, the results will be shared with TPT-WG and any other relevant APEC working groups, stakeholders and beneficiaries.

The reports will be available for free and there is no intention to sell the reports to maximise the reach and optimise the impact and outcomes.

Gender

Improved air connectivity can be a catalyst for growth of travel and trade, ultimately enhancing economic and social development, and creating jobs, especially for women, young people and in rural areas.

The travel and tourism sector employs a high proportion of women, and this project development has already evolved with a gender balance. There are many women that are in roles that will engage with this project, particularly through the process of consultations with each economy and their feedback and dissemination of analysis and recommendations.

Women engagement in this project is welcome and expected.

Work Plan

The project timeline, key actions and deliverable outputs are aligned with key events, the two key milestones being the TWG meetings.

Presentation updates will be provided, and feedback and consultation will be sought, at the TWG meetings, TPT-WG meetings, at events and during visits to economies that will be offered in alignment with meetings and events in the schedule below and based on interest and willingness from each economy.

Routes is a series of airline and airport networking events focused entirely on aviation route development. Regional events are held in key markets including Americas and Asia and there is a global World Route Development Forum. Routes events bring together stakeholders from airlines, airports and destinations. The events provide an opportunity to meet with network and route planners that can review the assessments, analysis and recommendations for each economy and provide validation, incremental input, and feedback in addition to having the capacity to execute and implement recommendations.

Routes America in 2015 already has 171 delegates registered to attend the event representing almost 40 airlines and over 100 airports from across the region. The complete list of registered airlines can be found at the routes website http://www.routesonline.com/events/172/routes-americas-2015/attending-delegates/#mainContent

Routes Asia in 2014 attracted over 750 aviation professionals, over 95 airlines, over 150 airports, over 25 tourism authorities, over 2000 face-to-face meetings and over 20 high level speakers and many media.

World Routes expects up to 3,000 delegates, 300 airlines, 800 airports, 200 tourism authorities, over 10,000 pre-arranged meetings and 3 days of conference content, in addition to substantial global media presence and coverage.   

The key benefit of attending the Routes events is the economies of scale from the opportunity to meet many persons from airlines, airports, tourism authorities and media that would take a lot longer and cost a lot more on an individual basis. The opportunity to pre-schedule meetings brings a focus for efficiency and effectiveness. The events offer a very efficient and effective dissemination platform about the project and findings and recommendations to optimise implementation.

Over the year activity shall be done in the following stages:

a) Compilation of data and information - flights, seats, air passengers, schedules, aircraft range capability; 

b) Assessment and analysis of air traffic;

c) Consultation engagement with stakeholders - obtain input, present findings, clarify any issues, validation, obtain feedback, respond to questions; at events and economy visits;

d) Draft Recommendations - for new routes, schedules, and hubs between APEC economies

e) Consultation engagement with stakeholders - obtain input, present findings, clarify any issues, validation, obtain feedback, respond to questions; at events and economy visits;

f) Final Recommendations - for new routes, schedules, and hubs between APEC economies

The following is the project action timeline and milestones:

Date

Action Timeline & Milestones

12 Dec 2014

Approval

Dec 2014

RFP

2015

Jan

·  Contractor selected & awarded;

·  Agreements/contracts signed;

Jan + onwards

·  Compilation of data and information;

·  Assessments and analysis of air traffic;

·  Recommendations;

1-3 Feb

Routes Americas 2015, Denver, Colorado, USA

Feb + onwards

·  Consultation and engagement with economies;

· Presentation of assessments, analysis and recommendations, obtain additional input, feedback opportunity, discuss recommendations;

·  Validation at events with experts;

Feb/Mar

·  Transportation Working Group (TPTWG41), Korea

·  Project Workshop to align with TWG and TPTWG activities & priorities (note 2)

15-17 Mar

Routes Asia 2015, Kunming, Yunnan, China

22-24 Apr

UNWTO/ICAO Ministerial Conference on Tourism and Air Transport, Seychelles (note 1)

14-17 May

·  TWG46, Boracay Island, Philippines - present Project Update

·  Project Workshop to align with TWG and TPTWG activities & priorities (note 2)

Aug/Sep

TWG47, Viet Nam - present Draft Report

19-22 Sep

World Routes 2015, Durban, KwaZulu-Natal, South Africa (note 1)

9-10 Oct

Business & Transport, pre Ministerial TMM9, Cebu, Philippines

31 Dec

Completion of Final Report / Endorsement / Presentation

Notes:                     

1. These events will be attended subject to budget availability, individual visits to each economy shall be given priority, as may other events where participation will be considered important for the project.

2. The Project Workshop component will be self-funded.

Risks

·  Non-APEC data excluded - the scope of this project is pure APEC air traffic and travel originating from outside the APEC region, travel destined to outside the APEC region, and travel through the APEC region, is not included in the scope of this project, however, if considered necessary can be the scope of future projects

· Stakeholder availability and commitment - ensure stakeholders understand and are clear about the benefits of the project to maximise commitment and support

· Some information may not be disclosed due to confidentiality, sensitivity or competitive reasons - monitor news and announcements in media and attend Routes events where this type of information is discussed and shared in confidence

·  Lack of data on charter flights - consult with each economy and their airports to identify the level of charters and obtain data where significant

·  Infrastructure and regulatory limitation are not in the scope of this project - these issues are the mandate of the Transport Working Group and have already been, and continue to be, addressed at specialised and dedicated forums.

Monitoring and Evaluation

The data/information collection that shall be collected includes but is not be limited to number of flights, number of seats, number of air passengers, connection times, aircraft range.

Initial assessments and analysis shall be done by travel intelligence software and then by data scientists and experts.

The findings and recommendations shall be shared with economies and their stakeholders and at events where experts will be consulted to provide validation, further input and feedback.

Economies will be regularly consulted and provided opportunities for further input and feedback to ensure that the recommendations are clear to stakeholders to optimise the potential for implementation.

The indicators to measure the successful impact of this project are:

Indicator

Target

Number of new non-stop flights recommended

At least 1 recommendation (note that results should be based on actual market assessment not on targets set)

Number of schedule improvements recommended

At least 1 recommendation (note that results should be based on actual market assessment not on targets set)

Analysis of data

21 reports (one for each economy)

Interviews and feedback at Routes events

21 reports (one for each economy)

Present report and review from feedback at TWG and TPWG

21 reports (one for each economy)

Feedback from each economy and their stakeholders

21 reports (one for each economy)

Number of participants at project workshops

21 persons (one from each economy)

Linkages

Within APEC engagement will be with each economy and the stakeholders that they nominate, the Tourism Working Group, the Transport Working Group and the Travel Facilitation Initiative (TFI).

The TPTWG will be engaged through 2 project workshops and regular consultations with the chair and any nominated persons.

Outside APEC engagement will be with the ASEAN secretariat and their ASEAN Tourism Working Group and Transport Working Groups, at Routes events that all provide opportunity for presentation of findings and feedback. 

This project will provide market demand based recommendations that will complement previous projects/activities that include:

· The Philippines held "Destination APEC 2020: A Conference on Enhancing Tourism and Air Connectivity in the Asia-Pacific Region" in February 2012 with the aim to closely integrate and align the tourism and air transport policies to enhance and facilitate regional integration as espoused by the APEC Leaders in Bogor as well as by the Tourism Ministers in its adoption of the APEC Tourism Charter of 2000.

· PATA Issues & Trends publication in 2012 discussed the opportunities between South America and Asia and highlighted and raised awareness of emerging markets that new aircraft will be able to create with non-stop direct flights.

· UNWTO 2014 Air Study presents case studies and various issues faced by destinations and how they have been supportive (or not) of the growth in air connectivity.

This project benefits the APEC region and its stakeholders and is focused on intra-APEC connectivity. APEC is the key organisation that has incentive aligned to this project.

Sustainability

This project provides a foundation for the development of APEC region air connectivity into the future.

The outcomes will have the capacity to continue to have impact after APEC funding is finished as the final report will become a reference document that can be used as a framework to improve air connectivity by each economy that its stakeholders and beneficiaries, including airports, airlines, destinations, regulators, infrastructure providers will be able to use for future air connectivity development.

After project completion, possible next steps to build on the outputs and outcomes could be further assessments and analysis that look at origin traffic from outside the APEC region that is destined for the APEC region, traffic merely connecting via the APEC region, and linking the APEC region with other regions.

Based on the outcomes from this project, TWG can consider recommendations for future projects that build on this project.

Each economy of TWG and TPTWG can use the content and recommendations of the report to work with relevant stakeholder to maximise the benefits for each economy.  

The final report shall provide baseline data from the analysis that can be used for future analysis and guidance on how economies can implement the recommendations, including follow-up opportunities identified during consultations.

The market demand based opportunities that exist for the development of air connectivity in the APEC region can be shared with media by both the APEC secretariat and economies to ensure that awareness is high and that stakeholders that can make a difference through implementation are aware of the analysis and recommendations.

Project Overseers

The project shall be managed by Ms Urairatana Naothaworn, Director of International Affairs, Ministry of Tourism and Sports, Thailand.

She has experience in the field of tourism as well as trade, and is a specialist in the field of trade negotiations. She took active part in the 7th and 8th Ministerial Meetings held in Russia and China, and actively participates in the TWG agenda.

Mr. Gun Panthuhong, International Affairs officer, took active part in preparing the Concept Note of the 8th Ministerial Meetings held in China.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

1) Project Manager Contractor shall be selected via open tender. 

2) Project Manager Contractor Tasks:

-   Gathering and compilation of data and information;

-  Assessment of each economy's flights, seats, air passenger traffic;

- Assessment of each economy's flight schedules and connection times;

-  Assessment of new aircraft;

-  Software analysis;

-  Data scientist analysis;

-  Expert recommendations;

-  Validation of recommendations;

- Share assessment, analysis and recommendations with each economy and stakeholders;

-  Incorporate additional input and feedback;

-  Respond to any questions. 

3. Publisher - Publication:

·  Publisher to follow APEC PUBLICATION GUIDELINES (Includes Publications Policy, Style Manual and Accepted Nomenclature)

· Tasks: Art work, Graphics (images, charts, info graphics), Layout, Editing, Proof reading, Final Packaging, and Produce 3 types of reports: 

a) Customized Economy Reports (21) - a customised document for each economy that each economy can provide to stakeholders, in particular government department and private sector with capacity and capability to implement recommendations; 

b) Final report - consolidation of all 21 customized economy reports plus the aggregated total APEC region assessment and recommendations; 

c)  Executive Summary report. 

· Quality of the output reports is considered extremely important, especially the customised economy reports. Recognising the importance of visual communications, the $500 limit for each economy report enables use of images, charts and info graphics to maximise impact of the reports; 

· The amount spent on each customised economy report can be reduced, by reducing the use of images, charts, and info graphics, however, the impact of the report may consequently be reduced.   

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Created at 15/01/2015 15:10  by Lucy Phua 
Last modified at 26/05/2017 13:46  by Lucy Phua 
Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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