tourism road infrastructure project

If you build it, they will come: Why infrastructure is crucial to tourism growth and competitiveness

Tourism is expanding globally, but can infrastructure keep up?

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With international tourist arrivals reaching 1.4 billion in 2018— two years ahead of initial projections —the travel and tourism industry will continue to drive global connectivity. The World Economic Forum’s 2019 Travel and Tourism Competitiveness Report shows this growth is backed by improving global travel and tourism competitiveness, which stems, in part, from growing aviation capacity, increased international openness, and declining travel costs.

However, the report also shows the need for developing infrastructure, which may not be able to keep up with the additional 400 million arrivals forecasted by 2030 . While infrastructure challenges differ for various regions and levels of economic development, failure to address these challenges may reduce competitiveness, hurting the travel and tourism industry.

Infrastructure—including air, ground, port, and tourism services like hotel rooms and car rental services—plays a vital role in travel and tourism competitiveness, serving as the arteries of the industry. And from a global perspective, infrastructure continues to improve.

Since 2017 , air transport infrastructure is one of the most improved components in the index, with strong growth in scores across most regions, subregions and economic development levels. However, much of this performance has come from growing route capacity and the number of carriers operating. Perceptions of the quality of air transport infrastructure, while better since 2017, have grown more slowly, while most recent airport density figures indicate slightly reduced airport access than before. These results potentially indicate that travel demand and airline growth may eventually outstrip hard-infrastructure capacity. By 2037, the International Air Transport Association projects the number of air passengers could double to 8.2 billion.

The report also shows that global perspectives on the quality and efficiency of ground transport infrastructure and services have remained, on average, near stagnant. Given the projected growth in travel as well as the need for infrastructure to accommodate more tourism-related needs, significant work will be required to bridge multi-trillion dollar investment deficits for airports, ports, rail and roads.

The results could be used to assess the infrastructure readiness of economies by looking at their scores for infrastructure and tourist arrival trends. The figure above compares country subregion and income-level groupings against their growth in international tourist arrivals from 2013 to 2017. It is clear tourism is growing in most subregions and among all income groups, with many above the global rate of growth.

Most of the regions on the right side of the figure above are relatively advanced countries with well-developed infrastructure. As a result, they may have more capacity to handle tourism growth. Moreover, it is also apparent that, despite market maturity, such countries are still welcoming more and more tourists each year. As the figure shows, high-income economies had the largest increase in arrivals, growing faster than the global rate. But while these economies have strong infrastructure, their share of arrivals and growth rates reveals the pressure on their infrastructure.

High-income economies analysed accounted for nearly 65% of arrivals in 2017 and 74.3% of growth in arrivals between 2013 and 2017. Subregions like Southern Europe and Eastern Asia-Pacific have seen rapid growth in arrivals, putting pressure on their more developed infrastructure. Arrivals in Western European countries, which on average, have the best infrastructure in the ranking, might seem to be below the global rate of growth but accounted for nearly one-fifth of global arrivals in 2017, and nearly 14% of the increase globally since 2013.

Northern Europe has experienced some of the fastest growth in arrivals in recent years and had the third-largest improvement in scores for air transport infrastructure since 2017. But its well-developed infrastructure may still come under strain, with this year’s report showing the region’s growth in ground, port and tourist infrastructure was below the global average.

South-East Asia has also experienced strong growth in tourism in recent years, but its near-average infrastructure scores indicate it might lack the capacity to continue accepting tourists. Countries like Vietnam, Indonesia and the Philippines have recently seen a surge in tourism, but, despite improvement in scores, all rank below average for infrastructure.

The regions on the left side of the figure mostly consist of lower-income countries. While these economies do not account for the same volume of arrivals as the more developed regions and countries, they still face capacity issues because their infrastructure is less developed. Nevertheless, due to higher price competitiveness, economic growth and declining travel barriers, many of these countries have also seen some of the biggest percentage increases in arrivals.

Countries in subregions on the upper left-hand quadrant may be at greatest risk of strain due to rapid visitor growth and underdeveloped infrastructure. In particular, this is an issue for South Asia, Western Africa, South America and the Balkans and Eastern Europe. On the other hand, nations on the bottom left-hand quadrant have less tourism growth, though this might be due to their limited infrastructure capacity, among other factors.

How countries deal with their infrastructure will be a crucial factor in their long-term travel and tourism competitiveness. Even nations with developed airports and roads may face strain under growing utilization, which may lead to issues related to quality.

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However, it is also important to note competitiveness relies on far more than just infrastructure. Emerging economies also have more work to do when it comes to improving business environments, addressing safety and security concerns and reducing travel barriers. Natural assets, which attract a significant number of visitors internationally, also need to be better protected. For example, South America and South-East Asia outscore the global average for natural resources by about 27% and 11%, respectively, but score below average for environmental sustainability. Consequently, many countries in these subregions may be at risk of damaging the very assets that make great travel destinations.

In some cases, improvements in one area of competitiveness without progress elsewhere can also lead to issues. For instance, Iceland’s improvement in air connectivity and surging visitor volumes was not matched by price competitiveness and overall tourism capacity, potentially explaining its recent slowdown .

Handling all these issues cannot be the purview of only travel and tourism stakeholders. Improving competitiveness, especially as it relates to travel and tourism, requires a holistic, multistakeholder approach.

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Improving the delivery of road infrastructure across the world

Research shows that road-sector investment needs to be approximately $900 billion per year to keep pace with projected growth—currently, it falls short by $180 billion per year. 1 1. For details, see Bridging global infrastructure gaps , McKinsey Global Institute and McKinsey’s Capital Projects & Infrastructure Practice, June 2016. Additionally, experience shows that, to significantly and sustainably improve a country’s road network, the whole delivery system must be taken into consideration. It is not enough simply to increase funding.

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McKinsey and the International Road Federation partnered to survey the global road sector for a comprehensive view of trends and best practices. A study of more than 20 road-infrastructure delivery systems across the world has enabled us to identify a number of root causes and potential improvements (exhibit). Many road-infrastructure tenders receive too few bids and there are often significant cost variations. There is a lack of value-assurance processes and there are significant challenges to scaling innovation.

So, what can be done to improve infrastructure delivery, so that the road network best fulfills the transportation needs of each country’s economy? The solutions are complex, and there is no single quick fix. However, we have identified five best practices that should inform every country’s improvement journey.

Maintain rigorous, fact-based, and transparent project selection

The key to improved project selection is to establish (and stick to) a rigorous, fact-based project evaluation and a transparent process for establishing what can be done and in what order. Having one entity responsible for evaluating projects and establishing a fact base enables policy makers and elected officials to properly prioritize. Ensuring an outcome-focused approach to prioritization will bring the greatest benefits to citizens and businesses. Transparency in the process and on the criteria for prioritization also helps with stakeholder management. It is equally important that the fact-based project-selection method originates in the infrastructure strategy and is linked to the overall strategic goals of the society.

Would you like to learn more about our Capital Projects & Infrastructure Practice ?

Streamline delivery.

The key to streamlining delivery is to boost sector cooperation across contracting, tendering, site management, and stakeholder management. The infrastructure owner decides the type of contract and how to tender the projects. For example, a decision to move away from design-bid-build contracts toward design-build contracts may pay dividends. Of course, design-build contracts are not a panacea, but their increased use can improve cooperation, align incentives, and enable stakeholders to better draw on each other’s strengths. Equally, the use of negotiations under the framework of public procurement laws can deliver benefits. Negotiations can help limit erroneous calculations, reduce overly wide discrepancies in risk estimates, and encourage improved use of alternative construction methods—however, they also increase the need for advanced tendering capabilities from infrastructure owners and suppliers.

Make the most of existing infrastructure

Governments often seek to address transportation needs by launching new projects, but the existing stock of roads will always be more important than network additions—making better use of the existing network is key. Our diagnostic shows that many countries do not focus enough on this lever. Additionally, building a fact-based maintenance strategy to reduce road lifecycle costs and ensuring that assets are not allowed to deteriorate to a point where reconstruction costs start to rise sharply enables governments to increase network reliability and reduce overall cost of ownership.

At the same time, pricing mechanisms such as congestion charges can improve road-network utilization and lead to higher economic effectiveness, while environmental effects are often positive. Furthermore, the capacity of existing assets can increase by making them more “intelligent.” This includes familiar solutions such as adjustable road signs, and adaptive traffic lights, as well as newer technology such as navigation apps with crowd-sourced traffic information. In future, connected and self-driving vehicles may increase the capacity of existing infrastructure significantly, both by cutting accidents and the reduction of “stop-and-go waves.”

The department of transportation of the future

Ensure effective sector governance.

Our diagnostic efforts found that, across the board, three enablers need improvement for the road infrastructure sector to work better—capabilities, collaboration, and governance:

• Capabilities. Our research across thousands of infrastructure and construction projects shows that project-management skills make all the difference—no other factor correlates as strongly with the outcome of the project. Attracting, developing, and retaining talent is imperative, but also something that many governments and private-sector representatives acknowledge to be a challenge.
• Collaboration. An effective road sector requires collaboration between a broad range of stakeholders from the private sector, public sector, and citizens. Our research has consistently shown that this lacks efficiency, often because there is not a commonly shared goal for the road sector.
• Governance. Finally, cooperation across government can pose challenges. Separating technical and political responsibilities can help clarify roles and facilitate improved governance—but solutions must be tailored to the political situation in each country.

Enhance funding and finance frameworks

While funding of roads will likely continue to be predominantly sourced from government budgets, many countries would be better off if they could complement public funds with access to private money. No one solution is right for all countries, but tools ranging from toll stations, infrastructure bonds, real-estate appreciation capture, congestion charges, public-private partnerships, build-operate-transfer, and other methodologies can be part of the toolbox and considered as a way of topping up available funds.

Download A better road to the future: Improving the delivery of road infrastructure across the world , the full report on which this article is based (PDF–14MB).

Nicklas Garemo is a senior partner in McKinsey’s Abu Dhabi office, and Martin Hjerpe is a partner in the Stockholm office. Brendan Halleman is vice president of Europe & Central Asia at the International Road Federation.

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Today’s front page, Friday, April 26, 2024

3 regions get bulk of tourism road projects of DOT-DPWH

• Ma. Stella F. Arnaldo
• July 28, 2023
• 2 minute read

OVER 3,800 kilometers in roads to various tourism destinations have been constructed by the Department of Public Works and Highways (DPWH) from 2016 to 2022.

These road projects were built under a convergence program with the Department of Tourism (DOT)—the Tourism Road Infrastructure Program (TRIP)—which the latter initiated in 2015, under the term of then Secretary Ramon Jimenez Jr. According to a DPWH report obtained by the BusinessMirror, Region 7 (Central Visayas) received the largest number of completed projects over the six-year period, with 551.74 km in tourism roads.

It was followed by Region 11 (Davao Region) with 421.27 km of completed tourism road projects, and Region 6 (Western Visayas), with 336.37 km. The least number of completed tourism roads were in Region 9 (Zamboanga Peninsula) at 131.30 km, Region 12 (Soccsksargen) with 173.43 km, and Region 10 (Northern Mindanao) with 178.76 km.

‘No one left behind’

At the post-State of the Nation Address (Sona) infrastructure briefing on Tuesday, Tourism Secretary Christina Garcia Frasco said, “Specific to infrastructure through our continuing partnership with the DPWH, there have been over 158 km of roads leading to tourist destinations that have been constructed and are ongoing, and we’re very optimistic that in the coming year, investments in tourism roads will continue, so that we can continue to expand country-wide development as far as tourism is concerned, so we fulfill the President’s vision that no one is left behind, as far as the local government units’ benefit from tourism development.”

The same DPWH report showed 150.58 km tourism road projects completed last year, with Central Visayas having received the bulk at 28 km, followed by Soccsksargen with some 18.4 km, and the Davao Region with 16.09 km. There was no status report available regarding ongoing TRIP projects, which have been allocated a budget of some P17.7 billion under the General Approriations Act this year.

This year’s budget for TRIP projects is just slightly higher than the P17.09-billion allocated in 2022. Funding for tourism road projects account for less than 2 percent of the DPWH’s P893.12-billion budget this year.

Meanwhile, Frasco also said at the post-Sona briefing,  “over 25 million Filipinos have benefited from tourism,” after domestic and international travelers spent some P1.87 trillion in the economy last year. There were 2.65 million foreign tourists who arrived last year and over 102 million domestic trips made by   Filipinos the same year. “All of these translates to over 5.35 million jobs for Filipinos,” she added.

As of July 25, the Philippines received 3.1 million international travelers, almost 65 percent of the DOT’s target of 4.8 million arrivals this year. The agency is also targetting to return to the prepandemic level of 122 million domestic trips this year.

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DBM allots P882B to DPWH for 2024 infra projects

At a glance.

The Department of Budget and Management (DBM) has allocated P882.2 billion to the Department of Public Works and Highways (DPWH) for socio-economic development initiatives.

The DPWH will prioritize the construction of public facilities, including roads and bridges, to stimulate economic recovery after the pandemic.

Major DPWH programs include Flood Management, Convergence and Special Support Program, and Network Development.

The Flood Management program has a budget of P215.6 billion for 965 projects aimed at flood mitigation.

The Convergence and Special Support Program has a proposed budget of P174.089 billion.

Network Development will receive P148.112 billion for the construction of new roads and the improvement of existing ones.

The Tourism Road Infrastructure Program has a budget of P13.968 billion for access roads to tourism destinations.

The Roads Leveraging Linkages for Industry and Trade Infrastructure Program has a budget of P10.02 billion.

The proposed 2024 DPWH budget will cover operational requirements and the implementation of local and foreign-assisted programs.

The Department of Budget and Management (DBM) said it has allocated P882.2 billion to the Department of Public Works and Highways (DPWH) for next year to expedite the government’s socio-economic development initiatives.

Budget Secretary Amenah F. Pangandaman said the DPWH's proposed budget will support the Marcos administration's 8-Point Socioeconomic Agenda by creating jobs and reducing transportation costs in the Build Better More Program.

“As highlighted by the President during his second State of the Nation Address (SONA), infrastructure development is one of the key drivers of our continuing economic growth. As such, we will sustain this momentum through the Build Better More Program,” Pangandaman said.

She said that DPWH's top priority is to construct additional public infrastructure, such as roads and bridges, to facilitate the country's recovery from the economic setbacks endured during the Covid-19 pandemic.

For 2024, the DPWH has allocated P215.643 billion to the Flood Management program, P174.089 billion to the Convergence and Special Support Program, and P148.112 billion to Network Development, which will involve the construction, widening, and improvement of various roads.

Likewise, the Tourism Road Infrastructure Program has a dedicated budget of P13.968 billion to construct access roads leading to designated tourism destinations, and P10.02 billion is allocated to the Roads Leveraging Linkages for Industry and Trade Infrastructure Program.

Additionally, P3.8 billion is set aside for the Tatag ng Imprastraktura para sa Kapayapaan at Seguridad (TIKAS) Program for military and police facilities, and P15.232 billion for the Special Road Fund, which will be used for the construction, upgrading, repair, and rehabilitation of roads, bridges, and road drainage.

Lastly, the Quick Response Fund (QRF) has a budget of P1.0 billion and will be used for reconstruction and rehabilitation efforts in areas affected by calamities, epidemics, crises, and catastrophes. 

Cagayan Valley and Northern Philippine Islands

Dot-trip project opens in piat, cagayan.

The Department of Tourism, Region 2 announces the opening of tourism road infrastructure project in Piat, Cagayan. The project is the access road from Our Lady of Piat leading to Cagayan State University-Nature Farm, a DOT accredited farm resort.

The tourism road project amounts to 27398 Million. It was funded and implemented in partnership with the Department of Public Works and Highways (DPWH) through the convergence program known as Tourism Road Infrastructure Program (TRIP). It started construction in 2018 and was completed this 2020.

Tourists and pilgrims can now conveniently visit these tourism attractions and experience convenient travel and countryside scenery due to the opening of the road. go iPR/RGC

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Tourism Road Infrastructure Project (TRIP) to improve access roads in five Palawan towns

North national Highway. Photo credit: Living in Palawan

In a bid to improve access roads leading to identified tourism destinations, several roads in five towns in Palawan were included in the Tourism Road Infrastructure Project (TRIP) for 2019.

The municipalities of Brooke’s Point, Narra, Sofronio Española, Roxas and San Vicente were among the beneficiaries of TRIP, a statement released by the Provincial Capitol said.

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In Brooke’s Point, these roads are: New Panay Road, Lina–Sabsaban Falls, Matangkay Road–Ocean Spring, Mati Road, road leading to Freshwater Mini Lagoon in Samariniana Upper Tamlang, Tabud Road–Sitio Tabud Waterfalls, Tagpinasao Road–Salogon Eco-Tourism Site, Udiok Road–Inkera Falls in Malis, Sitio Lada–Pangobilian, Rizal Road–Brgy. Mambalot, Bulho Road–Little Baguio in Brgy. Calasaguen, and Amas Road.

In San Vicente town, these are the concreting of access road in Brgy. Sto. Niño to Ombo Falls in Bato ni Ningning, Crossing Landing Road going to Tugduan Mangrove Forest Eco-Park, Barangay Poblacion–Cappari Cove in Long beach, New Agutaya–San Isidro Tourism Access Road leading to Long beach and Access Road going to Pamuayan Waterfalls are underway.

In Roxas, the identified roads prioritized for TRIP are: National Highway to Cayasan Falls in Brgy. Dumarao, Eco-Park access in Sitio Man-ag, Brgy. IV, National Highway to Katutubo Site in Brgy. Tinitian, Provincial Road to So. Ita-wa Deck in Brgy. San Jose, and Provincial Road going to Tumarbong View Deck in Brgy. Tumarbong.

TRIP projects identified in Narra town are: Trident Oil Mine Site Eco-Adventure Park in Brgy. Poblacion, Tourism Road–South Mariwara in Brgy. Princess Urduja and Antipuluan Sea Road–Taritien Beach.

In Sofronio Española town, the target roads for new construction or improvement under TRIP include: Agis-agis Road–Panitian Shore in Brgy. Panitian, Pulot Shore Road–Caramay Beach, Iraray Access Road–Lighthouse and Reclamation Site in Brgy. Iraray, and Pulot Interior–La Redna Spring Farm, located in R.V Mitra Road patungong Tensai Farm in Brgy. Pulot Center.

During the first quarter of 2019, the Department of Tourism (DOT), Department of Public Works and Highways (DPWH), Provincial Government of Palawan and the representatives from the local government units of Busuanga, Coron, Cagayancillo, Taytay, San Vicente, Rizal, Balabac, Española, Narra and Puerto Princesa City attended the Tourism Road Infrastructure Program (TRIP) Consultation Workshop in Manila to identify and finalize plans for the 2020 Tourism Road Priority Projects.

“Ang 2020 Tourism Road Priority Projects ay may pangunahing layunin na gawing accessible ang mga kalsada patungo sa mga tourism destinations sa Palawan. Tinalakay din ang ilang estratehiya upang mapalakas ang pagpaplano, pagtukoy, pagsusuri at pagpopondo ng Tourism Road Infrastructure Program,” Palawan Provincial Information Office said.

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Building Better Cities: SANY Group Supports New Zealand Tourism Through Infrastructure Transformation and Upgrading

SHANGHAI , April 24, 2024 /PRNewswire/ — SANY Group (SANY) is taking part in the road construction project in New Zealand’s Bay of Plenty, the 12 th road upgrading project in New Zealand as the country embarks on major upgrades to its transport infrastructure.

Globalization is an important element of SANY’s development strategy, with the goal of building a better world. The group has been actively exporting high-end equipment to support urban upgrading and infrastructure projects around the world. Upon completion, the Bay of Plenty road will provide more convenient and safer transportation options to the local communities and tourists visiting the region.

SANY has delivered three pieces of road construction equipment that are working in synchronization to guarantee both construction quality and efficiency:

• STR30C-8 lightweight double-drum roller: it’s equipped with a Yanmar engine with robust power and offers the choice of front and rear, single and double drum vibration, which can be switched flexibly under any working conditions. The model’s high compaction and high-density rolling quality can meet the strict requirements of highway construction.
• SSR180C-8 single-drum roller: the cabin is certified by Rops/Fops, standard configuration includes a reversing camera and full LED lights to provide a more comfortable and safer operating environment.
• SMG200C-8 motor grader: the robust model has a Meikang engine with 186KW power, coupled with direct-drive powershift transmission, smooth shifting, and quick response to ensure operation with precision, the easy-to-maintain rotary support device also reduces cost and boosts reliability and durability.

As a leading supplier of complete road construction equipment, SANY has built a comprehensive product portfolio of five core categories – pavers, rollers, graders, milling machines, and asphalt mixing plants. In 2021, SANY’s hydraulic roller, asphalt plant, and pavers had the highest market share in China , according to the statistics from the China Construction Machinery Industry Association (CCMIA).

“With short winters and long summers, the Bay of Plenty is one of New Zealand’s sunniest and most popular vacation destinations. Its breathtaking natural beauty and unique culture attract numerous tourists from around the world, and we’re delighted to support the construction of the roads with our products to help build a better Bay of Plenty, and we look forward to participating in more projects that will create better tourism experiences for visitors from all over the world,” said by Jat Zhang, Country General Manager of SANY.

Hillstone Networks 獲《微分段解決方案前景報告》提名

Hillstone Networks 為各類垂直產業提供高階微分段解決方案.. 加州聖克拉拉2024…

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RZDL delivers for Moscow Metro

By HeavyLiftPFI 2014-12-29T00:00:00+00:00

December 29 - Russian Railways Logistics (RZDL) has coordinated the delivery of the first batch of 100 m long rails, produced by EVRAZ Consolidated West-Siberian Metallurgical Plant (EVRAZ ZSMK) for the Moscow Metro.

The first batch, which comprised 60 rails weighing a total of 389 tonnes, was transported from Novokuznetsk to Lyublino-Sortirovochnaya station.

RZDL explained that it took five days for the seven inventory platforms and escort railcar to reach Moscow. 

www.rzdlog.com

• Russia & CIS

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