THE WORLD TRAVEL & TOURISM COUNCIL (WTTC), WHICH IS THE BUSINESS LEADERS’ FORUM FOR TRAVEL & TOURISM, HAS SPENT 20 YEARS DEVELOPING ITS ECONOMIC IMPACT RESEARCH FOR THE BENEFIT OF TRAVEL & TOURISM DECISIONMAKERS – WHETHER IN THE PRIVATE OR PUBLIC SECTOR.
THIS COMPREHENSIVE RESEARCH USES THE FRAMEWORK OF TOURISM SATELLITE ACCOUNTS.
Since full Tourism Satellite Accounts (TSAs) take considerable time and resources to develop, WTTC produces simulated TSAs on an annual basis, covering 181 countries, in order to provide reliable and comparable information to assess Travel & Tourism’s current and likely future contribution to economic activity and employment. Timeliness is one of the main strengths of our research. In the critical post-crisis recovery phase currently underway, it can inform and help drive urgent policy-making and investment decisions.
Our 2010 research, again produced in co-operation with Oxford Economics, assesses the economic impact of Travel & Tourism for the 181 countries, as well as for the world overall. It measures spending on Travel & Tourism by households, businesses, governments, overnight and same-day visitors, in order to capture fully the economic contribution of both domestic and international tourism, thereby quantifying Travel & Tourism’s contribution to gross domestic product (GDP) and employment.
In line with the trend in other sectors in 2009, Travel & Tourism activity was hit hard by the credit and housing market collapses experienced in many countries, with households cutting back on leisure travel and corporations reducing business travel budgets. The impact on Travel & Tourism investment was also significant. Yet even though Travel & Tourism activity was so depressed, it still employed over 235 million people across the world last year, generating 9.4% of global GDP.
Although there are signs that the global economy has moved into a recovery phase, we are expecting the pick-up in developed economies – a key source of Travel & Tourism Demand in the short term – to be gradual, with both corporations and households continuing to reconsider travel plans and to limit expenditure.
Nevertheless, despite the current blip in growth trends, our research confirms that prospects for the longer term remain positive. Over the next ten years, Travel & Tourism will continue to grow in importance as one of the world’s highest-priority sectors and employers.
Emerging economies will of course be the main engines of our forecast growth, both in terms of domestic and international Travel & Tourism. But an increasing focus on leisure in developed economies should stimulate travel demand, even in mature markets, boosted by industry innovation in creating new sustainable products and services.
In anticipation of these better times ahead, we are delighted to present you with the 2010 Executive summary of WTTC’s Travel & Tourism: Economic Impact.
Key facts at a glance on South Asia tourism development 2010-2020
Gross Domestic Product (GDP)
The contribution of Travel & Tourism to Gross Domestic Product is expected to rise from 8% (US$136.1bn) in 2010 to 8.4% (US$372.5bn) by 2020.
The contribution of the Travel & Tourism economy to employment is expected to rise from 55,050,000 jobs in 2010, 8.6% of total employment or 1 in every 11.7 jobs to 66,067,000 jobs, 8.8% of total employment or 1 in every 11.4 jobs by 2020.
Real GDP growth for Travel & Tourism economy is expected to be 5.6% in 2010 and to average 8.1% per annum over the coming 10 years.
Export earnings from international visitors and tourism goods are expected to generate 4.0% of total exports (US$14.1bn) in 2010, growing (nominal terms) to US$40.0bn (2.5% of total) in 2020.
Travel & Tourism investment is estimated at US$41.3bn or 7.5% of total investment in 2010. By 2020, this should reach US$125.3bn or 7.9% of total investment.
Download the interesting report Travel & Tourism Economic Impact South Asia 2010 .
This article is uploaded by Majbritt Thomsen, administrator on ‘Views On Tourism’.