Travel industry to outpace global economy
Photo: Alastair Smith
A report from the World Travel & Tourism Council, which covers over 180 countries and 24 regions, shows that last year, the industry contributed US$7,580 billion in GDP and 277 million jobs to the global economy.
This year, that contribution is expected to increase by 3.7 per cent, while the number of jobs created is forecast to climb by 2.6 per cent.
"This demonstrates the sector’s enduring ability to generate economic growth and create jobs at a faster rate than the global economy, which is due to grow by 2.9 per cent in 2015," explains the WTTC.
Indeed, by the end of 2015, the sector will contribute US$7,860 billion, 10 per cent of global GDP, once all direct, indirect and induced impacts are taken into account, and will account for 1 in 11 of all jobs on the planet.
The USA and China are set to retain their rankings as the two biggest tourism economies, although Germany is predicted to overtake Japan to take third place. Russia is the only G20 country expected to see growth decline, due to the continuing sanctions being imposed and the devaluation of the rouble.
South Asia is expected to experience the highest growth at 6.9 per cent, while Europe and Latin America are the regions with the lowest forecast growth of 2.4 per cent.
"Our annual research demonstrates that the sector has recorded strong economic growth in 19 out of the last 20 years, providing much-needed economic stability at a time of global economic volatility," comments David Scowsill, President & CEO WTTC.
"Governments looking for a sector which can create jobs and drive economic growth should focus on Travel & Tourism. This industry requires the right regulatory environment in which to flourish, along with progressive policies on visa access, taxation, human resources planning, and sustainability."
Indeed, many countries, such as those hit by the recession in the eurozone, have been supported by tourist arrivals, with Spain's travel industry largely fuelling both the country's economic recovery and housing rebound.
The report also reveals that international tourist arrivals surged last year, reaching nearly 1.14billion. Visitors from emerging economies now represent a 46 per cent share of global arrivals.
Headwinds facing travel this year will include the weakness and potential volatility of many currencies against the US dollar. The deep recession in Russia, a key outbound market, will also slow outbound spending in line with slower world trade overall. However, falling oil prices will bring significant improvements for net oil importers in 2015, easing upward pressure on living costs, increasing
disposable household incomes and domestic consumer spending, and lowering air fares.