TRAVEL and tourism’s contribution to the world economy has grown for the fourth consecutive year and is expected to show even stronger growth in 2014. However, policies need to be implemented to increase tourism receipts and jobs, according to the World Travel & Tourism Council (WTTC), which has released its 2014 annual economic impact data, ahead of its 14th annual global summit which will be held this month (April 24 and 25) in Hainan, China.
WTTC president and CEO David Scowsill says 2013 proved another successful year for the sector. “Travel and tourism’s contribution to the world economy grew for the fourth consecutive year in 2013, helped especially by strong demand from international travellers. Visitor exports, the measure of money spent by these international tourists, rose by 3.9 per cent at a global level year on year, to $1.3 trillion, and by over 10 per cent within South East Asia,” he says. “It is clear that the growth in travel and tourism demand from emerging markets continues with pace, as the burgeoning middle-classes, especially from Asia and Latin America, are willing and more able than ever to travel both within and beyond their borders.”He continues: “The outlook for the next ten years looks extremely favourable, with growth forecast of more than 4 per cent annually. This will require governments to implement more open visa regimes and to adopt intelligent rather than punitive taxation policies. It is also critical that public and private partnerships ensure that long term infrastructure and human resource needs are planned responsibly and sustainably, to absorb the inevitable growth that we are forecasting. If the right steps are taken, travel and tourism can be a true force for good.”Worldwide in 2013:• Travel and tourism’s total contribution to the global economy rose to 9.5 per cent (nearly $7 trillion);• Travel and tourism continues to outperform the wider economy in terms of economic growth; • Travel and tourism not only outpaced the wider economy, but also grew faster than other significant industries such as financial and business services, retail and distribution, public services, transport and manufacturing;• 4.7 million new jobs were created as a result of tourism activity;• The industry supported nearly 266 million jobs – so 1 in 11 of all jobs in the world;• Visitor exports, the measure of money spent by international tourists, exceeded expectations rose by 4 per cent to $1.3 trillion and by more than 10.2 per cent within South East Asia; • Travel and tourism investment grew by 2.9 per cent; • South East Asia leads the pack in terms of both total Travel and tourism economic and employment growth at 7.9 per cent and 4.1 per cent respectively;• In Europe, both total Travel and tourism GDP and employment growth have exceeded expectations, boosted by strong demand from long-haul markets; • There was particularly strong expenditure growth from travellers of China, Russia, Brazil, Indonesia, Turkey and Egypt in 2013 to other destinations; and• Economies that benefited from expanded revenues from hosting international travellers included the US, UK, Thailand, Hong Kong, Turkey, Japan, Greece, Russia and Indonesia.According to the WTTC Economic Impact Report, in 2014:• Travel and tourism growth is expected to outpace growth in the whole economy (4.3 per cent vs. 2.8 per cent);• Travel and tourism investment is forecast to increase by 5.6 per cent increase;• It is anticipated that there will be a 4.8 per cent increase in visitor exports;• At 8.3 per cent, China is expected to grow the most of any G20 country in 2014; and• The sector is expected to generate around 6.5 million new jobs. Meanwhile, the UAE’s Economic Impact Report shows the economic and social relevance of the travel and tourism industry in the UAE as well as its potential over the next decade.• The total contribution of travel and tourism to gross domestic product (GDP) was Dh117.4 billion ($3.1 billion), or 8.4 per cent of GDP.• The total contribution of travel and tourism to employment, including jobs indirectly supported by the sector was 496,730 jobs (9.1 per cent of total employment).• Travel and tourism investment was Dh21.0 billion ($5.171 billion), or 6.2 per cent of total investment. It is projected to rise by 9.7 per cent in 2014.