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Tourism supports 1 in 10 jobs, outpacing global economy for 6th consecutive year, says WTTC

Travel & Tourism grew by 3.3% in 2016, generating US$7.6 trillion worldwide, which is 10.2% of global GDP when the direct, indirect and induced impacts are taken into account. The sector supported a total of 292 million jobs in 2016, which is 1 in 10 of all jobs in the world.

Travel & Tourism generated 1 in 10 of the world’s jobs in 2016 as the sector grew by 3.3%, outpacing the global economy for the sixth year in a row, reads a new report by the World Travel & Tourism Council (WTTC).

WTTC’s Economic Impact Report 2017, which is conducted in conjunction with Oxford Economics, researches the economic impact of Travel & Tourism impact on global level, for 25 regions, and 185 countries.

According to the research, Travel & Tourism grew by 3.3% in 2016, generating US$7.6 trillion worldwide, which is 10.2% of global GDP when the direct, indirect and induced impacts are taken into account. The sector supported a total of 292 million jobs in 2016, which is 1 in 10 of all jobs in the world.

Additionally, global visitor exports, which is money spent by foreign visitors, accounted for 6.6% of total world exports, and almost 30% of total world services exports.

David Scowsill, President & CEO, WTTC, said: “This is the sixth year in a row that Travel & Tourism has outpaced the global economy, showing the sector’s resilience, and the eagerness of people to continue to travel and discover new places, despite economic and political challenges across the world.

The continuous growth of our sector underlines the significance of business and leisure travel in driving economic development and job creation throughout the world.”

Southeast Asia (8.3%) was the region with the fastest growing Travel & Tourism sector in 2016, driven by the expanding Chinese outbound market and the countries own growing markets. Latin America (0.2%) was the slowest growing region. Some countries performed well above the world average, but the Brazilian economy dragged down the whole region.

The other regions registered the following growth: South Asia (7.9%), North East Asia (4.6%), Oceania (4.4%), the Caribbean (3.2%), North America (3.1%), the Middle East (2.7%), Sub-Saharan Africa (2.4%) and Europe (1.6%).

Travel & Tourism is expected to grow by 3.8% in 2017, generating US$ 7.9 trillion. This growth is slower than previously forecast, as a result of a downgrade to the global economy and a dampening of consumer spending.

Over the next decade the sector is forecast to grow at an average of 3.9% per year. By 2027 it will generate more than 11% of the world’s GDP and employ a total of 380 million people. One quarter of all jobs created in the next decade will be supported by Travel & Tourism.

Scowsill continued “The future prospects for Travel & Tourism are good, but the sector continues to face challenges. The impact of terrorism and the rise of populism pose a severe risk to the ability of people to travel efficiently and securely. The sector itself needs urgently to address the impact of growth on destinations and its own contribution to climate change if it is to be sustainable in the long term. The UN’s 2017 International Year of Sustainable Tourism for Development is a perfect opportunity to explore solutions together. We look forward to welcoming delegates at our upcoming Global Summit in Bangkok, Thailand, 26-27 April where these challenges will be addressed.”

Resilience is key as impact of terrorism on tourism becomes clearer
Global tourism grew by 3.3% in 2016 despite ongoing terror threats around the world, and destinations must continue to focus on security to ensure that their markets remain resilient. 

At the macro level, terrorism has had little impact on global business and leisure travel in 2016. For the sixth year in succession the sector’s growth outpaced that of the global economy, contributing US$7.6 trillion to global GDP and supporting 1 in 10 jobs worldwide. The new data shows that in countries where attacks have happened, visitor exports, which is money spent by foreign visitors in a country, has suffered. The impacts of the initial attacks are compounded by inaccurate or extended travel advisories, and consumer reaction to seek perceived ‘safer’ places for their vacations.

In Europe, there were contractions in inbound tourism spending: Belgium (-4.4%), France (-7.3%) and Turkey (-22%) following attacks in 2016.

In North Africa, tourism visitor exports declined again in 2016 (-16%). Egypt in particular is suffering from the impact of terrorism activity, followed by continued travel advisories. Inbound visitor spending continued to contract in the country, and the country’s Travel & Tourism GDP is now 50% below the 2008 peak level.

The research shows that overall Travel & Tourism remains resilient, as consumers continue to travel but they are switching to destinations which are perceived to be ‘safer’. Within Europe, Bulgaria and Cyprus grew noticeably in 2016 (12.4% and 17.1% respectively), with Portugal and Spain showing robust growth (4.6% and 5.2%). Emerging destinations Slovakia, Poland and Hungary also showed strong performance (13.2%, 8.6% and 6.8% respectively).

David Scowsill said: “Travel & Tourism is a resilient sector. People will not stop travelling, despite the security threats in the world. Nevertheless, destinations must focus on security, as we operate in a new ‘normal’ where the constant threat of terrorism exists. WTTC calls on governments to work on four issues when preparing for crises:

  • Integrate private sector tourism companies into all security planning
  • Implement electronic visas to enhance security, using biometrics and technology 
  • Create crisis response plans, which encompass a cohesive media response
  • Increase intelligence sharing across borders, as terrorists do not respect borders".

Scowsill concluded: “Governments must plan for handling crises. Travellers make decisions based on their perception of safety in a country. The reality is that the statistical likelihood of being caught in a terror attack while travelling is negligible. Travel is about exploring new cultures and doing business globally. Tourism is a force for good in the world”.

News Editor - TravelDailyNews Media Network | + Posts

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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