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WTTC calls for government and industry partnership in response to Caribbean recovery

Gloria Guevara Manzo, President & CEO of WTTC.

The 46.7 million international visitors who visited the region in 2016 spent US$31.4 billion, which supported 2.4 million jobs. The 2017 hurricane season resulted in an estimated loss of of 826,100 visitors to the Caribbean, compared to pre-hurricane forecasts.

In response to the impact of the 2017 hurricane season on the Caribbean’s Travel & Tourism sector, the World Travel & Tourism Council (WTTC) has launched a report on Resilience and Recovery assessing the immediate and long-term effect across the region.

Analysis from Tourism Economics, an Oxford Economics subsidiary, found that Travel & Tourism is one of the most important economic sectors in the Caribbean, contributing 15.2% of the Caribbean’s GDP and 13.8% of employment. However, in around half of the countries analysed, the sector accounts for over 25% of GDP – more than double the world average of 10.4%.

The 46.7 million international visitors who visited the region in 2016 spent US$31.4 billion, which supported 2.4 million jobs. The 2017 hurricane season resulted in an estimated loss of of 826,100 visitors to the Caribbean, compared to pre-hurricane forecasts. These visitors would have generated US$741 million and supported 11,005 jobs. Research suggests that recovery to previous levels could take up to four years, resulting in an approximate loss of US$3 billion.

Quantifying the impact on Travel & Tourism post-crisis provides a level of understanding of the enormous economic contribution that the sector brings to the region and the impetus for recovery. Natural disasters will continue to hit the Caribbean, perhaps on an increasingly frequent basis as a result of climate change. As the economies of islands grow ever more reliant on the sector, it is critical that governments and destination management organisations develop strategies to minimise the long-term impact of natural disasters and encourage visitor spending to return to pre-hurricane levels of growth.

Gloria Guevara Manzo, President and CEO WTTC, commented: “Crisis preparedness and response is one of WTTC’s strategic priorities. We are delighted to present this research which helps the tourism industry, both public and private sectors, in the Caribbean quantify the potential impact of the devastating hurricanes last year and put in place partnerships and policies to help bring the region, and those islands most negatively affected, back on track.

Timeframes for recovery can be significantly reduced when governments work alongside the private sector to implement policy initiatives that are supportive for Travel & Tourism growth and long-term resilience. WTTC strongly encourages these conversations and together with our Members, we are working hard to support local communities as they rebuild and recover and ensure resilience against future crises."

Frank J. Comito, CEO and Director General, Caribbean Hotel and Tourism Association, commented: “In the autumn of 2017 the world watched on in shock at the media images of the strongest Atlantic hurricanes ever observed battering the islands of the Caribbean, one of the most tourism-dependent regions in the world. The need to demonstrate unity and leadership is especially critical in times of crisis. Actions need to be taken quickly in order to ensure a rapid recovery to those affected by natural disasters and to restore public confidence in Travel & Tourism.”

Joy Jibrilu, Chairperson, Chairman, Board of Directors, Caribbean Tourism Organization and Director General, Bahamas Ministry of Tourism, commented: “The events of last fall were tragic for so many across our Caribbean region, and our thoughts are still very much with the countries, businesses and families that are rebuilding their lives now. The best, most effective way to support this endeavour is for all of us to work together. This partnership must bring together public and private entities in our countries and region, and we must also be mindful that the progress of one country will tend to benefit our marketplace position as a region.” 

Travel & Tourism private sector supports move by Argentina to put travel facilitation and security at heart of G20 agenda
WTTC also issued its support for the outcomes of the meeting of G20 tourism meeting in Buenos Aires, Argentina, which include recognition that the use of technology, such as biometrics, for travel facilitation and security was vital to sustain the growing numbers of travellers. and could result in the number of jobs created by tourism to increase by more than 7 million over the next ten years.

The T20 meeting of tourism ministers of the G20 countries was hosted by Argentina in Buenos Aires around the theme of ‘Future of Work – sustainable tourism as a driver of employment’. 

Speaking at the meeting, Gloria Guevara Manzo said, “Given its impressive growth forecasts and high levels of job generation, Travel & Tourism is a sector which will play an increasing role in inclusive and sustainable development. As the private sector, we want to maximise job creation, and are working hard to ensure we have the right engagement, training and career development programmes in place.

However, we are concerned that the combination of infrastructure capacity constraints and more stringent security requirements for travellers will result in huge inefficiencies across the system and impact tourism growth and job creation in the future.”

Research shows that current and future capacity constraints could mean that between 8 and 21% of forecast growth in air travel cannot be supported. According to WTTC data, if this situation is addressed between 7 and 19 million jobs can be created.

Guevara continued, “We are delighted that G20 governments, by means of their delegations at the T20 meeting, have recognised the opportunity of technology to address such constraints, and consider the utilisation of biometrics as a starting point. Biometrics has already been identified by the UN as a recommended means of improving security by identifying terrorists and the technologies currently in use have already been seen to increase efficiencies and improve the customer experience.  It is by making travel easier that we will meet the future demand for travel and ultimately increase the number of jobs created by the sector.”

Across G20 countries Travel & Tourism contributes US$6.3 trillion to GDP, 9.1% of GDP and generates 208 million jobs, 1 in 11 of all jobs. The G20 countries form some of the largest inbound and outbound tourism economies, and altogether account for 76% of the world’s Travel & Tourism GDP.

Christopher J. Nassetta, Chairman, WTTC and President & CEO, Hilton, announced the investment of $1.9 billion USD in Argentina by WTTC members over the coming years. The announcement was made in front of Mauricio Macri, Argentine President, and more than 100 industry leading CEOs at the WTTC Annual General Meeting in Buenos Aires, Argentina.

“It’s an honour to be here in Argentina and, speaking on behalf of WTTC’s membership, we could not be more pleased to witness first-hand the benefits of the investment that’s happening here,” said Nassetta. “In total across the country, Travel & Tourism supports 1.8 million jobs today, and we expect to add another 300,000 jobs here over the next decade with our collective investment of nearly $2 billion an important driver of this growth.”

Policies implemented by Argentine President Macri have helped stabilise the economy and his clear message that, after many years of protectionist policies, Argentina is open for business is a positive move for tourism. The substantial investment is a testament to Argentine President Macri’s continued support and commitment to the Travel & Tourism sector.

During a summit among the Tourism Minsters of the G20 economies, yesterday, Argentine President Macri has asked to take his message of support to the G20 World Leaders’ meeting in November.

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