Preliminary findings of the Simulated Tourism Satellite Account (TSA) project for the Lisbon region have been launched by the World Travel & Tourism Council (WTTC) with main purpose of the TSA project, which was…
Preliminary findings of the Simulated Tourism Satellite Account (TSA) project for the Lisbon region have been launched by the World Travel & Tourism Council (WTTC) with main purpose of the TSA project, which was commissioned by Turismo de Lisboa, to fully understand the value of Travel & Tourism to the economy and job creation of the Lisbon region.
This project covered all concepts of Travel & Tourism `Demand`, from personal consumption to business purchases, exports, capital investment and government spending. This project also quantified the contribution of Travel & Tourism to gross domestic product (GDP) and employment, producing results that can be compared with other industries and the economy as a whole to provide credible statistical information that will assist in policy- and business decision-making.
Speaking at the press conference held in Lisbon on 9 May 2007, Fontao de Carvalho, President of Turismo de Lisboa said, The Lisbon region is one of the world’s first capital city economies to develop Simulated Tourism Satellite Accounting. With a full understanding of the value of Travel & Tourism to the economy and job creation of the Lisbon region, our decision-makers can form sound policy decisions, and can quantify the continued performance of Travel & Tourism on an ongoing basis. Furthermore local, national and international investors can gain valuable insights to the opportunities prevalent across this region.
Results of this project show that, Travel & Tourism’s direct and indirect impact on the Lisbon region will contribute 9.1 per cent to Gross Domestic Product in 2007, growing at a rate of 4.6 per cent, per annum over the coming decade, to reach 11.3 per cent by 2017. In comparison, annual growth of Travel & Tourism’s contribution to GDP in Portugal will be 3.2 per cent and across the European Union it will be 2.8 per cent.
In employment terms, Travel & Tourism is forecast to account for 9.8 per cent of total employment (139,000 jobs) this year, growing to 13.3 per cent (189,900 jobs) by 2017 across the Lisbon region. The Lisbon region’s annual growth rate in employment of 3.2 per cent is much higher than that of Portugal (1 per cent, per annum) and the European Union (1.3 per cent, per annum).
Results for Visitor Exports in the Lisbon region also record a strong performance, growing by 16.6 per cent from 2006 to 2007, to represent 20.1 per cent of total exports for the region. Over the coming decade, Visitor Exports in the Lisbon region are expected to grow at an annual rate of 6.3 per cent, contributing 26.2 per cent to total exports by 2017. This compares to just 4.5 per cent growth per annum up to 2017 across Portugal and 3.4 per cent, per annum across the European Union.
Jean-Claude Baumgarten, President, WTTC, speaking at the press conference said, The Tourism Satellite Account project reflects the strength of Travel & Tourism in the Lisbon region and points to strong performance over the coming decade. These findings will play an important role in attracting the attention of international investors and the world’s leading Travel & Tourism brands to the Lisbon region. However, international competition is fierce, leaving no room for complacency. A concerted effort will be required by all the key stakeholders, to ensure that these forecasts are reached and even surpassed.
John Walker, Chairman and Chief Economist of Oxford Economics added, Travel and Tourism is one of the world’s fastest growing industries. The Lisbon region is well-placed to benefit from this strong growth, which has the potential to create 50,000 jobs locally over the next decade. To realize this tourism potential, however, Lisbon must sustain efforts to attract foreign visitors and facilitate new business ventures.
The Simulated Tourism Satellite Account project for the Lisbon region includes a series of policy recommendations aimed at realizing the full potential of Travel & Tourism to the region’s economy.
Drawing on some of the policy recommendations that have emerged, Jean-Claude Baumgarten commented as follows, Turismo de Lisboa is ideally placed to promote a shared vision for Travel & Tourism as an engine for wealth formation and job creation across the region, in a way which protects and nurtures historic, cultural and natural assets. Authorities must also pay particular attention to the removal of barriers to growth. Without consistent investment in the development of Travel & Tourism infrastructure, streamlined regulations which omit bureaucracy and unnecessary red tape, these forecasts can be put in jeopardy. Continued investment in the development of human resources will also define the long-term success of Travel & Tourism in this region.
WTTC and research partner Oxford Economics, produced this Tourism Satellite Account for the Lisbon region by using acombination of macro-economic research and forecasts, regional accounting data, information and support by local entities as INE, Turismo de Portugal and Banco de Portugal, as well as Travel & Tourism variables and econometric modeling,
The full and final report will be launched at the end of May 2007.
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