By Ian Taylor | 24 March 2015 at 08.23 GMT
The travel industry will grow faster than the global economy this year, according to the latest World Travel and Tourism Council (WTTC) forecast.
The WTTC’s annual economic impact assessment predicts travel and tourism will grow by 3.7% worldwide this year against a global economic growth forecast of 2.9%.
The Council forecasts the sector’s total contribution to the world economy will reach $7,860 billion or 10% of global GDP, up by $280 billion on 2014, and travel will account for 9.5% of all jobs in the world “once all direct, indirect and induced impacts” are included.
The industry accounted for 277 million jobs worldwide last year, according to WTTC estimates.
WTTC president and chief executive David Scowsill (pictured) said: “Travel and tourism continues to grow faster than the global economy and is an enduring source of job creation and a driver of growth for every region in the world.”
He added: “The sector has recorded strong economic growth in 19 of the last 20 years, providing much-needed economic stability at a time of global economic volatility.
“Governments looking for a sector which can create jobs and drive economic growth should focus on travel and tourism.”
But Scowsill noted: “This industry requires the right regulatory environment in which to flourish, along with progressive policies on visa access, taxation, human resources planning, and sustainability.”
In an interview with Travel Weekly, Scowsill hit out at the UK government for failing to address these issues.
He said: “The UK is not a good example of managing the sector.”
The WTTC estimates the US and China as the two biggest travel and tourism economies in the world, with Germany now in third place, having overtaken Japan, and the UK in fifth.
The Council expects Russia to be the only G20 country to register a decline in travel and tourism growth this year, due to sanctions imposed by the US and European Union over the Ukraine.
The WTTC forecasts South Asia will see the highest travel and tourism growth in 2015 at 6.9% year on year, against growth in Europe of 2.4%.
However, Scowsill said: “The long-term prospects for our sector are very encouraging.
“Travel and tourism will continue to grow faster than the global economy and most other major industries.”
Sourced from Travel Weekly
By Ian Taylor | 24 March 2015 at 08.30 GMT
The World Travel and Tourism Council (WTTC) urged the UK government “not to lose focus” on travel and tourism after forecasting the sector would grow by 4% this year in Britain, outpacing growth in the economy as a whole.
The WTTC published its annual economic impact assessment today, predicting UK travel and tourism would raise its contribution to GDP by 4% this year against forecast economic growth of 2.9%.
The Council put UK jobs growth in travel and tourism at 2%.
The WTTC estimates the industry contributed almost £188 billion to UK GDP in 2014 and accounted for 4.2 million jobs when “indirect and induced impacts” are included alongside the direct impact on the economy.
But the GDP contribution could increase to £195 billion by the end of 2015 or “almost 11% of UK GDP and 13% of total employment”.
However, WTTC president and chief executive David Scowsill warned Britain could lose its position as the world’s fifth-largest travel and tourism economy without government action.
He urged the next government “to take three major steps” to ensure the sector continues to grow.
Scowsill said: “First, there is a need to make visa applications easier, particularly for high-spending Chinese travellers.
“Second, the Air Passenger Duty (APD) tax, which remains among the highest in the world, must be reformed.
“Third, a decision must be taken quickly on addressing the chronic under-supply of airport capacity in the South East.”
The WTTC further warned the UK sector could employ 352,000 fewer people and contribute £17 billion less in GDP over the next 10 years if the government and industry fail to implement policies to recruit and manage talent.
WTTC research suggests the UK’s travel and tourism sector faces a major human-resource challenge and severe skills shortage by 2024.
Scowsill said: “Travel and tourism has the potential to contribute five million jobs to the British economy by 2025.
“However, this growth will not happen by itself. It needs progressive and coordinated government policies across the sector.”
The WTTC report Global Talent Trends and Issues for the Travel and Tourism Sector can be found here: http://www.wttc.org/research/policy-research/human-capital/global-talent-trends/
Sourced from Travel Weekly
Governments need to wake up and take action over the economic contribution of global travel and tourism.
The call came from World Travel & Tourism Council chief executive and president David Scowsill who warned that the lack of recognition continues to hinder the sector’s growth.
Bad decisions will continue to be made on visas, taxation and infrastructure development, unless government departments start recognising the importance of the sector and co-ordinate on policies, he said.
“The financial contribution of our sector to the wellbeing of the global economy is both formidable and unarguable.
“The growth of our industry outstrips the growth of global GDP year after year. Yet governments continue to ignore this,” he told delegates at the WTTC’s regional Americas Summit in Lima.
“The region embraces the world’s largest travel and tourism economy, namely the USA. It gives us the most tourism dependent market of the Caribbean. It contains some of the world’s most exciting growth opportunities here in Latin America.”
He added: “Whether partnership is between government and business; investors and beneficiaries; industry and environment; or technology and service providers; I firmly believe that partnership is key to everything we need to achieve.”
According to the WTTC travel and tourism in the Americas:
- contributes US$2.1 trillion to GDP, supporting over 40 million jobs.
- accounts for 6.8 per cent of exports and 4.9% of investment and is worth $238 billion
- is forecast to grow by 3.7% per year over the next decade, creating 11 million new jobs.
- directly employs three times more people than manufacturing, three times more people than the communications sector and higher education and 30% more than financial services.
Sourced from Travel Weekly