THE travel and tourism industry has outperformed the global economy in 2012 – growing faster than manufacturing, retail, financial services and communications. The industry has grown its total contribution to GDP by three per cent and increased the number of jobs by five million to 260 million. It means that, for the first time, one in 11 of all jobs in the world are now supported by travel and tourism. More than 10 per cent of all new jobs created in 2012 were from the industry.
According to the World Travel & Tourism Council’s (WTTC) economic research, in 2012, travel and tourism’s total economic contribution – taking account of its direct, indirect and induced impacts – was $6.6 trillion in GDP (a rise of $500 billion year-on-year), $765 billion in investment and $1.2 trillion in exports (2012 prices). This contribution represents nine per cent of total GDP, five per cent of total investment and five per cent of world exports.
Among the 20 largest global economies (the G20), South Korea, China, South Africa and Indonesia performed best. Growth of less than one per cent in Europe and one per cent in the United States was counter-balanced by 10 per cent growth in South Korea, 7 per cent in China and South Africa and 6 per cent in Indonesia.
WTTC is predicting the travel and tourism industry will expand its total contribution to GDP by 3.2 per cent in 2013, faster than the 2.4 per cent predicted for global economic growth. The industry is expected to support nearly 266 million jobs in 2013 and again outperform many other industries.
David Scowsill, president and CEO of WTTC, said: “2012 demonstrated again just how resilient the travel and tourism industry is. Despite many economic difficulties, last year, for the first time, we saw more than one billion international travellers cross an international border. This industry is an important driver for countries’ economic development and growth strategies. Our industry is responsible for creating jobs, lifting people out of poverty, and broadening horizons. But we need international institutions and governments to recognise its strength, to remove restrictive visa and tax regimes and to work with the private sector to stimulate that growth.
Scowsill continued: “It is clear that the industry is going to be a significant driver of global growth and employment for the next decade. The rise in emerging market destinations explains some of the strong growth in travel and tourism (particularly employment). As the shift from a manufacturing to a services’ economy increases in many countries, so the share of travel and tourism employment out of total employment will increase, as will the share of tourism’s contribution to total GDP. Growing faster than any other economy is China.
WTTC forecasts that China will overtake the US to be the world’s biggest travel and tourism economy by 2023”.
This year’s summit which takes place in Abu Dhabi from April 9 to10, 2013 at Jumeirah at Etihad Towers will welcome President Bill Clinton, founder of the William J Clinton Foundation and 42nd President of the US, to deliver the keynote address.
Other speakers include more than 40 leading public figures, including Sir David Frost, British journalist and media personality, Daryl Hannah, American actress and activist, Sir Jonathon Porritt, environmentalist, David de Rothschild, adventurer and environmentalist, David Scowsill, president and CEO, WTTC, and James Hogan, president and chief executive officer, Etihad Airways.