World Travel & Tourism Council (WTTC) president and CEO JEAN-CLAUDE BAUMGARTEN spoke to LIZ O’REILLY about his presentation at the recent World Travel Market in London You mentioned a possible second dip in the economy, how likely is this and why? We have to look at hypotheses and this is one of them. One of the things you need to take into account is the nature of the economy. There are more than 10 per cent unemployed in the US, 2.5 million in the UK and in some parts of Spain 27 per cent. That creates an environment that is not favourable for travel and tourism and if that continues we could see a double dip. In some cases companies have not laid people off but have staff on short time or extended holidays, when the economy picks up they will not be hiring so this will not impact on the number of unemployed. How will this impact on an already reeling travel industry? Everyone has to understand that the double dip is the name of the game and has to get ready and get themselves as prepared as possible for a difficult 2010. While global GDP has contracted by 3.5 per cent, the figure for travel and tourism is 5.5 per cent. But there are positive signs. Firstly, there’s still money in the market, people are buying gold, the stock exchange is coming up and some elements of travel and tourism, for example cruise lines, are doing fine and hotels started to feel a recovery at the end of August. We have to look at the fact that people are interested in low prices, it’s not just about the number of people who are travelling but also about the amount they spend. Another positive sign is that emerging countries like China, India and Brazil are experiencing positive growth. Another niche market is golf and we are seeing hotels full in Dubai where prices have dropped. How is the recession impacting on green tourism? The good thing is that being environmentally conscious is good for the bottom line for example in energy consumption. The frustrating thing is that there are many new products coming onto the market which are environmentally friendly but which need some government help to take off. For example in California a company has developed a cardboard box with a solar panel for picnics and camping – can you imagine the potential for use for something like this in Africa – and a Japanese company has developed a film that can be put on windows to turn them into solar panels. Carbon emissions are coming from houses and factories but with something like that they could be transformed quickly and cheaply, I really plead that something is done. Aside from lobbying governments to include the industry within stimulus packages and recognise its growth potential, what can the travel industry do to help itself out of recession? Travel and tourism must be prepared. It must come up with products which combine the best price and the best quality. Travel and tourism must get its voice heard so that governments don’t impose taxes that are going to hurt the industry – for example the UK’s ADT (airport departure tax) which is going to severely effect long-haul destinations such as Africa and the Caribbean. Governments say they want to help Africa yet put a tax on people who want to go there. Beijing has been announced as the destination for next year’s WTTC summit, why was the city chosen? We have been talking to the Chinese for two years, the problem was that they were willing to do it but the time had to be right.The Chinese authorities are very excited and it is one of the only countries in the world where travel and tourism is still growing fast. I think it is good for the whole industry to gather in a country where travel and tourism is recognised by the government. It’s a fantastically promising market, most of our members have business there and will make it a point to come to show how important it is. What can those attending expect? They can expect to meet their peers and high level industry participation in discussions which will be about the issues such as how we can revive travel and tourism, the environment and the growing role of emerging economies. They can also expect to be in contact with decision makers in China, not only companies but provincial governments as well because the Chinese will make a point to showcase the country. It’s a fantastic door opening opportunity.