|Travel & Tourism contribution to the world economy down.|
Tuesday, 26th November 2013
Source : World Travel & Tourism Council
WTTC forecasts that the total contribution from Travel & Tourism to the world economy will be 2.9% in 2013, down from the 3.2% growth initially forecast in February of this year.
The latest economic research, an update on our annual forecasts produced in February, shows that the main indicators for Travel & Tourism are positive for 2013:
International tourism expenditure exceeded WTTC expectations with estimated growth of 4.0% in 2013, compared with our previous estimate of 3.1%. The growth in international tourism expenditure is partially offset however by weaker growth in domestic tourism expenditure and Travel & Tourism investment, now expected to grow 2.8% rather than the 3.2% predicted at the start of the year.
Travel & Tourism in South East Asia leads the world with estimated growth of 8.9%; an upgrade from the 6.8% growth predicted at the start of the year, and bucking the trend in many other regions of downward revisions.
Investment spending for the total global economy has been revised down, due in a large part to weaker confidence aggravated by the developments in the US (particularly the tapering of Quantitative Easing and the budgetary cut-backs) and cooling growth in China. Although the Travel & Tourism investment revision from 4.2% to 3.1% is significant, Travel & Tourism investment has not been downgraded as much as the overall economy due to other positive Travel & Tourism indicators (namely growth in international passenger arrivals and airline passenger traffic).
Long term growth forecasts of 4.2% per annum growth over the ten years to 2023 are retained as demand from and within emerging markets will continue to rise in significance. Travel & Tourism will continue to grow, outpace growth of the wider economy and remain a leading generator of jobs.
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