|Global travel & tourism growth estimates downgraded for 2011-12.|
Tuesday, 15th November 2011
Source : World Travel & Tourism Council
The global Travel & Tourism industry will grow more slowly in 2011 and 2012 than previously indicated, according to the World Travel & Tourism Council. (WTTC)
WTTC’s annual research, published in March 2011, forecast growth of 4.5% and 5.1% in 2011 and 2012 respectively. Following the deterioration in global financial conditions in the second half of 2011, the continuing eurozone debt crisis, and the threat of a return to recession in the United States, the growth forecasts for 2011 and 2012 have been downgraded to 3.2% and 3.3% respectively. The numbers measure direct contribution to GDP.
Long-term prospects remain strong, as WTTC predicts ten-year growth holding steady at around 4% per year between 2011 and 2021. This is down marginally from the annual growth of 4.3% forecast in March 2011, with the reduction due almost entirely to the downward revisions to growth in 2011 and 2012.
The latest economic data points to a slowdown in economic activity in the spring and summer of 2011. GDP growth in the USA is down from over 3% in the fourth quarter of 2010 to around 1.5% in the second quarter of 2011, with similar levels in the eurozone and growth as low as 0.5% in the UK in Q2 2011. Nevertheless, latest Travel & Tourism indicators show that people are still travelling – with international air travel and hotel occupancy rates up.
However, while Travel & Tourism data for the first half of 2011 has been largely positive, continued concerns around the state of the economy – particularly in the USA and Europe – mean that confidence levels are low. As the global economic recovery loses momentum and impacts industry performance, the outlook for Travel & Tourism will be weaker in the second half of the 2011 than it was in the first six months.
The latest WTTC research indicates:
David Scowsill, WTTC President & CEO, said: “Travel & Tourism is one of the world’s great industries, providing 9% of global GDP and 260 million jobs; it drives economic growth, business relationships and social mobility. The industry is still growing strongly – but growth is lower than we had previously expected for both 2011 and 2012 due to the prevailing economic conditions and the disruption to travel patterns caused by natural disasters and social upheaval during 2011.
- Global direct Travel & Tourism GDP is now expected to grow by 3.2% in 2011 and 3.3% in 2012 compared to WTTC’s initial growth estimates (published in March 2011) of 4.5% and 5.1% respectively
- Global Travel & Tourism is expected to grow by an average 4% per year between 2011 and 2021. This is down marginally from the 4.3% for the same period that was forecast earlier in the year, with the decline due almost exclusively to the downward revisions in 2011 and 2012
- Travel & Tourism is predicted to account for 69 million more jobs by 2021 – almost 80% of which will be in Asia, Latin America, the Middle East and Africa
That said, growth of 3.2% during 2011 would still be a laudable achievement and would rank the Travel & Tourism industry ahead of world GDP growth, expected to be 2.8%, and most developed countries.
The two big themes of 2012 are likely to be the rebound in tourism in the Middle East following the social upheaval of 2011 and the recovery of Japan, the world’s third largest Travel & Tourism economy, following the earthquake and tsunami.
Our latest report on Japan indicates that the recovery is occurring in line with our most optimistic scenario which states that the number of international tourist arrivals will recover by early 2012, along with a faster recovery in Japan’s own Travel & Tourism demand. It is fitting that our 12th Global Summit will bring the world’s Travel & Tourism leaders to Tokyo and Sendai in April next year.
In the long term the prospects for our industry are good and we maintain our ten year growth rate above 4%. Travel & Tourism is predicted to account for 69 million more jobs by 2021, stimulating employment across the world, encouraging export-led growth of economies, and reducing poverty in developing economies.”
Economic Impact of Travel & Tourism - Update November 2011
The global economic situation remains extremely challenging, with deteriorating financial conditions in Q3 2011, the continuing eurozone debt crisis and threat of a return to recession in the United States. Nevertheless, Travel & Tourism’s positive growth, while lower than initially expected, will be maintained through 2011.
WTTC’s annual research, published in March 2011, confirmed the recovery in Travel & Tourism in 2010, with the industry’s direct contribution to GDP increasing by 3.3%, to US$1.8 trillion.
WTTC’s latest forecasts for 2011 point to a sustained level of growth in both 2011 and 2012, at 3.2%, and 3.3% respectively. But these new forecasts represent a significant downgrading of prospects for the industry since March when initial forecasts were for 4.5% in 2011 and 5.1% in 2012.
Nevertheless, long-term prospects remain strong, with ten-year growth holding up at 4.0% per year between 2011 and 2021 – down only marginally from the 4.3% forecast in March, and due almost exclusively to downward revisions to growth in 2011 and 2012.
Follow the link below to read the Economic Impact of Travel & Tourism Update November 2011:
The World Travel & Tourism Council is the global authority on the economic and social contribution of Travel & Tourism. It promotes sustainable growth for the industry, working with governments and international institutions to create jobs, to drive exports and to generate prosperity.
Travel & Tourism accounts for 260 million jobs globally. At US$6 trillion (9% of GDP) the sector is a key driver for investment and economic growth. For more than 20 years, the World Travel & Tourism Council has been the voice of this industry globally. Members are the Chairs, Presidents and Chief Executives of the world’s leading, private sector Travel & Tourism businesses. These Members bring specialist knowledge to guide government policy and decision-making, raising awareness of the importance of the industry as an economic generator of prosperity.