The Travel & Tourism industry in China, India & Russia is substantially bigger than automotive manufacturing and in China it supports almost as many jobs as the mining sector.

This is according to new research from the World Travel & Tourism Council (WTTC) sponsored by American Express, released today during a speech by WTTC's President & CEO, David Scowsill, at the ‘International Tourism Industry Expo' in Guangdong, China.

The research, undertaken by Oxford Economics, shows that the sector's direct contribution to China's GDP is CNY1.2 trillion which is 13% more than the contribution to the GDP of automotive manufacturing and larger than communications services and the education sector.

Travel & Tourism's total contribution to GDP in China was around 9% of total GDP. This compares to 8% for automotive manufacturing, 7% for education and 5% for communications services.

With 62 million direct, indirect and induced jobs in China, Travel & Tourism supports more jobs than the financial service sector's 48.5 million.

The new research also showed that Travel & Tourism's contribution to GDP is growing faster than most other sectors in China. It will grow by more than 9% over the next ten years, a faster growth rate than the total economy (7.6%).

It highlights that Travel & Tourism is a significant source of exports for revenue for China. In 2011, visitor exports totalled over CNY 300 billion, which was 27% of all service exports and 2% of all exports (including goods and services).

The study also compared the effect of Travel & Tourism spending on GDP and the wider economy.

In China, CNY6.4 million (US$1 million) in Travel & Tourism spending:

• generates CNY8.9 million ($1.4 million) in GDP which is greater than all studied industry sectors except for education
• generates CNY959,000 ($150,000) in the agriculture sector
• generates CNY425,000 ($67,000) of gross value added in the transport and storage sector
• supports 144 jobs, which is more than financial services (93 jobs), auto manufacturing (83 jobs) and communications services (83 jobs)

David Scowsill said: "These numbers are extremely significant. For over 20 years, the World Travel & Tourism Council has spearheaded global and regional analysis of the economic impact of Travel & Tourism. WTTC has now taken this research one step further and assessed the role Travel & Tourism plays in the economy of China in comparison to other economic sectors and also how this looks like on a regional level.

The results are extraordinary. Within our industry we have always known that Travel & Tourism is a vast contributor to economic growth and job creation. These figures bear out just how significant our industry is for China, especially at a time where China's manufacturing index hit a nine-month low and as a result the economy shows signs of slowing, Travel & Tourism should be used as a stimulator for economic growth."

Bill Glenn, President Global Corporate Payments and Business Travel, American Express said:
"With each release of regional data from the latest WTTC research, we continue to see the value that travel can bring to GDP, job creation and other economic factors. We are pleased to sponsor this research and provide the industry with another valuable asset to use to promote the benefits of travel."

At WTTC's Global Summit in Tokyo in April, WTTC's research revealed that Travel & Tourism's direct contribution to world GDP of US$2 trillion or 2.8% is more than double the GDP of automotive manufacturing and one-third larger than the global chemicals industry. Travel & Tourism generates roughly the same GDP as the global education and communications sectors, and about half that of the global banking and financial services industry.

Tourism in Russia contributes more to GDP than automotive manufacturing

The research, undertaken by Oxford Economics, shows that Travel & Tourism's total contribution to GDP in Russia was RUB3.4 trillion ($106 billion) in 2011, or 5.9% of total GDP which is larger than the GDP of automotive manufacturing, chemical manufacturing. This compares to 4.8% for automotive manufacturing, 2.9% communications services and 3.3% for chemicals.

Supporting 4 million direct, indirect and induced jobs, Travel & Tourism in Russia generates more employment than the chemical industry and nearly as many jobs as the financial services sector.

The new research also showed that Travel & Tourism's contribution to GDP is growing faster than most other sectors in Russia. It will grow by an average of 4% per annum over the next ten years, a faster growth rate than the total economy.

It also highlights that Travel & Tourism is a significant source of export revenue for Russia.
In 2011, visitor exports totalled RUB517.2 billion ($16billion). This was 30% of all service exports and 3% of all exports including goods and services.

The study compared the effect of Travel & Tourism spending on GDP and the wider economy.

In Russia, RUB32 million ($1 million) in Travel & Tourism spending:

• generates RUB48 million ($1.5 million) in GDP which is greater than all studied industry sectors
• generates RUB6 million ($187,000) in the wholesale and retail sector
• supports 53 jobs, which is more than the average of the economy (38 jobs), financial services (35 jobs), manufacturing (29 jobs) and chemicals (26 jobs)

David Scowsill, President & CEO, WTTC said: "These numbers are extremely significant. As a driver of economic recovery and growth in a very turbulent time, the industry stands apart for the sheer scale of its ability to create jobs and growth in every part of the globe and especially in Russia as shown by this study.

2013 is an important year for the Russian's tourism industry as the country hosts the next T20 Tourism Ministers' meeting and in the lead up to the Winter Olympics due to take place in Sochi in 2014, and of course the FIFA World Cup in 2018. It's a great time for Russia to take notice of the Travel & Tourism industry as a generator of jobs and growth and ensure that sufficient investment and support is in place to ensure the success of these important events as well as the on-going growth of Russia's Travel & Tourism."

Bill Glenn, President Global Corporate Payments and Business Travel, American Express said: "With each release of regional data from the latest WTTC research, we continue to see the value that travel can bring to GDP, job creation and other economic factors. We are pleased to sponsor this research and provide the industry with another valuable asset to use to promote the benefits of travel."

Dr Michael Frenzel, Chairman of the Executive Board, TUI AG, stated: "This research demonstrates the vast economic and social relevance of the Travel & Tourism industry in Russia, but also its potential. It is vital that the Government puts the industry alongside Russia's traditional industrial base when considering long-term policies to create jobs, growth and economic prosperity."

At WTTC's Global Summit in Tokyo in April, WTTC's research revealed that Travel & Tourism's direct contribution to world GDP at US$2 trillion or 2.8% is more than double the GDP of automotive manufacturing and one-third larger than the global chemicals industry. Travel & Tourism generates roughly the same GDP as the global education and communications sectors, and about half that of the global banking and financial services industry.

Tourism in India contributes more to GDP than automotive manufacturing

The research, undertaken by Oxford Economics, shows that the sector's direct contribution to India's GDP is INR2 billion which is almost three times more than the contribution of automotive manufacturing.

Travel & Tourism's total contribution – including direct, indirect and induced impacts - to GDP in India was INR6.7 billion around 6.4% of total GDP. This compares to 3.3% for automotive manufacturing, 4.5% for education and 3.7% for the mining industry.

Supporting 39 million direct, indirect and induced jobs in India, Travel & Tourism generates more jobs than the mining industry and communications services.

It also highlights that Travel & Tourism is a significant source of export revenue for India.
In 2011, visitor exports totalled INR950 billion which was 12% of all service exports and 3.9% of all exports.

The study compared the effect of Travel & Tourism spending on GDP and the wider economy.

In India INR55 million (US$1 million) in Travel & Tourism spending:

• generates INR72 million (US$1.3 million) in GDP which is greater than the agriculture, automotive and chemicals industry
• generates INR10 million (US$189,000) of gross value added in agriculture
• generates INR6 million (US$109,000) in the wholesale and retail sector
• supports 407 jobs, which is more than the average of communication services (381 jobs), financial services (329 jobs), manufacturing (315 jobs) and chemicals (231 jobs).

David Scowsill, President & CEO, WTTC said: "The numbers in this study are really insightful, demonstrating that Travel & Tourism plays a leading role by creating jobs, restoring economic growth and helping to eliminate poverty. The Indian Government is doing great things in promoting the industry.

Their latest agreement to liberate visa regimes between India and Pakistan is to be applauded. Groups, individual business and leisure travellers will be able to visit more cities and enjoy an easier visa application process. We look forward to similar bi-lateral agreements with other countries to ease the visa process."

Bill Glenn, President Global Corporate Payments and Business Travel, American Express said: "With each release of regional data from the latest WTTC research, we continue to see the value that travel can bring to GDP, job creation and other economic factors. We are pleased to sponsor this research and provide the industry with another valuable asset to use to promote the benefits of travel."

At WTTC's Global Summit in Tokyo in April, WTTC's research revealed that Travel & Tourism's direct contribution to world GDP at US$2 trillion or 2.8% is more than double the GDP of automotive manufacturing and one-third larger than the global chemicals industry. Travel & Tourism generates roughly the same GDP as the global education and communications sectors, and about half that of the global banking and financial services industry.

www.wttc.org