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WTTC: Travel & Tourism Still Robust Despite Uncertain Global Economic Picture
Growth in the global Travel & Tourism industry in 2012 will be broadly in line with expectations set at the beginning of the year.
In an update of forecasts made at the beginning of the year, the World Travel & Tourism Council (WTTC) predicts growth for the Travel & Tourism globally of 2.7%, only slightly downgraded from the 2.8% that was expected for the industry at the beginning of the year.
The main reasons for the marginal downgrade are that WTTC now expects world GDP growth to be 2.3% in 2012; down 0.2% from the beginning of the year and the continuing problems in the Eurozone. The latest economic data from WTTC's research partner, Oxford Economics, show marginal downgrades in the Eurozone and the US since the beginning of the year, contrasting with upgrades in Japan and emerging markets.
South Korea's annual Travel & Tourism GDP growth of 13.2% is the highest of any G20 country. Its boom coincides with its self- designation of 2010-2012 as the "Visit Korea" years and strong international demand from its main two markets (Japan and China). Favourable exchange rates and a number of cultural, sporting and economic events have also contributed to its booming Travel & Tourism growth.
By contrast, Italy is currently showing the weakest performance of any G20 country, with negative Travel & Tourism GDP growth of -2.8% now expected in 2012.
David Scowsill, President & CEO, WTTC said: "The latest figures from WTTC confirm the resilience of the Travel & Tourism industry around the world. Despite some specific and regional downgrades to short-term economic and industry forecasts, the longer-term prospects for Travel & Tourism remain very positive, and continue to be boosted by strong growth and rising prosperity in emerging markets. We expect the direct contribution of Travel & Tourism to global GDP to grow by an average of 4% per annum between 2011 and 2021 with North East Asia making up a growing share of the overall Travel & Tourism contribution to GDP."
A summary can be found online here <http://eu.vocuspr.com/Url.aspx?528099x769508x-122152>
Highlights of the report include:
Regionally, the report shows:
The largest downward revisions are in the Middle East and Europe.
In the Middle East, projections for Travel & Tourism GDP are still for growth overall, but as the region continues to struggle with further turmoil and negative perceptions of safety and security, growth has been revised down to 1.8% from 3.1% in January. Lebanon's international tourist arrivals, showing -12.4% growth, has been depressed by the conflict in neighbouring Syria.
Europe is the only world region where negative Travel & Tourism GDP growth is expected. WTTC forecasts further downgrades European Travel & Tourism GDP to -0.6% from -0.2% at the start of the year. Greece continues to struggle with Travel & Tourism contributed ?12.4bn or 6.4% of GDP to its economy in 2011, but has experienced a 9% decline in visitor arrivals in the first half of this year. Italy's economic difficulties this year have clearly had an impact on its domestic tourism spend which has declined by nearly -4% in the year to date. Overall, Italy's Travel & Tourism GDP is expected to be negative at -2.8% in 2012.
Small downward revisions have also been made for Sub Saharan Africa, Caribbean and Latin America.
On a positive note, upward projections have been forecast for Oceania (3.2% Travel & Tourism GDP growth up from 2.4% growth expected earlier in the year) and South East Asia (up 1.1 percentage points to 5.5%), with a smaller positive revision expected for North America (up 0.4% percentage points to 1.5%).
Global Travel & Tourism growth is still being driven by emerging economies, particularly those in Asia. China's Travel & Tourism GDP will grow 7.2% and India by 5.7% in 2012, although slight downward revisions have been made. The revision in China's Travel & Tourism growth by 1.2 percentage points is largely linked to a weaker export performance elsewhere in its economy as the struggling Eurozone is the destination for around 15% of China's exports. India's downgrade is the result of its major infrastructure problems contributing to power blackouts that affected half of its population in the second quarter of this year.
About World Travel & Toursim Council (WTTC)
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. In 2011 Travel & Tourism accounted for 255 million jobs globally. At US$6.3 trillion (9.1% 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.
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