INTERNATIONAL. The global travel & tourism sector grew +4.6% in 2017, outpacing global economic growth (+3%) for the seventh consecutive year.
According to the World Travel & Tourism Council’s (WTTC) annual Economic Impact Research, the sector was responsible for the creation of seven million new jobs worldwide.
Travel & tourism was the fastest growing broad economic sector globally, ahead of manufacturing (+4.2%), retail and wholesale (+3.4%), agriculture, forestry and fisheries (+2.6%), and financial services (+2.5%).
Click on image to enlarge
“2017 was the best year on record for the travel & tourism sector,” said WTTC President & CEO Gloria Guevara. “We have seen increased spending as a result of growing consumer confidence, both domestically and internationally. [We have also seen] recovery in markets in North Africa and Europe previously impacted by terrorism, and continued outbound growth from China and India. This is great news for the millions of people who depend on our sector for their livelihoods.”
In 2017, travel & tourism’s direct, indirect and induced impact accounted for:
- US$8.3 trillion contribution to global GDP (10.4%);
- 313 million jobs, 1 in 10 jobs around the world;
- US$1.5 trillion exports (6.5% of total exports, 28.8% of global services exports);
- US$882 billion investment (4.5% of total investment).
Guevara added: “Travel & tourism creates jobs, drives economic growth and helps build better societies. Our research shows that our sector was responsible for the creation of one in five of all jobs globally.
“In the last few years, governments around the world are realising the extraordinary benefits of tourism and I congratulate them for taking steps to maximise the potential of our sector.”
Regional highlights
WTTC said Europe’s performance was “better than previously expected”, with +4.8% growth. Long-haul demand, which was dampened in 2016 by terrorism concerns, recovered strongly. The organisation also noted robust intra-regional travel thanks to the strength of the European economy. In 2017, European airlines recorded passenger growth of +8.1% and over one billion passengers for the first time.
Travel & tourism’s contribution to GDP in North Africa increased +22.6% in 2017, showing a strong rebound from the impacts of terrorism in previous years, noted WTTC.
Egypt was the top performer, at +72.9%, while Tunisia saw solid +7.6% growth. WTTC said the figures inspire confidence in the region as tourism activity continues to recover to pre-attack levels.
Asian countries continue to drive global tourism growth, WTTC’s figures showed. Northeast Asia grew +7.4%, while Southeast Asia was up +6.7%. China continued to lead the way, at +9.8%.
“Over the next ten years over one third of absolute GDP growth and nearly half of employment growth will be generated by China and India,” WTTC said.
In Latin America, tourism GDP declined -1.4%. WTTC said this was largely a result of a contraction in international spend to the largest Latin American economy, Brazil, of 18.1% compared to 2016. This was compounded by ongoing political and economic problems in Venezuela.
2018 outlook
WTTC forecasts that growth will continue in 2018, but at a slower rate than in 2017 as a result of higher oil prices.
Its long-term outlook to 2028 remains unchanged, with average growth of +3.8% per year over the next decade expected. By 2028, travel & tourism is expected to support over 400 million jobs globally, which equates to 1 in 9 of all jobs in the world. The sector is also expected to contribute around 25% of global net job creation over the next decade.
“As our sector continues to become more important both as a generator of GDP and jobs, our key challenge will be ensuring this growth is sustainable and inclusive,” concluded Guevara.
“Already in 2017, we have begun to see a backlash against tourism in some key destinations. Going forward we need to ensure that growth is planned for, well managed and includes partnerships between not only the public and private sectors but also includes communities themselves.
“There is a huge opportunity for governments to capitalise on the opportunities travel & tourism brings to create new jobs, especially in those economies where many jobs are threatened by new technologies.”
