Travel & Tourism to grow faster than global economy

Travel & Tourism will demonstrate its enduring ability to create jobs and prosperity for the global economy in 2015 with the sector forecast to grow by 3.7%, according to the World Travel & Tourism Council (WTTC).
WTTC – which annually forecasts the economic impact of the sector in 184 countries and 24 regions – says tourism is again growing strongly, creating jobs and driving growth.
In 2014, the industry contributed US$7,580 billion (A$9,640bn) in GDP and 277 million jobs to the global economy. This year, the contribution is forecast to grow by 3.7% and employment by 2.6%. This demonstrates the sector’s enduring ability to generate economic growth and create jobs at a faster rate than the global economy, which is due to grow by 2.9% in 2015, says WTTC.
By the end of 2015, the Travel & Tourism sector will contribute US$7,860 billion (A$9,996bn), 10% of global GDP, once all direct, indirect and induced impacts are taken into account. The sector will account for 284 million jobs, 9.5% of total employment, or one in eleven of all jobs on the planet,
WTTC forecasts that the United States and China will retain their rankings as the two biggest Travel & Tourism economies in the world, but Germany has overtaken Japan to rank as the third largest. Russia is the only G20 country expected to register a decline in Travel & Tourism growth in 2015, due to the continuing sanctions being imposed and the devaluation of the rouble.
South Asia is expected to experience the highest growth in 2015 at 6.9%, whilst Europe and Latin America are the regions with the lowest forecast growth of 2.4%.
David Scowsill, President & CEO WTTC, said: “At a time of global economic challenges, Travel & Tourism continues to grow faster than the global economy, and is an enduring source of job creation and a driver of growth for every region in the world.”
“Our annual research demonstrates that the sector has recorded strong economic growth in 19 out of the last 20 years, providing much-needed economic stability at a time of global economic volatility.
“Governments looking for a sector which can create jobs and drive economic growth should focus on Travel & Tourism. This industry requires the right regulatory environment in which to flourish, along with progressive policies on visa access, taxation, human resources planning, and sustainability.”
Long-term forecasts for Travel & Tourism show continued annual growth at 3.8% over the next ten years to $11.4 trillion (A$14.5tn). By 2025, the global Travel & Tourism sector is expected to contribute 357 million jobs, some 73 million more jobs than this year.

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