Governments are being urged to ‘get smarter’ to reap the benefits from the global travel and tourism industry over the next decade.
More can be done to secure three million jobs in 2011 alone, new economic research released by the World Travel & Tourism Council claims.
Industry investment – currently estimated at $652 billion – is forecast to double in real terms over the next decade to reach $1.5 trillion, with particularly rapid growth in emerging and developing economies.
But the WTTC warns that economic challenges such as fiscal austerity and rising commodity prices mean that governments will need “smarter policies” to support the industry as it grows and seize its potential to create jobs, increase exports and stimulate investment.
Travel and tourism’s contribution to GDP is bouncing back from recession and is set to grow by 4.5% in 2011, creating around three million new jobs this year, according to the Economic Impact Research for 2011 to 2021.
Worldwide it will be worth $1.8 trillion, directly employing over 99 million people.
When the wider impacts of the industry are taken into account the figures rise to a total value of $6 trillion (9.1% of GDP) and 258 million jobs (8.8% of total employment), the WTTC calculates.
This growth will be largely driven by rising living standards and new consumers – mainly from countries such as China and India – entering the market, boosting international travel and generating increasingly vibrant domestic tourism sectors.
Foreign travellers’ spending will continue to be vital to many nations’ economic fortunes.
These visitor exports are expected to grow by 6.6% a year to reach $1.8 trillion in 2021.
WTTC is calling for policies that:
- Minimise barriers to travel with efficient and transparent visa processes, taxation reflecting the export value of the industry, and rationalised and uniform security measures
- Facilitate investment to maintain and expand capacity in a sustainable way, and also underpin improvements in quality, competitiveness and productivity
- Support the human capital needs of the industry through appropriate skills development and employment legislation
WTTC president and chief executive David Scowsill said: “Travel and tourism creates jobs, generates exports and stimulates investment.
“At a time of post-crisis global recovery, the industry is in a unique position to power sustainable growth around the globe, whether in mature economies emerging from recession or young emerging markets in the throes of rapid development.
But it must have the clear support of governments and policy-makers if that potential is to be realised.”