Global Tourism to Generate $8 Trillion in 2008

(March 7, 2008 - DTN) -_ World travel and tourism is expected to generate close to $8 trillion in 2008, rising to approximately $15 trillion over the next 10 years, according to the latest Tourism Satellite Accounting (TSA) research released by the World Travel & Tourism Council (WTTC) and its strategic partner Accenture. Overall, the new TSA results reveal a moderate impact on the travel and tourism industry as a result of the global economic downturn, with its annual growth rate experiencing a slowdown in 2008, to 3 percent, in comparison to 3.9 percent in 2007. The long-term forecasts point to a mature but steady phase of growth for world travel and tourism between 2009 and 2018, averaging a growth rate of 4.4 percent per annum, supporting 297 million jobs and 10.5 percent of global GDP by 2018.

Regionally Africa, Asia Pacific and the Middle East are experiencing higher growth rates than the world average, at 5.9 percent, 5.7 percent and 5.2 percent respectively, while the mature markets, most notably the Americas and Europe, are falling below the world average with a growth at 2.1 percent and 2.3 percent respectively. The overall impact of this slowdown for mature markets is expected to be offset by the strength of the emerging markets explains John Walker, chairman of Oxford Economics “In particular, China, India and other emerging markets are still growing rapidly, which will increase both business and leisure travel, while many countries in the Middle East are undertaking massive tourism-related investment programs.”

Moreover, even in countries where economic growth slows, there is likely to be a switch from international to domestic travel rather than a contraction in demand for travel and tourism. Among the 176 countries covered in the TSA research, the United States continues to maintain the pole position as the largest travel and tourism economy, with its total demand accounting for more than $1,747 billion this year. With a growth rate at 1.1 percent in 2008, the credit crunch is leading to a marked slowdown in U.S. economic growth and is likely to restrict business travel for those working in financial markets.

Considerable ground has been made in the emerging markets, which are experiencing rapid economic growth. In 2008, China will jump from fourth to second position above Japan and Germany and is forecasted to increase its travel and tourism demand four-fold by 2018, accounting for $2,465 billion, with an annual growth rate of 8.9 percent. Among the fastest growers in 2008, Macau leads with a growth rate at 22 percent. To see more of the research, visit wttc.travel/eng/Research/tourism_satellite_accounting.

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