Travel and tourism beats global economy in growth

For the first time in history, travel and tourism now supports one in 11 of all jobs in the world, with more than 10 per cent of all new jobs created last year coming from the industry.

According to 2012 statistics by the World Travel & Tourism Council (WTTC), the industry outperformed the global economy, increasing its total contribution to global GDP by three per cent and number of jobs to 260 million, up five million.

The trade’s economic contribution ­– taking into account its direct, indirect and induced impacts – was US$6.6 trillion in GDP, US$765 billion in investments and US$1.2 trillion in exports, at 2012 prices.

These figures represent nine per cent of total GDP, five per cent of total investment and five per cent of world exports.

Among the 20 largest global economies, South Korea (10 per cent), China (seven per cent), South Africa (seven per cent) and Indonesia (six per cent) performed best, offsetting abysmal growth of less than one and two per cent in Europe and the US respectively.

WTTC predicts that the industry will up its total contribution to GDP to 3.2 per cent this year, faster than the 2.4 per cent estimated for global economic growth. The industry is expected to support nearly 266 million jobs in 2013.

The tourism body also anticipated that China would overtake the US to be the world’s biggest travel economy by 2023.

David Scowsill, president and CEO, WTTC, said: “(This last year) demonstrated again just how resilient the travel and tourism industry is.

“Our industry is responsible for creating jobs, lifting people out of poverty, and broadening horizons. But we need international institutions and governments to recognise its strength, to remove restrictive visa and tax regimes and to work with the private sector to stimulate that growth.”

-TTG Asia.