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Tourism receipts in the Asia-Pacific
region accounted for nearly 10 per cent of the region’s GDP last year;
Universal Studios Theme Park in Osaka, Japan pictured
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The travel and tourism
industry will play a pivotal role in Asia-Pacific’s economic recovery, once the
Covid-19 pandemic resolves, according to a new report by the World Travel &
Tourism Council (WTTC).
In its latest annual
Economic Impact Report (EIR), WTTC shared that in 2019, travel and tourism
generated US$2,971 billion towards GDP, or 9.8 per cent of the region’s
economy, representing a 5.5 per cent growth from the previous year. This figure
puts it ahead of the overall regional economy for the fifth consecutive year,
which grew by 4.2 per cent.
International visitor spend
totalled a staggering US$548 billion, representing 6.6 per cent of the region’s
total exports.
This surge in tourism
receipts was driven by the continued growth in middle income households, visa
facilitation, improved connectivity and government prioritisation of the
sector.
In addition, WTTC’s study
also showed that over the last five years, the travel and tourism sector
created more than 21 million new jobs in the region, accounting for 56 per cent
of all new jobs globally.
As well, leisure travel
makes up the majority of total travel and tourism spend (81 per cent), with
only 19 per cent being attributed to business travel. When considering domestic
and international spend, the numbers skewed similarly, with domestic visitor
spend comprising 74 per cent of the total, and international making up 26 per
cent.
China led the region in
2019 in terms of GDP and employment size, with strong performances in other
major Asian markets such as Vietnam, Malaysia and the Philippines.
The travel and tourism
industry supports more jobs in China than in any other country in the region,
accounting for nearly 80 million jobs, or 10.3 per cent of total employment.
Last year, the travel and tourism economy in the country grew by 9.3 per cent
and is the second largest in the world, making up 11.3 per cent of China’s
overall economy.
Malaysia and Vietnam also
witnessed significant growth, up 6.6 per cent and 7.7 per cent respectively,
with both displaying an even split between domestic visitor spending (49 per
cent) and spend from international (51 per cent). The majority of the travel
and tourism spending in both countries overwhelmingly came from leisure travel,
with Malaysia attributing 86 per cent of visitor spend to leisure, and Vietnam
attributing 90 per cent.
The Philippines also saw
significant growth by 8.6 per cent once again, making up 25.3 per cent of the
total economy in the country and supporting 24.1 per cent of total employment,
the equivalent of more than 10 million jobs. Leisure spending made up 66 per
cent of total visitor spending, and 85 per cent was made up of domestic
visitors.
Gloria Guevara, WTTC president
& CEO, said: “WTTC’s 2019 EIR shows how intrinsic travel and tourism was
last year to the economy in Asia-Pacific, making it the fastest growing region
in the world in terms of its contribution to GDP, supporting more than 182
million jobs or 9.6 per cent of the total number of people employed.
“Our report underscores how
vital travel and tourism will be in powering the recovery of the region’s
economy, generating new jobs and driving visitors back to Asia-Pacific, having
a positive economic domino effect on suppliers large and small throughout the
industry.
“Until then, it is crucial
that all governments throughout the region help to protect travel and tourism
as the backbone of the regional and global economy, which is currently in a
fight for survival. Our research shows that up to 75 million jobs globally are
at immediate risk, with more than 48 million at risk across the Asia-Pacific
region alone, highlighting how critically the sector requires support.”
On a global level, the
travel and tourism sector outperformed the 2.5 per cent rate of global GDP
growth for the ninth consecutive year in a row, thanks to an annual GDP growth
rate of 3.5 per cent. This made it the global economy’s third highest sector in
terms of GDP growth.
The EIR shows the sector
supporting one in 10, or 330 million, jobs; making a 10.3 per cent contribution
to global GDP and generating one in four of all new jobs.
A breakdown by WTTC shows
Asia-Pacific to be the top performing region worldwide, with a growth rate of
5.5 per cent, followed very closely by the Middle East at 5.3 per cent. The US
and EU both demonstrated a steady growth rate of 2.3 per cent, while the
fastest growing country was Saudi Arabia, growing four times than the global
average.
-TTG Asia.
