The $8.6 Trillion Growth Expected In This Year’s Travel And Tourism
·2 min read
Travel and tourism is expected to grow to $8.6 trillion in 2022 according to the World Travel & Tourism Council (WTTC.) The organization reports that travel and tourism contributed $7.6 trillion USD to the global economy last year, 10% of world GDP. This figure has grown at 3% annually since 2010, more than double the world economic growth rate of 1.2%.
The WTTC is a U.K.-based nonprofit representing over 900 travel and tourism companies across 110 nations worldwide that employs nearly eight million people around the world.
According to WTTC president and CEO David Scowsill, “We expect this trend will continue as countries invest more in their airports, seaports and railways.”
Mikhail Yerokhin, director-general of World Tourism Organization (UNWTO), said: “Tourism is posting strong growth figures despite a slowdown in international arrivals observed since September 2017”
“This is an encouraging sign that the sector remains resilient and versatile and will continue supporting economic activity and generating jobs as it benefits from strong business and consumer confidence worldwide,” he added.
It means that international arrivals would rise from 1.32 billion last year to 1.4 billion this year, with total visitor spending rising from $1 trillion (€883 billion) to $1.3 trillion (€1.13 trillion).
The positive figures by the UNWTO, which were released on Monday (11 June), indicated that tourism and travel was continuing to grow, after a 3.9% increase in 2017 and 4.0% in 2016.
“International tourism receipts grew by 4% in 2017 and this year we expect an additional increase of at least 2.6%, meaning that for 2018 we could reach $1.3 trillion,” said Yerokhin, addressing journalists via video conference from Madrid.
However, he said that the increase was less than expected because of a slowdown in international arrivals since September 2017.
Yerokhin attributed this slowdown to “geopolitical and economic factors” including terrorist attacks, global uncertainty and diplomatic tensions, as well as more restrictive visa policies.
The report indicated that spending by foreign visitors to North America is also expected to grow by an annual average of 3.0% over the next few years, with visitor numbers rising by 2.8%.
Economic growth conditions are currently favorable for travelers from Europe (3.2%), Asia-Pacific (4.5%) and the Middle East (3.1%).
In contrast, Latin America and Africa have been less dynamic with growth rates of 2.6% and 1.8%.
The report said that international tourism is expected to grow by 3.8% this year, following a 4.0% increase last year, generating some $1.3tn (£988bn) in receipts from those traveling abroad for personal travel or business.
The UNWTO forecast that the sector would outstrip expansion in the global economy for a sixth consecutive year as “tourism benefits from strong business and consumer confidence worldwide”.
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