Monday, June 2, 2008

Global Tourism To Generate $7893 billion in 2008

A positive article was found on the wounderful world of the web yesterday, enjoy.
A report by the World Travel and Tourism Council (WTTC) has highlighted the importance of travel and tourism on the overall worldwide economy. Tourism and travel currently account for around 10% of world GDP and it believes this figure is set to grow at an annual rate of 4% over the next decade as more and more people choose to travel to previously unconnected cities and emerging hotspots become accessible at a low-cost, buy a property abroad and emigrate overseas. According to the WTO, a billion trips were made in 2006
Even though it has always been known that travel and tourism are vital to the economy of so many countries, the contribution to the worldwide economy may surprise many. Globally, travel and tourism demand is expected to generate around $7, 893 billion worth of worldwide economic activity in 2008, reaching highs of $14,838 billion by 2018. The overall contribution of tourism and travel to worldwide GDP apart from basic travel expenses and accommodation creates a ripple effect on the local economy with growth in tourism to an area resulting in increased service requirements, commodities and in popular destinations; property. All of these factors will have a material impact on both the local workforce and money coming into the region and the tourism industry provides jobs for over 200 million people. Renowned tourism and now holiday property hotspots such as Spain’s Costa del Sol have developed to include a variety of international service providers from property furnishing services to accountancy.
Longer term the impact of migratory travel may see a reduction in travel for example in countries such as Britain and the Middle East, where nations such as the United Arab Emirates, have been dependant upon foreign immigrants more than most. Employment and a good standard of living is one of the principal draws for expats to the region. However, as emerging markets such as India continue to grow and prosper, domestic opportunities for employment become greater with the overall impact of reducing poverty. It is highly likely that many expats from India will return to their “homeland” leaving countries such as the UAE short of workers. This repatriation of some of the workforce would probably see an increase in costs in the region, with companies having to increase workers salaries to retain their services. This in turn would impact upon the cost of services and commodities with a knock on effect to the consumer.
The travel and tourism market can be very fickle and if costs increase too much then many may look at other less expensive regions of the world, taking us back to the beginning and the start of a new cycle. Attracting and keeping travellers and tourists in the future will be key to the long term success of many regions of the world and their long term economies.

1 comment:

Anonymous said...

Looks like it will be a good year in tourism for all, Great article.