The Strategist

WTTC: Growth of the tourism industry exceeds the global economic growth

03/28/2018 - 09:45

Every fifth of all new jobs created around the world in 2017 emerged in the tourism industry, according to a new large study by the World Travel and Tourism Council (WTTC).

Hans via pixabay
Hans via pixabay
The study said that 7 million new jobs were created in tourism around the world in the last year (there are 313 million jobs now). The global travel and tourism sector grew by 4.6% last year, which is 50% higher than in the global economy as a whole.

Tourism has outperformed the global economy for the seventh year in a row, and in 2017 the sector has become the fastest growing in the world. In particular, tourism surpassed manufacture (4.2%), retail and wholesale trade (3.4%), agriculture, forestry and fishing (2.6%), financial services (2.5%).

In 2017, investment in tourism amounted to 882 billion US dollars (4.5% of the total investment in the global economy).

According to the WTTC report, the performance in Europe was better than previously expected, with growth of 4.8%. According to the International Air Transport Association (IATA) in 2017, European airlines for the first time recorded a growth in passenger traffic by 8.1% and transported more than 1 billion passengers.

In 2017, North Africa's tourism grew by 22.6%, which indicates that the direction is becoming popular once again despite of consequences of terrorism in previous years. The leader in this sense was Egypt (+ 72.9%), and Tunisia added percentage points too (+ 7.6%).

Asian countries continue to stimulate the growth of global tourism. Thus, North-East Asia added 7.4%, South-East - 6.7%.

China continues to lead, increasing its tourist flow around the world by 9.8%. According to experts, over the next 10 years, China and India will generate more than a third of absolute GDP growth and almost half of employment growth in the tourism sector. 

In Latin America, the decline in GDP in tourism amounted to 1.4%, which can be explained by reduction in international spending on the Brazilian economy by 18.1% compared to 2016. All this is also aggravated by the continuing political and economic problems in Venezuela.

According to general forecasts for 2018, growth in tourism will continue, albeit more slowly, than in 2017 as a result of rising oil prices.

The long-term forecast until 2028 remains unchanged, with an average growth of 3.8% per year over the next decade.