Travel and tourism creates seven million new jobs worldwide
The World Travel and Tourism Council’s (WTTC’s) annual Economic Impact Research shows that travel and tourism were responsible for the creation of seven million new jobs worldwide. The report also shows that 2017 was a bumper year for the global travel and tourism sector, which grew at 4.6%, much faster than the economy as a whole (3% growth during 2017).
Gloria Guevara, WTTC President and CEO said: “Travel and tourism create jobs, drives economic growth and helps build better societies. Our research shows that our sector was responsible for the creation of one in five of all jobs globally. In the last few years, governments around the world are realising the extraordinary benefits of tourism and I congratulate them for taking steps to maximise the potential of our sector.”
In 2017, travel and tourism’s direct, indirect and induced impact accounted for:
• $8.3 trillion contribution to global GDP (10.4%)
• 313 million jobs, one in 10 jobs around the world
• $1.5 trillion exports (6.5% of total exports, 28.8% of global services exports)
• $882bn investment (4.5% of total investment)
Guevara continued, “2017 was the best year on record for the travel and tourism sector. We have seen increased spending as a result of growing consumer confidence, both domestically and internationally, recovery in markets in North Africa and Europe previously impacted by terrorism, and continued outbound growth from China and India. This is great news for the millions of people who depend on our sector for their livelihoods.”
Highlights from around the world include:
• Europe’s performance was better than previously expected with 4.8% growth as long-haul demand (dampened in 2016 by terrorism concerns) recovered strongly, accompanied by strong intra-regional travel thanks to the strength of the European economy. In 2017, European airlines recorded passenger growth of 8.1% and over one billion passengers for the first time.
• Travel and tourism’s contribution to GDP in North Africa grew by 22.6% in 2017, showing a strong rebound from the impacts of terrorism in previous years. Stellar performance from Egypt (72.9%) and solid growth in Tunisia (7.6%) inspire confidence in the region as tourism activity continues to recover to pre-attack levels.
• Asian countries continue to drive global tourism growth with North East Asia growing at 7.4% and South East Asia at 6.7%. China continues to lead the way at 9.8%. Over the next ten years, over one-third of absolute GDP growth and nearly half of employment growth will be generated by China and India.
• Latin America showed a decline of 1.4% in tourism GDP, largely a result of a contraction in international spend to the largest Latin American economy, Brazil, of 18.1% compared to 2016, and compounded by the ongoing political and economic problems in Venezuela.
Forecasts for 2018 suggest that growth will continue, albeit at a slower rate than in 2017 as a result of higher oil prices.
Long-term outlook
The long-term outlook to 2028 remains unchanged, with average growth of 3.8% per year over the next decade. However, by 2028, travel and tourism is expected to support more than 400 million jobs globally, which equates to one in nine of all jobs in the world, and the sector is expected to contribute around 25% of global net job creation over the next decade.
Guevara added: “As our sector continues to become more important both as a generator of GDP and jobs, our key challenge will be ensuring this growth is sustainable and inclusive. Already in 2017, we have begun to see a backlash against tourism in some key destinations. Going forward we need to ensure that growth is planned for, well managed and includes partnerships between not only the public and private sectors but also includes communities themselves. There is a huge opportunity for governments to capitalise on the opportunities travel and tourism brings to create new jobs, especially in those economies where many jobs are threatened by new technologies. WTTC looks forward to partnering with governments around the world to ensure benefits for all.”
