Economic Impact of Travel & Tourism 2014 Annual Update: Summary• The direct contribution of Travel & Tourism to the world economy grew by 3.1% in 2013,

contributing US$2.2 trillion1 to world gross domestic product (GDP) and 101 million jobs.

• Taking its wider supply chain impacts into account, Travel & Tourism’s total contribution to global GDP grew by 3.0% in 2013, faster than overall economic growth for the third consecutive year and outperforming other global sectors such as manufacturing, retail and distribution, public services and financial and business services. Travel & Tourism represents US$7.0 trillion (2013 prices), 266 million jobs, US$754 billion in investment and US$1.3 trillion in exports.

• 1.4 million additional jobs were generated directly in the sector in 2013, and in total, 4.7 million new jobs were created as a result of tourism activity. The total contribution of Travel & Tourism to employment grew 1.8% in 2013.

• Travel & Tourism’s contribution equates to 9.5% of total economy GDP, 1 in 11 of the world’s total jobs, 4.4% of total investment and 5.4% of world exports.

Global Performance: 2013• WTTC’sannualeconomicresearch,conductedinconjunctionwithourresearchpartner,Oxford

Economics,foundthat2013wasanothersuccessfulyearfortheTravel&Tourismsectoroffthebackofanimprovingeconomy.Inayearofsignificantexchangeratechanges,internationaltourismspendingin2013was14%higherthanthepreviouspeaklevelsinrealterms,whiledomesticspendingwas6%higherthanitspreviouspeak.

• 2013sawweaker-than-predictedglobaleconomygrowth.Asignificantdowngradetototaleconomyinvestmentgrowth(from3.5%to1.9%)ledtodampenedgrowthinTravel&Tourisminvestment(from4.2%vs2.9%).SubduedGDPgrowthwasobservedacrossmanyeconomies,andespeciallyamongthoseinemergingmarkets.

• VariousindustryindicatorssupporttheviewthatinternationalTravel&Tourismwasrobustin2013.Hotelperformancewassolidwithhigherdemand,priceandoccupancyratesinallregions.Internationalairpassengerdemandgrewforthefourthconsecutiveyear,measuredintermsofrevenuepassengerkilometres,andgrowthacceleratedastheyearprogressed.Continuedadditionstoseatcapacityinallworldregionswillensurefurthergrowthispossiblein2014.Combinedwiththeimprovementsinpricing,thisisindicativeofrisingconfidencewithinthesector.

• Travel&Tourismbusinessspendinggrowthweakenedin2013relativeto2012(from3.1%to3.0%),whileTravel&Tourismleisurespendinggrowthperformedmarginallybetter(3.2%to3.3%).

• Visitorexportsexceededexpectationswith3.9%growth,offsettingweakerdomesticTravel&Tourismspending(2.9%growth).

Regional Performance: 2013 • Regionally,SouthEastAsiaisthefastestgrowingregionforbothTravel&TourismcontributiontoGDP

andemploymentgrowthat7.9%and4.1%respectively,whileNorthAfricalagswithfallsof-5.8%and-4.6%respectively.SouthEastAsia’sleadisbolsteredbyanumberofstrongperformingcountriesintheregion,notablyThailand,Indonesia,SingaporeandMyanmar.

1All US$ amounts are in 2013 prices.

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Economic Impact of Travel & Tourism 2014 Annual Update:Summary2

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• PoorperformanceinNorthAfricacanlargelybeexplainedbysharpfallsindemandfortraveltoEgyptlinkedtopoliticalinstability.GrowthintheMiddleEasthasbeenhamperedbytheconflictinSyriaandthespill-overeffectstoneighbouringcountries,althoughbothUAEandSaudiArabiaperformedstrongly.

• InEurope,totalTravel&TourismGDPandemploymentgrowthhavebeenboostedbystrongdemandfromlong-haulmarketsandhaveexceededexpectations.Therehasalsobeensomeencouraginggrowthinintra-regionaldemand.Greeceisanexamplehere,wherearrivalsfromRussiaandTurkeyhaveincreasedfour-foldinrecentyears.

• AmongtheG20economies,Travel&Tourismoutperformedtheoveralleconomyin13ofthe20countries,whileoverall,Indonesia,ChinaandTurkeyhadthegreatestyearonyeargrowthincontributiontoGDP.TheEuropeanUnionnationswithinthegroup,Italy,FranceandGermany,stillstrugglingtoovercometheeffectsoftherecession,allexperiencedafallinTravel&Tourism’sGDPcontributionfor2013.

• ThefastestgrowthintermsofTravel&Tourism’stotalcontributiontoGDPwasseenamongthecountriesofTheGambia,Georgia,Qatar,HongKongandThailand.ConflictwithinthecountriesofSyria,MaliandEgyptledtothelargestdeclinesintheyear.

Global 2014 Outlook • 2014lookstobeanevenmorepromisingyearfortheTravel&Tourismsectorasgrowthpicks

upacrossthewiderglobaleconomy,ledbyfallingunemploymentandstrongerconsumerspending.Thesector’scontributiontoGDPisexpectedtogrowby4.3%thisyear,upfrom3%in2013andinternationalgrowthisonceagainforecasttobeatdomesticgrowth.

• Furthermore,asin2013,Travel&Tourismgrowthissettooutpacegrowthinthewidereconomyin2014(4.3%vs2.8%)andallbutfouroftheG20countriesareexpectedtohavegrowthfromTravel&Tourismthatexceedsthatoftheeconomyasawhole.WealsoexpectthatTravel&Tourismgrowthwillremainaheadofothersignificantindustries.

• WeexpectTravel&Tourismin2014togeneratearound6.5millionnewjobsintotal,2.2millionofthemdirectlycreatedwithinthesector.Thisrepresentsgrowthratesof2.5%and2.2%respectively.AllregionsareforecasttoenjoybothTravel&TourismGDPandemploymentgrowthin2014.

• Asanindicatorofrecovery,long-haultravel,whichgrewinshareofglobalarrivalsfrom21%to25%between2003and2013,isexpectedtocontinuetogainanevenlargershareofinternationaltourismdemand,ledbyEuropeanlong-hauldemand.Travelpricesthathavebeenheldlowduetosubdueddemandovertherecentyearsshouldalsobegintorisein2014,increasingindustryprofitability.

• Touristsarealsoexpectedtospendmorepertripin2014,withalongeraveragelengthofstay.Tourismspendinggrowthisexpectedtoexceedarrivalsgrowththisyear,reversingrecenttrends.

Ten Year Outlook and New World Order: 2014-2024• BothtotalanddirectTravel&TourismGDParesettogrowonaverageby4.2%peryear

andgrowthinthesectorisexpectedtocontinuetoexceedthatinthewidereconomyaswellasotherindustriesinthelong-run.

• Overthecourseofcomingdecade,weexpectTravel&Tourismtoprovideatotalof74.5millionnewjobs,23.2millionofwhichwillbeprovideddirectlywithinthesector.

• ThecontributionofTravel&Tourismtothewidereconomyisexpectedtorisefrom9.5%in2013to10.3%in2024.Keytothisincreasedcontributionisexpectedgrowthindemandfromemergingmarkets,andarisingimportanceofTravel&Tourisminoverallconsumerspending.

• AsiaremainsthefastestgrowingTravel&Tourismregioninthelong-run,whileRussiaandTurkeywillbeintegraltoboostinglong-runEuropeangrowth.Inthelongerrun,theexpandingmiddleclassinemergingmarketswillkeepaveragepricesstableastourismbecomesmuchmoreofamassmarketactivity.Luxurytravelwillstillcontinuetogrow,butnotasfastasoveralldemand.

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