FOREWORD For over 25 years, the World Travel & Tourism Council (WTTC)has been quantifying the economic and employment impactof Travel & Tourism. The 2017 Annual Economic Reports cover185 countries and 26 regions of the world, providing thenecessary data on 2016 performance as well as unique ten yearforecasts on the sector’s future potential. Travel & Tourism: Global Economic Impact and Issues 2017has adiferent style this year, building on the fagship economic impactresearch which shows the breadth of the data available, to give moreinsights behind the numbers and to provide a fascinating view ofTravel & Tourism now and into the future. Despite the increasing and unpredictable shocks from terroristattacks, political instability, health pandemics, and natural disasters,Travel & Tourism continued to show resilience in 2016. For the sixthsuccessive year, growth in the sector outpaced that of the globaleconomy. The outlook for business and leisure travel in 2017 remainsrobust. Over the longer term, growth of the Travel & Tourism sectorwill continue to be strong, as long as governments continue to investin the necessary infrastructure.The United Nations has designated 2017 theInternational Year ofSustainable Tourism for Development . Travel & Tourism createsjobs, drives exports, and generates prosperity across the world.TheInternational Year provides an enormous opportunity to furthershowcase the tremendous economic, social, cultural, environmental,and heritage value that the sector brings to people of all nations.292 million jobs are provided by this sector, which now accounts for1 in 10 jobs in the global workforce. By 2027, it is anticipated that oursector will be supporting over 380 million jobs, as Travel & Tourismcontinues to grow its economic contribution.Future growth and success for the sector also depends onrecognising trends which will drive future travel habits andconsumer expectations. WTTC Industry Partners have contributedtheir expertise and insights in a set of stimulating articles, whichare contained within this new style report. These leading globalcompanies provide valuable products and services to the sector, andwe appreciate them joining the conversation about business andleisure travel. Contributions in this report highlight some areas wherebusinesses will need to focus as they drive their future growth. The right policy and planning decisions are best made withauthoritative, reliable, and accessible data, combined with expertmarketplace insights. WTTC is proud to provide the evidence baserequired, which helps both public and private bodies make the correctdecisions for the future growth of a sustainable Travel & Tourismsector. David Scowsill President & CEO TRAVEL & TOURISM: GLOBAL ECONOMIC IMPACT & ISSUES 2017 For more information, please contact: ROCHELLE TURNER|Research Director rochelle.turner@wttc EVELYNE FREIERMUTH|Policy & Research Manager evelyne.freiermuth@wttc G L O B A L E C O N O M I C I M P A C T & I S S U E S 2 0 1 7 CONTENTSGLOBAL OUTLOOK 1 The top numbers on the global contribution of Travel& Tourism, today and into the future.REGIONAL OUTLOOK 5 An overview of the main regional numbers, andhighlights of key developments. COUNTRY HIGHLIGHTS 7 HOW MONEY TRAVELS 11INDUSTRY PARTNER INSIGHTS12 Insights into major trends and issues, from theexpertise of our WTTC Industry Partners. COUNTRY LISTING 26 “This is the sixth year in a row that Travel & Tourism has outpacedthe global economy, showing the sector’s resilience, and the eagerness ofpeople to continue to travel and discover new places, despite economicand political challenges across the world.” David Scowsill, President & CEO, World Travel & Tourism Council 1/10 Travel & Tourism is a key sector for economic development and jobcreation throughout the world. In 2016, Travel & Tourism directlycontributed US$2.3 trillion and 109 million jobs worldwide. Takingits wider indirect and induced impacts into account, the sectorcontributed US$7.6 trillion to the global economy and supported292 million jobs in 2016. This was equal to 10.2% of the world’s GDP,and approximately 1 in 10 of all jobs. TRAVEL & TOURISM’SCONTRIBUTION TO THEWORLD’S ECONOMYTravel & Tourism’s impact includes people travelling for both leisure andbusiness, domestically and internationally. In 2016, 76.8% of all travel spendwas as a result of leisure travel, compared to 23.2% from business travel. Domestic travel generated 72% of the sector’s contribution to GDP, thusmaking a signifcantly larger contribution than international travel, withforeign visitor spending at 28% TRAVEL & TOURISM’S CONTRIBUTION TO GLOBAL GDP 2016 Business vs Leisure / Domestic vs Foreign Spending Travel & Tourism is an export sector, attracting foreign spending to a countryin the form of international visitors. In 2016, global visitor exports accountedfor 6.6% of total world exports (a total of US$1.4 trillion) and almost 30% oftotal world services exports.2016 GROWTH Travel & Tourism’s direct contribution to GDP grew by 3.1% in 2016. Thiswas faster than the global economy as a whole which grew at 2.5%,meaning that for six consecutive years, the Travel & Tourism sector hasoutperformed the global economy.The direct contribution of Travel & Tourism to employment grew by 1.8% in2016 meaning almost 2 million net additional jobs were generated directlyby the sector, and a total of around 6 million new jobs created as a resultof total direct, indirect and induced activity. This means that almost 1 in 5of all new jobs created in 2016 were linked to Travel & Tourism.ANNUAL GROWTH TERRORISM Visitor exports growth in 2016sufered somewhat from continuedterrorism and knock-on impactsto sentiment, despite air travelremaining comparatively cheapwith the low level of oil prices anda number of countries adoptingmore visitor-friendly visa policies.In Europe, there were contractionsin inbound tourism spending inBelgium, France and Turkey, whileinbound visitor spending continuedto contract in Egypt after weaknessin 2015, with international touristarrivals now over 60% below the2008 peak level. However, whilethe Travel & Tourism sectors inthese countries have sufered,several other destinations haveprofted by being seen as ‘safe- haven’ substitute destinations.Specifcally, inbound tourism toBulgaria and Cyprus picked upnoticeably in 2016, while Malta,Portugal and Spain appear to havebenefted also. Forecasts for 2017 are positive,but unfortunately considerabledownside risks to the internationalTravel & Tourism spending outlookdue to the continued threat ofterror remain. WEST & EAST MED: VISITOR EXPORTS GLOBAL OUTLOOKHEALTH CARE & SOCIAL WORK FINANCIAL SERVICES INFORMATION & COMMUNICATION RETAIL & WHOLESALE DISTRIBUTION CONSTRUCTION MANUFACTURING AGRICULTURE, FORESTRY & FISHERIES TRAVEL & TOURISM 2.8% 2.5% 4.2% 2.3% 2.8% 2.4% 2.7% 3.1%23% BUSINESS SPENDING 77% LEISURE SPENDING28% FOREIGN VISITOR SPENDING 72% DOMESTIC SPENDING 6% 5% 4% 3% 2% 1% 0% 2011 2012 2013 2014 2015 2016 GLOBAL GDP DIRECT T&T GDP In addition to outpacing global economic growth, the Travel & Tourismsector also outperformed several other major global economic sectorsin 2016. Specifcally, direct Travel & Tourism GDP growth was strongerthan the growth recorded in the fnancial and business services,manufacturing, public services, retail and distribution, and transportsectors, but was marginally slower than growth in the communicationssector. WORLD INDUSTRY GDP GROWTH T O T A L D IR E C T F CUS220 200 180 160 140 120 100 802000 2002 2004 2006 2008 2010 2012 2014 2016EAST WEST Indexed: 2000=100 OF ALL JOBS WORLDWIDE TRAVEL & TOURISM: GLOBAL ECONOMIC IMPACT & ISSUES 2017| 21|WORLD TRAVEL & TOURISM COUNCIL OUTLOOK FOR 2017 In 2017, the total contribution of Travel & Tourism to the world’s economy is forecast to grow by 3.5%. Continued solid growth at a global level is expected across the main economic indicators of GDP contribution, jobcreation, investment and visitor exports, with visitor exports making an especially strong contribution. The outlook, however, varies across the diferentoutbound markets.With the dollar strength expected to persist, 2017is forecast to be another strong year for the USA,with growth of 5.4% in outbound Travel & Tourismspend expected. The most likely benefciaries ofthis strong growth will be other North Americandestinations such as Canada and Mexico as well asCaribbean and Mediterranean destinations.In China, after 7 consecutive years of annualgrowth in excess of 20%, outbound spending isexpected to cool slightly, yet remain very strongby international standards, with growth of 12.0%expected in 2017.The depreciation of sterling is forecast to continueduring 2017, which is expected to lead to asubstantial slowdown in outbound Travel & Tourismspending growth from the UK, from 8.0% in 2016to a contraction of 4.2% in 2017. The markets mostlikely to sufer as a consequence are Europeandestinations and longer-haul travel to the USA. GLOBAL OUTLOOK52.6% 21.2% 11.1% 6.4% 5.3% 3.5% T&T GLOBAL GROWTH 2017 OUTBOUND TRAVEL EXPENDITURE BY COUNTRY Percentage of global total (2016) 5% 4% 3% 2% 1% 0% 3.6%3.8% 4.1% 3.7% 4.5% Total T&T GDPDirect T&T GDPDomestic T&T GDPVisitor ExportsT&T Investment RESTCHINAUSAGERMANYUKFRANCE A key challenge for Travel & Tourism in 2017 will be a general slowdown in consumer spending power which willimpact consumer spending on Travel & Tourism. The combination of higher infation caused by recovering oil prices(which could have knock-on impacts for air fares), rising debt servicing costs as interest rates rise, and a slowdownin job creation across the globe is curbing global spending power which is expected to grow at the weakest rate foreight years in 2017. SUSTAINABILITY 2017 is the International Yearof Sustainable Tourism forDevelopment, and WTTC – alongwith the sector as a whole, isincreasingly focusing on theissues potentially challenging thefuture growth of the sector andwill be publishing more on thisthrough the year. Sustainabilitycertainly remains an especiallyimportant issue for some of thefast growing tourism destinationsaround the world. One wayof looking at this is throughthe number of internationalvisitors compared to the localpopulation, which provides oneindicator of impact tourismmay have on the destination.For example, in Iceland in 2016,overnight international tourismarrivals outnumbered the residentpopulation by a ratio of 5.1 to 1.The ratio is also particularly highin growing tourism hotspots likeCroatia (3.3 to 1) and Montenegro(2.6 to 1). This ratio highlightsdestinations where continuedstrong growth may put a squeezeon infrastructure capacity andcould lead to environmentalpressures if not managedappropriately. F CUSIn 2016, international arrivals to Icelandoutnumbered the resident population by 5:1 TEN YEAR FORECASTSTravel & Tourism’s direct contribution to GDP is expected to grow at anaverage of 3.9% per year over the next ten years.By 2027, Travel & Tourism is expected to support more than 380 million jobsglobally, which equates to 1 in 9 of all jobs in the world and the sector isexpected to contribute around 23% of total global net job creation over thenext decade. Meanwhile, total Travel & Tourism GDP is expected to accountfor 11.4% of global GDP and global visitor exports are expected to account for7.1% of total global exports. Furthermore, the sector is expected to outperform the global economythroughout the forecast period and increase its share of global economicactivity across each of GDP, employment, exports and investment. In addition to outperforming the global economy over the next ten years,Travel & Tourism is also forecast to outpace a range of other major globaleconomic sectors, including communications, fnancial and business services,manufacturing and retail and distribution.US$ 7.6 TRILLION TOWORLD GDP 292 MILLION JOBS WORLDWIDE OVER THE NEXT 10 YEARS, THE SECTOR WILL… 30% OF TOTALSERVICE EXPORTSTravel & Tourism is expected to contribute around 23% of total global net job creation over the next decade GLOBAL TRAVEL & TOURISM CONTRIBUTES… SUPPORT 23% OFNEW JOBS CREATED OUTPERFORM THEGLOBAL ECONOMY 23% TRAVEL & TOURISM: GLOBAL ECONOMIC IMPACT & ISSUES 2017| 43|WORLD TRAVEL & TOURISM COUNCIL 。。。。。。