tourism is the biggest industry in the world! bigger than automobiles, defence, agro and...
TRANSCRIPT
TOURISM IS THE
BIGGEST INDUSTRY IN THE WORLD!
BIGGER THAN AUTOMOBILES, DEFENCE, AGRO AND MANUFACTURING
WTTC Purpose
‘To raise awareness of the importance of Travel &
Tourism and to work with governments to realise the full
potential of the industry in creating sustainable wealth
and jobs’
World Economy* GDP
* Travel & Tourism GDP associated with T&T Demand (Direct and Indirect)
* US$ 5.4 Trillion in 2007 (up 9.4% in current terms)
* 10.4% of Total Gross Domestic Product in 2007 (vs. 10.3% in 2006)
2007
Travel & Tourism Economy by Region
North America
European Union
Northeast Asia
Latin America
Central and Eastern Europe
Oceania
Southeast Asia
Middle East
South Asia
North Africa
Caribbean
Sub-Saharan Africa
T&T Economy GDP Growth 2007-2016(Percent Annualized)
2006
T&
T E
cono
my
GD
P(P
erce
nt o
f Tot
al)
Other Western Europe World Average
2007 saw continued broad-
based strength in the
tourism economy, though
generally below 2006
growth rates. In 2008,
growth is expected to
remain healthy despite
economic conditions.
Revision of 2008 ForecastReal T&T GDP
EconomyLast Year’s 2008
Forecast(annual % growth)
2008 likely forecast Revision
(Direction)
Africa 5.0 Up
Asia/Pacific 5.6 Constant
Europe 3.1 Down
Middle East 5.0 Up
North America 3.3 Down
Latin America 4.3 Up
World 4.2 Down
Source: WTTC/Oxford Economics
Total Pipeline: Global Regions
Under Const.
Start Next 12
Mos.
Early Plannin
g
Total Projec
ts
Total Rooms
United States
223,977315,99
5178,4
155,43
8718,38
7
Americas-Other
69,666 44,22830,21
2864
144,106
Europe 74,063 38,24833,32
5854
145,636
Middle East 63,822 46,19235,49
3501
145,507
Africa 15,164 8,009 5,076 142 28,249
Asia Pacific 272,754 80,73672,53
41,833
426,024
Source: Lodging Econometrics
A Relative Picture
United States45%
Americas-Other9%
Europe9%
Middle East9%
Asia Pacific26%
Africa2%
Of total rooms constructed, 45% will be built in the United States
* Credit crunch continues to be a worry on outlook
* High oil prices may become a major constraint on global growth
* Fear of US Recession dragging down the world
* Increasing Deficit
* Housing market in trouble
* Weaker dollar
0
20
40
60
80
100
120
1999 2000 2001 2002 2003 2004 2005 2006 2007Source: Haver
UK Brent oilUS $/Barrel
Source : Oxford Economics/Haver Analytics
Stock Markets Feel the Pressure...
-20
-15
-10
-5
0
5
10
15
20
25
30
Jan 1 2007 Mar 26 2007 Jun 18 2007 Sep 10 2007 Dec 3 2007
S&P 500FTSENikkei
Global stock markets% year
Source : Oxford Economics/Haver Analytics
-4
-2
0
2
4
6
8
10
12
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Source: Oxford Economics
% year
Japan
US
World: GDP growth
Eurozone
Forecast
China
* Rapidly expanding economic growth in Emerging Markets, create a new and dynamic source of visitors
ChinaIndiaRussiaMiddle East
* Responsive monetary policy – Quick and decisive response by central banks to economic situations
* Strong corporate profitability outside of the financial sector
2008 will see further slowdown but not as sharp as period between 2001 and 2003
0
1
2
3
4
5
6
7
8
1995 1997 1999 2001 2003 2005 2007Source: Haver Analytics
%
Europe
US
UK
World: Short-term interest rates
Summary
* WTTC forecasts that the United States is and will remain the largest Travel & Tourism industry in the world
* A changing world, requires a new mind frame. A global slowdown is anticipated, sparked by a US recession. However this will be partially offset by today's changing world
* The lodging Industry is still showing great strength and is growing at an impressive pace, despite the anticipated economic slowdown.
It appears that this saying no longer holds:
“When America sneezes, Europe catches a cold and the rest of the
world dies of pneumonia”