16/04/2002
(New Delhi) Asia-Pacific destinations are expected to dominate economic growth in the travel and tourism industry over the next few years, but the cost of September 11 to the region's industry has been severe, is the message to be announced today by the World Travel & Tourism Council (WTTC).
Tourism economic research produced by WTTC, Tourism Satellite Accounts, shows that the industry in the Asia Pacific region has suffered badly due to the global impact of September 11, with an accumulative loss of 5.7 per cent in travel and tourism demand, and the loss of 4.4 million jobs equivalents, in years 2001 and 2002. But WTTC expects the industry will rebound in 2003 with a massive growth rate of six per cent after a year of stabilisation and recovery in 2002. India, China, and many other nations within the region are expected to outperform other countries in the rest of the world.
Jean-Claude Baumgarten, President of the World Travel & Tourism Council, speaking at the 51st Annual Pacific Asia Travel Association conference in New Delhi, will say, "The impact of September 11 on the industry was unimaginable, but the industry has reacted positively and swiftly through cutting costs, creative advertising, innovative promotions and seeking out new market opportunities. In my mind 2002 is dedicated to stabilisation and recovery, and this process requires continued partnership between the private and public sectors."
In a first for the industry, WTTC has been able to identify and separate the different effects of the recession and September 11 on travel and tourism. Through its research, WTTC estimates the global impact of September 11 will cause a 7.4 per cent decline in travel-and-tourism-related demand in years 2001 and 2002 combined, which will result in a total worldwide loss to employment of over 10 million jobs. But WTTC is confident this downward trend is finite and an upswing will begin in the second half of 2002.
According to Baumgarten, a massive worldwide rebound will occur in 2003 with global travel and tourism demand forecast to increase in real terms by six per cent. "During this process we will see the creation of 6.8 million jobs, replacing most of the business and jobs lost in the extended wake of September 11," he says.
The research also shows a strong positive growth trend for the industry over the next decade with long-term annual growth at 4.5 per cent for the global industry.
Turkey has pushed India out of its first place position as the world's top growth country over the next decade, but WTTC say they won't be surprised if India challenges Turkey next year to regain number one billing. India is expected to grow at a rate of 9.7 per cent over the next ten years, with China in third place with forecast growth of 8.5 per cent.
In another important category - job creation - China is ranked first, with growth in travel and tourism employment expected to create a phenomenal 9.3 million full-time job-equivalents over the next decade.
Each year the Council conducts detailed macroeconomic analysis of the travel and tourism industry in 160 countries, the World and its regions, focusing on factors including employment, demand, and contribution to GDP. WTTC research is designed to implement the methodological framework for Tourism Satellite Accounting approved by the United Nations in 2000.
WTTC is the global business leaders' forum for travel and tourism. Its members are chief executives from all sectors of the industry including accommodation, catering, manufacturing, cruises, entertainment, recreation, transportation and other travel-related services. Its central goal is to work with governments to realise the full economic impact of the industry.
For more information contact:
New Delhi:
Yogesh Chandra
Secretary General
WTTC India Initiative
D-56 Malcha Marg
Chankyapuri, New Delhi 110021
Tel: 91 11 410 8465
Fax: 91 11 410 8464
Email: ychandra.wttc@mantraonline.com
London:
WTTC Head Office
1-2 Queen Victoria Terrace
Sovereign Court, London, UK
Tel: 44 (0) 870 727 9882
Fax: 44 (0) 870 728 9882
