24/09/2002

(London, UK) Tourism Minister Dr Kim Howells today received on behalf of the Department of Culture, Media and Sport (DCMS) a new computer model that measures the impact of Travel & Tourism on the UK economy. The model is the most sophisticated yet to be developed by the World Travel & Tourism Council (WTTC).
The model simulates a Tourism Satellite Account (TSA) for the UK within a Computable General Equilibrium (CGE) framework. It provides an estimation of the total contribution of Travel & Tourism activity on jobs and the economy within the UK, not only within the tourism industry itself but also its consequent impact on other sectors. It enables the impact of different policy options or external factors to be measured.

For 12 years, WTTC has pioneered the measurement of the full impact of Travel & Tourism activity on the economies of 160 countries, using simulated TSAs. Now that the methodology for TSAs has been approved by the United Nations Statistical Commission, and is being adopted by an increasing number of governments around the world, WTTC has further developed its research by setting a simulated TSA within a CGE framework. This shows the inter-relationship between Travel & Tourism and other parts of the economy. It is particularly important to the treasury and finance departments of national governments.

WTTC has tested this latest model on the UK economy and is offering the model to DCMS. Explaining this gift, Jean-Claude Baumgarten, President of WTTC, said: "The research indicates that a 10 per cent increase in Travel & Tourism demand in the UK can result in the whole UK economy growing its gross domestic product by 1.75 per cent immediately and 0.33 per cent over the long term. The research can help government and industry assess the impact of decisions related to taxation or any price increases. For example it shows that a 10 per cent increase of Travel & Tourism prices will result in the UK economy losing 0.55 per cent of its entire GDP. Our overall objective is to help the UK economy and this research is clearly designed to do that."

Receiving the model on behalf of DCMS, Dr Howells said: "The UK Government recognizes the importance of the Travel & Tourism industry to the UK economy. This model will help us further understand the knock-on effect that Travel & Tourism services have throughout the economy. We are grateful to receive this model and will certainly put it to good use to test out the policy measures that we are proposing to support the industry."

The World Travel & Tourism Council is the forum for global business leaders in Travel & Tourism comprising the presidents, chairs and CEOs of 100 of the world's foremost companies. It is the only body representing the private sector in all parts of the Travel & Tourism industry worldwide.

For more information contact:

Feolla Chastanet
Director, Communications
World Travel & Tourism Council
Tel: 44 (0) 7481 8007
Fax: 44 (0) 7481 1008