2017 was a bumper year for the global Travel & Tourism sector, which grew at 4.6%, much faster than the economy as a whole (3% growth during 2017). Its role as a driver of prosperity is clear, as the sector created 7 million new jobs in 2017, 1 in 5 of all new jobs across the world.
WTTC’s latest annual research, in conjunction with Oxford Economics, shows Travel & Tourism’s contribution to world GDP outpaced the global economy for the seventh consecutive year in 2017. In 2017, Travel & Tourism’s direct, indirect and induced impact accounted for: US$8.3 trillion contribution to the world’s GDP, 10.4% of global GDP 313 million jobs, 1 in 10 jobs around the world US$1.5 trillion exports (6.5% of total exports, 28.8% of global services exports) US$882 billion investment (4.5% of total investment).
The research shows that 2017 was a bumper year for the global Travel & Tourism sector, which grew at 4.6%, much faster than the economy as a whole (3% growth during 2017). Its role as a driver of prosperity is clear, as the sector created 7 million new jobs in 2017, 1 in 5 of all new jobs across the world.
Travel & Tourism is a dynamic engine of economic development and job creation throughout the world. In 2017, Travel & Tourism directly contributed US$2.6 trillion and nearly 119 million jobs worldwide.
Taking its wider indirect and induced impacts into account, the sector contributed US$8.3 trillion to the global economy and supported 313 million jobs in 2017. This was equal to 10.4% of the world’s GDP, and approximately 1 in 10 of all jobs.
Travel & Tourism’s impact includes people travelling for both leisure and business, domestically and internationally. In 2017, 77% (a total of US$4.2 trillion) of all travel spend was as a result of leisure travel, compared to 23% from business travel.
Travel & Tourism is an export sector, attracting foreign spending to a country in the form of international visitors. In 2017, global visitor exports reached a record high, totalling US$1.5 trillion, and accounted for almost 30% of total world
services exports and 6.5% of total world exports. While the strength of the export earnings from international travel is significant, domestic travel generated almost 73% of the sector’s direct contribution to GDP.
Outlook for 2018
As global economic growth continues to accelerate during 2018, the outlook for the Travel & Tourism sector remains encouraging. However, with tighter monetary policies in countries such as the USA, UK, Eurozone and China, compared to last year, and oil prices now rising, rates are likely to ease slightly. Direct Travel & Tourism GDP is now expected to grow by 4.0% in 2018.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.