Asia-Pacific will dominate travel and tourism growth, says WTTC

Tuesday, 16 Apr, 2002 0

WTTC has revealed research that suggests Asia-Pacific destinations are expected to dominate economic growth in the travel and tourism industry over the next few years.

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, at the 51st Annual Pacific Asia Travel Association conference in New Delhi, said: “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.”

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 Mr 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. He said: “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.”

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.