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Tourism budgets still growing

Friday, 17 December 20103 min read

Two thirds of national tourist boards saw an increase in their budgets in 2009, despite the tough economic climate.

But the report by UNWTO found the rate of growth was much lower than that registered between 2006 and 2008.

Growth was found to be particularly significant in emerging economies.

According to the findings, the increase in budgets was to “cater for sporting mega-events, to promote big cultural events, business events and Expos or to recover from specific disruptions affecting tourism such as natural disasters, health outbreaks, or the overall global economic crisis”.

Another key finding was the increased responsibility for domestic tourism among NTOs.

“With consumers tending to travel closer to home in times of economic hardship, several destinations have seen domestic tourism endure the crisis better and even grow significantly,” said the report.

It said 70% of respondents currently see domestic tourism as a core responsibility, more than double the equivalent share five years ago.

The report reveals that average spending on internet and e-marketing activities varies from US$ 5-7 million for some of the largest and richest destinations to US$ 50,000 for some of the smaller ones.

In spite of the growing importance given by NTOs to electronic communications, most NTO marketing budgets are still allocated to advertising, printed materials and participation in fairs.

By Bev Fearis