Travel & Tourism

Travel & Tourism ECONOMIC IMPACT 2016 WORLD The survival of many fish species depends on migrations up and down rivers. A fish ladder provides a detour route for migrating fish past a particular obstruction on the river. Designs vary but in general all fish ladders contain a series of ascending pools that are reached by swimming against a stream of water. Fish leap through the cascade of rushing water, rest in a pool, and then repeat the process until they are out of the ladder. For more information, please contact: ROCHELLE TURNER | Head of Research rochelle.turner@wttc.org EVELYNE FREIERMUTH | Policy & Research Manager evelyne.freiermuth@wttc.org ©2016 World Travel & Tourism Council FOREWORD The World Travel & Tourism Council (WTTC) is the global authority on the economic and social contribution of Travel & Tourism. WTTC promotes sustainable growth for the sector, working with governments and international institutions to create jobs, to drive exports and to generate prosperity. For over 25 years, WTTC has been quantifying the economic impact of Travel & Tourism. This year, the 2016 Annual Economic Reports cover 184 countries and 24 regions of the world. Our 10 year forecasts provide a unique perspective on the sector’s potential for long-term growth, and the continued vital contribution to the economic strength and social development of the world. For the ifth successive year, the growth of the Travel & Tourism sector in 2015 (2.8%) outpaced that of the global economy (2.3%) and a number of other major sectors such as manufacturing and retail. In total, Travel & Tourism generated US $7.2 trillion (9.8% of global GDP) and supported 284 million jobs, equivalent to 1 in 11 jobs in the global economy. The outlook for Travel & Tourism in 2016 remains robust, despite economic fragilities and other sources of volatility in the wider market. The sector’s GDP growth contribution is expected to accelerate and again outpace growth of the wider economy. Stronger growth in 2016 is likely to be underpinned by an improving global economy. The lowest oil prices in more than a decade will continue to boost demand through lower transport costs, whilst household inances and disposable income will beneit from reduced energy costs. Through the last year, safety and security concerns have moved into the spotlight, and we have to assume that these issues will continue to cause diiculties in the years ahead. We note that the sector remains resilient and that governments are working hard to ensure the safety of tourists and to minimise the impact of security threats. Incidents such as the ones we observed with shock and sadness in recent months will not stop people travelling, as the world continues to go about its business. There are other factors which are inluencing the low of travellers around the world. Notably, the strength of the US dollar relative to other currencies is shifting the price competitiveness of destinations and will afect who travels where this year. Undoubtedly new developments will emerge alongside these existing factors. Travel & Tourism is a key force for good, and it has proven in the past that it is strong and adaptable enough to face any challenges. It will continue to grow, to create jobs, and to bring economic and social beneits. The Travel & Tourism sector is expected to grow faster than the wider economy and many other industries over the next decade. It is anticipated to support over 370 million jobs by 2026. Such strong growth will require tourism destinations across the world to provide environments that are conducive to business development. It will require efective coordination between public institutions and the private sector around the world. WTTC is proud to contribute the evidence base required for public and private bodies to make the right decisions for the future growth of a sustainable Travel & Tourism sector. David Scowsill President & CEO TRAVEL & TOURISM ECONOMIC IMPACT 2016 CONTENTS THE ECONOMIC IMPACT OF TRAVEL & TOURISM MARCH 2016 FOREWORD 2016 ANNUAL RESEARCH: KEY FACTS 1 DEFINING THE ECONOMIC CONTRIBUTION OF TRAVEL & TOURISM 2 TRAVEL & TOURISM’S CONTRIBUTION TO GDP 3 TRAVEL & TOURISM’S CONTRIBUTION TO EMPLOYMENT 4 VISITOR EXPORTS AND INVESTMENT 5 DIFFERENT COMPONENTS OF TRAVEL & TOURISM 6 SUMMARY TABLES: ESTIMATES & FORECASTS 7 THE ECONOMIC CONTRIBUTION OF TRAVEL & TOURISM: REAL 2015 PRICES 8 THE ECONOMIC CONTRIBUTION OF TRAVEL & TOURISM: NOMINAL PRICES 9 THE ECONOMIC CONTRIBUTION OF TRAVEL & TOURISM: GROWTH 10 GLOSSARY 11 METHODOLOGICAL NOTE 12 REGIONS, SUB-REGIONS & COUNTRIES 13 Use of material is authorised, provided source is acknowledged World 1 2016 ANNUAL RESEARCH: KEY FACTS 2016 forecast GDP: DIRECT CONTRIBUTION The direct contribution of Travel & Tourism to GDP was USD2,229.8bn (3.0% of total GDP) in 2015, and is forecast to rise by 3.3% in 2016, and to rise by 4.2% pa, from 2016-2026, to USD3,469.1bn (3.4% of total GDP) in 2026. GDP: TOTAL CONTRIBUTION The total contribution of Travel & Tourism to GDP was USD7,170.3bn (9.8% of GDP) in 2015, and is forecast to rise by 3.5% in 2016, and to rise by 4.0% pa to USD10,986.5bn (10.8% of GDP) in 2026. EMPLOYMENT: DIRECT CONTRIBUTION In 2015 Travel & Tourism directly supported 107,833,000 jobs (3.6% of total employment). This is expected to rise by 1.9% in 2016 and rise by 2.1% pa to 135,884,000 jobs (4.0% of total employment) in 2026. EMPLOYMENT: TOTAL CONTRIBUTION In 2015, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 9.5% of total employment (283,578,000 jobs). This is expected to rise by 2.2% in 2016 to 289,756,000 jobs and rise by 2.5% pa to 370,204,000 jobs in 2026 (11.0% of total). VISITOR EXPORTS Visitor exports generated USD1,308.9bn (6.1% of total exports) in 2015. This is forecast to grow by 3.0% in 2016, and grow by 4.3% pa, from 2016-2026, to USD2,056.0bn in 2026 (6.2% of total). INVESTMENT Travel & Tourism investment in 2015 was USD774.6bn, or 4.3% of total investment. It should rise by 4.7% in 2016, and rise by 4.5% pa over the next ten years to USD1,254.2bn in 2026 (4.7% of total). 1All values are in constant 2015 prices & exchange rates Total Contribution of Travel & Tourism to GDP Breakdown of Travel & Tourism's Total Contribution to GDP and Employment 2015 GDP (2015 USDbn) 2015 2015USDbn USDbn 12,000 1,327 10,000 3,639 6,000 2,230 4,000 107,833 124,880 2,000 Employment ('000) 8,000 50,865 Direct Indirect Induced 2026 2026 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 0 = Total contribution of Travel & Tourism 1 TRAVEL & TOURISM ECONOMIC IMPACT 2016 | 1 Defining the economic contribution of Travel & Tourism Travel & Tourism is an important economic activity in most countries around the world. As well as its direct economic impact, the sector has significant indirect and induced impacts. The UN Statistics Division-approved Tourism Satellite Accounting methodology (TSA:RMF 2008) quantifies only the direct contribution of Travel & Tourism. WTTC recognises that Travel & Tourism's total contribution is much greater however, and aims to capture its indirect and induced impacts through its annual research. DIRECT CONTRIBUTION The direct contribution of Travel & Tourism to GDP reflects the ‘internal’ spending on Travel & Tourism (total spending within a particular country on Travel & Tourism by residents and non-residents for business and leisure purposes) as well as government 'individual' spending - spending by government on Travel & Tourism services directly linked to visitors, such as cultural (eg museums) or recreational (eg national parks). The direct contribution of Travel & Tourism to GDP is calculated to be consistent with the output, as expressed in National Accounting, of tourism-characteristic sectors such as hotels, airlines, airports, travel agents and leisure and recreation services that deal directly with tourists.The direct contribution of Travel & Tourism to GDP is calculated from total internal spending by ‘netting out’ the purchases made by the different tourism industries. This measure is consistent with the definition of Tourism GDP, specified in the 2008 Tourism Satellite Account: Recommended Methodological Framework (TSA: RMF 2008). TOTAL CONTRIBUTION The total contribution of Travel & Tourism includes its ‘wider impacts’ (ie the indirect and induced impacts) on the economy. The ‘indirect’ contribution includes the GDP and jobs supported by: ● Travel & Tourism investment spending – an important aspect of both current and future activity that includes investment activity such as the purchase of new aircraft and construction of new hotels; ● Government 'collective' spending, which helps Travel & Tourism activity in many different ways as it is made on behalf of the ‘community at large’ – eg tourism marketing and promotion, aviation, administration, security services, resort area security services, resort area sanitation services, etc; ● Domestic purchases of goods and services by the sectors dealing directly with tourists - including, for example, purchases of food and cleaning services by hotels, of fuel and catering services by airlines, and IT services by travel agents. The ‘induced’ contribution measures the GDP and jobs supported by the spending of those who are directly or indirectly employed by the Travel & Tourism sector. 2 2 | WORLD TRAVEL & TOURISM COUNCIL Travel & Tourism's contribution to GDP1 The direct contribution of Travel & Tourism to GDP in 2015 was USD2,229.8bn (3.0% of GDP). This is forecast to rise by 3.3% to USD2,304.0bn in 2016.This primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). But it also includes, for example, the activities of the restaurant and leisure industries directly supported The direct contribution of Travel & Tourism to GDP is expected to grow by 4.2% pa to USD3,469.1bn (3.4% of GDP) by 2026. WORLD: DIRECT CONTRIBUTION OF TRAVEL & TOURISM TO GDP Constant 2015 USDbn % of whole economy GDP 4,000 3.50 3,500 3.40 3.30 3,000 3.20 2,500 3.10 2,000 3.00 1,500 2.90 1,000 2026 2026 2016 2015 2014 2013 2012 2011 2010 2009 2008 2006 2026 2026 2016 2015 2014 2013 2012 2011 2010 2009 2008 2.60 2007 0 2006 2.70 2007 2.80 500 The total contribution of Travel & Tourism to GDP (including wider effects from investment, the supply chain and induced income impacts, see page 2) was USD7,170.3bn in 2015 (9.8% of GDP) and is expected to grow by 3.5% to USD7,420.5bn (9.8% of GDP) in 2016. It is forecast to rise by 4.0% pa to USD10,986.5bn by 2026 (10.8% of GDP). WORLD: TOTAL CONTRIBUTION OF TRAVEL & TOURISM TO GDP % of whole economy GDP Constant 2015 USDbn 12,000 12.0 10,000 10.0 8,000 8.0 6,000 6.0 4,000 4.0 2,000 2.0 0.0 0 2015 Direct 1 Indirect 2016 2015 2026 2026 2026 Induced Direct 2016 Indirect 2026 2026 Induced All values are in constant 2015 prices & exchange rates 3 TRAVEL & TOURISM ECONOMIC IMPACT 2016 | 3 Travel & Tourism's contribution to employment Travel & Tourism generated 107,833,000 jobs directly in 2015 (3.6% of total employment) and this is forecast to grow by 1.9% in 2016 to 109,864,000 (3.6% of total employment). This includes employment by hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). It also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists. By 2026, Travel & Tourism will account for 135,884,000 jobs directly, an increase of 2.1% pa over the next ten years. WORLD: DIRECT CONTRIBUTION OF TRAVEL & TOURISM TO EMPLOYMENT '000 jobs % of whole economy employment 4.1 160,000.0 4.0 140,000.0 3.9 120,000.0 3.8 100,000.0 3.7 80,000.0 3.6 3.5 60,000.0 3.4 40,000.0 The total contribution of Travel & Tourism to employment (including wider effects from investment, the supply chain and induced income impacts, see page 2) was 283,578,000 jobs in 2015 (9.5% of total employment). This is forecast to rise by 2.2% in 2016 to 289,756,000 jobs (9.6% of total employment). By 2026, Travel & Tourism is forecast to support 370,204,000 jobs (11.0% of total employment), an increase of 2.5% pa over the period. WORLD: TOTAL CONTRIBUTION OF TRAVEL & TOURISM TO EMPLOYMENT % of whole economy employment '000 jobs 400,000.0 12.0 350,000.0 10.0 300,000.0 8.0 250,000.0 200,000.0 6.0 150,000.0 4.0 100,000.0 2.0 50,000.0 0.0 0.0 2015 Direct Indirect 2016 Induced 4 4 | WORLD TRAVEL & TOURISM COUNCIL 2026 2026 2026 2015 Direct 2016 Indirect Induced 2026 2026 2026 2026 2016 2015 2014 2013 2012 2011 2010 2009 2008 2006 2026 2026 2016 2015 2014 2013 2012 2011 2010 2009 2008 3.1 2007 0.0 2006 3.2 2007 3.3 20,000.0 Visitor Exports and Investment1 VISITOR EXPORTS Money spent by foreign visitors to a country (or visitor exports) is a key component of the direct contribution of Travel & Tourism. In 2015, the world generated USD1,308.9bn in visitor exports. In 2016, this is expected to grow by 3.0%, and the world is expected to attract 1,237,470,000 international tourist arrivals. By 2026, international tourist arrivals are forecast to total 1,931,830,000, generating expenditure of USD2,056.0bn, an increase of 4.3% pa. WORLD: VISITOR EXPORTS AND INTERNATIONAL TOURIST ARRIVALS Constant 2015 USDbn mn 2,500 2,500 2,000 2,000 Foreign visitor exports as % of total exports 6.4 6.2 6.0 1,500 1,500 1,000 1,000 5.8 5.6 5.4 500 500 5.2 0 5.0 2026 2026 2026 2026 2016 2015 2014 2013 2012 2011 2010 2009 2008 Foreign visitor exports (LHS) 2007 4.8 2006 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 0 Foreign tourist arrivals (RHS) INVESTMENT Travel & Tourism is expected to have attracted capital investment of USD774.6bn in 2015. This is expected to rise by 4.7% in 2016, and rise by 4.5% pa over the next ten years to USD1,254.2bn in 2026. Travel & Tourism’s share of total national investment will rise from 4.4% in 2016 to 4.7% in 2026. WORLD: CAPITAL INVESTMENT IN TRAVEL & TOURISM 1 2026 2026 2016 2015 2014 2013 2012 2011 2010 3.8 2009 0 2008 4.0 2007 200 2026 2026 4.2 2016 400 2015 4.4 2014 600 2013 4.6 2012 800 2011 4.8 2010 1,000 2009 5.0 2008 1,200 2007 5.2 2006 1,400 2006 % of whole economy GDP Constant 2015 USDbn All values are in constant 2015 prices & exchange rates 5 TRAVEL & TOURISM ECONOMIC IMPACT 2016 | 5 Different components of Travel & Tourism1 World Travel & Tourism's Contribution to GDP: Leisure travel spending (inbound and domestic) generated 76.6% of direct Travel & Tourism GDP in 2015 (USD3,621.9bn) compared with 23.4% for business travel spending (USD1,106.9bn). Business vs Leisure, 2015 Leisure spending 76.6% Leisure travel spending is expected to grow by 3.0% in 2016 to USD3,732.3bn, and rise by 4.2% pa to USD5,645.8bn in 2026. Business spending 23.4% Business travel spending is expected to grow by 3.9% in 2016 to USD1,149.9bn, and rise by 3.7% pa to USD1,658.8bn in 2026. World Travel & Tourism's Contribution to GDP: Domestic vs Foreign, 2015 Domestic travel spending generated 72.3% of direct Travel & Tourism GDP in 2015 compared with 27.7% for visitor exports (ie foreign visitor spending or international tourism receipts). Foreign visitor spending 27.7% Domestic travel spending is expected to grow by 3.3% in 2016 to USD3,533.9bn, and rise by 4.0% pa to USD5,245.5bn in 2026. Domestic spending 72.3% Visitor exports are expected to grow by 3.0% in 2016 to USD1,347.9bn, and rise by 4.3% pa to USD2,056.0bn in 2026. World Breakdown of Travel & Tourism's Total Contribution to GDP, 2015 The Travel & Tourism industry contributes to GDP and employment in many ways as detailed on page 2. Direct 31.1% Induced The total contribution of Travel & Tourism to GDP is three times greater than its direct contribution. 18.5% Indirect a 50.4% Indirect is the sum of: (a) Supply chain 35.1% (b) Investment c 8.5% (c) Government collective b 6.7% 1 All values are in constant 2015 prices & exchange rates 6 6 | WORLD TRAVEL & TOURISM COUNCIL Summary tables: Estimates & Forecasts 2015 2026 2016 World % of total Growth2 USDbn Direct contribution to GDP 2,229.8 3.0 3.3 7,170.3 9.8 107,833 Total contribution to employment 1 % of total Growth3 3,469.1 3.4 4.2 3.5 10,986.5 10.8 4.0 3.6 1.9 135,884 4.0 2.1 283,578 9.5 2.2 370,204 11.0 2.5 Visitor exports 1,308.9 6.1 3.0 2,056.0 6.2 4.3 Domestic spending 3,419.9 4.7 3.3 5,245.5 3.9 4.0 Leisure spending 3,621.9 2.3 3.0 5,645.8 2.6 4.2 Business spending 1,106.9 0.7 3.9 1,658.8 0.8 3.7 Capital investment 774.6 4.3 4.7 1,254.2 4.7 4.5 Total contribution to GDP 4 Direct contribution to employment 4 1 2015 USDbn 1 2015 constant prices & exchange rates; 22016 real growth adjusted for inflation (%); 32016-2026 annualised real growth adjusted for inflation (%); 4'000 jobs % of total refers to each indicator's share of the relevant whole economy indicator such as GDP and employment. Visitor exports is shown relative to total exports of goods and Domestic spending is expressed relative to whole economy GDP. For leisure and business spending, their direct contribution to Travel & Tourism GDP is calculated as a share of whole economy GDP (the sum of these shares equals the direct contribution). Investment is relative to whole economy investment. WTTC Travel & Tourism Economic Impact 2016 7 TRAVEL & TOURISM ECONOMIC IMPACT 2016 | 7 The economic contribution of Travel & Tourism: Real 2015 prices World (USDbn, real 2015 prices) 2010 2011 2012 2013 2014 2015 2016E 2026F 1. 1,060 1,120 1,171 1,229 1,278 1,309 1,348 2,056 2,756 2,973 3,084 3,207 3,325 3,420 3,534 5,245 3,816 4,093 4,255 4,435 4,603 4,729 4,882 7,302 -1,993 -2,173 -2,257 -2,351 -2,434 -2,499 -2,578 -3,832 1,824 1,920 1,999 2,084 2,169 2,230 2,304 3,469 1,658 1,803 1,884 1,970 2,056 2,115 2,191 3,345 Visitor exports Domestic expenditure 2. (includes government individual spending) 3. Internal tourism consumption (= 1 + 2 ) 4. Purchases by tourism providers, including imported goods (supply chain) 5. Direct contribution of Travel & Tourism to GDP (= 3 + 4) Other final impacts (indirect & induced) 6. Domestic supply chain 7. Capital investment 648 667 695 706 744 775 811 1,254 8. Government collective spending 368 374 382 388 396 404 413 533 9. Imported goods from indirect spending 278 314 328 344 312 320 327 402 10. Induced 1,100 1,137 1,175 1,224 1,279 1,327 1,374 1,984 11. Total contribution of Travel & Tourism to GDP 5,876 6,214 6,462 6,717 6,956 7,170 7,421 10,987 96,916 98,748 101,191 103,095 105,356 107,833 109,864 135,884 Total contribution of Travel & Tourism 251,380 to employment 258,022 265,110 271,474 276,340 283,578 289,756 370,204 947 1,013 1,080 1,160 1,278 1,328 1,952 (= 5 + 6 + 7 + 8 + 9 + 10) Employment impacts ('000) 12. Direct contribution of Travel & Tourism to employment 13. Other indicators 14. Expenditure on outbound travel 8 8 WTTC Travel & Tourism Economic Impact 2016 | WORLD TRAVEL & TOURISM COUNCIL 922 The economic contribution of Travel & Tourism: Nominal prices World (USDbn, nominal prices) 2010 2011 2012 2013 2014 2015 2016E 2026F 1. 1,067 1,206 1,246 1,336 1,394 1,309 1,324 2,718 2,853 3,277 3,354 3,494 3,624 3,420 3,440 6,948 3,920 4,483 4,600 4,830 5,017 4,729 4,764 9,666 -2,045 -2,376 -2,436 -2,560 -2,653 -2,499 -2,518 -2,045 1,876 2,107 2,164 2,270 2,364 2,230 2,246 4,565 1,707 1,976 2,040 2,146 2,239 2,115 2,138 4,450 Visitor exports Domestic expenditure 2. (includes government individual spending) 3. Internal tourism consumption (= 1 + 2 ) 4. Purchases by tourism providers, including imported goods (supply chain) 5. Direct contribution of Travel & Tourism to GDP (= 3 + 4) Other final impacts (indirect & induced) 6. Domestic supply chain 7. Capital investment 657 732 754 770 808 775 790 1,685 8. Government collective spending 379 412 417 423 430 404 404 701 9. Imported goods from indirect spending 270 326 338 367 335 320 321 526 10. Induced 1,125 1,245 1,274 1,330 1,387 1,327 1,339 2,628 11. Total contribution of Travel & Tourism to GDP 6,013 6,798 6,988 7,307 7,564 7,170 7,237 14,555 96,916 98,748 101,191 103,095 105,356 107,833 109,864 135,884 Total contribution of Travel & Tourism 251,380 to employment 258,022 265,110 271,474 276,340 283,578 289,756 370,204 1,066 1,122 1,212 1,292 1,278 1,290 2,669 (= 5 + 6 + 7 + 8 + 9 + 10) Employment impacts ('000) 12. Direct contribution of Travel & Tourism to employment 13. Other indicators 958 14. Expenditure on outbound travel *Concepts shown in this table align with the standard table totals as described in the 2008 Tourism Satellite Account: Recommended Methodological Framework (TSA: RMF 2008) developed by the United Nations Statistical Division (UNSD), the Statistical Office of the European Communities (EUROSTAT), the Organisation for Economic Co-operation and Development (OECD) and the World Tourism Organization (UNWTO). Historical data for concepts has been benchmarked to match reported TSA data where available. 9 TRAVEL & TOURISM ECONOMIC IMPACT 2016 | 9 The economic contribution of Travel & Tourism: Growth World Growth1 (%) 1. 2010 2011 2012 2013 2014 2015 2016E 2026F 6.7 5.6 4.6 4.9 4.0 2.4 3.0 4.3 1.9 7.9 3.7 4.0 3.7 2.9 3.3 4.0 3.2 7.2 3.9 4.2 3.8 2.7 3.2 4.1 3.9 9.1 3.8 4.2 3.5 2.7 3.2 4.0 2.4 5.3 4.1 4.3 4.1 2.8 3.3 4.2 3.5 8.7 4.5 4.6 4.4 2.9 3.6 4.3 Visitor exports Domestic expenditure 2. (includes government individual spending) 3. Internal tourism consumption (= 1 + 2 ) 4. Purchases by tourism providers, including imported goods (supply chain) 5. Direct contribution of Travel & Tourism to GDP (= 3 + 4) Other final impacts (indirect & induced) 6. Domestic supply chain 7. Capital investment -7.5 2.9 4.2 1.5 5.4 4.2 4.7 4.5 8. Government collective spending 2.7 1.6 2.1 1.7 2.0 1.9 2.4 2.6 9. Imported goods from indirect spending -8.6 11.9 7.3 2.7 17.5 -4.6 3.1 8.1 10. Induced -0.9 3.4 3.4 4.2 4.5 3.8 3.5 3.7 11. Total contribution of Travel & Tourism to GDP 1.3 5.8 4.0 3.9 3.6 3.1 3.5 4.0 0.7 1.9 2.5 1.9 2.2 2.4 1.9 2.1 -0.9 2.6 2.7 2.4 1.8 2.6 2.2 2.5 5.1 2.8 6.9 6.7 7.4 10.2 3.9 3.9 (= 5 + 6 + 7 + 8 + 9 + 10) Employment impacts ('000) 12. Direct contribution of Travel & Tourism to employment 13. Total contribution of Travel & Tourism to employment Other indicators 14. Expenditure on outbound travel 1 2009-2014 real annual growth adjusted for inflation (%); 10 10 WTTC Travel & Tourism Economic Impact 2016 | WORLD TRAVEL & TOURISM COUNCIL 2 2015-2025 annualised real growth adjusted for inflation (%) 2 GLOSSARY KEY DEFINITIONS TRAVEL & TOURISM Relates to the activity of travellers on trips outside their usual environment with a duration of less than one year. Economic activity related to all aspects of such trips is measured within the research. DIRECT CONTRIBUTION TO GDP GDP generated by industries that deal directly with tourists, including hotels, travel agents, airlines and other passenger transport services, as well as the activities of restaurant and leisure industries that deal directly with tourists. It is equivalent to total internal Travel & Tourism spending (see below) within a country less the purchases made by those industries (including imports). In terms of the UN’s Tourism Satellite Account methodology it is consistent with total GDP calculated in table 6 of the TSA: RMF 2008. DIRECT CONTRIBUTION TO EMPLOYMENT The number of direct jobs within Travel & Tourism. This is consistent with total employment calculated in table 7 of the TSA: RMF 2008. and government individual spending. This does not include spending abroad by residents. This is consistent with total internal tourism expenditure in table 4 of the TSA: RMF 2008. BUSINESS TRAVEL & TOURISM SPENDING Spending on business travel within a country by residents and international visitors. LEISURE TRAVEL & TOURISM SPENDING Spending on leisure travel within a country by residents and international visitors. INDIRECT AND INDUCED IMPACTS INDIRECT CONTRIBUTION The contribution to GDP and jobs of the following three factors: • CAPITAL INVESTMENT: Includes capital investment spending by all industries directly involved in Travel & Tourism. This also constitutes investment spending by other industries on speciic tourism assets such as new visitor accommodation and passenger transport equipment, as well as restaurants and leisure facilities for speciic tourism use. This is consistent with total tourism gross ixed capital formation in table 8 of the TSA: RMF 2008. • GOVERNMENT COLLECTIVE SPENDING: Government spending in support of general tourism activity. This can include national as well as regional and local government spending. For example, it includes tourism promotion, visitor information services, administrative services and other public services. This is consistent with total collective tourism consumption in table 9 of TSA: RMF 2008. • SUPPLY-CHAIN EFFECTS: Purchases of domestic goods and services directly by diferent industries within Travel & Tourism as inputs to their inal tourism output. TOTAL CONTRIBUTION TO GDP GDP generated directly by the Travel & Tourism sector plus its indirect and induced impacts (see below). TOTAL CONTRIBUTION TO EMPLOYMENT The number of jobs generated directly in the Travel & Tourism sector plus the indirect and induced contributions (see below). DIRECT SPENDING IMPACTS VISITOR EXPORTS Spending within the country by international tourists for both business and leisure trips, including spending on transport, but excluding international spending on education. This is consistent with total inbound tourism expenditure in table 1 of the TSA: RMF 2008. DOMESTIC TRAVEL & TOURISM SPENDING Spending within a country by that country’s residents for both business and leisure trips. Multi-use consumer durables are not included since they are not purchased solely for tourism purposes. This is consistent with total domestic tourism expenditure in table 2 of the TSA: RMF 2008. Outbound spending by residents abroad is not included here, but is separately identiied according to the TSA: RMF 2008 (see below). INDUCED CONTRIBUTION The broader contribution to GDP and employment of spending by those who are directly or indirectly employed by Travel & Tourism. OTHER INDICATORS GOVERNMENT INDIVIDUAL SPENDING Spending by government on Travel & Tourism services directly linked to visitors, such as cultural services (eg museums) or recreational services (eg national parks). OUTBOUND EXPENDITURE Spending outside the country by residents on all trips abroad. This is fully aligned with total outbound tourism expenditure in table 3 of the TSA: RMF 2008. INTERNAL TOURISM CONSUMPTION Total revenue generated within a country by industries that deal directly with tourists including visitor exports, domestic spending FOREIGN VISITOR ARRIVALS The number of arrivals of foreign visitors, including same-day and overnight visitors (tourists) to the country. TRAVEL & TOURISM ECONOMIC IMPACT 2016 | 11 METHODOLOGICAL NOTE WTTC has an on-going commitment to align its economic impact research with the UN Statistics Division-approved 2008 Tourism Satellite Account: Recommended Methodological Framework (TSA:RMF 2008). This involves benchmarking of country reports to oicial, published TSAs. This year the Ecuador TSA was integrated for the irst time, alongside new data for Austria, Bermuda, Canada, Czech Rep, Ecuador, France, Lithuania, Malaysia, New Zealand, Nicaragua, Qatar, South Africa, Switzerland, UK, and the USA. In addition to producing data on 184 countries, WTTC also produces reports on 24 other regions, sub-regions and economic and geographic groups. This year, there are 8 reports for special economic and geographic groups. ECONOMIC AND GEOGRAPHIC GROUPS APEC (ASIA-PAC IFIC ECONOMIC COOPERATION) Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russian Federation, Singapore, Taiwan, Thailand, USA, Vietnam. THE COMMONWEALTH Anguilla, Antigua and Barbuda, Australia, Bahamas, Bangladesh, Barbados, Belize, Bermuda, Botswana, Brunei, Cameroon, Canada, Cayman Islands, Cyprus, Dominica, Ghana, Grenada, Guyana, India, Jamaica, Kenya, Kiribati, Lesotho, Malawi, Malaysia, Maldives, Malta, Mauritius, Mozambique, Namibia, Nigeria, New Zealand, Pakistan, Papua New Guinea, Rwanda, South Africa, Seychelles, Sierra Leone, Singapore, Solomon Islands, Sri Lanka, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Swaziland, Tanzania, Tonga, Trinidad and Tobago, Uganda, UK, British Virgin Islands, Vanuatu, Zambia. FORMER NETHERLANDS ANTILLES Bonaire, Curacao, Sint Maarten, Saba and Sint Eustatius. G20 Argentina, Australia, Brazil, Canada, China, European Union, France*, Germany*, India, Indonesia, Italy*, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, Turkey, UK*, USA. MEDITERRANEAN (MEDITERRANEAN TRAVEL ASSOCIATION) Albania, Algeria, Bosnia Herzegovina, Croatia, Cyprus, Egypt, France, Greece, Israel, Italy, Jordan, Lebanon, Libya, Macedonia, Malta, Montenegro, Morocco, Portugal, Serbia, Slovenia, Spain, Syria, Tunisia, Turkey. 12 | WORLD TRAVEL & TOURISM COUNCIL OAS (ORGANIZATION OF AMERICAN STATES) Argentina, Antigua and Barbuda, Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Dominica, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, St Kitts and Nevis, Nicaragua, Panama, Paraguay, Peru, St Lucia, St Vincent and the Grenadines, Suriname, Trinidad and Tobago, USA, Uruguay. OECD (ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT) Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, South Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, UK, USA. OTHER OCEANIA American Samoa, Cook Islands, French Polynesia, Guam, Marshall Islands, Micronesia (Federated States of), New Caledonia, Niue, Northern Mariana Islands, Palau, Samoa, Tuvalu. PACIFIC ALLIANCE Chile, Colombia, Mexico, Peru. SADC (SOUTHERN AFRICAN DEVELOPMENT COMMUNITY) Angola, Botswana, Democratic Republic of Congo (DRC), Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, Zimbabwe. *included in European Union ECONOMIC IMPACT REPORTS: REGIONS, SUB REGIONS & COUNTRIES Anguilla Egypt Antigua & Barbuda Libya Aruba Morocco Bahamas Tunisia Barbados Angola Benin Grenada Guadeloupe Jamaica Democratic Republic of Congo Martinique Ethiopia Puerto Rico Gabon Gambia St Kitts & Nevis Ghana St Lucia Guinea St Vincent & the Grenadines AMERICAS SOUTHEAST ASIA (ASEAN) Mauritius Brazil Mozambique Chile Niger LATIN AMERICA Nigeria Albania Tonga Armenia India Georgia Iceland Pakistan Kazakhstan Togo Moldova Montenegro Malaysia Norway Myanmar Russian Federation Philippines Serbia Singapore Switzerland Turkey Ukraine Ecuador Belgium Guatemala Bulgaria Bahrain Guyana Croatia Iran Uruguay Tanzania Kyrgyzstan Macedonia Uzbekistan EUROPE EUROPEAN UNION Suriname Swaziland Laos Austria Peru Sudan Indonesia El Salvador Paraguay South Africa Belarus Bosnia Herzegovina Nepal Vietnam Panama Sierra Leone Azerbaijan Maldives Thailand Nicaragua Seychelles SUB-REGION REGION UK Solomon Islands Costa Rica Honduras Zimbabwe Sweden Colombia Senegal Zambia Other Oceania Papua New Guinea Cyprus Iraq Czech Republic Israel Denmark Estonia Finland France Germany Greece Venezuela Hungary Canada Ireland MIDDLE EAST Namibia NORTH AMERICA AFRICA SUB-SAHARAN Belize Bolivia Uganda Spain Cambodia Mali Slovakia Kiribati Brunei Argentina Portugal Romania Slovenia Sri Lanka US Virgin Islands Poland Fiji Vanuatu UK Virgin Islands Malawi Sao Tome & Principe Taiwan Bangladesh Trinidad & Tobago Ivory Coast Rwanda Netherlands Macau OTHER EUROPE Haiti Comoros SOUTH ASIA Chad Reunion Malta South Korea EUROPE Dominican Republic ASIA-PACIFIC CARIBBEAN Central African Republic OCEANIA Dominica Cape Verde Republic of Congo Luxembourg New Zealand Former Netherlands Antilles Cameroon Madagascar China Hong Kong Australia Burundi Lesotho Lithuania Cuba Burkina Faso COUNTRY Japan Mongolia Cayman Islands Botswana Kenya SUB REGION Bermuda COUNTRY EUROPEAN UNION Algeria NORTHEAST ASIA COUNTRY REGION SUB REGION COUNTRY REGION SUB REGION NORTH AFRICA REGION WORLD Jordan Kuwait Lebanon Oman Qatar Saudi Arabia Syria Mexico Italy UAE USA Latvia Yemen TRAVEL & TOURISM ECONOMIC IMPACT 2016 | 13 The World Travel & Tourism Council is the global authority on the economic and social contribution of Travel & Tourism. 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