Global travel expected to grow

26 August 2016 09:00

The travel and tourism sector will outpace global economic growth, forecast at 2.3%, according to latest projections by the World Travel & Tourism Council.

The travel and tourism sector will outpace global economic growth, forecast at 2.3%, according to latest projections by the World Travel & Tourism Council.

A global travel boom will see tourism grow by 3.1% this year, according to forecasts.

Despite terrorism, political turmoil, global economic developments and Brexit, t he estimate means the sector will outpace global economic growth projections of 2.3%, according to the World Travel and Tourism Council.

Tourism is a "force for good"

In the UK, the sector is expected to hold up well in 2016 with growth of 3.6%, even accounting for the impact of the referendum decision to leave the European Union

Weaker domestic spending growth, and a projected drop in UK outbound holidays of 3%, will be offset by higher spending by international visitors as a result of the favourable exchange rate, the WTTC says

WTTC president and chief executive, David Scowsill says the report highlights the resilience of travellers and the robustness of the sector, as tourism continues to outpace global economic growth by nearly 1%.

He said: "Whilst we should not downplay the impact of incidents or turmoil at individual country level, on a macro-economic level we continue to register strong growth.

He calls tourism a " force for good" as it brings social and economic benefits to countries and connects people from different cultures and backgrounds.

The WTTC is urging governments across the globe to focus on the economic and social benefits of travel and tourism.

Holidaymakers avoiding some destinations

However, while the global picture remains positive, the outlook for some countries is deteriorating since WTTC's March forecast.

The sector's direct contribution to GDP in France is still growing, but the forecast reduces from 2.9% to 1.1%, partly attributed to the recent terrorist attack in Nice.

Growth in travel and tourism's direct contribution to GDP in Turkey sees a further reduction, from -0.2% to -3.2%, due to several recent events including a spate of terror attacks, the diplomatic dispute with Russia, the failed coup and proximity to the Syrian conflict, meaning less tourists are attracted to the area.

Despite the positive effect of the Olympics, tourism is also expected to fall in in Brazil. Growth has been downgraded from -0.9% to -1.6%, as a result of the political turmoil.

Holidaymakers are being warned to take out trusted travel insurance when travelling to any destination.

 

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