Travel & Tourism Power and Performance · TRAVEL & TOURISM POWER AND PERFORMANCE REPORT THE...

TRAVEL & TOURISM POWER AND PERFORMANCE REPORT

THE AUTHORITY ON WORLD TRAVEL & TOURISM

INTRODUCTION As one of the world’s largest economic sectors, Travel & Tourism creates jobs, drives exports, and generates prosperity across the world. The sector accounted for 10.4% of global GDP and 313 million jobs, or 9.9% of total employment, in 2017. 2017 was one of the strongest years of GDP growth in a decade with robust consumer spending worldwide. This global growth transferred again into Travel & Tourism with the sector’s direct growth of 4.6% outpacing the global economy for the seventh successive year. In 2017, the world’s ten largest Travel & Tourism markets, based on the sector’s total contribution to GDP were:

Rank Country Total Travel & Tourism GDP US$, real 2017 prices and exchange rates, billions

1 United States 1501.9 2 China 1349.3 3 Germany 395.2 4 Japan 331.2 5 United Kingdom 266.1 6 Italy 253.4 7 India 234.0 8 France 232.0 9 Spain 196.2 10 Mexico 185.4

WTTC’s new Power and Performance report looks at the performance of 185 countries over the last seven-year period (2011-2017) - after the financial crisis ended and when most countries commenced their journeys to recovery. Using WTTC’s annual economic impact data, we have ranked all countries across four main indicators: total contribution to Gross Domestic Product (GDP), visitor exports (international tourism spend), domestic spending and capital investment. Countries have been ranked in terms of absolute size of growth and speed of growth to create two separate types of rankings – power and performance rankings. The Power ranking highlights those countries which have grown most, in absolute terms, across the board, with growth measured in US dollars. These countries are powering T&T growth. The Performance ranking highlights those countries which have grown fastest, in percentage terms, across the board, with growth measured as a compound annual percentage increase. These countries are capitalising on the opportunities that tourism can bring as a tool for development. In this new report, we show the top 30 countries across all four measures combined and for each economic indicator separately. This new analysis allows us to assess performance over the medium term, helping to smooth out some of the year-on-year volatility that countries often face. These rankings also provide the additional evidence base to help decision-makers understand the value of Travel & Tourism. The annual growth (performance) rankings highlight how Travel & Tourism is spreading rapidly among emerging markets and developing countries, distributing the benefits of the sector widely across the globe.

2 2 THE AUTHORITY ON WORLD TRAVEL & TOURISM

Inclusive growth and ensuring a future with quality jobs are the concerns of governments everywhere. Travel & Tourism, which already supports one in every ten jobs on the planet, is a dynamic engine of employment opportunity. Over the past ten years, one in five of all jobs created across the world has been in the sector and, with the right regulatory conditions and government support, nearly 100 million new jobs could be created over the decade ahead. WTTC TRAVEL & TOURISM POWER AND PERFORMANCE TOP 30 WTTC Travel & Tourism Countries Power Ranking (absolute growth) is based on absolute growth as seen between 2011 and 2017 for four of our main Travel & Tourism indicators: total Travel & Tourism GDP, foreign visitor spending (visitor exports), domestic spending and Travel & Tourism capital investment. The overall ranking is derived by calculating the average (equally-weighted) rank of all four constituent indicators. The performance ranks for the top 30 countries are summarised in the table below.

Countries Overall rank Overall score

GDP Rank Visitor Exports Rank

Domestic Spending Rank

Investment Rank

China 1 1.50 1 3 1 1 United States 2 2.50 2 4 2 2 India 3 4.25 3 8 3 3 Mexico 4 6.75 5 7 8 7 United Kingdom 5 8.00 6 14 7 5 Spain 6 9.25 10 5 13 9 Turkey 7 10.75 11 9 17 6 Canada 8 13.00 14 20 10 8 Indonesia 9 14.25 15 15 15 12 Australia 10 14.75 12 13 9 25 United Arab Emirates =10 14.75 16 6 21 16 Thailand 12 15.50 7 1 35 19 Philippines 13 19.75 8 21 6 44 Malaysia =13 19.75 17 34 11 17 Sweden 15 24.00 18 17 46 15 Singapore 16 25.75 28 32 29 14 Norway 17 26.00 21 45 27 11 Chile 18 26.75 23 39 25 20 Italy 19 27.75 4 12 5 90 Iran 20 28.75 19 28 12 56 Vietnam 21 29.50 31 41 20 26 Netherlands =21 29.50 35 25 40 18 Qatar 23 30.00 20 10 50 40 Iraq 24 30.25 24 49 18 30 Ireland 25 32.50 49 19 52 10 New Zealand 26 35.00 27 30 24 59 Nigeria 27 37.75 25 80 22 24 Peru 28 39.00 30 46 23 57 Sri Lanka 29 39.25 34 23 53 47 Dominican Republic 30 39.50 32 27 47 52

The final rank scores are based on ranking of absolute growth from highest to lowest whereby the largest / fastest growth for each indicator is assigned a value of one, and smallest / slowest growth is assigned a value of 185. Therefore, in the final rank score calculation, a lower score is indicative of stronger performance for that destination, and a higher score indicates weaker performance. In terms of power growth rankings, the largest countries dominate in the top spots. Nine G20 countries plus Spain and the UAE appear in the top 10 positions. With no surprise, China took the first place, driven by the strongest absolute growth out of all countries in three indicators – GDP growth, domestic spending and investment growth. It only failed to climb to the top position in visitor exports, where it is ranked third. The USA (with the largest total Travel & Tourism GDP) and India comfortably took the second and third place. Mexico, a well-established Travel & Tourism economy, came fourth, driven by a strong performance across all four indicators. Mexico’s strong growth in


infrastructure development has been matched by a rapid growth in international tourist arrivals and spending over the last seven years. Strong absolute growth in visitor exports has helped some countries to climb to more powerful final positions than they would have otherwise achieved. Thailand saw the strongest growth in foreign visitor spending during 2011-17 which helped the country to reach the 12th place overall. Strong growth in visitor exports was also witnessed in Spain and the UAE which took powerful 6th and 10th place in overall rankings. Meanwhile, Turkey climbed to an impressive 7th position, driven in particular by strong investment activity and foreign visitor spending, which came despite the political/economic challenges that the country has been faced with in this time period. WTTC Travel & Tourism Countries Performance Ranking (compound annual growth) is based on compound annual growth rates as seen between 2011 and 2017 for four of our main Travel & Tourism indicators: Travel & Tourism total GDP, foreign visitor spending (visitor exports), domestic spending and Travel & Tourism capital investment. The overall ranking is derived by calculating the average (equally-weighted) rank of all four constituent indicators. The top 30 ranked countries are shown in the table below.

Countries Overall rank Overall score

GDP Rank Visitor Exports Rank

Domestic Spending Rank

Investment Rank

Myanmar 1 3.25 1 1 9 2 Iraq 2 6.50 5 14 1 6 Georgia 3 10.75 4 7 20 12 Rwanda 4 17.00 14 32 2 20 Iceland 5 17.25 9 13 39 8 Nicaragua 6 24.00 13 17 38 28 Qatar 7 24.75 3 11 23 62 Congo 8 26.00 20 27 19 38 Armenia 9 26.75 18 28 18 43 Ivory Coast 10 27.75 8 94 8 1 Azerbaijan 11 28.50 2 4 90 18 Mozambique 12 29.25 22 62 11 22 Dominican Republic =12 29.25 23 35 25 34 Cambodia 14 29.75 28 51 35 5 Philippines 15 30.00 7 23 3 87 Zambia 16 32.25 35 36 43 15 Niger 17 32.75 60 30 14 27 Sri Lanka 18 34.00 12 6 71 47 Bangladesh =18 34.00 43 19 33 41 Burkina Faso 20 36.50 27 33 30 56 China 21 37.25 19 100 7 23 Madagascar 22 37.50 21 16 28 85 Togo 23 40.75 34 98 6 25 Laos 24 44.00 31 53 78 14 Macedonia =24 44.00 39 75 49 13 Nigeria 26 45.50 26 43 48 65 India 27 46.75 41 45 22 79 United Arab Emirates 28 48.00 52 37 27 76 Malta 29 48.75 44 63 62 26 Malawi 30 50.00 82 39 76 3

The final rank scores are based on ranking of average annual % growth from highest to lowest whereby the largest / fastest growth for each indicator is assigned a value of one, and smallest / slowest growth is assigned a value of 185. Therefore, in the final rank score calculation, a lower score is indicative of stronger performance for that destination, and a higher score indicates weaker performance.


Unlike the power growth rankings, performance rankings are dominated by smaller emerging economies. Myanmar comfortably leads the pack, driven by the top rankings in total Travel & Tourism GDP growth and visitor exports but also capital investment, where it placed second. Myanmar’s remarkably strong growth came in the immediate years following a change in the government’s regime and opening-up of its borders to international tourists in late 2010. Iraq’s second position may come as a surprise and is attributable to subsiding conflict and the strongest annual growth in domestic spending out of all countries. Third place was taken by Georgia, driven by strong growth in T&T GDP and international tourist spending. Rwanda ranks fourth for similar reasons to Iraq – subsiding conflict and strong growth in spending by domestic tourists. Iceland is the highest-ranking developed country, taking the fifth spot due to a strong performance in T&T capital investment and visitor exports. China and India were the only two G20 countries that appear in the top 30. China came 21st on the back of strong annual growth in domestic spending and investment. Similarly, India’s position in the top 30 is mainly due to its expanding domestic market. It is important to note that differences in final scores for countries ranked sixth and below are marginal, and therefore any small change for any of the four constituent indicators can easily affect a country’s final position. MAIN TRAVEL & TOURISM ECONOMIC INDICATORS Four strong economic indicators (total contribution to GDP, visitor exports, domestic spending and capital investment) make up our ‘power’ and ‘performance’ rankings with each highlighting the significance of the Travel & Tourism economy in countries across the world. The rankings highlight the top 30 of 185 countries in WTTC’s annual Travel & Tourism Economic Impact Research. 1. TRAVEL & TOURISM’S CONTRIBUTION TO GDP

Travel & Tourism is a dynamic engine of economic development throughout the world. The money generated by industries that sell products and services directly to tourists, such as hotels, travel agents, transportation and souvenirs, is measured to determine the direct contribution of the sector to GDP. This direct impact, together with the contribution from investment, government spending on tourism, supply chain effects and also the broader contribution to GDP by those directly employed in Travel & Tourism, combine to create the total economic impact of Travel & Tourism to GDP. In 2017, the sector contributed a total of US$8.3 trillion to the global economy, equal to 10.4% of the world’s GDP. HIGHLIGHTS

• Global tourism has grown by $1.7 billion dollars over the past seven years, a rate of 4% growth per year • China’s T&T has grown over three times more than any other country over the last seven years • One third of all T&T growth in the last seven years has been in China • 87% of China’s T&T spend is domestic • The only country in the top ten for both size and speed of growth is Philippines • Other countries which make the top 30 for both size and speed of tourism growth are China, Iraq, Philippines,

Qatar and Thailand. Which countries have seen the largest growth in Travel & Tourism’s contribution to GDP over the past seven years?

Total T&T GDP 2017 (US$bn real prices)

2017 T&T % of GDP Actual growth (2011-2017

US$bn real prices)

WORLD 8272.34 10.4 1746.14 1 China 1349.3 11.0 612.7 2 United States 1501.9 7.7 173.9 3 India 234.0 9.4 79.1 4 Italy 253.5 13.0 47.2 5 Mexico 185.4 16.0 45.9 6 United Kingdom 266.1 10.5 42.9


7 Thailand 95.0 21.2 39.3 8 Philippines 66.3 21.1 36.5 9 Germany 395.2 10.7 35.1

10 Spain 196.2 14.9 28.3 11 Turkey 98.4 11.6 28.0 12 Australia 151.4 11.0 25.4 13 Japan 331.2 6.8 24.8 14 Canada 106.5 6.5 18.9 15 Indonesia 58.9 5.8 16.4 16 United Arab Emirates 42.0 11.3 12.6 17 Malaysia 41.9 13.4 12.4 18 Sweden 52.4 9.5 10.7 19 Iran 30.7 7.3 10.4 20 Qatar 16.4 10.0 10.2 21 Norway 36.3 9.0 9.0 22 South Korea 71.4 4.7 8.9 23 Chile 28.4 10.4 8.9 24 Iraq 13.9 8.4 8.5 25 Nigeria 20.2 5.1 8.3 26 Portugal 38.0 17.3 8.1 27 New Zealand 33.0 17.9 7.1 28 Singapore 31.5 10.2 6.4 29 Pakistan 22.3 7.4 6.0 30 Peru 20.8 9.8 6.0

In which countries did Travel & Tourism’s contribution to GDP grow fastest?

T&T Total GDP 2017 (US$bn real prices)

2017 T&T % of GDP CAGR (2011 - 2017)

WORLD 8272.34 10.4 4.0% 1 Myanmar 4.9 6.6 25.3% 2 Azerbaijan 5.6 14.6 17.8% 3 Qatar 16.4 10 17.7% 4 Georgia 4.7 31 17.6% 5 Iraq 13.9 8.4 17.0% 6 Swaziland 0.3 6.9 15.7% 7 Philippines 66.3 21.1 14.2% 8 Ivory Coast 3.3 8.3 13.8% 9 Iceland 8.5 34.6 13.4%

10 Sao Tome and Principe 0.1 24.3 13.0% 11 Moldova 0.3 3.3 12.9% 12 Sri Lanka 9.9 11.6 12.9% 13 Nicaragua 1.7 12.7 12.1% 14 Rwanda 1.1 12.7 12.0% 15 Democratic Republic of Congo 0.6 1.8 11.8% 16 Mongolia 1.2 11.4 11.7% 17 Sudan 5.6 5.4 11.4% 18 Armenia 1.7 15.7 11.0% 19 China 1,349.3 11 10.6% 20 Congo 0.3 4 10.0% 21 Madagascar 1.8 16.6 9.7% 22 Mozambique 1.2 8.8 9.6%


23 Dominican Republic 13.0 17.2 9.5% 24 Tonga 0.1 18.2 9.3% 25 Thailand 95.0 21.2 9.3% 26 Nigeria 20.2 5.1 9.1% 27 Burkina Faso 0.5 3.9 8.7% 28 Cambodia 7.2 32.4 8.2% 29 Paraguay 1.4 4.8 8.1% 30 Belize 0.8 41.3 8.0%

In 2017, Travel & Tourism contributed an additional US$1.7 trillion to the GDP compared to seven years earlier. While 12 of the top 20 countries with regards to power rankings (largest absolute growth) in total Travel & Tourism GDP are in the G20 and developed tourism markets, one third of all growth came from China alone. Last year, total Travel & Tourism GDP contributed US$1.3 trillion in China, an increase of US$612 billion in just seven years, placing it now just behind the contribution in the USA of US$1.5bn. China’s Travel & Tourism economy is largely driven by its domestic market which made up 87% of total spending in 2017. India, which came third in the power ranking of tourism GDP, has a Travel & Tourism sector that is dominated by its domestic market to the same degree as China. Its total Travel & Tourism GDP growth of US$79.1 billion over the seven years to 2017 was driven primarily by Indians visiting within their country. Regarding the actual increase in total Travel & Tourism GDP over the seven years to 2017, the top ten countries include four from Europe - Italy, UK, Germany and Spain. The additional income earned from Travel & Tourism in these four countries represented 59% of the absolute growth of Europe as a whole and significantly supported the economies at a time of austerity and recovery from financial crisis. The compound annual growth rate (CAGR) of total Travel & Tourism GDP for the world as a whole is a very respectable 4.0% over the years 2011 to 2017. Twenty countries reached double figures, with Myanmar leading these performance rankings, recording an astounding 25.3% growth per year, or actual growth from US$1.3 billion Total Travel & Tourism GDP in 2011 to US$4.9 billion in 2017. Earning an additional US$36.5 billion and growing at an annual rate of 14.2% over the seven years, the Philippines is the only country in the top 10 in both power and performance rankings. China and Thailand, ranking first and seventh respectively for absolute growth are also among the top 30 countries for annual percentage growth of Travel & Tourism GDP. As in Myanmar, the greatest growth over the seven years to 2017 is primarily in countries where the sector is nascent, indicating that the economic benefits of Travel & Tourism are spreading widely across the world.

• Rwanda which has had 12% growth over each of the seven years, has prioritised the sustainable growth of tourism, with real and tangible impacts both in terms of community development and conservation. The creation of public, private and community partnerships has been particularly instrumental in the restoration and expansion of parks and in supporting local communities’ livelihoods through tourism projects.

• Iceland, ninth out of 185 countries in terms of annual average growth at 13.4% per year, has strategically used Travel & Tourism as a means for the country to rebuild after the collapse of its banking sector in the 2008 financial crisis and subsequent devaluation of the currency. The country’s main airport, Keflavík, is among the global airports with the greatest increase in connectivity since 2008, with aviation growth facilitating the tourism boom to the island.

• The increasing political stability and security of Iraq, long a destination for religious pilgrims, has supported the growth of new types of tourism, such as that for archaeological and business tourism. Iraq is in the top 30 for both total Travel & Tourism absolute growth and annual percentage growth for the years 2011 to 2017.

Visitor Exports - Travel & Tourism is an export sector attracting foreign spending to a country in the form of international visitors. The spending by foreign visitors in a country is called visitor exports and makes up over a quarter of all Travel & Tourism spend at a global level, US$1.5 trillion.


HIGHLIGHTS

• Over the past seven years, international visitor spend has increased by $323 billion, a rate of 4.1% per year • Thailand has attracted the highest growth in visitor spend over the past seven years • Japan’s visitor exports has grown by US$27 billion over the past seven years, a growth rate of 27.4% -

significant growth for a mature market • Spain’s visitor exports grew 2.5 times more than for any other European Union country • Nine countries made the top 30 in both size and speed of visitor export growth – Colombia, Indonesia, Iran,

Japan, Mexico, Philippines, Qatar, Sri Lanka and Thailand. Which countries have seen the largest growth in spending from international visitors in the past seven years?

T&T Visitor Exports 2017 (US$bn real prices)

% of total exports 2017 Actual growth (2011-2017

US$bn real prices)

WORLD 1,494 6.5 322.8 1 Thailand 59.6 19.2 29.3 2 Japan 35.3 4.1 27.0 3 China 125.3 5.2 26.4 4 United States 200.7 8.6 19.7 5 Spain 75.4 16.4 18.6 6 United Arab Emirates 33.6 8.7 13.5 7 Mexico 22.4 5.2 12.0 8 India 27.3 5.8 10.5 9 Turkey 31.3 14.8 9.5

10 Qatar 12.2 14.3 8.2 11 Portugal 20.6 22.0 7.6 12 Italy 44.9 7.4 7.4 13 Australia 23.4 7.8 6.9 14 United Kingdom 35.6 4.7 6.9 15 Indonesia 14.4 7.0 6.9 16 Germany 50.4 2.9 6.9 17 Sweden 16.5 6.7 5.9 18 Greece 19.5 28.4 4.4 19 Ireland 12.9 3.3 4.4 20 Canada 17.2 3.3 4.1 21 Philippines 7.5 8.0 3.7 22 Poland 13.0 4.6 3.7 23 Sri Lanka 4.7 25.3 3.3 24 Saudi Arabia 13.2 5.8 3.3 25 Netherlands 18.5 2.6 3.2 26 Colombia 6.1 14.3 3.2 27 Dominican Republic 7.4 38.7 3.0 28 Iran 4.6 3.9 3.0 29 Croatia 11.0 39.0 3.0 30 New Zealand 10.0 20.7 3.0


Which countries have seen fastest growth in international visitor spend?

T&T Visitor Exports 2017 (US$bn real prices)

% of exports 2017 CAGR (2011 - 2017)

WORLD 1,494 6.5 4.1% 1 Myanmar 2.4 24.7 43.6% 2 Guinea 0.0 0.3 35.7% 3 Sudan 1.4 25.9 32.8% 4 Azerbaijan 3.2 16.5 27.9% 5 Japan 35.3 4.1 27.4% 6 Sri Lanka 4.7 25.3 23.0% 7 Georgia 3.0 46.8 22.8% 8 Lesotho 0.1 5.5 22.4% 9 Mongolia 0.5 6.7 22.3%

10 Sao Tome and Principe 0.1 59.2 21.2% 11 Qatar 12.2 14.3 20.2% 12 Iran 4.6 3.9 19.9% 13 Iceland 4.1 37.6 19.1% 14 Iraq 2.5 13.2 15.4% 15 Mexico 22.4 5.2 13.6% 16 Madagascar 1.0 26.0 13.2% 17 Nicaragua 0.8 14.9 13.2% 18 Colombia 6.1 14.3 13.1% 19 Bangladesh 0.2 0.6 12.5% 20 Swaziland 0.0 0.4 12.1% 21 Thailand 59.6 19.2 11.9% 22 Chile 4.8 6.2 11.9% 23 Philippines 7.5 8.0 11.9% 24 Indonesia 14.4 7.0 11.4% 25 Kazakhstan 1.9 3.6 11.3% 26 Tonga 0.1 63.4 11.1% 27 Republic of Congo 0.1 0.7 11.1% 28 Armenia 1.1 29.2 10.9% 29 Oman 2.7 7.1 10.3% 30 Niger 0.1 7.3 10.2%

Five of the top ten and 11 of the top 20 countries earning most from visitor exports over the past five years are in the G20. Thailand and Japan are the top of the power league for foreign visitor spending over the past seven years, adding an additional US$56.3 billion to their economies, or 17.4% of the total global increase of US$322.8 billion. Both of these countries have experienced rapid growth in inbound arrivals driven by the expanding outbound Chinese market. For Japan, this has been aided to some extent by favourable economics, especially strengthened competitiveness as a result of a weakened yen. The Japanese government has also actively and strategically supported the development of international tourism with appropriate policies, including visa facilitation measures for key source markets in the region, measures to support the large inflow of Chinese tourists, and innovative programmes to make travel in the country easier and attractive. The visitor export earnings from these increased visitors has resulted in growth of 27.4% per year from 2011-17 turning into an additional US$27 billion in revenues. Japan also looks set to continue down this growth path in the run up to the Tokyo Olympics in 2020 with a goal to attract 40 million international tourists in 2020 and 60 million by 2030. In 2017, international visitor numbers grew 19.4% to 28.7 million. With certain places in Japan now struggling to cope with rising visitor numbers, the government is especially keen on encouraging tourists – both domestic and foreign – to visit more rural areas and spread the benefits of tourism away from the major urban centres.


Spain, Portugal and Italy, all in the top 12, have benefited economically from increased visitors in recent years as tourists moved away from travelling to Southern Mediterranean countries due to concerns about civil unrest, diplomatic rows and a spate of terror attacks. The world growth rate of 4.1% per year across seven years is bettered by 97 countries in our study. At the very top of the performance rankings, Myanmar, Guinea and Sudan have seen tremendous growth of 43.6%, 35.7% and 32.8% respectively. Myanmar has benefited considerably both from the growing outbound Chinese market on its regional doorstep and from the easing of trade and economic sanctions following the dissolution of the military junta. For the two leading African countries, while this year-on-year growth is incredible, it masks the fact that the absolute changes are quite tiny, especially in Guinea. In 2011 it was placed at the very bottom of the 185 countries we hold data on for visitor exports, growing from US$1 million that year to US$6.2million in 2017. For Sudan, visitor export contribution has gone from US$247million in 2011 to US$1.4 billion, driven, interestingly, by a growing leisure market. Mexico’s growth of 13.6% per year from 2011-17 is particularly significant in that this has translated into an additional US$12 billion in revenue, placing it seventh out of 185 countries for visitor export growth over this time. Commentary – Visitor Export Growth and Volatility1 Chart 1: Visitor exports: growth vs. standard deviation (2011-17) - (Source: WTTC/Oxford Economics)

Visitor export growth has varied significantly across the globe over the last seven years. The above chart plots the compound annual visitor export growth rate and volatility of this growth (as measured by standard deviation) as seen in a selection of countries during 2011-17. A higher percentage volatility means that visitor export growth is more changeable, while a lower percentage points to greater year-on-year stability. A wide range in performance from country to country reflects the differing stages of maturity of tourism sector and the geopolitical, economic and natural hazard risks in each of the countries.

• Myanmar stands out as the strongest country in the world in terms of visitor export growth over the last seven years. It expanded on average by 43.6% pa, but it also experienced strong volatility. Myanmar’s remarkably high growth in foreign visitor spending came in the immediate years following a change in the government’s regime

ARGENTINA

AUSTRALIA

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JAPAN

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SAUDI ARABIA

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CAMBODIA

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IRELAND

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and opening-up of its borders to international tourists in late 2010. However, the growth has been relatively flat in 2016-17 driven in part by the crisis in Rakhine State. Strong visitor export growth during 2011-17 was also witnessed in other Southeast Asian countries such as Thailand (11.9% pa), the Philippines (11.9% pa), Cambodia (7.7%) and Laos (7.4% pa). The position above the trendline - for Laos and Singapore - indicates that the foreign visitor spending growth has been relatively volatile in these two countries compared with other markets. Singapore’s volatile position may come as a surprise and was mainly due to a very strong rebound in foreign tourist spending after the global financial crisis ended in 2010, and by a decline in 2015, when tumbling local currencies hit travellers from Indonesia and Malaysia - two of the city-state’s biggest markets.

• Visitor exports in Japan grew on average by a remarkable 27.4% pa during 2011-17, although this conceals a significant variation in growth from one year to another. For instance, strong expansion in 2017 (at 13.3% pa) came on the back of the yen’s depreciation against other currencies, particularly the yuan, which encouraged stronger spending by one of Japan’s largest visitor groups - Chinese tourists. In contrast, foreign tourist spending plunged by a significant 26.4% in 2011 due to an earthquake, tsunami and nuclear crisis in Fukushima Prefecture, which had a negative impact on international tourist arrivals. Similarly, South Korea’s position significantly above the trendline indicates strong volatility in foreign visitor spending. South Korea’s economic dependency on China means that visitor exports decline sharply when its political and economic risks with Beijing heighten. For instance, visitor exports fell by a remarkable 23.7% in 2017, following the government’s decision to deploy the THAAD (Terminal High Altitude Area Defence) system, which increased the anti-Korean sentiment in China.

• Some of the strongest growth in combination with high volatility in foreign visitor spending was witnessed in two Middle Eastern countries, Iran and Qatar. Visitor exports in Iran grew at an average rate of 19.9% pa during 2011-17 with the strongest growth witnessed during 2013 and 2014, when the newly elected government adopted a looser visa policy. Moreover, during the same period, Iran’s currency, the rial, fell sharply in value under international sanctions over Tehran’s disputed nuclear programme. This attracted international tourists who were not affected by the trade ban. Qatar has seen a 20.2% growth in visitor exports over the last seven years. The strongest expansion was recorded in 2011 and 2012, partly due to the strategy adopted by Qatar’s government of targeting transiting travellers for a stopover in Doha. The Asian Football Cup, held in Qatar during January 2011, also helped to boost foreign tourist arrivals. In contrast, international tourist spending fell by 1.7% in 2017 as Saudi Arabia, the UAE, Bahrain and Egypt cut diplomatic and transport ties with Qatar.

• Among the European countries, Iceland has seen the strongest compound annual growth rate in foreign visitor spending (19.1% pa) over the last seven years. Its relatively consistent annual growth has been underpinned by an increase in the number of direct flights to and from the country and supported by the country’s strong visibility on various traditional and social media platforms.

• The slowest growth amongst the major global economies during 2011-17 was recorded in Argentina, where foreign tourist spending declined on average by 4.1% pa. The country needs transportation infrastructure development to grow and the decline came on the back of cyclical economic and political uncertainty and high inflation.

2. DOMESTIC SPENDING

Domestic spending is the money spent by residents of a country for both business and leisure trips that take place in that country. Nearly three-quarters of all Travel & Tourism spending (72.3%) is from domestic tourists. While money from domestic tourism is not new money to a country, its use in terms of informing residents of countries’ natural and cultural attributes and engendering a source of pride is essential for social harmony. Domestic tourism is also important in spreading visitor spending to shoulder and off-season months and in dispersing visitors to less internationally-promoted regions and attractions. A strong domestic industry also helps to withstand shocks and demand fluctuations that may arise in the external markets.


HIGHLIGHTS • Absolute growth of domestic spending was 2.6 times higher than that of visitor exports over the seven years to

2017 • At the global level, domestic spending has grown on average by 4% per year between 2011 and 2017 • Over half of the absolute growth in domestic Travel & Tourism spending over the past seven years has come from

China alone • In well-established international tourism markets such as Spain, Turkey and UAE, the share of domestic spending

has fallen over the years from 2011-17 • Iraq and Rwanda took the top two spots in performance rankings for domestic tourism spending across the seven

years.

Which countries have seen the largest growth in spending from domestic visitors in the past seven years?

2017 Domestic T&T Spending

2017 share of internal T&T spending

Actual growth (2011-2017 US$bn real prices)

WORLD 3970.5 72.7 831.2

1 China 840.9 87.0 444.5 2 United States 802.8 80.0 80.3 3 India 186.0 87.2 62.0 4 Germany 339.7 87.1 32.3 5 Italy 149.0 76.8 31.8 6 Philippines 45.7 85.9 26.2 7 United Kingdom 169.6 82.6 25.0 8 Mexico 115.9 83.8 19.5 9 Australia 79.5 77.3 13.5

10 Canada 59.4 77.5 8.9 11 Malaysia 16.8 47.5 7.6 12 Iran 16.4 78.3 5.1 13 Spain 59.4 44.0 4.7 14 France 127.5 71.7 4.7 15 Indonesia 20.5 58.7 4.6 16 South Korea 49.6 74.7 4.6 17 Turkey 26.7 46.1 4.5 18 Iraq 6.1 70.6 3.9 19 Saudi Arabia 17.2 56.6 3.6 20 Vietnam 8.6 49.3 3.5 21 United Arab Emirates 10.8 24.3 3.5 22 Nigeria 11.5 92.7 3.1 23 Peru 11.2 71.3 3.1 24 New Zealand 15.1 60.0 3.1 25 Chile 15.2 75.9 2.9 26 Pakistan 12.9 93.2 2.9 27 Norway 15.0 70.1 2.9 28 Bangladesh 8.5 97.4 2.6 29 Singapore 9.1 32.3 2.5 30 Denmark 10.1 57.2 2.0


Which countries have seen fastest growth in domestic visitor spend?

2017 Domestic T&T Spending

2017 share of internal T&T

spending CAGR (2011 - 2017)

WORLD 3970.5 72.7 4.0%

1 Iraq 6.1 70.6 18.4% 2 Rwanda 0.3 38.3 16.0% 3 Philippines 45.7 85.9 15.2% 4 Democratic Republic of Congo 0.5 99.2 14.7% 5 Swaziland 0.3 97.2 14.1% 6 Togo 0.1 27.9 13.8% 7 China 840.9 87.0 13.4% 8 Ivory Coast 2.6 91.9 12.3% 9 Myanmar 1.1 32.4 11.1%

10 Malaysia 16.8 47.5 10.6% 11 Mozambique 0.6 77.3 10.6% 12 Mali 0.8 81.2 10.6% 13 Brunei Darussalam 0.3 43.0 10.3% 14 Niger 0.3 76.5 9.8% 15 Tanzania 1.1 33.4 9.7% 16 Vietnam 8.6 49.3 9.2% 17 Sudan 2.8 67.3 8.7% 18 Armenia 0.2 16.2 8.3% 19 Congo 0.2 76.7 8.0% 20 Georgia 0.8 20.5 7.7% 21 Albania 0.6 24.6 7.7% 22 India 186.0 87.2 7.0% 23 Qatar 2.0 13.9 7.0% 24 Namibia 1.1 92.0 6.9% 25 Dominican Republic 2.4 24.8 6.9% 26 Latvia 0.9 41.6 6.9% 27 United Arab Emirates 10.8 24.3 6.8% 28 Madagascar 0.2 15.4 6.7% 29 Macau 1.1 2.9 6.7% 30 Burkina Faso 0.2 54.2 6.5%

Domestic spending at the global level represents 72.3% of Travel & Tourism spending, and over the seven years, absolute growth of domestic spending was higher than that of visitor exports. Global domestic spending growth of US$831.2 billion is over 2.5 times that of the growth of visitor exports at US$322 billion. Over half of the absolute growth in global domestic Travel & Tourism spending over the past seven years came from China alone, with the country comfortably taking the top spot in power rankings. During this time, the government of China has strongly supported domestic tourism, particularly as a tool for eliminating rural poverty, and is building a number of ‘characteristic towns’ to highlight local culture. Back in 2011, India had the sixth largest domestic Travel & Tourism market in the world. By 2017, given the increase of US$62 billion, it had grown to fourth. Domestic tourism now contributes US$186 billion to the Indian economy, 87.2% of the value of total Travel & Tourism internal spending2. In the well-established international tourism markets of Spain, Turkey and UAE, domestic spending represents less

2 Internal spending is the total of domestic Travel & Tourism spending and international visitor spending


than half of the total internal contribution from Travel & Tourism and the share of domestic spending has continued to fall during 2011-17. The amount earned over the seven years, while significant, pales in comparison to the amount earned from visitor exports. In both Malaysia and Vietnam however, where the share of domestic spending is also less than half that of internal spending, the share has slowly increased over the seven years. At the global level, domestic spending has grown on average by 4% per year between 2011 and 2017. Nineteen countries have had domestic tourism growth at a rate of double or more the world average. This includes the top two countries in performance rankings, Iraq (18.4%) and Rwanda (16.0%), where conflict has ended or drastically subsided. The Philippines, which also was placed sixth in the power rankings of domestic spending (US$26.2 billion), had the third highest annual growth rate (15.2%) of all 185 countries. 3. CAPITAL INVESTMENT

Capital Investment in Travel & Tourism is required to support the growth and development of the sector. Whether provided publicly through governments or privately to build or expand capacity, maintain or enhance infrastructure and to stimulate demand, it will include spending across all industries in the following roles: • accommodation development and major maintenance, including provision of new building structures

and furniture and equipment to fit-out or refurbish existing hotels and holiday homes;

• passenger transport, such as aircraft and cruise ships, for specific tourism use;

• capital projects and refurbishments designed to attract visitors;

• information technology (ICT) projects; and

• sustainability-oriented investments within the industry, such as solar and retrofit schemes, designed to enhance energy efficiency.

Government investment spending is often directed toward the construction of visitor centres, tourist information offices, publicly-funded airports, and utilities (including, e.g. water supply and ICT-based infrastructure), but can also include contributions to large resort-based investments. Overall, US$882 billion was spent on Travel & Tourism capital investment across the world in 2017, 4.5% of total global investment. HIGHLIGHTS • Capital investment increased by $204 billion between 2011 and 2017, equivalent to 4.5% a year • 55% of this increase was seen in China and USA. • G20 countries dominate in terms of size but emerging markets have seen the most rapid increase in capital

investment • Ireland is the only non G20 country in the top ten, with an increase of $3 billion. • Mexico is the only country to make the top ten in both power and performance league, with an increase of $6.5

billion and a rate of 13.5% a year


Which countries have seen the largest growth in Travel & Tourism capital investment in the past seven years?

T&T Investment 2017 (US $bn Real Prices)

2017 % Total Investment Actual growth (2011-2017

US$bn real prices)

WORLD 882.4 4.5 203.7

1 China 154.7 3.0 64.4

2 United States 176.3 4.6 47.4

3 India 41.6 6.3 10.8

4 Japan 35.9 3.1 10.2

5 United Kingdom 21.6 5.2 7.0

6 Turkey 20.5 8.0 6.9

7 Mexico 12.2 4.6 6.5

8 Canada 13.4 3.6 4.9

9 Spain 20.9 7.7 4.1

10 Ireland 8.6 11.0 3.0

11 Norway 6.2 6.4 3.0

12 Indonesia 12.0 3.7 2.9

13 South Korea 11.0 2.3 2.8

14 Singapore 14.5 20.9 2.5

15 Sweden 4.7 3.3 2.1

16 United Arab Emirates 6.9 8.0 1.8

17 Malaysia 5.3 6.7 1.8

18 Netherlands 4.9 2.9 1.7

19 Thailand 7.7 7.3 1.7

20 Chile 6.2 10.5 1.6

21 Pakistan 3.9 9.1 1.5

22 Morocco 4.6 13.5 1.4

23 Switzerland 4.3 2.6 1.3

24 Nigeria 4.1 7.1 1.2

25 Australia 18.0 5.4 1.2

26 Vietnam 5.1 8.5 1.2

27 Hong Kong 6.5 8.8 1.1

28 Finland 2.2 3.8 1.0

29 Israel 3.3 4.7 0.9

30 Iraq 1.6 3.5 0.9


Which countries have seen fastest growth in Travel & Tourism capital investment?

T&T Investment 2017 (US $bn Real Prices)

2017 % Total T&T Investment

CAGR (2011 - 2017)

WORLD 882.4 4.5 4.5%

1 Ivory Coast 0.2 2.6 23.2% 2 Myanmar 0.3 1.2 20.6% 3 Malawi 0.0 4.7 16.6% 4 Maldives 0.2 29.6 16.4% 5 Cambodia 0.8 15.8 16.2% 6 Iraq 1.6 3.5 14.6% 7 Montenegro 0.4 35.1 13.8% 8 Iceland 1.0 17.0 13.5% 9 St Kitts and Nevis 0.1 16.7 13.5%

10 Mexico 12.2 4.6 13.5% 11 Belize 0.1 27.0 13.1% 12 Georgia 0.2 3.6 12.3% 13 Macedonia 0.1 2.4 11.9% 14 Laos 0.6 10.5 11.8% 15 Zambia 0.2 1.7 11.8% 16 Norway 6.2 6.4 11.7% 17 Finland 2.2 3.8 10.8% 18 Azerbaijan 0.3 2.9 10.7% 19 Sweden 4.7 3.3 10.6% 20 Rwanda 0.2 8.6 10.6% 21 Cayman Islands 0.2 23.9 10.1% 22 Mozambique 0.2 4.3 9.5% 23 China 154.7 3.0 9.4% 24 Tajikistan 0.1 4.0 9.3% 25 Togo 0.0 2.3 9.2% 26 Malta 0.3 11.2 9.0% 27 Niger 0.1 1.6 8.7% 28 Nicaragua 0.2 4.0 8.6% 29 Brunei Darussalam 0.6 11.1 8.4% 30 Mongolia 0.7 26.4 8.4%

China and the USA sit comfortably on top in the power rankings, with the additional billions of dollars earned in the past seven years (US$64.4 billion and US$47.4 billion) dwarfing that of other countries. Not surprisingly, overall, the greatest absolute growth is largely concentrated among the G20 and in countries of the wealthier northern hemisphere. Interestingly, in 30th position is Iraq, where the government’s focus on investing in the country’s cultural and tourism components appears to be paying off. It has received nearly one billion in additional capital investment over the past seven years. Over the past seven years, capital investment growth has been particularly fast across emerging markets and developing economies, with Ivory Coast, Myanmar and Malawi leading in the performance rankings. Mexico, a well-established Travel & Tourism economy, saw significant growth in recent years as did many countries in Northern and Eastern Europe. Iceland has seen capital investment grow by 13.5% per year since 2011; this has been necessary to align with the 19.1% per annum growth that the country has received over that time in visitor exports.


COMMENTARY: T&T CAPITAL INVESTMENT GROWTH AND VOLATILITY Chart 1: T&T capital investment: growth vs. standard deviation (2011-17) - (Source: WTTC/Oxford Economics)

Investment in Travel & Tourism infrastructure is needed to support and sustain the strong growth in demand that the sector has witnessed over the past years. The above chart plots the compound annual Travel & Tourism capital investment growth rate and volatility of this growth (as measured by standard deviation) as seen in a selection of countries over the last seven years (2011-17). A wide range in performance from country to country reflects the differing stages of maturity of the tourism sector, and political/economic factors underpinning the investment/infrastructure landscape in each of the countries. • South-East Asian countries have led global growth in Travel & Tourism capital investment over the last seven

years. Myanmar, Cambodia and Laos were the star performers, recording annual growth rates of 20.6%, 16.2% and 11.8% respectively during 2011-17. While Travel & Tourism capital investment grew relatively consistently in Laos and Cambodia during this period, the position for Myanmar highly above the trendline indicates strong volatility. The strongest growth in Myanmar came in 2013 and then in 2015-2016, following major airport investment improvements at Yangon International Airport. However, it is important to emphasise that despite these remarkable growth rates, absolute investment volumes remain low in these countries compared with other countries in the region. Travel & Tourism investment in 2017 reached a mere $0.3 billion in Myanmar, $0.6 billion in Laos and $0.8 billion in Cambodia. This compares to a much more significant $7.7 billion in Thailand and $14.5 billion in Singapore in 2017. It is also important to note that in some of these countries, particularly in Myanmar and Cambodia but also Thailand, increased levels of infrastructure development are required to support ongoing strong demand growth for tourism services so not to act as a barrier to growth going forward.

• The Travel & Tourism sector in China has been rising steadily over the last seven years, boosted by strong economic development, rising incomes and increasing demand for travel from both domestic and international tourists. In addition to eight new airports built every year, a rapid development of China’s high-speed rail network over the last 15 years has opened up previously remote places to tourists and created new business and investment opportunities. While Travel & Tourism capital investment grew on average by a strong 9.4% pa during 2011-17, China experienced one of the lowest volatilities amongst the countries in our analysis. The Chinese government continues to invest in Travel & Tourism infrastructure to facilitate economic growth as signs of weaknesses in many other key areas of the economy continue to emerge.

ARGENTINA

AUSTRALIA

BRAZILCANADA

CHINA

FRANCE

GERMANY

INDIA

INDONESIA

ITALY

JAPAN

SOUTH KOREA

MEXICO

RUSSIA

SOUTH AFRICASAUDI ARABIA

TURKEY

UKUS

COLOMBIA

EGYPTJAMAICA

MALAYSIA

NETHERLANDS

PERU

PHILIPPINES

SINGAPORE

SPAIN

THAILANDUAE

VIETNAM

BOLIVIACAMBODIA

CHILE

GREECE

HUNGARY

ICELAND

IRAN

LAOS

MOROCCO

MYANMAR

PORTUGAL

QATAR

SRILANKA

R² = 0.1136

-2.5%

2.5%

7.5%

12.5%

17.5%

22.5%

27.5%

32.5%

-5.0% 0.0% 5.0% 10.0% 15.0% 20.0%

Capi

tal i

nves

tmen

t gro

wth

stan

dard

dev

iatio

n (2

011-

17)

Capital investment growth % pa (2011-17)


• Mexico, a well-established Travel & Tourism economy, saw one of the strongest growth rates in T&T investment amongst the countries in our analysis during 2011-17, growing on average by 13.5% pa. The Mexican government invested in extensive infrastructure development, through the National Infrastructure Program. The Communications and Transport Secretariat announced that from 2012 to 2015, $1.9 billion was invested in the Mexican aviation sector, with Cancun Airport receiving over $57.3 million for the construction of Terminal 3. Meanwhile, private investment over the last seven years has focussed on the construction of new hotels, the renovation of existing ones and improvements to public places. Strong growth in infrastructure development has been matched by a rapid growth in international tourist arrivals as Mexico climbed into the top 10 most visited countries in the world in 2017, up from the 13th position in 2012.

• Among the European countries, Iceland and the Netherlands saw some of the strongest but also the most volatile growth rates in T&T investment. Capital investment in Iceland has grown on average by 13.5% pa since 2011; this has been necessary to align with the 19.1% pa growth that the country has received over that time in visitor exports. Examples of the major investments over the last few years included the €100 million expansion of Keflavik Airport and new aircraft purchases by Icelandair Group. Meanwhile, Schiphol Airport in Amsterdam has also received a significant investment over the last few years to maintain its position as one of the world’s leading airports. Travel & Tourism capital investment growth in many other European countries was much more moderate during 2011-17, impacted by political uncertainties, fiscal austerity and government deficits.

CONCLUSION Travel & Tourism continues to prove its tremendous strength as a dynamic engine of jobs and prosperity. By highlighting the scale of that growth both in absolute terms (measure of power) as well as speed of that growth (performance measure) over the past seven years, clear patterns begin to emerge. Absolute (power) growth, perhaps not surprisingly, is greatest where markets are already developed and strong. Twelve of the countries with the greatest absolute growth in total Travel & Tourism GDP are in in the G20 for example, and similar trends exist across the other indicators in the study: visitor exports and capital investment. The country with the greatest absolute levels of growth continues to be China, where change on most metrics over the past seven years dwarfs that of many other countries. Together with China, the USA, India, Mexico and the UK make up the top five placed countries in power rankings across all measures combined in the report. In three of the five top-ranked countries (Myanmar, Iraq, Georgia, Rwanda and Iceland) for annual growth across all four metrics, post-conflict stability is a clear reason for the increase. These performance rankings also highlight how Travel & Tourism is spreading quickly among emerging markets and developing countries, distributing the benefits of the sector widely across the world – particularly for international visitors. As travellers have become more adventurous, annual growth rates in visitor exports of more than 10% are evident in all of the top 30 countries over the past seven years. In many countries of the developing world, while the amount of capital investment tends to be small in absolute terms, the rate of growth of Travel & Tourism capital investment is high and brings considerable financial and employment benefits as a result. WTTC is proud to continue to provide the evidence base to help decision-makers understand the value of Travel & Tourism and to work with them to maximise sustainable opportunities for future growth.


APPENDIX 1 Total Travel & Tourism contribution to GDP, 2017

Ranking Country US$ Millions (real 2017 prices and exchange

rates)

World 8,272,336.0

1 United States 1,501,906.0

2 China 1,349,302.0

3 Germany 395,157.6

4 Japan 331,151.6

5 United Kingdom 266,096.3

6 Italy 253,449.8

7 India 234,011.8

8 France 231,963.1

9 Spain 196,226.6

10 Mexico 185,362.0

11 Brazil 163,045.3

12 Australia 151,428.6

13 Canada 106,477.0

14 Turkey 98,423.4

15 Thailand 95,004.5

16 Russia 76,059.7

17 South Korea 71,393.0

18 Philippines 66,320.9

19 Saudi Arabia 64,231.4

20 Argentina 63,595.2

21 Austria 61,957.7

22 Switzerland 61,912.5

23 Indonesia 58,882.2

24 Hong Kong 56,670.2

25 Sweden 52,352.9

26 Netherlands 43,084.0

27 United Arab Emirates 41,950.5

28 Malaysia 41,867.6

29 Greece 39,746.3

30 Portugal 38,033.7

31 Norway 36,305.0

32 New Zealand 32,982.6

33 Singapore 31,479.9

34 South Africa 30,970.0


35 Iran 30,747.2

36 Macau 29,850.9

37 Chile 28,409.0

38 Belgium 28,020.3

39 Denmark 25,093.6

40 Taiwan 24,392.5

41 Poland 23,866.8

42 Pakistan 22,286.3

43 Finland 21,300.3

44 Israel 21,082.9

45 Egypt 21,075.8

46 Peru 20,838.8

47 Vietnam 20,605.6

48 Nigeria 20,233.9

49 Morocco 20,049.5

50 Ireland 19,441.0

51 Colombia 18,075.5

52 Czech Republic 16,829.2

53 Qatar 16,372.1

54 Iraq 13,914.6

55 Croatia 13,743.3

56 Dominican Republic 13,006.9

57 Other Oceania 12,971.3

58 Algeria 11,258.0

59 Romania 11,185.7

60 Hungary 10,991.8

61 Bangladesh 10,567.4

62 Sri Lanka 9,871.2

63 Cuba 9,710.2

64 Lebanon 9,345.1

65 Kazakhstan 9,007.4

66 Panama 8,504.3

67 Iceland 8,464.1

68 Venezuela 7,767.7

69 Jordan 7,632.8

70 Costa Rica 7,514.7

71 Kenya 7,432.9

72 Cambodia 7,206.7

73 Puerto Rico 7,185.7


74 Kuwait 6,900.1

75 Bulgaria 6,591.7

76 Uruguay 6,542.9

77 Slovakia 6,082.0

78 Guatemala 6,058.1

79 Slovenia 5,787.1

80 Tunisia 5,677.3

81 Azerbaijan 5,601.0

82 Sudan 5,551.6

83 Ukraine 5,452.2

84 Ecuador 5,381.8

85 Ethiopia 5,074.3

86 Angola 5,002.3

87 Myanmar 4,918.2

88 Cyprus 4,727.2

89 Tanzania 4,721.0

90 Jamaica 4,718.1

91 Georgia 4,681.7

92 Oman 4,616.2

93 Bahamas 4,343.4

94 Estonia 3,919.4

95 Albania 3,471.9

96 Belarus 3,408.2

97 Honduras 3,352.0

98 Bahrain 3,345.7

99 Cote d'Ivoire 3,323.9

100 Malta 3,231.2

101 Mauritius 3,167.0

102 Maldives 2,919.0

103 Ghana 2,864.1

104 El Salvador 2,811.1

105 Latvia 2,762.2

106 Luxembourg 2,759.5

107 Libya 2,735.4

108 Serbia 2,606.8

109 Bolivia 2,569.0

110 Cameroon 2,450.4

111 Reunion 2,368.4

112 Aruba 2,360.9


113 Syria 2,351.5

114 Lithuania 2,308.3

115 Botswana 2,072.9

116 Former Netherland Antillies 2,057.9

117 Trinidad and Tobago 2,018.2

118 Laos 2,012.2

119 Fiji 1,966.3

120 Nepal 1,919.8

121 Uganda 1,913.9

122 Barbados 1,907.2

123 Zambia 1,786.5

124 Namibia 1,778.1

125 Madagascar 1,775.6

126 Armenia 1,719.7

127 Bosnia and Herzegovina 1,709.2

128 Senegal 1,692.9

129 Yemen 1,681.0

130 Nicaragua 1,659.2

131 Paraguay 1,445.5

132 Martinique 1,404.1

133 Mali 1,327.8

134 Brunei Darussalam 1,242.8

135 Mongolia 1,233.1

136 Zimbabwe 1,199.8

137 Mozambique 1,177.0

138 Rwanda 1,129.9

139 Cayman Islands 1,121.2

140 Montenegro 1,114.7

141 US Virgin Islands 1,102.9

142 Bermuda 1,047.4

143 Guadeloupe 1,042.6

144 Seychelles 969.3

145 Haiti 861.9

146 Uzbekistan 830.7

147 Cape Verde 782.9

148 Macedonia 776.9

149 Antigua and Barbuda 774.7

150 Belize 766.8

151 UK Virgin Islands 714.8


152 St Lucia 622.6

153 Democratic Republic of Congo 593.4

154 Tajikistan 561.5

155 Benin 530.3

156 Burkina Faso 501.9

157 Malawi 481.5

158 Guinea 457.0

159 Gabon 452.3

160 Chad 435.0

161 Togo 417.5

162 Niger 416.9

163 Papua New Guinea 413.7

164 Vanuatu 365.7

165 Congo 336.9

166 Lesotho 313.3

167 Swaziland 303.2

168 Moldova 295.0

169 Kyrgyzstan 273.0

170 Grenada 256.1

171 St Kitts and Nevis 255.2

172 Guyana 247.9

173 Gambia 217.3

174 Anguilla 204.1

175 Dominica 195.5

176 St Vincent and the Grenadines 184.6

177 Sierra Leone 177.7

178 Burundi 151.0

179 Central African Republic 137.0

180 Solomon Islands 119.9

181 Suriname 111.7

182 Sao Tome and Principe 101.6

183 Tonga 74.2

184 Comoros 62.1

185 Kiribati 37.3

DIRECT

INDIRECT

JOBS

INDUCED

TRAVELLERS PAY DIRECTLY TO...Airlines, coaches, rental cars, trains, cruise lines, travel agents, hotels, convention centres, restaurants, shopping centres, sports arenas, entertainment, theatre, recreation etc.

THESE ARE SUPPLIED BY...outside goods and services such as marketing and PR, cleaning and maintenance, energy providers, catering and food production, design and print etc.

BOTH OF WHICH CREATE JOBS...which pay salaries, wages, profits, and taxes

WHICH PAY INTO...infrastructure, agriculture, technology, real estate, communications, education, banks, healthcare and more.

This chart highlights the way in which the economic contribution of Travel & Tourism spreads far beyond the direct transactions made by tourists. WTTC’s analysis examines the economic contribution of Travel & Tourism on three levels:

• DIRECT includes only direct transactions by tourists for tourism services and products such as accommodation, recreation, transportation, and other related sectors.• INDIRECT measures the supply chain impact.• INDUCED measures the impact of money spent in the local economy by employees working in jobs supported by tourism both directly and indirectly. Adding together the direct, indirect, and induced impacts shows the total economic impact of Travel & Tourism.

HOW MONEY TRAVELSTHE DIRECT, INDIRECT, AND INDUCED EFFECT OF TOURISM SPENDING


The World Travel & Tourism Council is the global authority on the economic and social contribution of Travel & Tourism.

WTTC promotes sustainable growth for the Travel & Tourism sector, working with governments and international institutions to create jobs, to drive exports and to generate prosperity. Council Members are the Chairs, Presidents and Chief Executives of the world’s leading private sector Travel & Tourism businesses. Together with Oxford Economics, WTTC produces annual research that shows Travel & Tourism to be one of the world’s largest sectors, supporting over 307 million jobs and generating 10.4% of global GDP in 2017. Comprehensive reports quantify, compare and forecast the economic impact of Travel & Tourism on 185 economies around the world. In addition to the individual country reports, WTTC produces a world report highlighting global trends and 24 further reports that focus on regions, sub-regions and economic and geographic groups. To download reports or data, please visit www.wttc.org

Assisting WTTC to Provide Tools for Analysis, Benchmarking, Forecasting and Planning.

Oxford Economics is a leader in global forecasting and quantitative analysis. Our worldwide client base comprises more than 1,500 international corporations, financial institutions, government organisations, and universities. Headquartered in Oxford, with offices around the world, we employ 300 people, including 200 economists and analysts. Our best-of-class global economic and industry models and analytical tools give us an unmatched ability to forecast external market trends and assess their economic, social and business impact. For more information, visit www.oxfordeconomics.com © World Travel & Tourism Council: Travel & Tourism Power and Performance - September 2018. All rights reserved. The copyright laws of the United Kingdom allow certain uses of this content without our (i.e. the copyright owner’s) permission. You are permitted to use limited extracts of this content, provided such use is fair and when such use is for non-commercial research, private study, review or news reporting. The following acknowledgment must also be used, whenever our content is used relying on this “fair dealing” exception: “Source: World Travel and Tourism Council: Travel & Tourism Power and Performance - September 2018. All rights reserved.” If your use of the content would not fall under the “fair dealing” exception described above, you are permitted to use this content in whole or in part for non-commercial or commercial use provided you comply with the Attribution, Non-Commercial 4.0 International Creative Commons Licence. In particular, the content is not amended and the following acknowledgment is used, whenever our content is used: “Source: World Travel and Tourism Council: Travel & Tourism Power and Performance - September 2018. All rights reserved. Licensed under the Attribution, Non-Commercial 4.0 International Creative Commons Licence.”

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