COMCEC Tourism Outlook-2016
2
2 The Importance of Tourism for Development
A strong tourism sector contributes in many ways to development and the economy. It makes
both direct contributions, by raising the national income and improving the balance of
payments, and indirect contributions, via its multiplier effect and by providing the basis for
connecting countries, through hard and soft infrastructure—attributes that are also critical for
a country’s general economic competitiveness.
Over the past decades, many new destinations have emerged, challenging the traditional ones
of Europe and North America. Formany developing countries, tourism is one of themain sources
of foreign exchange income and the number one export category, creating much needed
employment and opportunities for development. The main positive economic impacts of
tourism relate to foreign exchange earnings, contributions to government revenues, generation
of employment and business opportunities. Local tourism jobs and business opportunities help
to reduce rural-urbanmigration, while opening doors to the young and fostering gender equality
through job opportunities.
Based on the information from countries with data available, the World Travel & Tourism
Council (WTTC) estimated that travel & tourism’s contribution directly to worldwide gross
domestic product (GDP) was 3 % in 2015 and is expected to rise by 3.3% in 2016. With direct
and indirect effects of more than 185 supply-side economic activities that have significant
connections to tourism, its contribution to GDP is 9.8%, a total of US$7.2 trillion, and is expected
to grow by 3.5 to US$7.4 trillion. It is also estimated that travel and tourism sector have attracted
capital investment of US$775 billion in 2015 (WTTC, 2016a).
It provided 107,8 million direct (3.6%of total employment) jobs in 2015 and direct contribution
to employment is expected to rise by 2 % in 2016. Since tourism affects transportation, hotels
and lodging, food & beverage, cultural and entertainment, banking & finance and promotion and
publicity services, tourism’s contribution to employment tends to be slightly higher. In 2015,
nearly 284 million jobs were supported in tourism related industries (WTTC, 2016a). Tourism’s
contribution is estimated as 6-7% of the overall number of jobs or one in 11 jobs globally
(UNWTO, 2016a). According to the WTTC, travel & tourism will support 370 million jobs which
indicates 11% of total employment (WTTC, 2016a).
Figure 2.1 Why Tourism Matters?
Source: UNWTO, Tourism Highlights 2016 Edition.
According to the UNWTO, total exports earnings generated by international tourism in 2015
reached US$ 1.5 trillion or US$ 4 billion a day on average. International tourism represents 7%
of the world’s exports in goods and services, up from 6% in 2014, as tourism has grown faster
10% GDP
(Direct, Indirect
and Induced)
1/11
JOBS
US $ 1.5
TRILLION IN
EXPORTS
7%
WORLD
TRADE
30% OF
SERVICES
EXPORTS