Tourism sector resilient despite challenges

Travel & Tourism continues to register strong growth despite challenges from political turmoil, global economic developments, terrorism, and the Brexit decision.

 

The update of the World Travel & Tourism Council (WTTC) Economic Impact Reports 2016 shows that despite the many challenges travel and tourism has faced in the first six months of 2016, the sector is still expected to grow by 3.1%, outpacing global economic growth forecast at 2.3%. 

 

As it relates to Barbados, the new research by the WTTC noted that the direct contribution of Travel & Tourism to GDP in 2015 was BBD1,057.2mn (12.0% of GDP).

 

This is forecast to fall by 2.0% to BBD1,036.0mn 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 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 3.9% pa to BBD1,522.4mn (14.6% of GDP) by 2026.

 

The report also showed that in Barbados, Travel & Tourism generated 15,500 jobs directly in 2015 (12.3% of total employment) and this is forecast to remain the same in 2016 at 15,500 (12.0% 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 20,000 jobs directly, an increase of 2.9% pa over the next ten years.

 

Travel & Tourism is expected to have attracted capital investment of BBD311.5mn in 2015. This is expected to rise by 7.3% in 2016, and rise by 5.7% pa over the next ten years to BBD581.7mn in 2026. Travel & Tourism’s share of total national investment will rise from 22.4% in 2016 to 27.8% in 2026.

 

The report includes a focus on the impact of the Brexit decision. This shows that Travel & Tourism in the UK is expected to hold up well in 2016 with growth of 3.6%. Weaker domestic spending growth, and a projected drop in UK outbound holidays of 3%, will be offset by higher spending in the UK by international visitors as a result of the favourable exchange rate.

 

According to David Scowsill, President & CEO of WTTC, “Our update report highlights the resilience of travellers and the robustness of our sector, as tourism continues to outpace global economic growth by nearly 1%. 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.

 

It is important to remember that tourism is a force for good. It brings tremendous social and economic benefits to countries and connects people from different cultures and backgrounds. We call on governments to continue to focus on the economic and social benefits of Travel & Tourism, and to work together with the private sector to combat some of the challenges we face.” (TL)