World Travel & Tourism Council’s latest research report 2018 has forecasted a multi fold growth in contribution of Tourism in India’s total GDP from 3.7 % to 7.6 % and India is ranked in 7th largest travel economy in total GDP terms with US$ 234.0 bn and 8th position in direct GDP terms with a total size of US$ 91.3 billion, out of 185 countries in the world in 2017, while relative size contribution to GDP in 2017 is 99. Global rank in growth forecast in 2018 is 6th place and long term growth forecast for the next decade will be placed in 4th rank.
According to the report USA ranked in the first position ( US$ 509.4) while China as 2nd (US$ 402.3) and followed by Germany in 3rd position (US$ 146.3). Fourth rank has gone to Japan ( US$ 107.4) and Italy bagged the 5th position (US$ Italy 106.8) and France placed in 6th rank (US$ 93.9). United Kingdom is in 7th position ( US$93.5 ) followed by Mexico in 9th rank (US$82.2bn) and Spain find out place in the last of first 10 ranks with US $ 70.9 bn.
As per the growth forecast for the coming decade, China becomes the world’s biggest Travel & Tourism economy with US$ 825.4 billion by overtaking United States ( US$673.9 bn) and India become 3rd largest economy in Travel & Tourism sector with US$ 194.7 billion in 2028.
Research published by the World Travel & Tourism Council has shown that in 2017, India’s direct contribution of Travel & Tourism to GDP was 3.7 % (INR5,943.3bn / USD91.3bn) of India’s GDP. This figure is set to rise by 7.6 % in 2018 and to rise by 7.1% per annum to INR12,677.9bn (USD194.7bn), and forecast to account 3.9% of total GDP in 2028.
Travel & Tourism sector in Republic of Maldives bagged the first position in terms of GDP contribution among 185 countries in 2017 with 39.6 % followed by British Virgin Islands ( 35.4 % ) and Macau ( 29.3%) in second and third position. Maldives Travel & Tourism sector will contribute to 45.4 % in country’s GDP in 2028.
Egypt with 72.9% is the fastest growing economy in which countries was the direct contribution (relative terms) of Travel & Tourism to GDP greatest in 2017 while Mongolia (23.0 %) in 2nd position and Georgia ( 21.3 %) in 3rd rank. But Qatar becomes the fastest growing travel & tourism economy with 8.7 % in 2028 followed by Tanzania ( 7.2 %) and India ( 7.1 %) in second and third position.
As one of the world’s largest economic sectors, Travel & Tourism creates jobs, drives exports, and generates prosperity across the world. The global economic impact of Travel & Tourism sector is shown to account for 10.4% of global GDP and 313 million jobs, or 9.9% of total employment, in 2017.
The total contribution of Travel & Tourism to GDP was INR15,239.6bn (USD234.0bn), 9.4% of GDP in 2017, and is forecast to rise by 7.5% in 2018, and to rise by 6.9% pa to INR32,053.3bn (USD492.2bn), 9.9% of GDP in 2028.
In 2017, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry was 8.0% of total employment (41,622,500 jobs). This is expected to rise by 3.1% in 2018 to 42,898,000 jobs and rise by 2.0% pa to 52,279,000 jobs in 2028 (8.4% of total).
Visitor exports generated INR1,777.1bn (USD27.3bn), 5.8% of total exports in 2017. This is forecast to grow by 8.8% in 2018, and grow by 5.5% pa, from 2018-2028, to INR3,316.4bn (USD50.9bn) in 2028, 5.1% of total.
Travel & Tourism investment in 2017 was INR2,706.1bn, 6.3% of total investment (USD41.6bn). It should rise by 6.7% in 2018, and rise by 6.7% over the next ten years to INR5,546.3bn (USD85.2bn) in 2028, 6.1% of total.
Leisure travel spending (inbound and domestic) generated 94.6% of direct Travel & Tourism GDP in 2017 (INR13,135.2bn) compared with 5.4% for business travel spending (INR755.9bn). Leisure travel spending is expected to grow by 7.6% in 2018 to INR14,127.1bn, and rise by 7.1% pa to INR28,154.5bn in 2028. Business travel spending is expected to grow by 6.7% in 2018 to INR806.4bn, and rise by 7.0% pa to INR1,589.7bn in 2028.
Domestic travel spending generated 87.2% of direct Travel & Tourism GDP in 2017 compared with 12.8% for visitor exports ( foreign visitor spending or international tourism receipts). Domestic travel spending is expected to grow by 7.3% in 2018 to INR12,999.5bn, and rise by 7.4% pa to INR26,427.8bn in 2028.
Visitor exports are expected to grow by 8.8% in 2018 to INR1,934.1bn, and rise by 5.5% pa to INR3,316.4bn in 2028. The total contribution of Travel & Tourism to GDP is nearly three times greater than its direct contribution.
“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.” Gloria Guevara Manzo, President & CEO, World Travel & Tourism Council
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. As in recent years, performance was particularly strong across Asia, but proving the sector’s resilience, 2017 also saw countries such as Tunisia, Turkey and Egypt that had previously been devastated by the impacts of terrorist activity, recover strongly.
