Global travel industry to grow 3.7% in 2015: WTTC

Travel and tourism will continue to grow on a global scale in 2015, according to the latest forecast by the World Travel & Tourism Council (WTTC).

During 2015, the industry’s contribution to global GDP is forecast to grow by 3.7 per cent and employment by 2.6 per cent. According to the WTTC, this demonstrates the sector’s enduring ability to generate economic growth and create jobs at a faster rate than the global economy, which is due to grow by 2.9 per cent in 2015.

By the end of 2015, the travel & tourism sector will contribute US$7,860 billion, 10 per cent of global GDP, once all direct, indirect and induced impacts are taken into account. The sector will account for 284 million jobs, 9.5 per cent of total employment, or one in eleven of all jobs on the planet.

The WTTC also forecasts that the United States and China will retain their rankings as the two biggest travel & tourism economies in the world, but Germany has overtaken Japan to rank as the third largest travel & tourism economy. Russia is the only G20 country expected to register a decline in travel & tourism growth in 2015, due to the continuing sanctions being imposed and the devaluation of the rouble. South Asia is expected to experience the highest growth in 2015 at 6.9 per cent, while Europe and Latin America are the regions with the lowest forecast growth of 2.4 per cent.

In 2014, the industry contributed US$7,580 billion in GDP and 277 million jobs to the global economy.

Every year, WTTC forecasts the economic impact of the travel & tourism sector in 184 countries and 24 regions. For 2015, these forecasts show a sector that is again growing strongly, creating jobs and driving growth.

Long-term forecasts for travel & tourism show continued annual growth at 3.8 per cent over the next ten years to $11.4 trillion. By 2025, the global Travel & Tourism sector is expected to contribute 357 million jobs, some 73 million more jobs than this year.

For the coming year in Canada’s tourism sector, the WTTC says that GDP contribution is forecast to grow by 4.6 per cent and employment by 4.2 per cent.

By the end of 2015, the travel & tourism sector will contribute CAD92.7 billion, less than five per cent of Canada’s GDP, and 1.12 million jobs, six per cent of total employment, once all direct, indirect and induced impacts are taken into account.

In 2014, the sector contributed CAD88.6 billion in GDP and 1.07 million jobs to the Canadian economy.