Tourism to pack bigger economic punch
Published:Friday | November 29, 2013 | 12:00 AM
The World Travel & Tourism Council (WTTC) is projecting that the direct contribution of travel and tourism gross domestic product ( GDP) to the Jamaican economy will rise by 3.7 per cent per annum to J$167.6 billion in a decade.
Tourism is also expected to account for 10.9 per cent of total GDP by 2023.
By 2023, as well, international tourist arrivals to Jamaica are forecast to total 2.946 million while generating expenditure of J$331.6 billion, an increase of 4.4 per cent per year.
The sector is also expected to support 412,000 jobs or 31.4 per cent of total employment, up from current levels of 25 per cent.
Economic impact, as defined by the WTTC, primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services - excluding commuter services.
It also includes the activities of the restaurant and leisure industries directly supported by tourists, and seeks to estimate domestic purchases of goods and services by the sectors dealing directly with tourists - including purchases of food and cleaning services by hotels, of fuel and catering services by airlines, and IT services by travel agents.
WTTC in a report published mid-year said that the direct contribution of travel and tourism to GDP in 2012 was J$111.2 billion or 8.4 per cent of total GDP; and was forecast to rise by to J$116.3 billion this year.
The WTTC has carried out economic impact research for over 20 years. Its researchers assess industry contribution to national output and jobs for 184 countries.
Its 10-year forecasts are intended to assist policy formulation and investment planning for governments and private companies.
Globally, the 2013 report by WTTC and its research partner, Oxford Economics, shows that travel and tourism grew for the third consecutive year in 2012, and created more than four million new jobs.
"The strongest growth in 2012 was evident in international demand as appetite for travel beyond national borders, from leisure and business visitors, remains strong," the report said.
Total contribution was estimated at nine per cent of global GDP (US$6.6 trillion) and more than 260 million jobs, placing tourism in the top 11 job-creating sectors.
"The industry outperformed the entire wider economy in 2012, growing faster than other notable industries such as manufacturing, financial services and retail," the WTTC said.
It reports that in 2012, Jamaica generated J$203.8 billion from visitor exports, a figure expected to rise by 5.6 per cent this year. WTTC's estimated tourist arrivals for Jamaica this year is 2.108 million.
Business travel spending is expected to grow by 0.9 per cent in 2013 to J$27.1 billion, and rise by 1.7 per cent annually to J$32.1 billion by 2023.
The report notes that spending in the leisure travel segment - inbound and domestic - generated 89.9 per cent or J$239.7 billion of direct travel and tourism GDP last year, compared with 10.1 per cent or J$26.9 billion for business travel spending .
Tourism provided 292,000 jobs in 2012, which is expected to rise to 308,500 jobs or 26.1 per cent of total employment by 2023.