Wednesday, April 23, 2014

Indonesia records fastest 2013 Travel & Tourism growth of G20 countries

Indonesia grew its economic contribution from Travel & Tourism by 8.4% in 2013, the largest growth of any G20 country. That is according to the latest research from The World Travel & Tourism Council (WTTC), the global authority on the Travel & Tourism Industry.
WTTC’s 2014 annual Economic Impact Report shows that Indonesia recorded double digit growth in international visitor spending (15.1%) and 7.2% economic growth in domestic tourism last year.
David Scowsill, President and CEO of WTTC, says it has been a fantastic year for Travel & Tourism in Indonesia; “Indonesia is expanding its economy rapidly and, as a result, the burgeoning middle class is travelling for business and leisure. The country is also experiencing an expansion in international visitors bringing valuable export income to the country, partly encouraged by the devaluation of the Indonesian rupiah against the US dollar. As the country moves from agriculture to a service-based economy, Travel & Tourism is increasing and the economy overall is reaping the rewards”.
In 2014, WTTC’s research shows that Travel & Tourism’s direct contribution to the Indonesian economy is expected to grow by a further 8.1%, outperforming the general economy by 2.8 percentage points. WTTC’s 2014 forecasts predict double digital growth for international visitor exports (14.2%) and continued above average growth for domestic tourism spending (6.3%).
Mr Scowsill continues; “2013 was a great year for Travel & Tourism. But 2014 is set to see a further boom in visitor numbers, tourism receipts and job creation. If Indonesia continues to invest in promotional activity and bring in visa facilitation policies, it is set to again be one of the winners for Travel & Tourism this year. It is vital, however, that such impressive growth goes hand in hand with policies to ensure the future sustainability of the sector. Indonesia has many natural and cultural riches and these need to be protected for the future”.
The WTTC research also highlights the size of Travel & Tourism around the world:
•          In 2013, Travel & Tourism contributed US$7 trillion to the global economy and is expected to grow by 4.2% in 2014. The total global contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 266 million jobs (8.9% of total employment) – one in 11 of all jobs on the planet;
•          In 2014, the industry globally is expected to grow by 4.3%
Mr Scowsill says 2013 proved another successful year for the Industry; “Travel & Tourism’s contribution to the world economy grew for the fourth consecutive year in 2013, helped especially by strong demand from international travellers. Visitor exports, the measure of money spent by these international tourists, rose by 3.9% at a global level year on year, to US$1.3 trillion, and by over 10% within South East Asia. It is clear that the growth in Travel & Tourism demand from emerging markets continues with pace, as the burgeoning middle-classes, especially from Asia and Latin America, are willing and more able than ever to travel both within and beyond their borders”.
However, Mr Scowsill reminds Governments that they need to take action; “Travel & Tourism forecasts over the next ten years also look extremely favourable, with predicted growth rates of over 4% annually that continue to be higher than growth rates in other industries. Capitalising on the opportunities for this Travel & Tourism growth will, of course, require destinations and regional authorities, particularly those in emerging markets, to create favourable business climates for investment in the infrastructure and human resource support necessary to facilitate a successful and sustainable tourism industry. At the national level, governments can also do much to implement more open visa regimes and to employ intelligent rather than punitive taxation policies. If the right steps are taken, Travel & Tourism can be a true force for good”.