Travel Industry’s Impact on Global Economy
The travel industry is projected to have a significant effect on the global economy. According to the World Travel & Tourism Council (WTTC), the industry is expected to reach a record $11.1 trillion in 2024, surpassing the previous high of $10 trillion achieved in 2019. Furthermore, it is estimated that tourism will become a $16 trillion industry within the next decade and will contribute 11.4 percent to the global GDP by 2034.
WTTC’s 2024 Travel & Tourism Economic Impact Report
These predictions are outlined in the WTTC’s 2024 Travel & Tourism Economic Impact Report, which was received by Bloomberg ahead of wider distribution. Produced in partnership with research advisory firm Oxford Economics, the report provides a detailed analysis of the impact of travel and tourism on the economy. It combines data from governments and industry groups with travel forecasts to determine the future of the sector.
Key Factors Driving the Boom
The record-setting boom in the travel industry largely depends on the state of the Chinese and American markets. In 2023, international arrivals in both countries were significantly lower than pre-pandemic levels. Factors such as the strengthening of the U.S. dollar and ongoing visa delays have deterred travelers from visiting the United States. In China, the unpredictable economy and political situation have hampered inbound travel. However, both countries are expected to recover this year, contributing to the industry’s record-breaking trillions.
Breakdown of Travel Transactions
The $11.1 trillion can be broken down into three types of travel transactions. Direct travel spending includes expenses such as hotels, tours, and transportation, as well as public investment in these services. Indirect travel spending covers the expenses of businesses that support the industry, such as suppliers of sheets and towels or ingredients for breakfast buffets. Finally, induced spending accounts for the economic effects of hospitality employees.
Positive Outlook for Global Tourism
In total, 142 out of the 185 surveyed countries are expected to exceed their 2019 tourism performance levels in 2024. Almost all nations are projected to experience year-over-year growth. This indicates that not only will records be broken on a global level, but also on a local level.
Emphasis on Sustainable Development Goals (SDGs)
The travel industry’s growth presents an opportunity to align with the Sustainable Development Goals (SDGs) set by the United Nations. By prioritizing sustainable practices and responsible tourism, the industry can contribute to goals such as economic growth, decent work and economic opportunities, sustainable cities and communities, and responsible consumption and production.
Conclusion
“Travel isn’t just back, travel is booming,” says Julia Simpson, the president and CEO of WTTC. The strong performance of the travel industry is expected to have a significant impact on the global economy, reaching record-breaking trillions. By embracing sustainable practices and aligning with the SDGs, the industry can ensure long-term growth and contribute to a more sustainable future.
SDGs, Targets, and Indicators
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SDG 8: Decent Work and Economic Growth
- Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.
- Indicator: Number of jobs in the tourism sector.
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SDG 12: Responsible Consumption and Production
- Target 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature.
- Indicator: Number of countries implementing sustainable tourism policies.
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SDG 17: Partnerships for the Goals
- Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships.
- Indicator: Number of public-private partnerships promoting sustainable tourism.
Analysis
The article discusses the significant effect of the travel industry on the global economy. Based on the content, the following SDGs, targets, and indicators can be identified:
1. SDG 8: Decent Work and Economic Growth
The article highlights the growth of the travel industry, which contributes to economic growth. This aligns with SDG 8, which aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. The specific target under this SDG that can be identified is Target 8.9, which focuses on promoting sustainable tourism that creates jobs and promotes local culture and products. The article mentions that the travel industry is expected to become a $16 trillion industry by 2034, representing 11.4 percent of the global GDP. This indicates the potential for job creation and economic growth in the sector. The indicator that can be used to measure progress towards this target is the number of jobs in the tourism sector.
2. SDG 12: Responsible Consumption and Production
The article mentions the importance of sustainable development and lifestyles in harmony with nature. This aligns with SDG 12, which aims to ensure sustainable consumption and production patterns. The specific target under this SDG that can be identified is Target 12.8, which focuses on ensuring that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature. The article states that the latest report looks at the impact of travel and tourism on the economy in granular detail across many metrics, indicating the importance of information and awareness for sustainable tourism. The indicator that can be used to measure progress towards this target is the number of countries implementing sustainable tourism policies.
3. SDG 17: Partnerships for the Goals
The article mentions the partnership between the World Travel & Tourism Council (WTTC) and research advisory firm Oxford Economics in producing the report. This aligns with SDG 17, which aims to strengthen the means of implementation and revitalize the global partnership for sustainable development. The specific target under this SDG that can be identified is Target 17.17, which focuses on encouraging and promoting effective public, public-private, and civil society partnerships. The article highlights the partnership between the WTTC and Oxford Economics, indicating the importance of partnerships in the travel industry. The indicator that can be used to measure progress towards this target is the number of public-private partnerships promoting sustainable tourism.
Table: SDGs, Targets, and Indicators
SDGs | Targets | Indicators |
---|---|---|
SDG 8: Decent Work and Economic Growth | Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products. | Number of jobs in the tourism sector. |
SDG 12: Responsible Consumption and Production | Target 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature. | Number of countries implementing sustainable tourism policies. |
SDG 17: Partnerships for the Goals | Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships. | Number of public-private partnerships promoting sustainable tourism. |
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Fuente: robbreport.com
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