Middle East > Middle East Tourism Profile

Middle East: Middle East Tourism Profile

2012/08/15

Middle East Tourism Profile

DEFINING THE ECONOMIC CONTRIBUTION OF TRAVEL & TOURISM

Travel & Tourism is an important economic activity in most countries around the world. As well as its direct economic impact, the industry has significant indirect and induced impacts. The UN Statistics Division-approved Tourism Satellite Accounting methodology (TSA:RMF 2008) quantifies only the direct contribution of Travel & Tourism. But WTTC recognises that Travel & Tourism's total contribution is much greater, and aims to capture its indirect and induced impacts through its annual research.

Direct Contribution The direct contribution of Travel & Tourism to GDP reflects the ‘internal’ spending on Travel & Tourism (total spending within a particular country on Travel & Tourism by residents and non-residents for business and leisure purposes) as well as government 'individual' spending - spending by government on Travel & Tourism services directly linked to visitors, such as cultural (eg museums) or recreational (eg national parks).
The direct contribution of Travel & Tourism to GDP is calculated to be consistent with the output, as expressed in National Accounting, of tourism-characteristic sectors such as hotels, airlines, airports, travel agents and leisure and recreation services that deal directly with tourists.
The direct contribution of Travel & Tourism to GDP is calculated from total internal spending by ‘netting out’ the purchases made by the different tourism sectors. This measure is consistent with the definition of Tourism GDP, specified in the 2008 Tourism Satellite Account: Recommended Methodological Framework (TSA: RMF 2008).

Total Contribution

Total Contribution The total contribution of Travel & Tourism includes its ‘wider impacts’ (ie the indirect and induced impacts) on the economy. The ‘indirect’ contribution includes the GDP and jobs supported by:

Travel & Tourism investment spending – an important aspect of both current and future activity that includes investment activity such as the purchase of new aircraft and construction of new hotels;
Government 'collective' spending, which helps Travel & Tourism activity in many different ways as it is made on behalf of the ‘community at large’ – eg tourism marketing and promotion, aviation, administration, security services, resort area security services, resort area sanitation services, etc;
Domestic purchases of goods and services by the sectors dealing directly with tourists - including, for example, purchases of food and cleaning services by hotels, of fuel and catering services by airlines, and IT services by travel agents.

The ‘induced’ contribution measures the GDP and jobs supported by the spending of those who are directly or indirectly employed by the Travel & Tourism industry.

TRAVEL & TOURISM'S CONTRIBUTION TO GDP

The direct contribution of Travel & Tourism to GDP is expected to be USD66.8bn in 2011 (3.4% of GDP). This primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). But it also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists.

The direct contribution of Travel & Tourism to GDP is expected to grow by 4.6% per annum (pa) to USD105.9bn (3.4% of GDP) by 2021.

The total contribution of Travel & Tourism to GDP (including wider effects from investment, the supply chain and induced income impacts, see page 2) is expected to be USD159.5bn in 2011 (8.1% of GDP). It is forecast to rise by 4.6% pa from USD251.2bn by 2021 (8.1% of GDP).

TRAVEL & TOURISM'S CONTRIBUTION TO EMPLOYMENT

Travel & Tourism is expected to generate 1,831,000 jobs directly in 2011 (3.2% of total employment). This includes employment by hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). It also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists.
By 2021, Travel & Tourism will account for 2,330,000 jobs directly, an increase of 499,000 (27.3%) over the next ten years.

The total contribution of Travel & Tourism to employment (including wider effects from investment, the supply chain and induced income impacts, see page 2) is expected to be 4,631,000 jobs in 2011 (8.0% of total employment). By 2021, Travel & Tourism is forecast to support 5,922,000 jobs (8.1% of total employment), an increase of 2.5% pa over the period.

INVESTMENT

Travel & Tourism is expected to attract capital investment of USD27.3bn, rising by 5.4% pa to USD46.6bn.
This means that Travel & Tourism’s share of total regional investment will rise from 6.3% in 2011 to 6.4% in 2021.

DIFFERENT COMPONENTS OF TRAVEL & TOURISM

Leisure travel spending (inbound and domestic) is expected to generate 75.9% of direct Travel & Tourism GDP in 2011 compared with 24.1% for business travel spending.
Leisure travel spending is expected to total USD92.4bn in 2011, rising to USD187.5bn in 2021.
Business travel spending is expected to total USD29.4bn in 2011, rising to USD61.7bn in 2021.

Domestic travel spending is expected to generate 45.9% of direct Travel & Tourism GDP in 2011 compared with 54.1% for visitor exports. (ie foreign visitor spending or international tourism receipts).
Domestic travel spending is expected to total USD55.9bn in 2011, rising to USD117.0bn in 2021.
Visitor exports are expected to total USD65.9bn in 2011, rising to USD132.1bn in 2021.

The Travel & Tourism industry contributes to GDP and employment in many ways as detailed on page 2.
The total contribution of Travel & Tourism to GDP is twice as large as its direct contribution.

COUNTRY RANKINGS, 2011

The tables on pages 9-11 provide provide brief extracts from the full WTTC Country League Table Rankings, highlighting comparisons with competing destinations as well as with the world average. The competing destinations selected are those that offer a similar tourism product and compete for tourists from the same set of origin markets. These tend to be, but are not exclusively, geographical neighbours.