Tourism growth goes on despite ‘crunch’ |05 April 2008

According to recent research by the World Travel and Tourism Council (WTTC) and Oxford Economics (OE), travel and tourism entered the year on the back of another solid performance in 2007.

International tourism arrivals increased last year by almost 6%, totalling nearly 900 million and marking the fourth successive year that growth has exceeded its long-standing trend of 4%.  

The research also showed tourism spending per capita has more than matched these increases. International air passenger traffic also rose at a record 9.3% from year to year in November.

WTTC president Jean-Claude Baumgarten said: “Tourism growth has been particularly rapid in developing countries, with the fastest average growth in tourism arrivals in the Middle East region.

“These countries are not only recognising the development potential of travel and tourism and therefore investing heavily in new infrastructure and facilities, but their citizens are also seeing rapid economic growth boost their incomes beyond the level where international travel becomes both a feasible and desired option.”

Dubai Department of Tourism and Commerce Marketing director general Khalid bin Sulayem said: “A continued policy for tourism has helped Dubai’s travel and tourism industry accelerate, and this growth will help it rise above the potential economic downturn.”

The travel and tourism industry does face challenges in the year ahead, with the deteriorating economic conditions – particularly in the housing and credit markets across the globe – seen as increasing concerns. But the slowdown is likely to have a limited impact, due to the growth of emerging markets and the easing of monetary policy by central banks.

Higher energy prices are a two-pronged challenge as they squeeze household budgets globally and raise the cost of a key expense for the industry.

But Mr Baumgarten said even this challenge has a positive angle because “higher revenues are boosting oil producers’ incomes and raising available funds for investment in diversification projects, often focusing on tourism’s undoubted potential.”

Dubai certainly represents a nation that has truly embraced travel and tourism as a catalyst for economic growth and prosperity, he said.