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 quantifies only the direct contribution of Travel & Tourism. But WTTC recognizes that Travel & Tourism’s total contribution is much greater, and aims to capture its indirect and induced impacts through its annual research.
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 or recreational.
Travel & Tourism Contribution To Gdp
The direct contribution of Travel & Tourism to GDP was around. 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 included, for example, the activities of the restaurant and leisure industries directly supported by tourists.
Non Resident Visitor Expenditure Including Fares
Non-resident visitor expenditures including fares are a key component of the direct contribution of Travel & Tourism. Hainan was expected to attract around 30 million Mainland China and foreign tourist in overall non-resident visitor expenditures including fares.
In order to fully appreciate the relevance of Travel & Tourism to Hainan Province, as well as to better understand the impressive growth forecasts, it is important to look more closely at the non-Travel & Tourism sectors.
The small, large island, economies around the world in which Travel & Tourism’s total GDP contribution is already higher than Hainan’s forecast contribution are much less diversified than Hainan, in terms of their economies, exporting little else of significance beyond Travel & Tourism.
The Changing Structure of Hainan’s Economy
The rapid growth in Travel & Tourism demand, which is forecast for Hainan over the ten-year period from 2011 to 2021, will be driven primarily and almost entirely by the huge growth in investment as a result of the Chinese Government’s decision to turn the province into a leading international island resort. As a result, the structure of Hainan’s economy will undergo significant transformation over the current decade – changes that have been fully factored into Oxford Economics’ forecasts. Among these
