travel & tourism city travel & tourism impact 2017 latin america

TRAVEL & TOURISM CITY TRAVEL & TOURISM IMPACT 2017 LATIN AMERICA

IMPACT

CITY

TRAVEL & TOURISM

“As the world rapidly urbanises, there is a need to manage that growth with effective planning. A successful city is one where business, infrastructure, resources, and environment meet with quality jobs and effective government support.” Gloria Guevara Manzo, President & CEO World Travel & Tourism Council

FOREWORD

F

or over 25 years, the World Travel & Tourism Council (WTTC) has been quantifying the economic and employment impact of Travel & Tourism at the country and regional level. This data is a key source of information for decision-makers within governments, investment banks, academia, and multilateral organisations across the world, and particularly within the 185 countries for which we provide detailed reports. It allows us to state with confidence the fact that Travel & Tourism is one of the largest sectors in the world, supporting more than 10% of global economic activity and 292 million jobs: 1 in 10 jobs worldwide1. Now, for the first time, WTTC has produced research that looks at the economic and employment impact of Travel & Tourism in cities. Future growth and success for the sector requires recognising and monitoring the trends that will drive future travel habits. According to the UN, the urban population of the world has grown rapidly from 746 million in 1950 to over four billion in 2016 and today, 54.5% of the world’s population lives in urban areas. This proportion is expected to increase further to 60% by 2050, with nearly all of the increase concentrated in Asia and Africa. With international tourism arrivals set to rise to 1.8 billion a year by 2030 (UNWTO), and billions more domestic travellers expected, the city share of these arrivals shows particular growth. Understanding the rate and concentration of city tourism compared to country tourism growth is an important need for policy makers.

THE IMPORTANCE OF CITIES

54.5%

of the global population live in urban areas in 2016, and is predicted to increase to 60% by 2050.

1.8 BN

international tourism arrivals per year expected by 2030, with particular growth in cities.

65

global cities analysed in the latest research from the World Travel & Tourism Council.

Our research looks at 65 global cities, chosen for being among the top ranked for arrivals and spending by visitors. Across all cities in our study, even despite being selected as key Travel & Tourism centres, there are enormously differing levels of importance. Travel & Tourism’s share of city GDP in Cancún, for example, is as much as 49.1%, whereas in Los Angeles, with its much more diversified economy, the sector represents only 1.2% of its GDP. The difference in the share of employment is also just as marked, ranging from supporting 38.5% of all employment in Cancún to just 0.8% in Osaka. With highest levels of growth concentrated in Asia, this research importantly provides forecasts for how these figures may change over the decade ahead. As the world rapidly urbanises, there is a need to manage that growth with effective planning. A successful city is one where business, infrastructure, resources, and environment meet with quality jobs and effective government support. Goal 11.4 of the UN Sustainable Development Goals calls out the need for cities to strengthen efforts to protect and safeguard the world’s cultural and natural heritage. The role of Travel & Tourism in contributing to this goal in cities cannot be underestimated, both in creating civic pride and jobs, and, on a pure financial basis, through the export revenue generated by international visitors. Cities are growing increasingly large and influential and are accounting for a greater proportion of global tourism demand. WTTC is proud to provide the evidence base to help public and private bodies make the correct decisions for the future growth of a sustainable Travel & Tourism sector.

Gloria Guevara Manzo President & CEO

1 WTTC annual economic impact analysis https://www.wttc.org/research/economic-research/economic-impact-analysis/

For more information, please contact: ROCHELLE TURNER | Research Director [email protected]

EVELYNE FREIERMUTH | Policy & Research Manager [email protected]

Cover: Aerial view, Hong Kong CITY TRAVEL & TOURISM IMPACT 2017

1 | SUMMARY

Latin America’s share of the world's direct Travel & Tourism GDP stands at 5%. Not surprisingly, therefore, the sector also generates a relatively small proportion of GDP directly for the regional cities in this study, especially when compared across the 65 cities covered in the fuller global analysis. Despite being somewhat small on a global scale, the cities themselves hold a high level of importance for the respective national Travel & Tourism sectors, with many hosting significant hub airports for inter-continental flights and being important gateways for travel to other destinations in the region. Collectively these six cities represent one quarter of Travel & Tourism's GDP contribution to the whole of Latin America. However, this proportion is forecast to dip to 22% by 2027 as new destinations are developed in the decade ahead. There is potential for significant expansion of the sector in the region as wealth in local source markets increase and connectivity to the rest of the world improves. Cities will remain important as gateways for travel to these countries. •

• •

Buenos Aires is the largest Travel & Tourism destination city in the region included in this study, and the sector makes a higher contribution to GDP (5.1%) in Argentina’s capital than in all the other Latin American cities studied. Buenos Aires is a particularly important city for Travel & Tourism within Argentina and directly generates over half of all sector GDP for the country. Rio de Janeiro is also a large tourism city in the region; Travel & Tourism directly generated 4.9% of Rio’s GDP in 2016. Lima is an important gateway city for Peru as the vast majority of international travel passes through the city. It accounts for 59.1% of all Travel & Tourism GDP in Peru.

Travel & Tourism is an important tool for job creation in the city The share of city employment directly generated by Travel & Tourism is broadly consistent with the sector’s GDP contribution to that city. However, it is larger in Bogotá and Brasília, where tourism jobs are notably labour-intensive. Within the Latin American cities in this study, all apart from Santiago have a higher share of Travel & Tourism employment than in the country overall. In Santiago, the share for city and country is the same.

TRAVEL & TOURISM IN LATIN AMERICA

SUMMARY

Bogotá, Colombia

LATIN AMERICA

5%

Latin America’s share of global direct Travel & Tourism GDP.

2.9%

of all jobs in the region are supported by Travel & Tourism.

Growth in tourism activity can have a disproportionately large impact on job creation. However across Latin America, despite some significant forecasts for GDP growth over the next ten years, expected growth in employment is relatively small for the same period. Differences in the importance of other sectors between and within cities means that Travel & Tourism’s share of employment by city can differ greatly. International and domestic demand is important for large destinations The city destinations that generate the most Travel & Tourism GDP across the global study vary widely in their levels of demand from international and domestic markets. A focus solely on international demand would overlook some important destinations. Domestic travel demand must also be included to fully understand the importance of travel to cities as it contributes significantly to all the largest destination cities. The cities within this study are all more reliant on domestic than international demand. This is clearest for Rio de Janeiro and Brasília due to the very large domestic Brazilian market.

Study includes: Bogotá, Brasília, Buenos Aires, Lima, Rio de Janeiro, Santiago.

CITY TRAVEL & TOURISM IMPACT 2017 |

5

1 | SUMMARY

2

1

FIGURE 2: TOP LATIN AMERICAN CITY DESTINATIONS, 2016*

3

DOMESTIC

Tourism Market Size 4

Brasília, Brazil 5

Brasília is the most extreme case where just 4% of Travel & Tourism activity was generated by international demand in 2016. Business travel is important for the city, including large volumes of government-related travel. Growth has slowed more recently during the recession, but this follows some particularly strong growth in prior years as economic activity was booming, helped by increases in government spending.

6

Share of City GDP

(Tourism GDP, US$ bn)

(City tourism GDP % of country tourism GDP)

1

Buenos Aires

11.1

Buenos Aires

5.1

Buenos Aires

59.1

2

Rio de Janeiro

6.5

Rio de Janeiro

4.9

Lima

59.1

3

Lima

4.5

Lima

4.6

Santiago

48.9

4

Santiago

3.9

Santiago

3.2

Bogotá

29.2

5

Brasília

2.1

Brasília

3.2

Rio de Janeiro

11.5

6

Bogotá

1.8

Bogotá

2.5

Brasília

3.7

INTERNATIONAL

Lima and Bogotá have the largest proportion of international demand, but domestic demand still generates more than half of all sector activity. The domestic markets are not particularly large in these countries and there is scope for future growth by attracting more international visitors and spending. The six Latin American cities here also tend to have a much lower reliance on inbound spend than other cities.

City tourism GDP % growth, 2006-16 CAGR

FIGURE 3: TOURISM MARKET SIZE & GROWTH*

Lima, Peru

10 9

Lima

8

Brasília

7

Santiago

6 Rio de Janeiro

5

Bogotá

4 Buenos Aires

3 2 1 0

0 1 2 3 4 5 6 City tourism GDP, % total city GDP, 2016

FIGURE 4: LATIN AMERICA CITIES SUMMARY* GDP Contribution

Brasília relies on domestic spending for over 90% of demand, while for Santiago, domestic spend represents 76% of the total for the city. Many of these cities have large internal markets, but international demand could be improved in some cases by continuing to increase connectivity. Connectivity has aided city growth Aided by growing connectivity and rich cultural assets, travel demand to city destinations has grown more rapidly than overall travel demand over the past ten years. The share of travel to selected cities in countries within Latin America has fallen over the past decade as other destinations have gained in popularity. Total Travel & Tourism growth in these emerging market regions has been rapid over the past decade however, so a falling share still translates into rapid growth.

6

| WORLD TRAVEL & TOURISM COUNCIL

Share of Country GDP

(City tourism GDP % of total city GDP)

Employment Contribution

(US$ bn)

FIGURE 1: % INTERNATIONAL SPEND OF CITY TRAVEL & TOURISM* 1

3.7%

Brasília

2

5.6%

Rio de Janeiro

3

14.6%

Buenos Aires

4

24.1%

Santiago

5

35.4%

Lima

6

41.1%

Bogotá

*Source: Oxford Economics

(000s)

GDP Growth

Employment Growth

2006

2016

2026

2006

2016

2026

2016-2026

2016-2026

Bogotá % total

1.1 2.6

1.8 2.5

3.5 2.7

112.9 3.4

130.0 3.1

157.4 3.3

7.0%

1.9%

Brasília % total

0.9 2.4

2.1 3.2

3.7 3.0

30.9 3.2

52.6 3.9

61.3 3.6

5.9%

1.5%

Buenos Aires % total

7.9 7.6

11.1 5.1

24.7 5.0

381.6 6.6

265.0 3.8

337.0 4.3

8.3%

2.4%

Lima % total

1.9 4.7

4.5 4.6

9.0 5.2

145.9 3.7

181.6 3.3

248.4 3.7

7.2%

3.2%

Rio de Janeiro % total

3.8 4.2

6.5 4.9

9.1 4.1

159.8 3.8

211.8 4.3

200.2 3.6

3.3%

-0.6%

Santiago % total

1.9 2.8

3.9 3.2

7.9 3.2

71.8 2.8

111.2 3.3

130.3 3.5

7.1%

1.6%



7

2 | SELECTED CITIES BY MARKET SIZE (GDP)

BUENOS AIRES

Rio de Janeiro is highly dependent on domestic demand, with just 6% of spending coming from international markets. The deep recession of recent years in Brazil has therefore hampered tourism spending growth.

Travel & Tourism % Total City GDP (RHS) % share

30

9% 8%

25

7%

20

6% 5%

15

4% 3%

FORECAST

10 5

2% 1%

0

Buenos Aires Summary

(US$ bn)

Total GDP

(%)

T&T Employment

(000)

Total employment (%)

8

2026

% share 6%

9

5%

8 7

4%

6 5 4 3

2006-16

2016-26

2016

2026

2006-16

2016-26

11.1

24.7

3.4%

8.3%

18.9

42.3

4.0%

8.4%

5.1%

5.0%

-

-

3.4%

3.4%

-

-

265.0

337.0

-3.6%

2.4%

572.7

740.5

-3.5%

2.6%

3.8%

4.3%

-

-

3.2%

3.6%

-

-


2% 1%

1 0

0%

Rio de Janeiro Summary

2026

3%

2

Average growth

2016


Travel & Tourism % Total City GDP (RHS)

10

Argentina Summary

Average growth T&T GDP

2024

2022

2020

2018

2016

2014

2012

2010

2008

2006

0%

Travel & Tourism GDP (LHS) US$bn

Brazil Summary

Average growth T&T GDP

(US$ bn)

Total GDP (%)

T&T Employment

(000)



2026


FIGURE 6: RIO DE JANEIRO DIRECT TRAVEL & TOURISM GDP, 2006-26*

2024

FIGURE 5: BUENOS AIRES DIRECT TRAVEL & TOURISM GDP, 2006-26*

T&T GDP and employment contribution has rebounded strongly since a fall in visitors over a two-year period

2022

21% 12% 6%

2020

Top source markets: • Brazil • USA • Spain

2018

Share of revenue from international spending

As the wider economy recovers, so too is an increase in arrivals and spending expected to continue. As the recovery happens, the share of GDP and employment by the sector will fall back towards average historical rates.

FORECAST

15%

Hosting the Football World Cup in 2014 and the Olympics in 2016 had limited direct impact on overall Travel & Tourism GDP and employment. In 2014, there was some uptick in the volume of visits and nights stayed. But then and in 2016, and as is typically seen for mega-events, there was also large displacement to other destinations, with other travel postponed or deferred. Any improvements in international demand were also offset by lower domestic demand due to the recession.

2016

Despite some increased affordability due to currency depreciation, there has been limited growth in international demand and spend. However, the largest international source market for Buenos Aires is Brazil which was hit by a large recession at the same time. The USA and Spain are the second and third ranked source markets, and greater connectivity and access may facilitate increased demand from these, and other, developed markets.

2014

Direct GDP contribution from Travel & Tourism

2012

5.1%

Despite a fall in visits and spending between 2014 and 2016 however, last year the share of both GDP and employment generated by Travel & Tourism increased to a decade high. Travel & Tourism GDP reached 4.9% of total economic activity, while Travel & Tourism employment contributed 4.3% of all jobs in the city.

2010

Over the past decade, the number of overnight visits has more than doubled, including a notable growth in domestic demand and an increase in the share of domestic demand from 52% in 2007 to 61% in 2016. Improved affordability

In real terms, revenue has fallen, consistent with the lacklustre economic performance over this period, and the limited improvement in earnings. Travel & Tourism's share of Buenos Aires' GDP has fallen over the past decade.

After two years of contributing over US$7 billion to the Rio de Janeiro economy in 2013 and 2014, the GDP contribution from Travel & Tourism in the city fell in US$ terms in 2015, with some improvement in 2016.

2008

Travel spending has been broadly flat over the past ten years in US$ terms, but has grown denominated in Pesos. Prices charged in pesos have increased with high inflation, but the weak currency means that the destination remains very affordable for foreign visitors (especially so from January 2017 when the government introduced a scheme to allow international visitors to receive a refund of VAT on accommodation).

has not yet been sufficient to attract large volumes of additional international visitors.

2006

Buenos Aires has a high reliance on domestic demand, comparable to the composition of demand for Argentina as a whole.

RIO DE JANEIRO

Greater invetsment in connectivity and access could boost arrivals from international source markets

Average growth

2016

2026

2006-16

2016-26

2016

2026

2006-16

2016-26

6.5

9.1

5.7%

3.3%

56.8

108.2

4.4%

6.7%

4.9%

4.1%

-

-

3.1%

3.4%

-

-

211.8

200.2

2.9%

-0.6%

2,530.3

3,217.2

1.5%

2.4%

4.3%

3.6%

-

-

2.8%

3.1%

-

-


9


Visitor numbers for Santiago reached their highest level yet in 2016, as did the number of jobs in the city directly related to tourism. Employment prospects look rosy for the sector, with jobs predicted to increase by an additional 20,000 to 130,300 by 2026.

4.5% 4% FORECAST

3.5% 3% 2.5% 2%

Lima Summary

T&T GDP

Total GDP (%)

T&T Employment

(000)


10

2026

9

3.3%

8

3.2%

7

3.1%

5

2.9% 2.8%

3

2.7%

2

2.6%

1

2.5%

0

2.4%

Chile Summary

Average growth

2026

2006-16

2016-26

2016

2026

2006-16

2016-26

4.5

9.0

8.9%

7.2%

7.6

15.6

8.3%

7.5%

T&T GDP

4.6%

5.2%

-

-

3.9%

4.5%

-

-

Total GDP

181.6

248.4

2.2%

3.2%

403.5

566.5

2.1%

3.5%

3.3%

3.7%

-

-

2.5%

2.9%

-

-


3%

4

Santiago Summary

Average growth

2016


% share

6

The international market is now playing a bigger role in Santiago’s tourism; its share of spending rose from 21% in 2006 to 24%

Peru Summary

Average growth

(US$ bn)

2024

2022

2020

2018

2016

2014

2012

2010

2008

2006

1.5%

Travel & Tourism % Total City GDP (RHS)

(US$ bn) (%)

T&T Employment

(000)



2026

5%


2020

5.5%

29% 19% 13% 3% 2%

FORECAST

Peru

2018

Lima % share

Top source markets: • USA • Argentina • Brazil • Spain • Mexico

FIGURE 8: SANTIAGO DIRECT TRAVEL & TOURISM GDP, 2006-26*

2016

Nevertheless, around half of Chile’s Travel & Tourism activity takes place in Santiago. It is already an important hub city for domestic and international flights, but the sector should benefit more from additional connectivity once the city opens a new international terminal in 2020.

FIGURE 7: TOURISM SHARE OF TOTAL GDP, 2006-26*


in 2016. Nearly a third of the international demand comes from the USA. In contrast, US visitors comprise only 5% of all international spend throughout Chile, suggesting that many Americans do not venture beyond the capital.

2014

25% 7% 6% 5% 4%

Although the sector’s importance to Santiago’s economy has strengthened since 2006, its share of overall city GDP is still relatively low at 3.2% and is expected to remain roughly at that level in the coming decade. The city relies heavily on other industries such as clothing production and copper mining.

2012

Top source markets: • USA • Argentina • Brazil • Spain • Mexico

This high concentration of Travel & Tourism in the city is reflected in a higher contribution to GDP: 4.6% of city GDP is directly generated by the sector compared with 3.9% for the country as a whole. A similar gap has been evident over the past decade and is expected to persist in coming years. Lima will remain the main gateway for travel to Peru.

Almost 90% of foreign visitors to Peru spend at least one night in Lima. However, as many of these visitors enter the country in Lima and then move on to spend time elsewhere in Peru, the average length of stay in the city is lower than for the country as a whole.


2010


3.2% 24%

Travel & Tourism in Santiago has seen 7.5% growth over the past decade, with its contribution to the Chilean capital’s GDP doubling to US$3.9 billion. This trend is set to continue, with a further doubling of revenue over the next ten years and a growth rate of 7.1%, mirroring that in the country at large.

2008


Lima attracts a significant proportion of visitors from outside Latin America and its airport is a gateway for arrivals from long-haul markets. The top source market for the city is the USA which is the second largest market for the country as a whole (after Chile).

Peru is one of the fastest growing economies in South America according to the InterAmerican Development Bank. Capitalising on this growth is the capital Lima, which accounts for 59% of tourism activity within Peru and is both an important destination and gateway for travel to the rest of the country.

2006

4.6% 35%

T&T in Santiago is forecast to go from strength to strength, growing at a rate of 7.1% p/a to 2026

2024

Lima is a pivotal hub and gateway to Peru with 90% of visitors spending at least one night in the capital

SANTIAGO

2022

LIMA

Average growth

2016

2026

2006-16

2016-26

2016

2026

2006-16

2016-26

3.9

7.9

7.5%

7.1%

8.1

16.2

6.2%

7.2%

3.2%

3.2%

-

-

3.3%

3.3%

111.2

130.3

4.5%

1.6%

269.2

320.5

4.0%

1.8%

3.3%

3.5%

-

-

3.3%

3.5%

-

-


11


BOGOTÁ

BRASÍLIA

One of the smaller cities in the study, but Brasília's growth rate of 8.3% has outpaced Brazil as a whole

Increased connectivity yields a positive outlook for international arrivals to Bogotá over the next decade

3.2% 4%

Travel & Tourism spending in Brasília - US$2.1 billion in 2016 - is relatively low in comparison to most cities in the study. Demand has grown over the past decade, but Brasília has remained one of the smaller cities in this study over the period.


It is therefore no surprise that Brasília’s impact on the whole country’s tourism GDP and employment is also small – contributing just 3.7% of Brazil’s tourism GDP and 2.1% of all its tourism jobs.



3.3% 3.1%

Total GDP (%)

T&T Employment

(000)


12

Top source markets: • USA • Mexico • Spain • Brazil • Argentina

27% 10% 5% 5% 4%

Travel & Tourism % Total City GDP (RHS) % share

2.5% 2.3%

3% 2.5%

FORECAST

2.7%

3 2% 2

2.1%

1.5% FORECAST

1.9% 1

1.7% 2026

2016-26

2016

2026

2006-16

2016-26

2.1

3.7

8.3%

5.9%

56.8

108.2

4.4%

6.7%

3.2%

3.0%

-

-

3.1%

3.4%

-

-

52.6

61.3

5.5%

1.5%

2,530.3

3,217.2

1.5%

2.4%

3.9%

3.6%

-

-

2.8%

3.1%

-

-


T&T GDP

Total GDP (%)

T&T Employment

(000)



2026

Colombia Summary

Average growth

(US$ bn)

2024

2022

2020

2018

2016

2014

2012

2010

2008

Bogotá Summary

Average growth

2006-16

0.5% 0%

Brazil Summary

2026

1%

0 2006

2024

2022

2020

2018

2016

2014

2012

1.5%

2016



4

2.9%

Average growth

(US$ bn)

Tourism activity overall is set to grow by 7% over the next ten years.

41%

FIGURE 10: BOGOTÁ DIRECT TRAVEL & TOURISM GDP, 2006-26*

Brasília Summary

T&T GDP

Bogotá has a greater reliance on international visitors than any of the other Latin American cities in the study, and most trips are for leisure rather than business purposes. Even so, domestic demand still forms 59% of its tourism revenue, and spending from Colombian arrivals is forecast to double by 2026.

2.5%


Brazil

3.5%

2006

Despite the prediction of a slight dip in Travel & Tourism’s share of the city’s GDP and employment by 2026, the sector will grow by 5.9% in Brasília.

Brasília % Share

2010

Brasília’s reliance on domestic demand is the greatest of all 65 global cities in the full global study; Brazilian visitors generated 96% of all Travel & Tourism activity in 2016. Business travel is important for the city, including large volumes of government-related travel.

19% 17% 5% 4% 4%

Visitor numbers peaked in 2007 before dropping sharply in 2008 amid a recession and the depreciation of the peso. The city has seen a gradual rise in arrivals in recent years but connectivity is vastly improving with a number of new airline routes opened in 2017. It should be just another year or two for arrivals to get back to, and then grow beyond, 2007 levels.

Travel & Tourism demand to the city has risen by 5% over ten years. However, this belies notable fluctuations in annual figures, as were seen in Colombia as a whole. In 2014 and 2015, for example, the sector experienced negative growth; positive growth – albeit very modest - returned in 2016.

FIGURE 9: TOURISM SHARE OF TOTAL GDP, 2006-26*

2008

The modern, purpose-built capital city of Brasília has seen tourism revenue more than double over the past ten years however, and its impressive growth rate of 8.3% has outpaced that of Brazil as a whole. There was a downturn in 2015 during the recession, but this followed some particularly strong growth in prior years as economic activity boomed, helped by increases in government spending.

Top source markets: • USA • Argentina • Portugal • France • Germany

The Colombian capital generated US$1.8 billion in tourism revenue in 2016 – the smallest of all Latin American cities in the study, but a significant 29.1% of all of Colombia’s Travel & Tourism GDP. Travel & Tourism’s share of the city’s overall GDP stands at just 2.5%, but a higher proportion than the sector’s 2.1% share of the country’s overall GDP.

Average growth

2016

2026

2006-16

2016-26

2016

2026

2006-16

2016-26

1.8

3.5

5.0%

7.0%

6.1

11.9

6.6%

6.9%

2.5%

2.7%

-

-

2.1%

2.2%

-

-

130

157.4

1.4%

1.9%

610

710.7

3.0%

1.5%

3.1%

3.3%

-

-

2.7%

2.9%

-

-


13

3 | METHODOLOGY

City and Metro Definitions A wide geographic definition of cities has been used in this study to include metros or greater city areas rather than measuring just the urban core. The bulk of the reliable and consistent economic data across cities is available for this broader definition. Hence, to ensure consistent estimates of economic contribution this definition was adopted.

GVA Methodology Calculation of economic impact reconciles two methodologies for cities consistent with the country level economic impacts estimated as part of the WTTC annual economic research. Results from the two methodologies are used as cross-checks to refine assumptions and derive a final combined estimate. Supply-side: Sectoral output by city is the starting point for analysis. Tourism ratios consistent with country level estimates are imposed to understand the proportion of output generated by tourism activity. As an example, if a city has a high concentration of activity in the hotels and restaurants sector then it is fair to assume that a large proportion of this activity is generated by tourist spending. This city will therefore have a large economic contribution from tourism. Demand-side: Tourism spend for each city as a destination is calculated first according to GCT definitions of cities which quantifies arrivals, overnights average spending and total tourism revenue. Where necessary, this is grossed-up to the wider metro definition for consistency. A ratio of GVA to Gross Output is then applied, consistent with the WTTC annual economic research and the industrial structure for the country and the city. Employment Methodology Tourism employment by city is derived from the Travel & Tourism GVA and labour productivity. Labour productivity for tourism characteristic sectors is estimated for the cities and the countries. A productivity multiplier is derived for the city relative to the country according to this sectoral detail and is then applied to country labour productivity from WTTC’s annual economic research.

14


The World Travel & Tourism Council is the global authority on the economic and social contribution of Travel & Tourism. WTTC promotes sustainable growth for the Travel & Tourism sector, working with governments and international institutions to create jobs, to drive exports and to generate prosperity. Council Members are the Chairs, Presidents and Chief Executives of the world’s leading private sector Travel & Tourism businesses.

METHODOLOGY

Consistent definitions across cities have been used in all cases to ensure comparability. In the instances where travel data are only reported for a narrow city centre definition or for a wider geographic area, estimates are based on multipliers using all available sector or industry data. City travel data are collated in Oxford Economics’ Global City Travel (GCT) database using a narrow definition of the city in many cases, consistent with widespread reporting. GCT data used in this study have been adjusted accordingly. Further details are in the methodology appendix.

WORLD TRAVEL & TOURISM COUNCIL, AND OXFORD ECONOMICS

Together with Oxford Economics, WTTC produces annual research that shows Travel & Tourism to be one of the world’s largest sectors, supporting over 292 million jobs and generating 10.2% of global GDP in 2016. Comprehensive reports quantify, compare and forecast the economic impact of Travel & Tourism on 185 economies around the world. In addition to the individual country reports, WTTC produces a world report highlighting the global economic impact and issues, and 24 further reports that focus on regions, sub-regions and economic and geographic groups. To download reports or data, please visit www.wttc.org

Assisting WTTC to Provide Tools for Analysis, Benchmarking, Forecasting and Planning. Founded in 1981 as a commercial venture with Oxford University’s business college, Oxford Economics is one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on 200 countries, 100 industrial sectors and over 3,000 cities. Their best-of-class global economic and industry models and analytical tools give an unparalleled ability to forecast external market trends and assess their economic, social and business impact. Headquartered in Oxford, England, with regional centres in London, New York and Singapore, Oxford Economics has offices across the globe in Belfast, Chicago, Dubai, Miami, Milan, Paris, Philadelphia, San Francisco, and Washington DC. The company employs over 300 full-time staff, including more than 200 professional economists, industry experts and business editors – one of the largest teams of macroeconomists and thought leadership specialists – underpinning the in-house expertise is a contributor network of over 500 economists, analysts and journalists around the world. For more information, please see www.oxfordeconomics.com, or email: [email protected]


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THE AUTHORITY ON WORLD TRAVEL & TOURISM WORLD TRAVEL & TOURISM COUNCIL (WTTC), The Harlequin Building, 65 Southwark Street, London SE1 0HR, United Kingdom Tel: +44 (0) 207 481 8007 | Email: [email protected] | www.wttc.org

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