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Benchmarking Travel & Tourism Africa Summary How does Travel & Tourism compare to other sectors?

Benchmarking Travel & Tourism Africa Summary How does Travel & Tourism compare to other sectors? Summary of Findings, April 2012. Sponsored by:. Foreword: WTTC.

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Benchmarking Travel & Tourism Africa Summary How does Travel & Tourism compare to other sectors?

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  1. Benchmarking Travel & Tourism Africa Summary How does Travel & Tourism compare to other sectors? Summary of Findings, April 2012 Sponsored by:

  2. Foreword: WTTC • For over twenty years WTTC has worked to bring the Travel & Tourism private sector together to speak with one voice. Our Members know that progress will only be made with clear, unambiguous and unified messages. From the outset, our Members understood that hard economic facts were the crucial foundation upon which to base these messages. • As a result WTTC has invested heavily in developing a methodology to measure the economic impact of Travel & Tourism around the world. In 2011 we accounted for 9% of GDP, a total of 6 trillion dollars. We supported 255 million jobs. That means one in 12 jobs on the planet. However, it is no longer sufficient just to communicate how important we are as an industry. We have to recognise that in government eyes Travel & Tourism is just one activity that sits alongside many other sectors. These other sectors are better understood than our industry. When we hit the depths of the last recession, which industries immediately dominated the attention of governments around the world – particularly in the US and Europe? The answer was financial services and automotive manufacturing. Both received billions of dollars of government cash to keep them functioning. • With the support of our Founding Member American Express, we have executed this substantial research study, which puts Travel & Tourism in the broader context of other sectors, and the messages emerging are powerful. David Scowsill President & CEO World Travel & Tourism Council World Travel & Tourism Council

  3. Foreword: American Express More than any other, the travel industry drives commerce and business, facilitates connections and enables tourism and adventure.  American Express has a proud heritage of more than 160 years in travel and we’re pleased to support this new research with WTTC to ensure that travel stays vibrant and vital for many years to come.  When American Express helped to establish WTTC more than 20 years ago, we started with a firm belief in the value of travel and a hope to spread that message across the world.  We’re proud that WTTC has been a driving force in increasing awareness of the positive impact of travel and tourism ever since. This new analysis gives our industry an important tool at our fingertips to benchmark the role that travel and tourism plays in the global marketplace. In a year when Travel & Tourism is projected to directly contribute $2 trillion and 100 million jobs to the world economy, this research from American Express and WTTC is an important addition to the conversation. William Glenn President , Global Corporate Payments and Business Travel American Express World Travel & Tourism Council

  4. Outline Introduction…………………………………………….................. 5 Africa Summary……………………………………………………. 10 Data sources and methodology……………………..…….……... 16 World Travel & Tourism Council

  5. Introduction • The World Travel & Tourism Council (WTTC) has spearheaded global analysis of the economic importance of the sector for over 20 years. This research has established the contribution of Travel & Tourism on an ongoing basis to over 180 countries in absolute size, share of the economy, and growth. • Around the world, WTTC research is referenced as the authoritative source of the role of Tourism in generating GDP, income, and employment. • WTTC is now releasing new research on the role that Travel & Tourism plays in the world economy in comparison to other economic sectors. • The results of these comparisons provide new perspectives on the relative significance of Travel & Tourism as well as some of its unique advantages in driving current and future global economic growth. World Travel & Tourism Council

  6. Introduction: Summary of Research Structure • This new WTTC research benchmarks Travel & Tourism against an assortment of other sectors for twenty countries and for each world region. • Regions • World • Americas • Europe • Asia Pacific • Middle East • Africa • Countries • Australia • Argentina • Brazil • Canada • China • France • Germany • India • Indonesia • Italy • Jamaica • Japan • Republic of Korea • Mexico • Russia • South Africa • Turkey • UAE • United Kingdom • USA World Travel & Tourism Council

  7. Introduction: Summary of Research Structure • The following metrics are analysed by sector for each country and region: • GDP (size and share of economy) • Employment contribution (size and share of economy) • Historic growth • Expected growth • Export contribution • Strength of linkages to the rest of the economy • Job creation potential World Travel & Tourism Council

  8. Introduction: Sectors referenced • The following sectors have been analysed in comparison to Travel & Tourism. They were selected as having a similar breadth and global presence as Travel & Tourism. • Mining: includes the extraction of oil, natural gas, coal, metals, and related services • Education: includes all levels of educational services • Chemicals manufacturing: includes drugs & medicines, plastics, rubber, paint, polishes, ink, perfumes, cosmetics, soap, cleaning materials, fertilizer, pesticides, other chemicals • Automotive manufacturing: includes motor vehicles and parts & accessories • Communications: includes post (national and private) and telecommunications • Financial services: includes banking, investment services, insurance World Travel & Tourism Council

  9. ACCOMMODATION Introduction: Levels of industry impacts The analysis examines the economic value of industries on three levels. • Direct: this includes only those employees and the related value added for the relevant sector. In the case of Travel & Tourism, we only count the value added of the accommodation, recreation, transportation, and other related sectors. • Indirect: this measures the supply chain impact (also called inter-industry linkages) for each sector. • Induced: this measures the impacts of incomes earned directly and indirectly as they are spent in the local economy. • The sum of direct, indirect, and induced impacts equals the total economic impact of a sector. World Travel & Tourism Council

  10. Africa Summary How does Travel & Tourism compare to other sectors? Sponsored by: World Travel & Tourism Council

  11. Ranking Direct Industry GDP in Africa • Travel & Tourism direct GDP in Africa reached $69 billion in 2011. • This is greater than the GDP of Africa’s chemicals manufacturing, auto, and communications sectors. • And Travel & Tourism in Africa is nearly the same size as Africa’s education and financial services sector. World Travel & Tourism Council

  12. Ranking GDP Impact in Africa • Including its indirect and induced impacts, Travel & Tourism generated $164 billion in GDP, or 8.7% of Africa’s GDP in 2011, exceeding that of the chemicals, auto, and communications sectors. World Travel & Tourism Council

  13. Ranking Direct Industry Employment in Africa • With 8 million direct employees in Africa, Travel & Tourism is one of the leading employers in the region, surpassing the direct job creation of chemicals manufacturing, auto manufacturing, communications, mining, and financial services. World Travel & Tourism Council

  14. Industry Employment Impacts in Africa • Including its indirect and induced impacts, Travel & Tourism in Africa sustained 19 million jobs in 2011, exceeding that of the chemicals, auto manufacturing, communications, financial services, and mining sectors. • At 7.1% of regional employment, Travel & Tourism generates nearly 1 in 14 jobs in Africa. World Travel & Tourism Council

  15. Employment Growth in Africa • The Oxford Economics global industry model projects Travel & Tourism GDP to grow 4.8% per annum (compound annual growth) over the next decade. This is nearly the same rate of growth for the entire African economy. • This positions the industry as a driver of economic growth, exceeding the growth projections for mining, education, and chemicals manufacturing. World Travel & Tourism Council

  16. Data Sources & Methodology How does Travel & Tourism compare to other sectors? Sponsored by: World Travel & Tourism Council

  17. Data sources and methodology: GDP and Employment • Main data sources for comparative sectors: • United Nations International Labour Organization • OECD STAN STructural ANalysis Database • Oxford Economics Global Industry Model • CEIC Data Manager • Statistical Institute of Jamaica • UAE National Accounts • Travel & Tourism GDP and employment figures are drawn from Oxford Economics analysis for WTTC using the Tourism Satellite Account framework. World Travel & Tourism Council

  18. Data sources and methodology: Exports • Main data sources: • OECD STAN • World Trade Organization (WTO) • UN COMTRADE • IMFBOPA • Oxford Economics. • Total exports, total service exports and total goods/merchandise exports are sourced originally to national accounts and central bank balance of payments data. • Merchandise exports taken from OECD STAN where possible, and from UNCOMTRADE and WTO for Jamaica and UAE. • Service exports taken from IMFBOPA database for all countries where possible. • 2000 figures taken from above, 2011 estimated using 2010 shares of total and applied to totals for 2011. World Travel & Tourism Council

  19. Data sources and methodology: Linkages • Main data sources: OECD, National Statistical Offices, Oxford Economics • Input-output tables for all countries were sourced from either the OECD or, when not available, National Statistical Offices. From the input-output tables, multiplier matrices were developed for each economy, detailing the flow of spending in an economy that occurs as a consequence of spending in a given industry. • For each of the comparator sectors, a spending shock of $1 million was simulated, with the resulting spending impacts in every industry in the economy recorded. • These spending outcomes were translated into gross value added (GVA) using the GVA/output ratios available in the input-output tables, and employment, using productivity level data developed from the GDP and employment figures derived elsewhere in the study. • Travel & Tourism multipliers are drawn from Oxford Economics / WTTC ongoing Tourism Satellite Account analysis. • Global and regional multipliers were calculated as the weighted average of all relevant nations, with weightings assigned according to sector GDP. World Travel & Tourism Council

  20. About WTTC and Oxford Economics • The World Travel & Tourism Council (WTTC) is the forum for business leaders in the Travel & Tourism industry. With Chief Executives of some one hundred of the world's leading Travel & Tourism companies as its Members, WTTC has a unique mandate and overview on all matters related to Travel & Tourism. • WTTC works to raise awareness of Travel & Tourism as one of the world's largest industries, supporting 255 million jobs and generating 9 per cent of world GDP. • WTTC advocates partnership between the public and private sectors, delivering results that match the needs of economies, local and regional authorities and local communities with those of business. • Oxford Economics is one of the world’s leading providers of economic analysis, forecasts and consulting advice. Founded in 1981 as a joint venture with Oxford University’s business college, Oxford Economics enjoys a reputation for high quality, quantitative analysis and evidence-based advice. • For this, its draws on its own staff of over 70 highly-experienced professional economists; a dedicated data analysis team; global modeling tools, and a range of partner institutions in Europe, the US and in the United Nations Project Link. Oxford Economics has offices in New York, Philadelphia, San Francisco, Chicago, London, Oxford, Belfast, Dubai, and Singapore. World Travel & Tourism Council

  21. About American Express American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. American Express Global Business Travel is a global industry leader in business travel and meetings management committed to helping businesses succeed through cost-effective program management, world-class customer service, and enhanced traveler productivity support worldwide. Through leading online, offline and on-the-go solutions, consulting services, business insights and research, supplier negotiation expertise, and meetings and events capabilities, innovative services are delivered to clients to maximize the return on their travel and meetings investments. American Express Corporate Payment Solutions provides the Corporate Card, Corporate Purchasing Solutions, and other expense management services to mid-size companies and large corporations worldwide. In the U.S., American Express is a leading issuer of commercial cards, serving more than 70% of the Fortune 500, as well as tens of thousands of mid-size companies. World Travel & Tourism Council

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