Post by Trade facilitator on Mar 31, 2018 22:42:03 GMT 1
The tourism sector is seen as the fastest growing sector of the global economy. In fact, the belief is that tourism has the potential to catalyse the economies of developing nations, thus, there have been countless researches and report support the hypothesis and if sustainably developed; the sector has the enormous potential for driving the developing nations toward achieving the Sustainable Development Goals (SDGs).
Based on tourism's multibillion dollar revenue to global, as well as respective national economies, its importance and relevance to economic growth and development, countries across the world are branding and promoting some brands of tourism to sell. Who wouldn't?
In 2015 alone, travel and tourism in total contributed $7.2 trillion to world GDP, representing 9.8 per cent of global GDP, the World Travel & Tourism Council (WTTC) said. WTTC is the global authority on the economic and social contribution of Travel and Tourism.
And according to it, 2.5 million new jobs were generated directly in the sector in 2015, taking the number of direct jobs to 108 million. In total, 7.2 million new jobs were created as a result of direct, indirect and induced activity, the body said.
The sector's contribution to GDP is forecast to grow by 3.3 per cent in 2016, with the projection that it will outperform the global economy throughout the next decade, growing by an expected four per cent on average annually over the next ten years.
In Nigeria, direct contribution of the sector to GDP was put at 1.7 per cent of total 2015 GDP, that is, N1,632.8 billion, with the potential to rise by 4.8 per cent in 2016, and to rise by 6.4 per cent pa, from 2016-2026, i.e. to NGN3,189.7 billion. While the total contribution of travel and tourism to GDP was 4.2 per cent of GDP in 2015, that is, N4 billion, it is forecast to rise by 5.0 per cent in 2016, and to rise by 6.4 per cent pa in 2026. Estimated revenue stands at a little more than N7 billion.
Despite expected macro-economic conditions and other challenges in the industry, it is expected to "perform at a solid growth rate and outperform global economic growth once again," the WTTC noted.
With the industry forecasts pegging annual growth rates at four per cent over the next 10 years, this present quite an opportunity for SMEs to operate in the industry, Kayode Adesola, who owns travel business in Abuja for nearly 10 years said.
What is more, "the sustained demand for travel and tourism, coupled with the sector's ability to consistently outperform the wider global economy and be resilient in the face of shocks, continues to underline its great significance and value as a key sector for economic development and job creation throughout the world," WTTC added.
It is forgone conclusions that travel and tourism is a lucrative business, with several options to pick from - there are transportation services, which involves transporting tourists to, from and around the tourist destination; travel agencies; the one stop shop for everything involved with visiting a place, including transportation, accommodations and attractions; accommodations, which include hotels, motels, bed and breakfasts, hostels, and other place tourists may stay while travelling; guided tours and tour guides; hospitality, among others - the fact remains that, for every SMEs owner/entrepreneur who invests in this sector, he/she not only help grow and develop the sector nationally, but continentally.
Investing in any industry may seem crazy, especially with harsher economic realities in Nigeria; however, statistics show that major components of travel and tourism are expected to record faster growth in 2016 and beyond. For instance, statistics from WTTC shows that investment is already forecast to grow by 4.7 per cent this year, while domestic and international travel and tourism spending are forecast to grow by 3.3 per cent and 3.0 per cent respectively. Domestic travel and tourism spending growth is again "expected to buck the longer-term trend by outpacing international spending in 2016, before international spending growth will again exceed domestic spending growth from 2018," the body said.
If not now, when? By 2026, the sector is expected to support 370 million globally. Statistics show that while South Asia will be the fastest growing sub-region at 7.1 per cent, India will record 7.5 per cent, outpacing China's 7.0 per cent growth for total travel and tourism GDP in 2026; Southeast Asia will record 5.8 per cent, followed by Northeast Asia; 5.6 per cent; Sub-Saharan Africa, 5.2 per cent; the Middle East, 4.9 per cent and North Africa, 4.2 per cent. Meanwhile, growth in Latin America, North America, the Caribbean, and Europe, is expected to average below the global average of four per cent, per year.
Based on tourism's multibillion dollar revenue to global, as well as respective national economies, its importance and relevance to economic growth and development, countries across the world are branding and promoting some brands of tourism to sell. Who wouldn't?
In 2015 alone, travel and tourism in total contributed $7.2 trillion to world GDP, representing 9.8 per cent of global GDP, the World Travel & Tourism Council (WTTC) said. WTTC is the global authority on the economic and social contribution of Travel and Tourism.
And according to it, 2.5 million new jobs were generated directly in the sector in 2015, taking the number of direct jobs to 108 million. In total, 7.2 million new jobs were created as a result of direct, indirect and induced activity, the body said.
The sector's contribution to GDP is forecast to grow by 3.3 per cent in 2016, with the projection that it will outperform the global economy throughout the next decade, growing by an expected four per cent on average annually over the next ten years.
In Nigeria, direct contribution of the sector to GDP was put at 1.7 per cent of total 2015 GDP, that is, N1,632.8 billion, with the potential to rise by 4.8 per cent in 2016, and to rise by 6.4 per cent pa, from 2016-2026, i.e. to NGN3,189.7 billion. While the total contribution of travel and tourism to GDP was 4.2 per cent of GDP in 2015, that is, N4 billion, it is forecast to rise by 5.0 per cent in 2016, and to rise by 6.4 per cent pa in 2026. Estimated revenue stands at a little more than N7 billion.
Despite expected macro-economic conditions and other challenges in the industry, it is expected to "perform at a solid growth rate and outperform global economic growth once again," the WTTC noted.
With the industry forecasts pegging annual growth rates at four per cent over the next 10 years, this present quite an opportunity for SMEs to operate in the industry, Kayode Adesola, who owns travel business in Abuja for nearly 10 years said.
What is more, "the sustained demand for travel and tourism, coupled with the sector's ability to consistently outperform the wider global economy and be resilient in the face of shocks, continues to underline its great significance and value as a key sector for economic development and job creation throughout the world," WTTC added.
It is forgone conclusions that travel and tourism is a lucrative business, with several options to pick from - there are transportation services, which involves transporting tourists to, from and around the tourist destination; travel agencies; the one stop shop for everything involved with visiting a place, including transportation, accommodations and attractions; accommodations, which include hotels, motels, bed and breakfasts, hostels, and other place tourists may stay while travelling; guided tours and tour guides; hospitality, among others - the fact remains that, for every SMEs owner/entrepreneur who invests in this sector, he/she not only help grow and develop the sector nationally, but continentally.
Investing in any industry may seem crazy, especially with harsher economic realities in Nigeria; however, statistics show that major components of travel and tourism are expected to record faster growth in 2016 and beyond. For instance, statistics from WTTC shows that investment is already forecast to grow by 4.7 per cent this year, while domestic and international travel and tourism spending are forecast to grow by 3.3 per cent and 3.0 per cent respectively. Domestic travel and tourism spending growth is again "expected to buck the longer-term trend by outpacing international spending in 2016, before international spending growth will again exceed domestic spending growth from 2018," the body said.
If not now, when? By 2026, the sector is expected to support 370 million globally. Statistics show that while South Asia will be the fastest growing sub-region at 7.1 per cent, India will record 7.5 per cent, outpacing China's 7.0 per cent growth for total travel and tourism GDP in 2026; Southeast Asia will record 5.8 per cent, followed by Northeast Asia; 5.6 per cent; Sub-Saharan Africa, 5.2 per cent; the Middle East, 4.9 per cent and North Africa, 4.2 per cent. Meanwhile, growth in Latin America, North America, the Caribbean, and Europe, is expected to average below the global average of four per cent, per year.
