Travel and Tourism: Good as Gold

Lima, Peru,8 April - When it comes to reliable long-term investment, tourism may just be "the new gold". While it's true that nothing is ever certain, trends suggest that the tourism industry will continue to flourish in coming years - even in difficult times.

The industry is one of the largest in the world, reports the World Travel and Tourism Council (WTTC), accounting for 10 percent of world GDP and employing nearly 240 million people. For many economies, it is not just a significant source of income but the main source. While traditionally stable currencies and commodities have fallen in value and energy prices have strained household budgets, travel and tourism economy GDP is nonetheless projected to increase by 3 percent and to create an additional 6 million jobs across the world this year.

Recognizing the potential of tourism as a vehicle for trade and economic stability, the APEC Tourism Working Group informs and affects policy throughout the region and to maximise potential benefits to all its members.

While Europe has long reigned as the most popular destination, Asia-Pacific has become increasingly competitive and, in 2002, became the second most visited region in the world. Even after setbacks - the SARS epidemic, the Asian tsunami of 2004 and a series of violent acts on several continents - trends continue upward.

In general, Asia is experiencing growth of a middle class. Explains WTTC Spokesman, Ray Spurr, disposable income drives travel. As the middle class acquires more, travel increases both internally and externally. As average Asian incomes rise, growth becomes more and more visible." He notes annual growth in the Chinese economy by 9 percent.

Not only an indicator of economic success but also a proponent of development; emerging markets have increased their investments in Western as well as African economies. China alone is set to provide over 100 million visitors to other destinations in the next ten years while also strengthening domestic travel.

Of course, each economy is faced with a unique set of challenges and opportunities and these also affect the ability to attract visitors. Thailand and Indonesia, for example, have long capitalized on a wealth of prime beach area. Other economies have built or even created tourist attractions. Macau has increased tourist arrivals largely through the development of hotels and casinos and Singapore has enjoyed the benefits of trade and tourism by making itself a most convenient business hub. While its own population totals only 4 million, the island economy welcomed 10.3 million visitors in 2007 - the greatest number of annual arrivals ever recorded and resulting in a cool profit of 14 billion Singapore dollars.

Hong Kong is a similar example. Spurr points to travel infrastructure, efficient airports, roads and accommodation which make it "good for doing business". Solid structure and quality of living makes Hong Kong attractive to banks and other financial institutions.

Find out more about the Tourism Working Group.

Find out more about the WTTC.