Travel & Tourism Leaders Forecast Continued Growth for 2008

Despite repercussions of the ongoing global credit crunch, Travel & Tourism leaders expect the industry will moderately be impacted and signaled continued growth rates for 2008 at a reduced pace. According to the recent research produced by the World Travel & Tourism Council (WTTC) and Oxford...

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Despite repercussions of the ongoing global credit crunch, Travel & Tourism leaders expect the industry will moderately be impacted and signaled continued growth rates for 2008 at a reduced pace.
According to the recent research produced by the World Travel & Tourism Council (WTTC) and Oxford Economics (OE), Travel & Tourism entered this recent period on the back of another solid performance in 2007. International tourism arrivals increased in this year by nearly six percent, totaling to nearly 900 million tourists and marking the fourth successive year that arrivals' growth has exceeded its long-standing trend of four percent
Furthermore, the research also indicated that tourism spending per capita has more than matched these increases. International air passenger traffic also rose at a record 9.3 percent (source: IATA) from year to year in November.
WTTC President Jean-Claude Baumgarten stated "tourism growth has been particularly rapid in developing countries with the fastest average growth in tourism arrivals in the Middle East region. These countries are not only recognizing the development potential of Travel & Tourism and therefore investing heavily in new infrastructure and facilities, but their citizens are also seeing rapid economic growth boost their incomes beyond the level where international travel becomes both a feasible and desired option."
The deteriorating economic conditions, particularly in the housing and credit markets across the globe are increasing concerns for the industry. However, the slowdown is likely to have a limited impact, due to the growth of emerging markets and the easing in monetary policy by central banks. Higher energy prices are a two-pronged challenge as they squeeze household budgets globally and raise the cost of a key input for the Travel & Tourism industry. Baumgarten stated that even this challenge has a positive angle, explaining how "higher revenues are boosting oil-producer incomes and raising available funds for investment in diversification projects often focusing on tourism's undoubted potential."