Travel and tourism sector is critical for economic growth, say experts
It is imperative that Middle Eastern economies dependent on oil increase their investment in the travel and tourism sector, as the sector provides security during times of low oil prices.
Speaking at the 2016 Arabian Hotel Investment Conference (AHIC), David Scowsill, president and CEO of the World Travel & Tourism Council (WTTC), said that travel and tourism is one of the world’s most powerful generators of jobs and economic growth. It is also an inspiring contributor to peace, security, and understanding and a genuine force for good in the world, he said.
“This year the sector supported 284 million jobs, which equates to about one in 11 jobs on the planet. More than one billion people cross international borders each year,” he said. “This sector grows at a faster rate than the overall level of global GDP, and will in 10 years contribute around 11 per cent of global GDP, and one in 10 of all jobs. By 2035, over two million people will cross international borders each year. In short, this sector is critical for economic growth, which is why governments should focus on it as much as they do on the falling oil prices, struggling economies, or unemployment.”
He added: “Here in the UAE, travel and tourism contributes 8.7 per cent of GDP, and supports over half a million jobs. It contributes over Dh27 billion investment and Dh95 billion products exchange. Over the next decade our research anticipates that the sector in the UAE will grow by about 5.4 per cent every year until it reaches 11.2 per cent of GDP by around 2026. By this time around 850,00 jobs will be sustained in the sector in the UAE. Our investment demonstrates that rather than switching off investment in travel and tourism as oil prices fall, countries dependent on oil will benefit greatly from investing in travel and tourism to further diversify their economies.”
The success of this strategy, Scowsill noted, is demonstrated in the UAE in the last three decades and is now becoming an important opportunity elsewhere in the region. In a time of uncertainty in the price of oil, travel and tourism will provide certainty and diversity. It is critical that the public and private sectors work together and continue to drive growth in the sector,” he stressed.
In a panel discussion, Thierry Antinori, EVP and CCO of Emirates Group, noted that agility will be a critical factor when it comes to rapidly changing demand caps in the region. “It all comes down to your mindset and agility; don’t wait too long to prepare today what you will obviously need tomorrow. Besides upgrading and
Here in the UAE, travel and tourism contributes 8.7% to GDP, and supports over half a million jobs
David Scowsill, President and CEO of the World Travel & Tourism Council
expanding our fleet, it is very important for us to invest in the right sectors, when it comes to travel and tourism in the country. We invested Dh20 million in advertising just for Dubai and the UAE. On the internet and social media, we have seen an increase in the number of customers talking about our products, which is important for us and helps us grow.”
Gerald Lawless, head of tourism and hospitality at Dubai Holding, and chairman of WTTC, said that opportunities for the tourism sector in the UAE abound, but that challenges remain. “I feel that the target Dubai has set of welcoming 20 million visitors by 2020 is certainly achievable. Dubai has been very successful in promoting itself, and I am very encouraged when it comes to the city developing its recent theme parks, as this will factor in very nicely for the Expo 2020 target.”