Exports generated by international tourism reach $1.7trln in 2018

EXPORTS generated by international tourism reached $1.7 trillion (R25.4 trln) last year, a 4 percent increase in real terms over the previous year, a new report from the World Tourism Organisation (WTO) shows.

For the seventh year in a row, tourism exports grew faster than merchandise exports (3 percent), reflecting solid demand for international travel in a robust economic environment.

Strong growth in outbound travel from many source markets fuelled revenues from international tourism to reach a total of $1.7trln. This accounts for 29 percent of global service exports and 7 percent of overall exports of goods and services. These figures consolidate international tourism among the top five economic sectors in the world, behind chemical manufacturing and the fuel industry but ahead of the food and automotive industries.

“Rather than growing in volume, we need to grow in value. We are pleased to see that both emerging and advanced economies around the world are benefiting from rising tourism income,” said WTO secretary-general Zurab Pololikashvili. “Revenues from international tourism translate into jobs, entrepreneurship and a better situation for people and local economies, while reducing trade deficits in many countries,” he added.

Total exports from international tourism include $1 448 billion in international tourism receipts (visitor spending in destinations) and $256bn in international passenger transport services. Tourism constitutes a key source of foreign exchange and a major tool for export diversification for many destinations.

International tourism receipts increased 4 percent in real terms (adjusting for exchange rate fluctuations and inflation) to reach $1 448bn in 2018, about $100bn more than the previous year. This is consistent with the 6 percent increase in international tourist arrivals in 2018.

By regions, Asia and the Pacific led the way, with 7 percent growth in international tourism receipts, followed by Europe, with a 5 percent increase. The Middle East saw 3 percent growth, while Africa (1 percent) and the Americas (0 percent) recorded more modest results. Central and Eastern Europe and North-East Asia (both 9 percent) were the subregions with the strongest growth.

Growth in receipts was fuelled by strong demand for international travel in the context of a robust global economy.

Among the world’s top 10 source markets, France and the Russian Federation both recorded 11 percent growth in outbound spending in 2018, while Australia saw a 10 percent increase.

China, the world’s top spender, reported $277bn in international tourism expenditure in 2018, a 5 percent increase in real terms from a year earlier, while the US, the second largest, spent 7 percent more, to reach $144bn.