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Travel spending outpaces economic growth


Economic worries have bigger impact on travel than terrorism
There is a slowdown in travel spending on average around the world, the World Travel and Tourism Council says, but it is still growing faster than world economic growth, despite the impact of terrorism.
Global travel spending is expected to grow by 3.1% this year – down from a March forecast of 3.3% but still outpacing projected global economic growth of 2.3%.
Macroeconomic problems have a far greater impact on travel than terrorism, the WTTC’s president, David Scowsill, said.
“Travelers aren’t going to allow isolated terrorist attacks to put them off travelling,” he said.
While Europe is seeing challenges this year and travel spending is only growing by 2.2% overall, South Asia is leading growth at 5.9%, driven by strong economic prospects in India; Northeast Asia and Southeast Asia are growing at 4.7% and 4%, respectively, stimulated by China growing at 6.3%; and North America matches the forecast global growth rate of 3.1%.
In the United Kingdom, which voted to leave the European Union, growth is actually expected to exceed the rest of Europe at 3.6%. That could lessen in 2017, but the WTTC says this will be offset by higher spending by international visitors in the UK, due to the weaker British pound.


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