Contribution of Travel and Tourism to GDP is forecast to rise 4.9% in 2018


ABU DHABI, 17th April, 2018 (WAM) -- The total contribution of Travel and Tourism to GDP was AED154.1bn (USD41,950.5mn), 11.3 percent of GDP in 2017, and is forecast to rise by 4.9 percent in 2018, and to rise by 3.8 percent pa to AED234.2bn (USD63,776.4mn), 10.6 percent of GDP in 2028, according to the latest data released by the World Travel & Tourism Council (WTTC).

''The direct contribution of Travel & Tourism to GDP in 2017 was AED69.1bn (5.1 percent of GDP). This is forecast to rise by 5.0 percent to AED72.6bn in 2018.

The direct contribution of Travel & Tourism to GDP is expected to grow by 4.1 percent pa to AED108.4bn (4.9 percent of GDP) by 2028,'' the figures indicated.

Sultan bin Saeed Al Mansouri, Minister of Economy, said the data confirmed the UAE's prominent standing as a regional and world tourism destination thanks to its ultra-modern infrastructure, advanced, creative services sector, high quality air transport sector and stability and security.

Travel & Tourism generated 300,000 jobs directly in 2017 (4.9 percent of total employment) and this is forecast to grow by 4.1 percent in 2018 to 312,500 (excluding commuter services). It also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists.

By 2028, Travel & Tourism will account for 396,000 jobs directly, an increase of 2.4 percent pa over the next ten years.

By 2028, Travel & Tourism is forecast to support 720,000 jobs (10.2 percent of total employment), an increase of 1.8 percent pa over the period.

The total contribution of Travel & Tourism to employment (including wider effects from investment, the supply chain and induced income impacts was 585,500 jobs in 2017 (9.5 percent of total employment). This is forecast to rise by 3.2 percent in 2018 to 604,500 jobs (9.7 percent of total employment).

Visitor exports are a key component of the direct contribution of Travel & Tourism. In 2017, United Arab Emirates generated AED123.5bn in visitor exports. In 2018, this is expected to grow by 5.3 percent, and the country is expected to attract 21,273,000 international tourist arrivals.

By 2028, international tourist arrivals are forecast to total 33,545,000, generating expenditure of AED202.6bn, an increase of 4.5 percent pa.

Travel & Tourism is expected to have attracted capital investment of AED25.4bn in 2017. This is expected to rise by 7.2 percent in 2018, and rise by 8.6 percent pa over the next ten years to AED62.1bn in 2028. Travel & Tourism’s share of total national investment will rise from 8.2 percent in 2018 to 11.2 percent in 2028.

Leisure travel spending (inbound and domestic) generated 77.2 percent of direct Travel & Tourism GDP in 2017 (AED125.9bn) compared with 22.8 percent for business travel spending (AED37.2bn).Leisure travel spending is expected to grow by 4.7 percent in 2018 to AED131.8bn, and rise by 4.2 percent pa to AED199.8bn in 2028.

Business travel spending is expected to grow by 3.7 percent in 2018 to AED38.6bn, and rise by 4.1 percent pa to AED57.7bn in 2028.

Domestic travel spending generated 24.3 percent of direct Travel & Tourism GDP in 2017 compared with 75.7 percent for visitor exports (ie foreign visitor spending or international tourism receipts).

Domestic travel spending is expected to grow by 1.9 percent in 2018 to AED40.4bn, and rise by 3.1 percent pa to AED54.9bn in 2028 Visitor exports are expected to grow by 5.3 percent in 2018 to AED130.1bn, and rise by 4.5 percent pa to AED202.6bn in 2028.

 

WAM/Tariq alfaham/Hassan Bashir