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PRESS RELEASE
FOR IMMEDIATE RELEASE
Contact: Debra Kelman Loew (TBR)
212.794.3577
dkelman@dkpr.com
Richard Miller (WTTC)
212.534.0300
RRMiller@compuserve.com
WTTC Releases 2004 Economic Forecast for Travel and Tourism
Industry
February 27, 2004
NEW YORK, NY & LONDON – The World Travel
& Tourism Council (WTTC) æ global partner to the
Travel Business Roundtable (TBR) æ released its 2004
forecast for US Travel & Tourism today at the New York
Times Travel Show Tourism Industry Conference in New York.
Following more than two years of poor performance, resulting
from an economic downturn, the terrorism events of 9/11, the
war in Iraq and SARS, WTTC has forecast a strong return to
growth for the US industry. For 2004, WTTC is forecasting:
- Demand: Encompassing all components of Travel & Tourism
consumption, investment, government spending and exports
to grow 7.3% (real terms) and total $1.5 trillion in 2004.
The ten-year annualized growth (2005-2014) forecast is 4.1%
per annum illustrating the outlook for robust recovery in
2004.
- Visitor Exports: The US industry is expected to benefit
from strong European and UK traffic resulting from the strong
Pound and Euro to post nearly $100 billion in total Visitor
Exports, a gain of 14.7% on 2003 results. This level represents
8.8% of total exports.
- GDP: Travel & Tourism’s contribution to the US
economy is illustrated by the direct industry impact of
4.1% of total GDP and the combined direct and indirect impact
of the Travel & Tourism economy expected to total 10.7%
in 2004.
- Employment: The US Travel & Tourism industry is expected
to produce more than one quarter million (263,190) new jobs
in 2004 over it’s 2003 level to total 6.6 million jobs
or 4.7% of total employment. The broader perspective of
the Travel & Tourism economy (direct and indirect) is
expected to create 793,000 new jobs for the US economy for
a total of 16.7 million jobs dependent on Travel & Tourism
or 11.9% of total employment.
WTTC President, Jean-Claude Baumgarten said, “We are
cautiously optimistic that the corner has been turned for
Travel & Tourism. After nearly three years of gloom and
doom, we’re expecting the pent up domestic demand to
surge in the United States while inbound visitors especially
from Europe where the Euro and Pound are particularly strong
are expected to provide a much needed boost to the industry.”
Speaking about the state of the industry, Mr. Baumgarten
continued, “I think many of the large industry players
have learned a tough lesson over the past few years about
the sensitivity this industry has to external events –
terrorism, war, SARS - and have sent that message loud and
clear to local, state and national officials. Travel &
Tourism is one of the largest employers in the United States
providing one in every 8.4 jobs in 2004 and no longer can
we sit on our laurels and hope that providing excellent products
and service will be sufficient to guarantee our future growth
and prosperity. We must be proactive and work with government
authorities to ensure that our industry is protected and nurtured.
The recent reduction of the US marketing and promotion budget
is at absolute odds to this cause. It’s in our national
interest to return the budget to the original $50 million.”
"It is very encouraging that the results of this report
indicate that the travel and tourism industry will finally
start to recover following one of the most challenging periods
in history," notes Jonathan Tisch, Chairman of TBR and
Chairman and CEO of Loews Hotels. "But, now that we are
at a point where the economy is improving and travel is starting
to pick up again, it is imperative that we work closely with
government as our partner to ensure that we strike a fair
balance between protecting our homeland and promoting free
and open commerce."
Richard Miller, Executive Vice President of the World Travel
& Tourism Council presented the research to an audience
of leading industry suppliers at the New York Times Travel
Show Tourism Industry Conference in New York. Speaking at
the Conference, Mr. Miller reported that global and European
forecasts would be released on March 10th at a presentation
at the London Stock Exchange. Mr. Miller said, “We have
been watching the indicators closely for signs of recovery
and the last quarter of 2003 gave us the confidence that Travel
& Tourism in the United States was poised for a return
to growth. Although the US Travel & Tourism industry is
relatively mature compared to the developing economies it
still has enormous potential for job creation and can hopefully
change the notion of jobless growth.”
The 2004 Travel & Tourism Economic Research
Download the study
with Adobe Acrobat.
# # #
About The World Travel & Tourism Council
The WTTC is the forum for business leaders in the Travel &
Tourism industry. With Chief Executives of some one hundred
of the world’s leading Travel & Tourism companies
as its members, WTTC has a unique mandate and overview on
all matters related to Travel & Tourism. WTTC works to
raise awareness of Travel & Tourism as one of the world’s
largest industries, employing c. 200 million people and generating
over 10% of world GDP.
About the Travel Business Roundtable
The Travel Business Roundtable (TBR) is a CEO-based organization
representing all sectors of the travel and tourism industry.
In addition to the major airlines, car rental companies, travel
management agencies, hotel chains, resorts and theme parks,
TBR's membership roster also includes such entities as The
Coca-Cola Company, USA Today, the National Football League,
and the International Council of Shopping Centers, demonstrating
the broad scope and diversity the industry represents. In
2002, travel and tourism was the nation's third largest retail
industry generating $555 billion in travel expenditures and
$98.8 billion in local, state and federal taxes.
About the USA Report
The WTTC Country Report for the United States is the latest
in a 13 year series of reports produced by the World Travel
& Tourism Council combining the United Nations standard
for economic assessment of the Travel & Tourism industry
(called "Tourism Satellite Accounting"). For more
information, please call Richard Miller on +1 212 534 0300
or David Tarsh on +44 20 7602 5262 or visit www.WTTC.org.
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