Travel and tourism growth projection weakens
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The World Travel & Tourism Council (WTTC) has downgraded its forecast for the sector’s GDP growth in line with a dip in the world GDP forecast.
WTTC’s research in March 2013 predicted that the travel and tourism industries would grow 3.1% in 2013 outperforming the wider economy increase of 2.4%. Now the world GDP expected growth figure has been reduced, the WTTC said this will impact the travel sector although it is currently unclear how much.
Despite the downgrade, the WTTC said indicators had suggested the travel industry is holding up against the overall economy and was “generally robust”.
IATA figures have continued to show an increase in passenger traffic including 5.9% for June year-on-year, while data from analysts STR Global suggests hotel average daily rates have been improving.
In its global report, the WTTC said: “At this mid-way stage, the indicators suggest that our forecast of “slowing but growing” continues to be appropriate for the travel and tourism industry.”
Economy updates continue to fluctuate across the globe, with the UK seeing an unexpected boost in its economy this week. Consumer spending is a key growth driver and is expected to improve against tax changes and inflation rates, although will not get back to pre-recession levels until 2015.
In Europe the high youth unemployment rate and a dip in industrial production is impacting market growth, while the US GDP forecast has scaled back from 2% to 1.8% in the last month citing weaker consumer spending as the main factor. The largest WTTC forecast downgrades were for the US, China and Brazil.
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