Tourism growth to slow: industry group
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World travel and tourism sales growth will slow to 3% this year as weaker economies prompt consumers and businesses to spend less, according to a study by the World Travel & Tourism Council.
“Challenges come from the U.S. slowdown and the weak dollar, higher fuel costs and concerns about climate change,” WTTC President Jean-Claude Baumgarten said in the statement.
The Council has forecast that world travel and tourism will generate close to US$8 trillion this year, rising to approximately US$15 trillion over the next ten years. The growth is a slowdown from 2007’s 3.9% increase.
A Bloomberg report said consumers are becoming more pessimistic in the U.S., the world’s biggest economy, as the housing market experiences its worst slump in 26 years.
Higher oil prices are raising the cost for the transportation sector.
Regionally Africa, Asia Pacific and the Middle East are experiencing higher growth rates than the world average, at 5.9%, 5.7% and 5.2% respectively, WTTC said.
In mature markets, most notably the Americas and Europe, growth rates are falling below the world average with a growth at 2.1% and 2.3 % respectively.
The overall impact of this slowdown for mature markets is expected to be offset by the strength of the emerging markets, said John Walker, Chairman of Oxford Economics.
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