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Ethiopia, Rwanda and Uganda: Top 10 improved world travel destinations

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Three Eastern African nations have emerged among the top ten fastest-growing destinations for tourism in the world.

The 2019 annual report compiled by the World Travel and Tourism Council (WTTC) shows that Ethiopia is the fastest-growing travel destination in the world with Rwanda in sixth place and Uganda holding a twelfth position on the list.

Ethiopia’s tourism sector grew by a staggering 48.6 percent in 2018, making up 9.4 percent of the economy and creating 2.2 million jobs. Over 8 percent of Ethiopia’s total workforce now works in tourism.

Rwanda also saw growth rates of 13.8 percent and Uganda 11.3 percent, with all 3 showing the pull of East Africa both in terms of its wildlife, history, and beaches, the Nation Media Group reported from Nairobi.

Kenya also saw a big growth in 2018  at 5.6 percent  which had created 1.46 million jobs and made up 8.8 percent of the total annual economy.

Kenya stands as the leading tourist hub in Eastern Africa, taking an advantage of its rich wildlife, historical sites, and beaches on the Indian Ocean coast and improved tourist services, mostly hotels and air transport facilities.

In its annual analysis quantifying the global economic and employment impact of travel and tourism in 185 countries and 25 regions, the World Travel and Tourism Council’s research reveals that the sector accounted for 10.4 percent of global GDP and 319 million jobs, or 10 percent of total employment in 2018.

It adds that travel and tourism’s growth in 2019 is expected “to remain resilient” despite a slowing global economy.

“Our forecasts point to a 3.6 percent expansion for travel and tourism, faster than an expected global economy growth of 2.9 percent in 2019,” the report says.

It adds that one in 5 of all new jobs were created by travel and tourism over the past 5 years showing the growing importance of the sector to the global economy.

Travel and tourism GDP grew by 5.6 percent in 2018, significantly above the African economic growth rate of 3.2 percent.

This places Africa as the second fastest-growing region in 2018, behind only Asia-Pacific.

Such growth is partly explained by North Africa’s rebound from security crises as well as the development and implementation of policies that stimulate travel promotion.

Travel News | eTurboNews

Strongest year-by-year growth in a decade expected

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The number of business trips and the cost of those trips is set to rise in 2019, according to the 14th annual International Travel Management Study (22 October 2018). Almost half (45 percent) of the 777 corporate travel managers surveyed by AirPlus in 24 countries expect their company to travel more in the year ahead. That figure is up from 35 percent in 2018 and the highest since the global financial crisis of the late 2000s.

Only 10 percent of travel managers believe their company will travel less, while 44 percent expect no change. India is the country where the highest number of travel managers (83 percent) forecast more trips in 2019. In contrast, 33 percent of Russian travel managers, more than any other country, predict less travel.

Travel managers are economic optimists

Almost half (46 percent) of travel managers expect the global economy to affect business travel positively in 2019. That is well up on last year (27 percent) and the highest figure in the six years the study has asked this question. Only 16 percent of travel managers expect the economy to affect business travel negatively, down from 20 percent in 2018.

The optimism among travel managers may seem surprising given several risks threatening to slow the global economy in 2019, including Brexit, slower growth in the Chinese economy and international trade disputes. But at time of writing the International Monetary Fund’s 2019 forecast is for global GDP growth of 3.5 percent (slower than 2018 but still a relatively high figure), and business travel volume and GDP have long been shown to correlate.

Expect business travel to cost more in 2019

The almost inevitable consequence of more travel is more cost, and sure enough, 51 percent of travel managers expect their company to increase its travel spend in 2019 — up from 41 percent in 2018.

“Our travel managers’ prediction of increased corporate travel highlights the importance that business travel has gained over the years. Regardless of any possible positive or negative effects of the global economy, travel managers consider business travel to be necessary and essential in order to gain new business and meet corporate challenges”, says Yael Klein, a marketing director. “But more travel also means companies need to pay increased attention to controlling their rising spend. Luckily, there are many excellent tools and techniques to help track and manage travel spend. 2019 is definitely the year to put these good travel management practices in place, or review them if you already have a strong managed program.”

Action points recommended to control budgets include:

  • Make sure you have a good corporate payment solution providing the best possible travel spend data.
  • Review your policy to identify fresh potential savings.
  • Re-visit your supplier deals. If you have more spend, you also have more spending power.
  • Communicate. Tell your travelers that costs are increasing

Travel News | eTurboNews

Travel & Tourism continues strong growth above global GDP

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Gloria Guevara, President and CEO, WTTC

The global Travel & Tourism sector grew at 3.9% to contribute a record $8.8 trillion and 319 million jobs to the world economy in 2018. For the eighth consecutive year, this was above the growth rate of world GDP.

This is according to the World Travel & Tourism Council’s (WTTC) annual research into the economic impact and social importance of the sector. The research conducted over the last 25 years by WTTC, which represents the global private sector of Travel & Tourism, shows that Travel & Tourism in 2018:

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  • Contributed $8.8 trillion to the global economy
  • Grew faster than the global economy for the eighth successive year (3.9% for Travel & Tourism versus 3.2% for global GDP)
  • Generated 10.4% of all global economic activity
  • Contributed 319 million jobs, representing one in ten of all jobs globally
  • Is responsible for one in five of all new jobs created in the world over the last five years
  • Is the second-fastest growing sector in the world, ahead of Healthcare (+3.1%); Information Technology (+1.7%) and Financial Services (+1.7%) behind only Manufacturing, which grew by 4%
  • Increased its share of leisure spending to 78.5% (from 77.5% in 2017) meaning 21.5% (22.5% in 2017) of spending was on business
  • Increased its share of spending from international tourists 28.8%, up from 27.3% in 2017. This means that 71.2% of spending comes from domestic tourists.

Gloria Guevara, WTTC President & CEO, said: “2018 was another year of strong growth for the global Travel & Tourism sector reinforcing its role as a driver of economic growth and job creation. For the eighth consecutive year, our sector outpaced growth in the wider global economy and we recorded the second-highest growth of any major sector in the world.

“In 2018, Travel & Tourism generated $8.8 trillion and supported 319 million jobs across the world. Yet again, this proves the power of Travel & Tourism as a tool for governments to generate prosperity while creating jobs which particularly support women, youth and other, often marginalised groups of society. In fact, Travel & Tourism now accounts for one in five of all new jobs created worldwide and is forecast to contribute 100 million new jobs globally over the next ten years, accounting for 421 million jobs by 2029.”

UNWTO: International tourist arrivals reach 1.4 billion two years ahead of forecasts

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UNWTO Secretary-General Zurab Pololikashvili

International tourist arrivals grew 6% in 2018, totalling 1.4 billion according to the latest UNWTO World Tourism Barometer. UNWTO’s long term forecast issued in 2010 indicated the 1.4 billion mark would be reached in 2020, yet the remarkable growth of international arrivals in recent years has brought it two years ahead.

International tourist arrivals up 6% in 2018

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UNWTO estimates that worldwide international tourist arrivals (overnight visitors) increased 6% to 1.4 billion in 2018, clearly above the 3.7% growth registered in the global economy.

In relative terms, the Middle East (+10%), Africa (+7%), Asia and the Pacific and Europe (both at +6%) led growth in 2018. Arrivals to the Americas were below the world average (+3%).

“The growth of tourism in recent years confirms that the sector is today one of the most powerful drivers of economic growth and development. It is our responsibility to manage it in a sustainable manner and translate this expansion into real benefits for all countries, and particularly, to all local communities, creating opportunities for jobs and entrepreneurship and leaving no one behind” said UNWTO Secretary-General Zurab Pololikashvili. “This is why UNWTO is focussing 2019 on education, skills and job creation.”, he added.

UNWTO’s long-term forecast published in 2010 predicted the 1.4 billion mark of international tourist arrivals for 2020. Yet stronger economic growth, more affordable air travel, technological changes, new businesses models and greater visa facilitation around the word have accelerated growth in recent years.

Results by region

International tourist arrivals in Europe reached 713 million in 2018, a notable 6% increase over an exceptionally strong 2017. Growth was driven by Southern and Mediterranean Europe (+7%), Central and Eastern Europe (+6%) and Western Europe (+6%). Results in Northern Europe were flat due to the weakness of arrivals to the United Kingdom.

Asia and the Pacific (+6%) recorded 343 million international tourist arrivals in 2018. Arrivals in South-East Asia grew 7%, followed by North-East Asia (+6%) and South Asia (+5%). Oceania showed more moderate growth at +3%.

The Americas (+3%) welcomed 217 million international arrivals in 2018, with mixed results across destinations.

Growth was led by North America (+4%), and followed by South America (+3%), while Central America and the Caribbean (both -2%) reached very mixed results, the latter reflecting the impact of the September 2017 hurricanes Irma and Maria.

Data from Africa points to a 7% increase in 2018 (North Africa at +10% and Sub-Saharan +6%), reaching an estimated 67 million arrivals.

The Middle East (+10%) showed solid results last year consolidating its 2017 recovery, with international tourist arrivals reaching 64 million.

Growth expected to return to historical trends in 2019

Based on current trends, economic prospects and the UNWTO Confidence Index, UNWTO forecasts international arrivals to grow 3% to 4% next year, more in line with historic growth trends.

As a general backdrop, the stability of fuel prices tends to translate into affordable air travel while air connectivity continues to improve in many destinations, facilitating the diversification of source markets. Trends also show strong outbound travel from emerging markets, especially India and Russia but also from smaller Asian and Arab source markets.

At the same time, the global economic slowdown, the uncertainty related to the Brexit, as well as geopolitical and trade tensions may prompt a “wait and see” attitude among investors and travelers.

Overall, 2019 is expected to see the consolidation among consumers of emerging trends such as the quest for ‘travel to change and to show’, ‘the pursuit of healthy options’ such as walking, wellness and sports tourism, ‘multigenerational travel’ as a result of demographic changes and more responsible travel.

“Digitalization, new business models, more affordable travel and societal changes are expected to continue shaping our sector, so both destination and companies need to adapt if they want to remain competitive”, added Pololikashvili.