Travel & Tourism in China to Create Over 21 million jobs in next 12 years - A Vital Peg in Asian Economic Recovery

China is poised to become one of the world's greatest destinations for Travel & Tourism, as both international visitors and the Chinese people, become increasingly drawn to its unique and varied appeal.

The report - China and Hong Kong SAR: The Economic Impact of Travel & Tourism forecasts that more than 5.5 million direct industry jobs will be created in China over the next 12 years and a further 16 million economy jobs will be supported by Travel & Tourism spending as it flows through the Chinese economy.

Geoffrey Lipman, WTTC President, launching the report at the China International Tourism Market '98 in Shanghai said, "This industry has enormous potential to offer China and Hong Kong in the medium term, especially as a catalyst for wealth and job creation. This impact will increase thanks to the government's continued economic reform programme and its willingness to view the industry strategically as a new motor for service sector dominated economies."

Through the pioneering use of 'Satellite Accounting', which tracks the impact of Travel & Tourism has on all economic sectors, the report reveals the true value of the industry which is already estimated to support 47 million jobs in the country. The report also highlights that the industry impacts can be broader - it can act as a catalyst for social and economic development; for example where jobs created are concentrated in small business and local communities, it can provide opportunities for women and young people, offer education and training opportunities and can protect and revitalise traditional arts and crafts.

At the launch Lipman also reiterated the message that governments in the Region must stay on course with firm recovery policies in order for the long term potential of Travel & Tourism to be realised. The report suggests that the economic downturn is expected to be short term and predicts that Asian economies will regain stability and return to previous growth trends. This view is shared by WTTC Member Boeing, one of the sponsors of the report, who identify China as the country which will experience the highest growth in air traffic over the coming years.

WTTC Member, American Express also strongly supported the study. L. J. Jia, Vice President and Country Manager, China and Mongolia for American Express said of the work "We fully understand the importance of tourism to economic development, globally and nationally and are pleased to have been involved in this pioneering study to further stimulate the growth of Travel & Tourism in China."

Notes to Editors:

Key Findings

Today the Travel & Tourism Industry supports 13.5 million jobs in China or 1.9% of total employment, and accounts for 2.2% of GDP. In 2010 this will rise to 19 million jobs, 2.4% of total employment and 2.4% of GDP.

Today the Travel & Tourism Economy supports 47 million jobs in China, or 6.7% of total employment, and accounts for 7.8% of GDP. In 2010 this will rise to 69 million jobs, 8.5% of total employment and 8.7% of GDP.

Today the Travel & Tourism Industry supports 74,100 jobs in Hong Kong SAR or 3.1% of total employment, and accounts for 2.8% of GDP. In 2010 this will rise to 100,100 jobs, 3.2% of total employment and 3.2% of GDP.

Today the Travel & Tourism Economy supports 236,000 jobs in Hong Kong SAR, or 9.8% of total employment, and accounts for 8.9% of GDP. In 2010 this will rise to352,600 jobs, 11.4% of total employment and 11.4% of GDP.

Today Travel & Tourism demand in China amounts to Yuan 743 billion and by 2010 this will reach Yuan 3,500 billion. It will grow at an annual rate of 9.0% in real terms, more than double the global growth forecast of 4.1%.

Today Travel & Tourism demand in Hong Kong SAR amounts to HK$ 328 billion and by 2010 this will reach HK$ 1330 billion. It will grow at an annual rate of 5.9% in real terms.