May 11, 2000

Tourism Satellite Accounting Confirms Travel & Tourism As the World's Foremost Economic Activity

VILAMOURA, Portugal, May 11 / Some of the world's most powerful and influential business leaders have launched a clear message that Travel & Tourism has been quantified as the economic engine for developed and developing economies worldwide. At their Annual General Meeting in Vilamoura, the World Travel & Tourism Council (WTTC) released its global tourism forecasts for 2000 which are backed by a decade of Tourism Satellite Accounting data from...

WTTC

The WTTC and WEFA have measured that, directly and indirectly, the Travel & Tourism industry constitutes: 11 per cent of global GDP (US$3,575 billion); supports 200 million jobs worldwide; 8% of total employment or and 1 in every 12.4 jobs. By 2010, the Travel & Tourism Economy contribution is estimated to grow to 11.6% (US$ 6,591 billion) of global GDP and will support 250 million jobs, 9% of total employment or 1 in every 11.0 jobs.

But WTTC members underscored this message with advice for the public sector to move beyond lip service and the half-hearted support that has traditionally been granted to the travel and tourism industry. Equipped with global business case studies and stringently tested data, private sector participants urged government representatives to become proactive and embrace travel and tourism into policy making processes as a positive economic contributor for future generations.

"Tourism Satellite Accounting research and analysis has clearly quantified Travel & Tourism as the world's foremost economic activity," says Jean-Claude Baumgarten, President of WTTC. "As well, it is the only industry which promotes the understanding and preservation of culture and the environment, fosters cooperation between the private sector, public sector and local communities and presents career opportunities unlike any other industry. It is the industry of the future which embraces the values and lifestyles of future generations."

The World Travel & Tourism Council is the Global Business Leaders' Forum for Travel & Tourism. Its Members are Chief Executives from all sectors of industry, including accommodation, catering, entertainment, recreation, transportation and other travel-related services. Its central goal is to work with governments to realise the full economic impact of the world's largest generator of wealth and jobs -- Travel & Tourism

                        WORLD TRAVEL & TOURISM COUNCIL
             TOURISM SATELLITE ACCOUNTING ESTIMATES AND FORECASTS

                                GLOBAL TRENDS


                                 2000                        2010
                         US$ Bn  % of   Growth(1)  US$ Bn     % of   Growth(2)
                                 Total                       Total
    Personal Travel
     & Tourism          2,202.7   10.6     3.8    3,855.8     10.8     3.3
    Business Travel       410.0     --     4.5      746.9       --     3.7
    Government
     Expenditures         206.2    5.2    -1.1      344.1      5.7     3.1
    Capital Investment    701.3    9.4     5.8    1,404.0     10.6     5.4
    Visitor Exports       565.8    7.2     1.4    1,144.8      7.0     4.8
    Other Exports         418.2    5.4     3.9      953.6      5.8     6.6
    Travel &
     Tourism Demand     4,506.4     --     3.5    8,454.4       --     4.2
    T&T Industry GDP    1,359.3    4.1     2.9    2,408.3      4.2     3.6
    T&T Economy GDP     3,575.0   10.8     3.3    6,591.1     11.6     4.0
    T&T Industry
     Employment (mn)       73.1    3.1     2.7       91.9      3.3     2.3
    T&T Economy
     Employment (mn)      192.3    8.0     2.9      251.6      9.1     2.7

() 1999 Real Growth Adjusted for Inflation (Percent)

() 2000 - 2010 Annualised Real Growth Adjusted for Inflation (Percent); Employment in Millions

Personal Travel & Tourism:Spending by residents on Travel & Tourism services such as air tansport and hotels; and goods such as luggage and film and auto use.
Travel & Tourism Economy:Goods and services produced for visitors and other activities Strongly ependent on Travel & Tourism spending.
Business Travel:Spending by companies and government agencies on travel while engaged on business.
Other Exports:Goods which can be exported for Travel & Tourism abroad.
Government Expenditures:Spending by government agencies to provide goods and services to visitors or Travel & Tourism companies
Travel & Tourism Demand:The total amount of Travel & Tourism economic activity.
Capital Investment:Capital Investment by travel companies and spending by government agencies on Travel & Tourism infrastructure.
Travel & Tourism Industry:The activities producing goods and services directly for visitors.
Visitor ExportsSpending by international visitors

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