Clear Signs of Strength in Portugal’s Travel & Tourism Business | WTTC Reports
Lisbon, Portugal; London, UK | The World Travel & Tourism Council (WTTC) released its 2005 forecast for Portugal Travel & Tourism today at a meeting of WTTC Members with the Portuguese business community in Lisbon.
Lisbon, Portugal; London, UK | The World Travel & Tourism Council (WTTC) released its 2005 forecast for Portugal Travel & Tourism today at a meeting of WTTC Members with the Portuguese business community in Lisbon.
At this event, Manuel Fernando Espírito Santo, Chairman of Espírito Santo Tourism and Executive Committee Member of the World Travel & Tourism Council said, “We have been watching the indicators closely for clear signs of strength in Portugal’s Travel & Tourism business. The European Cup and its positive spin-off in 2004 gave us renewed confidence that Travel & Tourism in Portugal was poised for a return to growth. Although the Portuguese Travel & Tourism industry is relatively mature compared to developing economies it still has enormous potential for job creation and further growth.”
WTTC President, Jean-Claude Baumgarten said, “Building on a strong 2004, we are particularly optimistic that the Portuguese Travel & Tourism industry is returning to a period of continued growth. After several years of malaise, and following a strong return on the European Cup 2004, we’re expecting the pent up European and UK demand to surge in Portugal and to provide a much needed boost to the industry.”
Speaking about the state of the industry, Mr. Baumgarten continued, “I think many of the large industry players have learned a tough lesson over the past few years about the sensitivity this industry has to external events – terrorism, war, natural disasters and health crises - and have sent that message loud and clear to provincial and national officials. Travel & Tourism is one of the largest employers in Portugal providing one in every five jobs in 2005 and no longer can we sit on our laurels and hope that traffic will naturally flow our way. We must focus on providing excellent products and service that will be necessary to guarantee our future growth and prosperity. We must be proactive and work with government authorities to ensure that our industry is protected and nurtured. It’s in the interest of our industry.”
Following several years of lackluster demand and a strong rebound in 2004, WTTC has forecast a strong second year of growth for the Portuguese industry. For 2005, WTTC is forecasting:
- Demand: Encompassing all components of Travel & Tourism consumption, investment, government spending and exports the industry is expected to generate EUR32.1 billion (US$42.7 billion) of economic activity growing (nominal terms) to EUR58.2 billion (US$61.1 billion) by 2015. Travel & Tourism Demand is expected to grow by 5.1 per cent in 2005 and by 4.1 per cent per annum, in real terms, between 2006 and 2015. 2004 growth was reported at 4.8 per cent.
- Visitor Exports: The Portuguese industry is expected to benefit from strong European and UK traffic to post EUR12.0 billion (US$15.9 billion) in total Visitor Exports in 2005 or 21.0 per cent of total exports, a gain of 9.4 per cent on 2004 results.
- GDP: Travel & Tourism’s contribution to the Portuguese economy is illustrated by the direct industry impact of 7.2 per cent of total GDP and the combined direct and indirect impact of the Travel & Tourism economy expected to total 17.3 per cent in 2005.
- Employment: The Portuguese Travel & Tourism industry is expected to produce 11,240 new jobs in 2005 over its 2004 level to total 424,710 jobs or 8.3 per cent of total employment. The broader perspective of the Travel & Tourism economy (direct and indirect) is expected to create nearly 20,000 new jobs (19,740) for the Portuguese economy for a total of 1,036,470 jobs dependent on Travel & Tourism or 20.2 per cent of total employment.