Transcript Global Tourism Trends after September 11, 2001

The Future of Travel & Tourism
in Light of September 11, 2001
Graham Wason
Vice President, Strategy & Development
Agenda
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Overview of the Impacts
Implications on the Future
Role of Industry and
Government
Impact on Demand
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35% Reduction in US Revenue
Passenger Kilometers (IATA)
20 - 25% Reduction in Rest of
the World Traffic (IATA)
40 - 50% Empty Capacity
US Airlines Cut 97,000 Jobs
“September was the worst month
in the history of the business…..
…..occupancies and room rates
drastically reduced, as much
as 50% to 60%”
Bill Marriott
Chairman & CEO
Marriott International, Inc. & Member of WTTC
Impact on Demand
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Corp. Travel Demand: Expected
50% Decline to January 2002 (TBR)
Global Air Traffic: Expected 10%
Decline in 2002 (Merrill Lynch)
1.5% Decline in 1991 Due to Gulf
War & Weak Economy (Merrill Lynch)
Impacts on Industry
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Worldwide Airlines: 131,190 Jobs
Postponed Airport / Infrastructure
Development Projects in 2002
Demand for New Aircraft
Evaporated for 2003 and 2004
WTTC Benchmark
10% Reduction in Travel & Tourism Demand
United States:
- 1.8% of total GDP
- 1.1 Million Jobs
European Union: - 1.9% of total GDP
- 1.2 Million Jobs
World:
- 1.7% of total GDP
- 8.8 Million Jobs
Implications for the Industry
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Increased Costs
US Government Rescue Package
Psychological Damage to Traveller
Structural Changes to Infrastructure
Effective Communication of Safety
and Security Enhancements
Need for Action
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Improve Measurement Tools
Unite Industry Participants
Harmonise International Safety
and Security Measures
Co-ordinate our Messages
Global Coalition
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Leading International Travel &
Tourism Associations
Calling on Governments to:
Harmonize
International Safety
and Security
Restore Consumer Confidence
Join Public/Private Partnerships
Travel & Tourism
Global Economic Impact of Travel & Tourism
Year 2001:
Year 2011:
10% GDP
207 million jobs
11% GDP
260 million jobs
Bulgaria
Economic Impact of Travel & Tourism by 2011
BGN4,852 Million 9.7% total GDP
220,000 jobs 7.6% total Employment
If travel & tourism in Bulgaria
grows at the same rate of growth
as the European Union
182,000 additional jobs
will be created by 2011.
WTTC
Long Term Planning
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A political engine
A supportive regulatory
framework
Public Private Partnerships
Seven Strategic Priorities
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Vision the future for travel and tourism - a
future for everyone
Measure and promote the economic
importance of travel and tourism
Communicate a positive image of the
industry as a provider of jobs and career
opportunities
Seven Strategic Priorities
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Encourage free access, open markets, open
skies and the removal of barriers to growth
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Match infrastructure development and
customer demand
Seven Strategic Priorities
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Facilitate access to capital resources and
technological advancement
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Promote responsibility in natural, social
and cultural environments.