Travel
& Tourism
Economic Impact 2012
India
WTTC Travel & Tourism Economic Impact 2012 1
For more information please contact:
Olivia Ruggles-Brise
Director, Policy & Research
olivia.rugglesbrise@wttc.org
Eva Aimable
Manager, Policy & Research
eva.aimable@wttc.org
For more than 20 years the World Travel & Tourism Council (WTTC)
has been investing in economic impact research, which assesses
the Travel & Tourism industry’s contribution to GDP and jobs. Our
ten-year forecasts are unique in the information they provide to
assist governments and private companies plan for the future.
Travel & Tourism continues to be one of the world’s largest industries. The total impact of the industry means
that, in 2011, it contributed 9% of global GDP, or a value of over US$6 trillion, and accounted for 255 million
jobs. Over the next ten years this industry is expected to grow by an average of 4% annually, taking it to
10% of global GDP, or some US$10 trillion. By 2022, it is anticipated that it will account for 328 million jobs,
or 1 in every 10 jobs on the planet.
2011 was one of the most challenging years ever experienced by the global Travel & Tourism industry.
However, our latest research suggests that, despite political upheaval, economic uncertainty and natural
disasters, the industry’s direct contribution to world GDP grew by nearly 3% to US$2 trillion and directly
generated 1.2 million new jobs. This was supported by a 3% increase in visitor exports to US$1.2 trillion,
with almost 3% growth in capital investment, which rose to over US$0.7 trillion.
Moreover, while the macroeconomic environment remains very challenging, our latest projections point to
continuous growth in the contribution of Travel & Tourism to global GDP and employment. Rising household
incomes in emerging economies – not only the BRICs (Brazil, Russia, India and China) but increasingly across
the rest of Southeast Asia and Latin America – will continue to fuel increased leisure demand. Similarly,
growing international trade – particularly from emerging markets – will sustain business travel demand.
In developed economies, consumers are likely to remain cautious, especially in European countries where
austerity programmes are being implemented.
This means that we expect growth in Travel & Tourism’s direct contribution to GDP to remain stable at 3% in
2012. We expect the industry to generate directly over 2 million new jobs, with a 2% increase in visitor exports
and 3.5% growth in investment over the year.
Rarely over the past 20 years have we been challenged by such economic and political uncertainty as we are
seeing now. Our ongoing research underlines the importance of Travel & Tourism as a stabilising force globally
– providing jobs, generating prosperity, and facilitating international trade and investment.
David Scowsill
President & CEO
World Travel & Tourism Council
Contents
The Economic Impact of Travel & Tourism 2012
2012 Annual Research: Key Facts........................................................................................................1
Glossary.......................................................................................................................................................................................... 15
VISITOR EXPORTS
Visitor exports generated INR801.4bn (3.8% of total exports) in 2011. This is forecast to grow
by 3.5% in 2012, and grow by 5.2% pa, from 2012-2022, to INR1,382.6bn in 2022 (2.0% of
total).
INVESTMENT
Travel & Tourism investment in 2011 was INR1,253.9bn, or 5.1% of total investment. It should
rise by 12.3% in 2012, and rise by 7.5% pa over the next ten years to INR2,903.9bn in 2022
(4.4% of total).
12 126 22 4
ABSOLUTE RELATIVE GROWTH LONG-TERM GROWTH
Size in 2011 Contribution to GDP in 2011 2012 forecast Forecast 2012-2022
14,000
926
12,000
10,000 3035
Employment
8,000
1690
('000)
6,000
4,000
24975
9069
2,000 5308
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2022
2022
Travel & Tourism is an important economic activity in most countries around the world. As well as its direct economic
impact, the industry has significant indirect and induced impacts. The UN Statistics Division-approved Tourism Satellite
Accounting methodology (TSA:RMF 2008) quantifies only the direct contribution of Travel & Tourism. But WTTC
recognises that Travel & Tourism's total contribution is much greater, and aims to capture its indirect and induced
impacts through its annual research.
DIRECT CONTRIBUTION
The direct contribution of Travel & Tourism to GDP reflects the ‘internal’ spending on Travel & Tourism (total spending
within a particular country on Travel & Tourism by residents and non-residents for business and leisure purposes) as
well as government 'individual' spending - spending by government on Travel & Tourism services directly linked to
visitors, such as cultural (eg museums) or recreational (eg national parks).
The direct contribution of Travel & Tourism to GDP is calculated to be consistent with the output, as expressed in
National Accounting, of tourism-characteristic sectors such as hotels, airlines, airports, travel agents and leisure
and recreation services that deal directly with tourists.The direct contribution of Travel & Tourism to GDP is calculated
from total internal spending by ‘netting out’ the purchases made by the different tourism sectors. This measure is
consistent with the definition of Tourism GDP, specified in the 2008 Tourism Satellite Account: Recommended
Methodological Framework (TSA: RMF 2008).
TOTAL CONTRIBUTION
The total contribution of Travel & Tourism includes its ‘wider impacts’ (ie the indirect and induced impacts) on the economy.
The ‘indirect’ contribution includes the GDP and jobs supported by:
● Travel & Tourism investment spending – an important aspect of both current and future activity that includes
investment activity such as the purchase of new aircraft and construction of new hotels;
● Government 'collective' spending, which helps Travel & Tourism activity in many different ways as it is made on
behalf of the ‘community at large’ – eg tourism marketing and promotion, aviation,
administration, security services, resort area security services, resort area sanitation services, etc;
● Domestic purchases of goods and services by the sectors dealing directly with tourists - including, for example,
purchases of food and cleaning services by hotels, of fuel and catering services by airlines, and IT services by
travel agents.
The ‘induced’ contribution measures the GDP and jobs supported by the spending of those who are directly or indirectly
employed by the Travel & Tourism industry.
PLEASE NOTE THAT DUE TO CHANGES IN METHODOLOGY BETWEEN 2010 AND 2011, IT IS NOT POSSIBLE TO COMPARE FIGURES
PUBLISHED BY WTTC FROM 2011 ONWARDS WITH THE SERIES PUBLISHED IN PREVIOUS YEARS.
The direct contribution of Travel & Tourism to GDP is expected to grow by 7.7% pa to INR3,805.2bn (1.9% of GDP)
by 2022.
3,500
2.5
3,000
2.0
2,500
2,000 1.5
1,500
1.0
1,000
0.5
500
0 0.0
2022
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2022
2022
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2022
The total contribution of Travel & Tourism to GDP (including wider effects from investment, the supply chain and
induced income impacts, see page 2) was INR5,651.0bn in 2011 (6.4% of GDP) and is expected to grow by
7.3% to INR6,062.3bn (6.5% of GDP) in 2012.
It is forecast to rise by 7.8% pa to INR12,891.2bn by 2022 (6.5% of GDP).
14,000 7.0
12,000 6.0
10,000 5.0
8,000 4.0
6,000 3.0
4,000 2.0
2,000 1.0
0 0.0
2011 2012 2022
2022
2022 2011 2012 2022
2022
1
All values are in constant 2011 prices & exchange rates
By 2022, Travel & Tourism will account for 30,198,000 jobs directly, an increase of 1.6% pa over the next ten
years.
35,000.0 5.5
5.4
30,000.0
5.3
25,000.0
5.2
20,000.0 5.1
5.0
15,000.0
4.9
10,000.0
4.8
5,000.0
4.7
0.0 4.6
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2022
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2022
2022
2022
The total contribution of Travel & Tourism to employment (including wider effects from investment, the supply
chain and induced income impacts, see page 2) was 39,352,000 jobs in 2011 (7.8% of total employment). This
is forecast to rise by 2.8% in 2012 to 40,450,500 jobs (7.9% of total employment).
By 2022, Travel & Tourism is forecast to support 47,911,000 jobs (8.0% of total employment), an increase of
1.7% pa over the period.
60,000.0 9.0
8.0
50,000.0
7.0
40,000.0 6.0
5.0
30,000.0
4.0
20,000.0 3.0
2.0
10,000.0
1.0
0.0 0.0
2011 2012 2022
2022
2022 2011 2012 2022
2022
Visitor exports are a key component of the direct contribution of Travel & Tourism. In 2011,
India generated INR801.4bn in visitor exports. In 2012, this is expected to grow by 3.5%, and the country is
expected to attract 6,504,000 international tourist arrivals.
By 2022, international tourist arrivals are forecast to total 11,276,000, generating expenditure of INR1,382.6bn,
an increase of 5.2% pa.
1,400
10 5.0
1,200
8
1,000 4.0
800 6
3.0
600
4
400 2.0
2
200
1.0
0 0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2022
2022
0.0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2022
2022
Foreign visitor exports (LHS)
Foreign tourist arrivals (RHS)
INVESTMENT
Travel & Tourism is expected to have attracted capital investment of INR1,253.9bn in 2011. This is expected to
rise by 12.3% in 2012, and rise by 7.5% pa over the next ten years to INR2,903.9bn in 2022.
Travel & Tourism’s share of total national investment will fall from 5.3% in 2012 to 4.4% in 2022.
3,500 10.0
9.0
3,000
8.0
2,500 7.0
6.0
2,000
5.0
1,500 4.0
1,000 3.0
2.0
500
1.0
0 0.0
2022
2022
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2022
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2022
1
All values are in constant 2011 prices & exchange rates
73.8%
Leisure travel spending is expected to grow by
8.6% in 2012 to INR3,622.3bn, and rise by 7.6%
Business spending pa to INR7,554.3bn in 2022.
26.2%
Business travel spending is expected to grow by
4.1% in 2012 to INR1,229.6bn, and rise by 7.6%
pa to INR2,562.2bn in 2022.
India
Travel & Tourism's Contribution to GDP:
Domestic vs Foreign, 2011
Domestic travel spending generated 82.2% of
direct Travel & Tourism GDP in 2011 compared
with 17.8% for visitor exports (ie foreign visitor
Foreign visitor spending
spending or international tourism receipts).
17.8%
Domestic travel spending is expected to grow by
Domestic spending
8.3% in 2012 to INR4,009.9bn, and rise by 8.1%
82.2% pa to INR8,710.3bn in 2022.
India
Breakdown of Travel & Tourism's Total Contribution to GDP, 2011
The Travel & Tourism industry contributes to GDP
and employment in many ways as detailed on
Direct
page 2.
29.9%
Induced
The total contribution of Travel & Tourism to
16.4% GDP is three times greater than its direct
contribution.
Indirect
53.7%
Indirect is the sum of: a
(a) Supply chain
44.9%
(b) Investment c
b
7.3%
(c) Government collective
1.5%
1
All values are in constant 2011 prices & exchange rates
Travel & Tourism's Direct 2011 Travel & Tourism's Total 2011
Contribution to GDP (US$bn) Contribution to GDP (US$bn)
Travel & Tourism's Direct 2011 Travel & Tourism's Total 2011
Contribution to Employment '000 jobs Contribution to Employment '000 jobs
The tables on pages 7-10 provide provide brief extracts from the full WTTC Country League Table Rankings, highlighting comparisons with
competing destinations as well as with the world average.
The competing destinations selected are those that offer a similar tourism product and compete for tourists from the same set of origin markets.
These tend to be, but are not exclusively, geographical neighbours.
Travel & Tourism's Direct 2011 Travel & Tourism's Total 2011
Contribution to GDP % share Contribution to GDP % share
Travel & Tourism's Direct 2011 Travel & Tourism's Total 2011
Contribution to Employment % share Contribution to Employment % share
Travel & Tourism's Direct 2012 Travel & Tourism's Total 2012
Contribution to GDP % growth Contribution to GDP % growth
Travel & Tourism's Direct 2012 Travel & Tourism's Total 2012
Contribution to Employment % growth Contribution to Employment % growth
Travel & Tourism's Direct 2012 - 2022 Travel & Tourism's Total 2012 - 2022
Contribution to GDP % growth pa Contribution to GDP % growth pa
Travel & Tourism's Direct 2012 - 2022 Travel & Tourism's Total 2012 - 2022
Contribution to Employment % growth pa Contribution to Employment % growth pa
Travel & Tourism Investment 2012 - 2022 Visitor Exports 2012 - 2022
Contribution to Capital Investment % growth pa Contribution to Exports % growth pa
India
(INRbn, real 2011 prices) 2006 2007 2008 2009 2010 2011 2012E 2022F
1. Visitor exports 585.0 635.5 688.2 674.7 730.6 801.4 829.2 1382.6
2. Domestic expenditure 2754.5 2994.4 3207.5 3268.1 3415.8 3703.1 4009.9 8710.3
5. Direct contribution of
Travel & Tourism to GDP 1236.7 1351.4 1462.8 1475.3 1554.6 1689.8 1818.5 3805.2
(= 3 + 4)
(indirect & induced) 1894.8 2070.4 2241.2 2260.4 2381.8 2589.1 2786.2 5830.1
7. Capital investment 1049.3 716.5 1975.2 1136.8 1145.6 1253.9 1407.6 2903.9
8. Government collective spending 52.1 54.4 64.7 76.0 80.8 84.5 88.3 163.0
9. Imported goods from indirect spending -698.0 -471.8 -1346.7 -792.4 -833.6 -892.0 -1009.7 -1807.0
10. Induced 745.6 1039.8 692.3 834.4 857.7 925.7 971.4 1996.1
12. Direct contribution of Travel & Tourism to 24477.4 23555.2 25667.1 24644.4 24143.0 24974.9 25733.7 30197.9
employment
Other indicators
502.6 483.0 522.1 542.3 583.3 690.0 742.0 1612.3
14. Expenditure on outbound travel
India
(INRbn, nominal prices) 2006 2007 2008 2009 2010 2011 2012E 2022F
1. Visitor exports 404.0 464.4 542.1 556.6 671.1 801.4 884.3 2156.7
2. Domestic expenditure 1902.3 2188.5 2526.6 2696.2 3138.0 3703.1 4276.4 13587.4
5. Direct contribution of
Travel & Tourism to GDP 854.1 987.7 1152.3 1217.2 1428.1 1689.8 1939.3 5935.8
(= 3 + 4)
(indirect & induced) 1308.5 1513.2 1765.4 1864.9 2188.1 2589.1 2971.3 9094.5
7. Capital investment 724.6 523.7 1555.8 937.9 1052.5 1253.9 1501.1 4529.8
8. Government collective spending 36.0 39.7 51.0 62.7 74.2 84.5 94.2 254.3
9. Imported goods from indirect spending -482.0 -344.8 -1060.8 -653.8 -765.8 -892.0 -1076.7 -2818.8
10. Induced 514.9 759.9 545.3 688.4 787.9 925.7 1035.9 3113.7
12. Direct contribution of Travel & Tourism to 24477.4 23555.2 25667.1 24644.4 24143.0 24974.9 25733.7 30197.9
employment
Other indicators
347.1 353.0 411.2 447.4 535.9 690.0 791.3 2515.1
14. Expenditure on outbound travel
*Concepts shown in this table align with the standard table totals as described in the 2008 Tourism Satellite Account: Recommended
Methodological Framework (TSA: RMF 2008) developed by the United Nations Statistical Division (UNSD), the Statistical Office
of the European Communities (EUROSTAT), the Organisation for Economic Co-operation and Development (OECD) and the World Tourism
Organization (UNWTO).
Historical data for concepts has been benchmarked to match reported TSA data where available.
India
Growth 1 (%) 2006 2007 2008 2009 2010 2011 2012E 2022F
1. Visitor exports 13.0 8.6 8.3 -2.0 8.3 9.7 3.5 5.2
2. Domestic expenditure 10.2 8.7 7.1 1.9 4.5 8.4 8.3 8.1
5. Direct contribution of
Travel & Tourism to GDP 11.7 9.3 8.2 0.9 5.4 8.7 7.6 7.7
(= 3 + 4)
(indirect & induced) 11.7 9.3 8.2 0.9 5.4 8.7 7.6 7.7
7. Capital investment 75.6 -31.7 175.7 -42.4 0.8 9.5 12.3 7.5
8. Government collective spending 3.3 4.3 19.1 17.4 6.3 4.5 4.5 6.3
9. Imported goods from indirect spending 35.6 -9.3 67.2 -22.7 5.3 7.9 9.9 6.9
10. Induced -1.6 39.5 -33.4 20.5 2.8 7.9 4.9 7.5
12. Direct contribution of Travel & Tourism to 10.3 -3.8 9.0 -4.0 -2.0 3.4 3.0 1.6
employment
Other indicators
2.1 -3.9 8.1 3.9 7.6 18.3 7.5 8.1
14. Expenditure on outbound travel
1 2
2005-2011 real annual growth adjusted for inflation (%); 2011-2021 annualised real growth adjusted for inflation (%)
G20
Argentina, Australia, Brazil, Canada, China, European Union, France, Germany, India, Indonesia,
Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea,Turkey, UK, USA.
BRIC
Brazil, Russia, India, China.
NORTHEAST Asia
Antigua &
Egypt China Luxembourg
Barbuda
Libya Aruba Hong Kong Malta
Morocco Bahamas South Korea Netherlands
European Union
Tunisia Barbados Macau Poland
Angola Bermuda Taiwan Portugal
Benin Cayman Islands Mongolia Romania
Botswana Cuba Australia Slovakia
Former
Burkina Faso Netherlands New Zealand Slovenia
Antilles
Burundi Dominica Fiji Spain
Oceania
Dominican
Cameroon Kiribati Sweden
Caribbean
Republic
Cape Verde Grenada Other Oceania UK
Central African
Guadeloupe Solomon Islands Albania
Republic
Chad Haiti Tonga Armenia
Europe
Comoros Jamaica Vanuatu Azerbaijan
Democratic
Asia
Other Europe
St Vincent & the
Ghana Sri Lanka Kazakhstan
Americas
Grenadines
Trinidad &
Guinea Maldives Kyrgyzstan
Africa
Tobago
Ivory Coast UK Virgin Islands Brunei Macedonia
SUB-SAHARAN
WTTC works to raise awareness of Travel & Tourism as one of the world’s largest industries,
supporting some 255 million jobs and generating 9% of global GDP in 2011.
Together with its research partner, Oxford Economics, WTTC produces comprehensive reports
on an annual basis – with updates whenever required – to quantify, compare and forecast the
economic impact of Travel & Tourism on 181 economies around the world. It also publishes a
World report highlighting global trends, as well as reports on regions, sub-regions and special
economic groupings.
For more information please take advantage of a free trial on our website,
www.oxfordeconomics.com, or contact John Gaster, Oxford Economics, Abbey House,
121 St Aldates, Oxford, OX1 1HB, UK.
www.wttc.org