Tourism has become a significant contributor to the global economy in recent times. It is an industry that encompasses a wide range of activities such as transportation, accommodation, food and beverage services, recreation, and entertainment. The tourism industry has been growing at a rapid pace, and many countries have started to rely on it as a major source of income.
What is Global GDP?
To understand the significance of tourism in the global economy, it is essential first to understand what Global GDP is. Gross Domestic Product (GDP) is the total value of goods and services produced within a country’s borders in a given period. Global GDP refers to the total value of goods and services produced by all countries worldwide.
How Much of Global GDP Is Tourism?
According to the World Travel & Tourism Council (WTTC), the tourism industry contributed 10.4% of global GDP in 2019. This figure represents $9.2 trillion or 330 million jobs globally.
The tourism industry’s contribution to global GDP has been steadily increasing over time. In 2000, its contribution was just 6.3% of global GDP, but by 2019, it had risen to 10.4%. The WTTC predicts that by 2029, the tourism industry will contribute 11.6% of global GDP.
The Impact of Tourism on Employment
Apart from contributing significantly to global GDP, tourism also plays a critical role in creating employment opportunities worldwide. In 2019, the tourism industry generated one in ten jobs globally or about 330 million jobs worldwide.
The hospitality sector alone accounts for about one-third of these jobs with many others created across various industries such as transportation and food and beverage services.
The Future of Tourism Industry
Despite its significant contributions to the economy, the tourism industry faces several challenges such as natural disasters, pandemics like COVID-19, and economic downturns affecting the industry’s growth. However, according to the WTTC, the tourism industry is projected to grow by 4% annually over the next ten years.
The growth in tourism is mainly driven by increasing disposable income, globalization, and technological advancements. The industry’s continued growth will lead to more employment opportunities and increased contributions to global GDP.
Conclusion
Tourism has become an essential contributor to global GDP with its contribution increasing steadily over time. It has also played a significant role in creating employment opportunities worldwide. Despite facing challenges like pandemics and economic downturns, the tourism industry’s continued growth is projected due to factors such as globalization and technological advancements.