Tourism is one of the largest industries in the world that has been growing at an exponential rate. In recent years, it has become a major contributor to the global economy. In this article, we will explore what percentage of the world’s economy is tourism.
Understanding Tourism
Before we dive into the numbers, it’s important to understand what tourism is. Tourism can be defined as travel for leisure, business, or other purposes such as visiting friends and relatives. It involves staying away from home for a minimum of 24 hours.
Global Tourism Statistics
According to the World Tourism Organization (UNWTO), international tourist arrivals reached 1.4 billion in 2018, representing a year-on-year increase of 6%. In terms of revenue generated by tourism, it was estimated at $1.7 trillion globally in 2018.
The Contribution of Travel and Tourism to GDP
The contribution of travel and tourism to global GDP was 10.4% in 2018, which means that one out of every ten dollars spent globally was on travel and tourism-related activities. This percentage is expected to rise further in the coming years.
The Contribution of Travel and Tourism to Employment
Travel and tourism also contribute significantly to employment opportunities globally. It supports more than 319 million jobs worldwide which accounts for one in ten jobs globally.
Regional Differences
The economic impact of tourism varies by region due to factors such as geography, culture, and infrastructure development.
- In Europe, travel and tourism account for nearly 10%of total employment.
- In Africa, it accounts for around 8%.
- In Asia-Pacific, it accounts for around 9%.
- In North America, it accounts for around 8%.
- In Latin America, it accounts for around 7%.
- In the Middle East, it accounts for around 11%.
Conclusion
In conclusion, tourism is a significant contributor to the global economy, accounting for over 10% of GDP and employment. Its impact is felt across all regions of the world, although there are differences in terms of the percentage contribution. With the growth of the middle-class population and increasing disposable incomes worldwide, the tourism industry is expected to continue its upward trajectory in the coming years.