WTTC: China - How does Travel & Tourism compare to other sectors?
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Transcript of WTTC: China - How does Travel & Tourism compare to other sectors?
China
How does Travel & Tourism compare to other
sectors?
World Travel & Tourism Council
Benchmarking Travel & Tourism in China: GDP
GDP Size
Travel & Tourism generated, either directly or indirectly,
$644 billion of China’s GDP in 2011.
Travel & Tourism GDP is larger than that of the
automotive manufacturing, education, and
communication services sectors.
In terms of its direct GDP, Travel & Tourism is nearly
60% larger than the direct GDP of the automotive
manufacturing sector in China.
GDP Share
Travel & Tourism generated, either directly or indirectly, 9.2% of
China’s GDP in 2011.
This is larger than the size of automotive manufacturing’s GDP
impact at 8.0%.
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China GDP Impact by Industry$US billion (2011 prices)
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China GDP Impact by Industryshare of total economy GDP
World Travel & Tourism Council
Benchmarking Travel & Tourism in China: Employment
Employment Size
Travel & Tourism sustained, either directly or indirectly,
61.9 million jobs in China in 2011.
Travel & Tourism in China directly employs more people
than all other studied sectors.
Employment Share
Travel & Tourism generated, either directly or indirectly, 8.1% of
employment in China in 2011.
For every job directly in the Tourism sector, nearly two jobs are
created on an indirect or induced basis.
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China Employment Impact by Industry 2011, millions
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China Employment Impact by Industry
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World Travel & Tourism Council
Benchmarking Travel & Tourism in China: Growth
Growth Trends
Travel & Tourism direct industry GDP expanded 430%
between 1990 and 2011 while the total economy
expanded 693%.
The communication services industry grew 693% over
this 21-year period.
Growth Forecasts
The Oxford Economics global industry model predicts annual
average growth of 9.2% for Travel & Tourism GDP over the next
decade.
In comparison, the total economy is expected to expand 7.6% per
annum in real, inflation-adjusted terms.
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Automotive manufacturing
Communication services
Financial services
Mining
Education
Manufacturing of chemicals
Travel & Tourism
Total economy
China GDP Growth by Sector1990=100
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China GDP Forecast by IndustryCAGR 2012-2022
World Travel & Tourism Council
Benchmarking Travel & Tourism in China: Exports
Tourism’s Share of Exports
Travel & Tourism is a significant source of export
revenue for China.
In 2011, visitor exports totalled $50.9 billion. This was
26.6% of all service exports and 2.4% of all exports
(including goods and services).
Ranking Tourism Export Industries
Travel & Tourism is a significant export earner in China,
exceeding its exports of automotive manufacturing, construction,
agriculture, mining, financial services, and education..
Travel & tourism, 50,853
Other service exports, 140,614
0 50,000 100,000 150,000 200,000 250,000
US$m
Service exports (2011)
US$m% total
exports
Manufacture of chemicals 107,837 5.2%
Travel & tourism 50,853 2.4%
Automotive manufacturing 42,960 2.1%
Construction 17,287 0.8%
Agriculture 15,696 0.8%
Mining 9,234 0.4%
Financial services 3,647 0.2%
Education 674 0.0%
Exports (2011)
World Travel & Tourism Council
Benchmarking Travel & Tourism in China: Exports
Ranking Tourism Exports by Commodity
Travel & Tourism is the ninth largest Chinese export as visitors
purchase goods and services with foreign currency.
It is larger than the exports of food products, beverages &
tobacco.
US$m% total
exports
Machinery & equipment 897,929 43.0%
Textiles, leather & footw ear 312,193 15.0%
Chemicals, rubber, plastics & fuel products 182,964 8.8%
Basic metals & fabricated metal products 134,638 6.5%
Other 122,049 5.8%
Transport equipment 109,822 5.3%
Manufacturing nec 109,572 5.3%
Other business services 73,038 3.5%
Travel & tourism 50,853 2.4%
Food products, beverages & tobacco 41,240 2.0%
Other non-metallic mineral products 35,064 1.7%
Construction services 17,287 0.8%
Total economy 2,086,649 100.0%
Exports (2011)
World Travel & Tourism Council
Benchmarking Travel & Tourism in China: Linkages
Comparing the effect of $1 million in spending
Spending in a sector will have varying impacts on GDP,
depending on the local value added and linkages to the
rest of the economy.
In China, $1 million in Travel & Tourism spending
(consumption) generates $1.4 million in GDP. This
impact of spending is greater than all studied industry
sectors except for education.
How much of T&T spending stays in the economy?
When travellers spend money in a destination, not all of it
remains in the economy as some goods and services need to be
imported. This represents “leakage” to the economic value
produced.
In China, 8% of Travel & Tourism spending leaks out of the
economy through imports. The automobile and chemicals
industries each require imports amounting to 16% of sale.
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Impact of $1m spending - ChinaGVA ($m)
0% 5% 10% 15% 20%
Agriculture
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Auto Manufacturing
Communications
Financial Services
Education
Travel & Tourism
Whole Economy
Supplier Imports Direct Imports
Leakages per $100 spend - China
World Travel & Tourism Council
Benchmarking Travel & Tourism in China: Linkages
Beneficiaries of Travel & Tourism
Travel & Tourism is interconnected with the entire
Chinese economy. These links exist through the supply
chain to the Tourism industry (indirect linkages) as well
as through Tourism-earned incomes as they are spent
across a variety of other sectors.
In this sense, the Travel & Tourism sector has many
“beneficiary” sectors across the whole spectrum of the
economy.
The agriculture sector gains $150,000 for every $1
million in spending on Travel & Tourism.
For every $1 million in Travel & Tourism sales, $67,000
of gross value added is generated in the transport and
storage sector.
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Transport and Storage
Agriculture
Hotels and restaurants
Wholesale and retail
Other community services
Mfg of food, beverages and tobacco
Mining
Financial services
Real estate
Utilities
Indirect Induced
T&T links with other sectors - China
GVA ($000s)
GDP generated per $1 million in Travel & Tourism sales
World Travel & Tourism Council
Benchmarking Travel & Tourism in China: Employment Generation
Travel & Tourism’s employment potential
For every $1 million in Travel & Tourism spending, 144
jobs are supported. (51 direct, 62 indirect, and 31
induced)
The average of the Chinese economy, also generates
161 jobs per $1 million in spending.
Financial services: 93 jobs per $1 million
Auto manufacturing: 83 jobs per $1 million
Communications: 83 jobs per $1 million
Agriculture: 384 jobs per $1 million
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Employment impact of $1m spending -
ChinaJobs
World Travel & Tourism Council
Benchmarking Travel & Tourism in China
Direct, '000s
Indirect +
Induced,
'000s
Total, 000s% total
economy
Automotive manufacturing 5,173 39,972 45,145 5.9%
Communication services 9,787 19,225 29,012 3.8%
Financial services 6,443 42,127 48,570 6.4%
Mining 10,361 62,232 72,594 9.5%
Education 9,445 39,613 49,058 6.4%
Manufacturing of chemicals 6,241 100,245 106,486 14.0%
Travel & Tourism 22,081 39,856 61,937 8.1%
Employment, 2011
DirectIndirect +
InducedTotal
% total
economy
Automotive manufacturing 117 446 563 8.0%
Communication services 170 189 359 5.1%
Financial services 322 375 697 9.9%
Mining 456 640 1,096 15.6%
Education 192 310 502 7.1%
Manufacturing of chemicals 243 920 1,163 16.5%
Travel & Tourism 182 462 643 9.2%
GDP