WTTC Ecuador 2009

8/4/2019 WTTC Ecuador 2009

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2009Ecuador

Travel & Tourismeconomic impacT


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CHAIRMAN:

Georey J W Kent

Chairman & CEO

Abercrombie & Kent

VICE CHAIRMEN:

Edouard Ettedgui

Group Chie Executive

Mandarin Oriental Hotel Group

Maurice Flanagan CBE

Executive Vice Chairman

Emirates Airline & Group

Michael Frenzel

Chairman o the Executive Board

TUI AG

Mark Harms

Chairman & CEO

Global Leisure Partners LLP

Stephen P Holmes

Chairman & CEO

Wyndham Worldwide

Brett Tollman

President

The Travel Corporation

EXECUTIVE COMMITTEE:

Philippe Bourguignon

Vice Chairman & CEO

Revolution Places

Marilyn Carlson Nelson

Chairman

Carlson

Alex Christou

Managing Partner

Accenture

Je Clarke

President & CEO

Travelport

Andrew Cosslett

CEO

InterContinental Hotels

Group PLC

Gabriel Escarrer Jaume

Co-Vice Chairman & CEO

Sol Meli

Manuel Fernando Esprito Santo

Chairman

Esprito Santo Tourism

Edward P Gilligan

Vice Chairman

American Express Company

Pansy HoManaging Director

Shun Tak Holdings Limited

Hubert Joly

President & CEO

Carlson

Richard R Kelley

Chairman

Outrigger Enterprises Group

Gerald Lawless

Executive Chairman

Jumeirah Group

Manredi Leebvre dOvidio

Chairman

Silversea Cruises

J W Marriott, Jr

Chairman & CEO

Marriott International, Inc

Alan Parker CBE

Chie Executive

Whitbread plc

Gilles Plisson

CEO

Accor

Charles Petruccelli

President Global Travel Services


Christopher Rodrigues CBE

Chairman

VisitBritain

Jerey C RutledgePresident

AIG Travel, Inc

Jyotsna Suri

Chairperson & Managing Director

Bharat Hotels Ltd

Jonathan M Tisch

Chairman & CEO

Loews Hotels

Vincent A Wolfngton

Chairman

Global Alliance Advisors LLC

Immediate Past Chairman, WTTC

GLOBAL MEMBERS:

Talal Al Bahar

Chairman & Managing Director

IFA Hotels & Resorts

Mohammed Al Habbai

CEO

Dubailand

Eric Anderson

President & CEO

Space Adventures

Giovanni Angelini

Executive Director

Shangri-La Hotels & Resorts

Ted J Balestreri

Chairman & CEO

Cannery Row Company

Simn P Barcel

Chairman & CEO

Barcel Hotels & Resorts

Raymond Bickson

Managing Director

Taj Hotels, Resorts and Palaces

Giorgio Boscolo

CEO

Boscolo Group

Rattawadee Bualert

President

lebua Hotels & Resorts Co, Ltd

Gabriele Burgio

President & CEONH Hoteles

Chris J Cahill

Chie Operating Ocer

Fairmont Rafes Hotels

International

Jim Compton

Executve Vice President, Marketing

Continental Airlines

Tony Fernandes

Group Chie Executive Ocer

AirAsia

Frank Fiskers

President & CEO

Scandic Hotels

Mark P Frissora

Chairman and CEO

The Hertz Corporation

Naresh Goyal

Chairman

Jet Airways India Ltd

Arthur de Haast

Global Chie Executive Ocer

Jones Lang LaSalle Hotels

James Hogan

CEO

Etihad Airways

Raimund Hosch

President & CEO

Messe Berlin GmbH

Miltos KambouridesManaging Partner

Dolphin Capital Partners

Larry Kellner

Chairman & CEO

Continental Airlines

Gary L Kessler

President & CEO

Carey International Inc

Dara Khosrowshahi

President & CEO

Expedia Inc

Tom Klein

Group President

Sabre Travel Network and

Sabre AirlineExecutive Vice President

Sabre Holdings

Sir Nigel Knowles

Joint CEO

DLA Piper

Ali Kolaghassi

Vice Chairman & CEO

Saraya Holdings

RK Krishna Kumar

Vice Chairman

Taj Hotels, Resorts & Palaces

Michael Latimer

President & CEO

Oxord Properties Group

Jabu Mabuza

CEO

Tsogo Sun Group

Andr Martinez

Chairman, Global Lodging &

Managing Director

Morgan Stanley

Khater Massaad

Chairman

RAK Investment Authority

Geo Muirhead CBE

Group Chie Executive

The Manchester Airports Group

Christopher J Nassetta

President & CEOHilton Hotels Corporation

John M Noel

CEO

Noel Group

Chris ODonnell

Chie Executive Ocer

Nakheel

Deepak Ohri

Chie Executive Ocer

lebua Hotels & Resorts Co, Ltd

Frits D van Paasschen

President & CEO

Starwood Hotels & Resorts

Worldwide Inc

Jean Gabriel Prs

President & CEO

Mvenpick Hotels & Resorts

Dionsio Pestana

Chairman

Group Pestana

Fernando Pinto

CEO

TAP Portugal

Wolgang Prock-Schauer

Chie Executive Ocer

Jet Airways India Ltd

Bob Puccini

CEO

The Puccini Group

Duan QiangChairman

Beijing Tourism Group

David Radclie

Chie Executive

Hogg Robinson Group

Jay Rasulo

Chairman

Walt Disney Parks and Resorts

Marty Salen

General Manager

Global Travel &

Transportation Industry

IBM

Per Setterberg

CEOGlobal Reund Group

Joe Sita

CEO

Nakheel Hotels

David Stein

Chairman

Franklyn Hotels & Resorts

Khalid bin Sulayem

Director General

Dubai Department o Tourism

and Commerce Marketing

Daniel Sullivan

President

Collette Vacations

Hiromi Tagawa

President & CEO

JTB Corp

Yassin K Talhouni

CEO

Zara Investment Holding Co Ltd

Jaume Tpies

President

Relais & Chteaux

Robin Tauck

President

R Tauck & Partners LLC

Kathleen Taylor

President & Chie

Operating OcerFour Seasons Hotels

& Resorts

Jos Antonio Tazn

Chairman o the Board

Amadeus IT Group SA

John Ueberroth

Chairman & CEO

Preerrred Hotel Group

Matthew D Upchurch

CEO

Virtuoso

Willie Walsh

Chie Executive

British Airways plc

Philip Wol

CEO

PhoCusWright, Inc

Mei Yunxin

Vice Chairman

Beijing Tourism Group

Tim Zagat

Co-Founder, Co-Chair & CEO

Zagat Survey LLC

Sarmad Zok

Chie Executive Ocer

Kingdom Hotel Investments

HONORARY MEMBERS:

Andr Jordan

Chairman

Andr Jordan Group

Jonathan S Linen

Adviser to the Chairman


Lord Marshall o Knightsbridge

Chairman

Pirelli UK plc

Sir Frank Moore, AO

Chairman

FT Moore P/L

Frank Olson

Chairman o the Board

The Hertz Corporation

Grard PlissonCo-Chairman, Supervisory Board

Accor

Carl Ruderman

Chairman

Universal Media

Tommaso Zanzotto

President

TZ Associates Ltd

CHAIRMAN EMERITUS:

James D Robinson III

General Partner

RRE Ventures

WTTC Chairman (1990-1994)

IMMEDIATE PAST

CHAIRMAN:

Vincent A Wolfngton

Chairman

Global Alliance Advisors LLC


FORMER CHAIRMEN:

Sir Ian Prosser

Retired Chairman

InterContinental Hotels Group plc


Harvey Golub

Retired Chairman & CEO



Robert H Burns

Chairman

Robert H Burns Holdings

Limited


PRESIDENT & CEO:

Jean-Claude Baumgarten

1 March 2009


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THe WorlD Travel & Tourism council (WTTc), WHicHis THe Business leaDers Forum For Travel & Tourism,

Has spenT 20 Years DevelopinG iTs economic impacT

researcH For THe BeneFiT oF Travel & Tourism Decision-

maKers WHeTHer in THe privaTe or puBlic secTor. THis

compreHensive researcH, WHicH DraWs From manY

DiFFerenT sources anD represenTs a consiDeraBle

invesTmenT over Time, uses THe FrameWorK oF Travel &

Tourism saTelliTe accounTs (Tsas).

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th 2009 dt WTTc The Economic Impact of Travel & Tourism.

Jean-Claude Baumgarten

President & CEO

World Travel & Tourism Council

Geoffrey J W Kent

Chairman, World Travel & Tourism Council and

Chairman & CEO, Abercrombie & Kent


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CONTENTS

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THe economic impacT oF Travel & Tourism

use oF maTerial is auTHoriseD, proviDeD source is acKnoWleDGeD

1-2 Queen Victoria terrace, SoVereign court, London e1W 3Ha, uK

TeL: +44 (0) 20 7481 8007. Fax: +44 (0) 20 7488 1008. emaiL: [email protected]. www.wtt.g


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2009 10-year

trendGross Domestic Product (GDP)

7.0%

Employment5.9%

Growth-9.7%

Exports12.4%

World ranking (out of 181 countries)

77 68ABSOLUTE GROWTH

size forecast

Ranking in Latin America (out of 19 countries)8 3

ABSOLUTE GROWTHsize forecast

Direct Industry T&T Economy as a whole Direct Industry T&T Economy as a whole

1-2 QUEEN VICTORIA TERRACE, SOVEREIGN COURT, LONDON E1W 3HA, UNITED KINGDOM

TEL: +44 (0) 20 7481 8007 or +44 (0) 207 481 8007 . FAX: +44 (0) 20 7488 1008 488 1008 . [email protected] . www.wttc.org

ECUADOR

Travel & Tourism Employment

ECUADOR

RELATIVEcontribution to national economy

Export earnings from international visitors and tourism goods are expected to

generate 12.4% of total exports (US$1,943.8 mn) in 2009, growing (nominal terms)

to US$4,446.4 mn (11.9% of total) in 2019.

2009 World Travel & Tourism Council

(2000 constant US$ mn)

RAISE AWARENESS OF THE IMPORTANCE OF THE WORLD'S LARGEST GENERATOR OF WEALTH AND JOBS

('000 jobs)

THE WORLD TRAVEL & TOURISM COUNCIL (WTTC) IS THE BUSINESS LEADERS' FORUM FOR TRAVEL & TOURISM WORKING WITH GOVERNMENTS TO

The contribution of the Travel & Tourism Economy to employment is expected to

rise from 375,000 jobs in 2009, 5.9% of total employment, or 1 in every 16.8 jobs to

559,000 jobs, 6.8% of total employment or 1 in every 14.7 jobs by 2019.

Real GDP growth for the Travel & Tourism Economy is expected to be -9.7% in

2009 and to average 4.9% per annum over the coming 10 years.

Travel & Tourism Gross Domestic Product

125

11

RELATIVEcontribution to national economy

ECUADOR

KEY FACTS AT A GLANCETHE 2009 TRAVEL & TOURISM ECONOMIC RESEARCH

The contribution of Travel & Tourism to Gross Domestic Product (GDP) is

expected to rise from 7% (US$4,109.9 mn) in 2009 to 8.0% (US$8,740.4 mn) by

2019.

0

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2004 2005 2006 2007 2008 2009 2014 2019

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2004 2005 2006 2007 2008 2009 2014 2019


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US$ 912 mn 87,000jobs representing 1.4% of total employment

equivalent to 1.5% of total GDP

US$ 4,110 mn 375,000jobs representing 5.9% of total employment

equivalent to 7.0% of total GDP

US$ 1,944 mn US$ 1,604 mn

equivalent to 12.4% of total exports equivalent to 12.4% of total investment

US$ 250 mn

equivalent to a 3.8% share

Exports, Services & Merchandise Capital Investment

Government Expenditure

ECONOMIC IMPACT

Direct Industry Employment

Economy GDP Economy Employment

IN 2009 ECUADOR'S TRAVEL & TOURISM IS EXPECTED TO GENERATE

US$4,110 MN OF ECONOMIC ACTIVITY (GDP). THE INDUSTRY'S DIRECT

IMPACT INCLUDES:

HOWEVER, SINCE TRAVEL & TOURISM TOUCHES ALL SECTORS OF THE

ECONOMY, ITS REAL IMPACT IS EVEN GREATER. ECUADOR'S TRAVEL &

TOURISM ECONOMY DIRECTLY AND INDIRECTLY ACCOUNTS FOR:

Direct Industry GDP

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REAL GROWTH

-1.9 % -1.9 %

-9.7 % -9.5 %

5.0 % 4.2 %

4.9 % 4.1 %

4.8 % 5.7 %

3.6 % 4.5 %to US$3,022 mn in 2019 to US$510 mn in 2019

OVER THE NEXT TEN YEARS, ECUADOR'S TRAVEL & TOURISM ISEXPECTED TO ACHIEVE ANNUALISED REAL GROWTH OF:

to US$8,740 mn in 2019 to 559,000 jobs in 2019

to US$12,439 mn in 2019 to US$1,686 mn in 2019

to US$1,961 mn in 2019 to 130,414 jobs in 2019

Demand - Travel & Tourism

IN 2009, TRAVEL & TOURISM IN ECUADOR IS FORECAST TO SEE REAL

DECLINE OF:

Capital Investment - Travel & Tourism


Direct Industry GDP Direct Industry Employment


Direct Industry GDP Direct Industry Employment

to US$912 mn to 87,000 jobs

to US$4,110 mn to 375,000 jobs

Visitor Exports - Travel & Tourism

Government Expenditure - Travel & Tourism

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ECONOMIC IMPACTTRAVEL & TOURISM (T&T) ENCOMPASSING TRANSPORT, ACCOMMODATION,

CATERING, RECREATION AND SERVICES FOR VISITORS IS ONE OF THE

WORLDS HIGHEST PRIORITY INDUSTRIES AND EMPLOYERS.

GDP DEMAND

Ecuador - The Travel &Tourism Industry is expected to contributedirectly 1.5% to Gross Domestic Product (GDP) in 2009 (US$912.5 mn),

rising in nominal terms to US$1,960.6 mn (1.8% of total) by 2019.

Ecuador - In 2009, Travel & Tourism is expected to post US$5,895.9 mnof economic activity (Total Demand), growing to US$12,438.9 mn by

2019.

The T&T Economy contribution (% of total) should rise from 7.0%

(US$4,109.9 mn) to 8.0% (US$8,740.4 mn) in this same period.

Latin America - Travel & Tourism Demand is expected to reachUS$238,237.0 mn in 2009, growing to US$457,258.0 mn in 2019.

Latin America - The Travel & Tourism Industry is expected to post adirect GDP contribution of 2.4% in 2009, while the Travel & Tourism

Economy contribution will be 6.6%.

Worldwide - In 2009, it is expected to post US$7,339,990 mn ofeconomic activity (Total Demand) and this is forecast to grow to

US$14,381,500 mn by 2019.

Worldwide - In 2009, the Travel & Tourism Industry should contribute3.2% directly to worldwide GDP. The broader Travel & Tourism

Economy should contribute 9.4% to world GDP in 2009. VISITOR EXPORTS

GROWTH

Ecuador - Exports make up a very important share of Travel & Tourism'scontribution to GDP.

Ecuador - The Travel & Tourism Economy is expected to grow by 4.9%per annum in real terms between 2010 and 2019.

Of Ecuador's total exports, Travel & Tourism is expected to generate

12.4% (US$1,943.8 mn) in 2009, increasing to US$4,446.4 mn (11.9% of

total), in 2019.

Latin America - The Travel & Tourism Economy is expected to postaverage annualised gains of 4.3% between 2010 and 2019.

Latin America - Travel & Tourism exports are expected to represent8.9% of total exports in 2009.

Worldwide - Travel & Tourism is a high-growth activity, which isforecast to increase its total economic activity by 4.% worldwide in real

terms over the next ten years.

Worldwide - Travel & Tourism is a major exporter, with inboundvisitors injecting foreign exchange directly into the economy.

EMPLOYMENT CAPITAL INVESTMENT

Ecuador - Travel &Tourism Economy employment is estimated at375,000 jobs in 2009, 5.9% of total employment, or 1 in every 16.8 jobs.

By 2019, this should total 559,000 jobs, 6.8% of total employment or 1 in

every 14.7 jobs.

Ecuador - Travel & Tourism Capital Investment is estimated atUS$1,603.8 mn or 12.4% of total investment in year 2009. By 2019, this

should reach US$3,022.2 mn or 11.8% of total.

The 87,000 T&T Direct Industry jobs account for 1.4% of total

employment in 2007 and are forecast to total 130,000 jobs or 1.6% of the

total by 2019.

Latin America - Travel & Tourism Capital Investment is estimated tototal US$44,549.2 mn in 2009, or 8.3% of total regional capital

investment.

Worldwide - Travel & Tourism is a catalyst for construction andmanufacturing. In 2009, the public and private sectors combined are

expected to spend US$1,220,100.0 mn worldwide -

9.4% of total investment, rising to US$2,589,660.0 mn or 9.3% of the total, in

2019.

Worldwide - Travel & Tourism is human resource intensive, creatingquality jobs across the full employment spectrum. In 2009, one in 13.1

jobs will be generated by the Travel & Tourism Economy. GOVERNMENT

The Travel & Tourism Economy accounts for 7.6% of global

employment.

Latin America - Government Travel & Tourism operating expendituresare estimated to total US$13,305.4 mn in 2009, or a 2.9% share.

Worldwide - Travel & Tourism is both a generator and receiver ofgovernment funds. Globally, in 2009, Travel & Tourism is expected to

garner US$404,183.0 mn of government expenditures, or 3.9% of total

expenditures.

By 2019, government spending on Travel & Tourism should increase to

US$709,336.0 mn - 4.0% of total government expenditure.

Latin America - The Travel & Tourism Industry is expected to generatedirectly 4,795,000 jobs in 2009 (2.5% of total employment), while the

broader Travel & Tourism Economy will account for 12,421,000 jobs

(6.4% of total employment).

Ecuador - Government Travel & Tourism operating expenditures inEcuador in 2009 are expected to total US$249.7 mn, or 3.8% of totalgovernment spending.

Today there are 77.3 million Travel & Tourism Direct Industry jobs and

219.8 million jobs in the Travel & Tourism Economy, and these will rise

to 97.8 million Travel & Tourism Direct Industry jobs and 275.7 million

Travel & Tourism Economy jobs by 2019.

6


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SUMMARY TABLES

ESTIMATES AND FORECASTS

2009

US$ mn US$ mn

Personal Travel & Tourism 1,585.9 4.3 5.4 3,465.1 4.9 5.2

Business Travel 512.7 0.9 -1.5 994.9 0.9 3.9

Government Expenditures 249.7 3.8 5.6 510.3 3.9 4.5

Capital Investment 1,603.8 12.4 2.0 3,022.2 11.8 3.6

Visitor Exports 729.8 4.6 -3.3 1,685.6 4.5 5.7

Other Exports 1,213.9 7.7 -28.4 2,760.9 7.4 5.6

T&T Demand 5,895.9 7.4 -6.2 12,438.9 8.4 4.8

Direct Industry GDP 912.5 1.5 -1.9 1,960.6 1.8 5.0

T&T Economy GDP 4,109.9 7.0 -9.7 8,740.4 8.0 4.9

Direct Industry Employment3

86.6 1.4 -1.9 130.4 1.6 4.2T&T Economy Employment

3375.0 5.9 -9.5 559.2 6.8 4.1

12009 real growth adjusted for inflation (%);

22010-2019 annualised real growth adjusted for inflation (%);

3'000 jobs

US$ mn US$ mn

Personal Travel & Tourism 88.9 5.3 -0.9 170.7 8.9 4.6

Business Travel 38.4 1.4 -1.4 70.0 1.3 4.1

Government Expenditures 13.3 2.9 5.1 22.8 4.0 3.4

Capital Investment 44.5 8.3 -4.1 87.9 9.3 4.9

Visitor Exports 30.2 5.1 -0.4 61.5 5.0 5.7

Other Exports 22.9 3.9 -9.2 44.4 3.6 5.2

T&T Demand 238.2 7.3 -2.1 457.3 9.5 4.7

Direct Industry GDP 64.6 2.4 -1.1 118.7 3.1 4.2

T&T Economy GDP 176.9 6.6 -3.0 328.7 9.5 4.3


4,794.7 2.5 -0.3 6,232.4 3.0 2.7

T&T Economy Employment3

12,420.6 6.4 -1.6 16,291.2 8.4 2.7



3'000 jobs

WORLDWIDE US$ mn US$ mn

Personal Travel & Tourism 2,990 8.6 -2.9 5,575 8.9 3.8Business Travel 745 1.3 -7.2 1,376 1.3 3.6

Government Expenditures 404 3.9 3.3 709 4.0 3.2

Capital Investment 1,220 9.4 -5.3 2,590 9.3 4.7

Visitor Exports 1,079 6.0 -4.5 2,131 5.0 4.7

Other Exports 901 5.0 -5.4 2,001 4.7 6.0

T&T Demand 7,340 9.6 -4.0 14,382 9.5 4.3

Direct Industry GDP 1,870 3.2 -3.5 3,396 3.1 3.6

T&T Economy GDP 5,474 9.4 -3.5 10,478 9.5 4.0


77,276 2.7 -1.9 97,784 3.0 2.4

T&T Economy Employment3

219,810 7.6 -2.8 275,688 8.4 2.3



3'000 jobs

ECUADOR % of Total

LATIN AMERICA

2009

2009

% of Total

2019

2019

% of TotalGrowth1

% of Total Growth1

2019

Growth2

% of Total

% of Total

Growth1

Growth2

Growth2

7


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CONCEPTS & STRUCTURE

DEMAND-SIDE ACCOUNTSUS$ mn

PERSONAL TRAVEL & TOURISM 1,585.9

More formally known as Travel & Tourism Personal Consumption, this

category includes all personal spending by an economy's residents on

Travel & Tourism services (lodging, transportation, entertainment, meals,

financial services, etc) and goods (durable and non-durable) used for

Travel & Tourism activites. Spending may occur before, during or after a

trip. Spending covers all Travel & Tourism, outbound and domestic.

BUSINESS TRAVEL 512.7

Formally known as Intermediate Consumption of Travel & Tourism or

more simply business travel, this category of expenditures by government

and industry includes spending on goods and services (transportation,

accommodation, meals, entertainment, etc) for employee business travel

purposes.

GOVERNMENT EXPENDITURES - Individual 75.7

Formally known as Non-Market Services (Individual), this category

includes expenditures (transfers or subsidies) made by government

agencies to provide Travel & Tourism services directly linked to individual

visitors such as cultural (eg art museums), recreational (eg national park)

or clearance (eg immigration/customs) etc to visitors.

VISITOR EXPORTS 729.8

Expenditures by international visitors on goods and services within the

resident economy. 2,904.2

GOVERNMENT EXPENDITURES - Collective 174.0

Formally known as Non-Market Services (Collective), this category

includes operating expenditures made by government agencies on

services associated with Travel & Tourism, but not directly linked to any

individual visitor, instead these expenditures are generally made on

behalf of the 'community at large', such as tourism promotion, aviation,

administration, security services and resort area sanitation services, etc.

CAPITAL INVESTMENT 1,603.8Formally known as Capital Formation, this category includes capital

expenditures by direct Travel & Tourism industry service providers and

government agencies to provide facilities, equipment and infrastructure to

visitors.

The nominal aggregate of tourism

activity in the resident economy.

OTHER EXPORTS 1,213.9

5,895.9

In order to quantify the economic impact of Travel & Tourism, we use the framework of a simulated

Tourism Satellite Account. The Travel & Tourism Satellite Account is based on a demand-side

Consumer goods (such as clothing, electronics or petrol) exported for

ultimate sale to visitors, or capital goods (such as aircraft or cruise ships)

exported for use by Travel & Tourism industry providers.

TRAVEL & TOURISMCONSUMPTION

Total Travel & Tourism expenditures

made by and on behalf of visitors

(goods and services) in the resident

economy.

TRAVEL & TOURISMDEMAND

economic activity, because the industry does not produce or supply a homogeneous product orservice as traditional industries (agriculture, electronics, steel, etc) do.

8


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SUPPLY-SIDE ACCOUNTSUS$ mn

912.5 TRAVEL & TOURISM INDUSTRY GDP (Direct)'000 jobs

86.6

Direct Gross Domestic Product (also know as Value-Added) and

Employment associated with Travel & Tourism Consumption. This is the

explicitly defined Supply-side Industry contribution of Travel & Tourismthat can be compared one-for-one with the GDP and Employment

contribution of other industries in the economy. Establishment in this

category include traditional Travel & Tourism providers such as airlines,

hotels, car rental companies, etc.

696.5 TRAVEL & TOURISM INDUSTRY GDP (Indirect)Indirect Gross Domestic Product associated with Travel & Tourism

Consumption. This is the upstream resident economy contribution which

comes about from suppliers to the traditional Travel & Tourism industry.Establishments in this category include fuel and catering companies,

laundry services, accounting firms, etc.

1,295.2 TRAVEL & TOURISM INDUSTRY IMPORTSThe value of goods imported by direct and indirect Travel & Tourism

Industry establishments.

2,904.2

4,109.9

TRAVEL & TOURISM ECONOMY GDP(Direct and Indirect)

TRAVEL & TOURISMECONOMY SUPPLY

'000 jobs

375.0

Direct and Indirect Gross Domestic Product (also know as Value-Added)

and Employment associated with Travel & Tourism Demand. This is the

broadest measure of Travel & Tourism's contribution to the resident

economy. Establishments in this category include those described

above as well as manufacturing, construction, government, etc. that are

associated with Capital Investment, Government Services and Non-

Visitor Exports.

1,786.0 TRAVEL & TOURISM ECONOMY IMPORTSThe value of goods imported by direct and indirect Travel & Tourism

Economy establishments.

5,895.9

TRAVEL & TOURISMINDUSTRY SUPPLY

Instead, Travel & Tourism is an industrial activity defined by the diverse collection of products

(durables and non-durables) and services (transportation, accommodation, food and beverage,

Industry and the Travel & Tourism Economy. The first captures the explicitly defined production-side

industry contribution (ie direct impact only), for comparison with all other industries, while the

modelling separately (large arrows) to these two aggregates, the Satellite Account is able to produce

two different and complementary aggregates of Travel & Tourism Supply: the Travel & Tourism

entertainment, government services, etc) that are delivered to visitors. There are two basic aggregates

of demand (Travel & Tourism Consumption and Total Demand) and, by employing input/output

second captures the broader economy-wide impact, direct and indirect, of Travel & Tourism.

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GROSS DOMESTIC PRODUCT

ECUADOR ECUADOR

Travel & Tourism Gross Domestic Product Travel & Tourism Economy GDP

(2000 constant US$ mn) (real growth, %)

LATIN AMERICA ECUADOR v REGION

Travel & Tourism Gross Domestic Product Travel & Tourism Economy GDP

(2000 constant US$ bn) (real growth variance, %)

WORLDWIDE ECUADOR v WORLDWIDETravel & Tourism Gross Domestic Product Travel & Tourism Economy GDP

(2000 constant US$ bn) (real growth variance, %)

WTTC League Table Extract 2009 WTTC League Table Extract 10-Yr Real Growth

Travel & Tourism Economy GDP % of total GDP Travel & Tourism Economy GDP Annualised, %

1 46 Costa Rica 14.0 68 Ecuador 4.9

2 49 Mexico 13.3 76 Mexico 4.8

3 95 Argentina 8.5 86 Peru 4.6

4 111 Peru 7.4 91 Brazil 4.5

5 123 Guatemala 7.0 93 Argentina 4.5

6 125 Ecuador 7.0 108 Costa Rica 4.0

7 131 Venezuela 6.6 114 Chile 3.9

8 141 Brazil 6.2 122 Colombia 3.8

9 151 Colombia 5.7 125 Guatemala 3.7

10 164 Chile 4.4 126 Venezuela 3.7

TR

AVEL&TOUR

ISMSATELLIT

EACCOUNT

Direct Industry GDP T&T Economy GDP

WORLD



Ecuador's T&T Direct Industry is expected to contribute 1.5% to Gross Domestic Product (GDP) in 2009 (US$912.5 mn),

rising in nominal terms to US$1,960.6 mn (1.8% of total) by 2019. The T&T Economy contribution (% of total) should rise

from 7.0% (US$4,109.9 mn) to 8.0% (US$8,740.4 mn) in this same period.

COUNTRY

REGION

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EMPLOYMENT

ECUADOR ECUADOR

Travel & Tourism Employment Travel & Tourism Economy Employment

('000 Jobs) (real growth, %)


Travel & Tourism Employment Travel & Tourism Economy Employment

('000 Jobs) (real growth variance, %)

WORLDWIDE ECUADOR v WORLDWIDETravel & Tourism Employment Travel & Tourism Economy Employment

('000 Jobs) (real growth variance, %)


Travel & Tourism Economy Employment % of total emp Travel & Tourism Economy Employment Annualised, %

51 Costa Rica 13.6 12 Ecuador 4.1

54 Mexico 12.9 33 Brazil 3.0

71 Argentina 10.1 37 Guatemala 2.9

110 Peru 6.8 52 Peru 2.6

121 Venezuela 6.1 67 Costa Rica 2.4

123 Guatemala 6.1 69 Argentina 2.4

125 Ecuador 5.9 72 Colombia 2.3

127 Brazil 5.9 76 Venezuela 2.3

147 Colombia 5.1 93 Mexico 2.0

155 Chile 4.6 140 Chile 0.9

TRA

VEL&TOUR

ISMSATELLIT

EACCOUNT

COUNTRY

REGION

WORLD

Direct Industry jobs T&T Economy jobs

Ecuador's 87,000 T&T Direct Industry jobs account for 1.4% of total employment in 2009 and are forecast to total

130,000 jobs or 1.6% of the total by 2019.The contribution of the Travel & Tourism Economy to employment is

expected to rise from 375,000 jobs in 2009, 5.9% of total employment, or 1 in every 16.8 jobs to 559,000 jobs, 6.8% of

total employment or 1 in every 14.7 jobs by 2019.



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TOTAL DEMAND

ECUADOR ECUADOR

Total Demand 2009 Travel & Tourism Total Demand

(real growth, %)

ECUADOR ECUADOR v REGION

MARKET SHARE OF LATIN AMERICA Travel & Tourism Total Demand

Total Demand 2009 (real growth variance, %)

WORLDWIDE ECUADOR v WORLDWIDETotal Demand 2009 Travel & Tourism Total Demand

(real growth variance, %)


Travel & Tourism Total Demand Real Growth % Travel & Tourism Total Demand Annualised, %

1 56 Brazil 0.6 51 Chile 5.4

2 62 Mexico 0.0 63 Mexico 5.0

3 66 Colombia -0.3 68 Brazil 4.9

4 72 Peru -0.7 73 Argentina 4.9

5 101 Argentina -3.0 76 Peru 4.8

6 116 Guatemala -4.2 80 Ecuador 4.8

7 123 Costa Rica -4.6 96 Costa Rica 4.3

8 126 Chile -4.9 104 Venezuela 4.2

9 139 Ecuador -6.2 111 Colombia 4.1

10 168 Venezuela -10.2 147 Guatemala 3.3

TR

AVEL&TOUR

ISMSATELLIT

EACCOUNT

WORLD

Ecuador Travel & Tourism is expected to generate US$5,895.9 mn of economic activity (Total Demand) in 2009, growing

(nominal terms) to US$12,438.9 mn by 2019. Total Demand is expected to decline by -6.2% in 2009 and by 4.8% per

annum, in real terms, between 2010 and 2019. 2009 Total Demand represents 0.05% of world market share.

COUNTRY

REGION

Personal T&T - 26.90% Business T&T - 8.70%

Gov't Expenditures - 4.24% Capital Investment - 27.20%

Visitor Exports - 12.38% Other Exports - 20.59%

Ecuador - 1.35%

Rest of Region - 98.65%

Ecuador - 0.05% Rest of World - 99.95%

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VISITOR & OTHER EXPORT EARNINGS

ECUADOR ECUADOR

Travel & Tourism Exports Travel & Tourism Visitor Exports

(2000 constant US$ mn) (real growth, %)


Travel & Tourism Exports Travel & Tourism Visitor Exports

(2000 constant US$ mn) (real growth variance, %)

WORLDWIDE ECUADOR v WORLDWIDETravel & Tourism Exports Travel & Tourism Visitor Exports

(2000 constant US$ mn) (real growth variance, %)


Travel & Tourism Visitor Exports % of total exports Travel & Tourism Visitor Exports Annualised, %

53 Costa Rica 17.5 8 Venezuela 7.9

79 Guatemala 11.3 13 Chile 7.6

101 Argentina 7.0 15 Argentina 7.5

104 Peru 6.9 56 Ecuador 5.7

109 Colombia 5.8 81 Mexico 5.1

118 Mexico 5.1 93 Peru 4.9

124 Ecuador 4.6 109 Brazil 4.5

147 Brazil 3.0 113 Costa Rica 4.4

149 Chile 2.9 143 Guatemala 3.6

168 Venezuela 1.4 146 Colombia 3.5

Visitor Exports Other Exports

Visitor Exports play an important development role for the resident Travel & Tourism Economy. Ecuador's Travel &

Tourism is expected to generate 12.4% of total exports (US$1,943.8 mn) in 2009, growing (nominal terms) to US$4,446.4

mn (11.9% of total) in 2019.



TR

AVEL&TOUR

ISMSATELLIT

EACCOUNT

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REGION

WORLD

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SATELLITE ACCOUNT TABLESECUADOR

Travel & Tourism - US$ mn 2004 2005 2006 2007 2008E 2009F 2019F

Personal Travel & Tourism 945.2 1,059.5 1,163.3 1,230.4 1,439.1 1,585.9 3,465.1

Business Travel & Tourism 292.8 317.4 378.9 435.4 498.0 512.7 994.9

Corporate 267.7 290.7 347.3 398.6 459.1 473.2 905.6

Government 25.1 26.7 31.6 36.8 38.9 39.6 89.3

Government Expenditures - Individual 41.8 46.9 52.5 59.4 68.7 75.7 154.7

Visitor Exports 464.0 488.0 492.0 626.0 721.5 729.8 1,685.6

Travel & Tourism Consumption 1,743.8 1,911.7 2,086.7 2,351.1 2,727.3 2,904.2 6,300.2

Government Expenditures - Collective 96.3 107.5 120.5 136.3 157.5 174.0 355.6

Capital Investment 944.7 1,102.2 1,242.9 1,344.1 1,504.2 1,603.8 3,022.2

Other Exports 649.5 896.1 1,097.7 1,227.0 1,622.1 1,213.9 2,760.9

Travel & Tourism Demand 3,434.3 4,017.5 4,547.9 5,058.6 6,011.1 5,895.9 12,438.9

Travel & Tourism Direct Industry

Employment ('000) 87.4 85.3 84.6 93.1 88.2 86.6 130.4

Gross Domestic Product 585.0 625.9 678.5 793.1 889.7 912.5 1,960.6

Travel & Tourism Economy

Employment ('000) 363.2 384.3 398.3 421.3 414.3 375.0 559.2

Gross Domestic Product 2,526.0 2,937.0 3,328.8 3,738.4 4,353.8 4,109.9 8,740.4

Travel & Tourism Accounts

as % of National Accounts 2004 2005 2006 2007 2008E 2009F 2019F

Personal Travel & Tourism 4.3 4.3 4.3 4.2 4.3 4.3 4.9

Government Expenditures 3.7 3.7 3.8 3.8 3.8 3.8 3.9

Capital Investment 13.4 13.5 13.4 13.3 12.9 12.4 11.8

Visitor & Other Exports 12.4 12.1 11.2 11.5 11.0 12.4 11.9

Travel &Tourism Imports 9.4 9.1 8.9 8.5 8.2 8.5 9.7


Employment 1.6 1.5 1.4 1.5 1.4 1.4 1.6

Gross Domestic Product 1.8 1.7 1.6 1.7 1.6 1.5 1.8


Employment 6.6 6.7 6.8 6.9 6.7 5.9 6.8

Gross Domestic Product 8 7.9 8.0 8.2 7.9 7.0 8.0

Travel & Tourism Real Growth

(per annum except 2019 =

10-year annualised) 2004 2005 2006 2007 2008E 2009F 2019F

Personal Travel & Tourism 7.7 4.3 1.6 -1.1 3.6 5.4 5.2

Business Travel & Tourism -2.1 0.9 10.4 7.4 1.3 -1.5 3.9

Government Expenditures 6.9 4.0 3.7 5.7 2.4 5.6 4.5

Capital Investment 10.7 8.6 4.3 1.1 -0.9 2.0 3.6

Visitor Exports 7.7 -2.1 -6.7 18.9 2.0 -3.3 5.7

Other Exports 30.1 28.4 13.3 4.5 17.0 -28.4 5.6

Travel & Tourism Consumption 5.9 2.0 1.0 5.3 2.7 1.8 5.1

Travel & Tourism Demand 11.2 8.9 4.7 4.0 5.2 -6.2 4.8


Employment 2.3 -2.4 -0.8 10.0 -5.2 -1.9 4.2

Gross Domestic Product 3.7 -0.4 0.3 9.3 -0.7 -1.9 5.0


Employment 9.2 5.8 3.6 5.8 -1.7 -9.5 4.1Gross Domestic Product 11.0 8.2 4.8 5.0 3.1 -9.7 4.9

E - Estimate; F - Forecast

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RANKING AND RANGE

Year 2009 country rankings for Ecuador within world countries' list

2009 2019

Ecuador Absolute Size Relative Size Growth1

Absolute Size Relative Size Growth2

Personal Travel & Tourism 76 136 40 77 130 62

Business Travel 78 --- 89 82 --- 86

Government Expenditures 75 85 53 76 84 70

Capital Investment 68 71 47 68 77 93

Visitor Exports 100 124 64 99 125 56

Other Exports 62 18 167 60 18 58

Travel & Tourism Demand 78 --- 139 74 --- 80

Direct Industry GDP 86 148 73 87 133 74

T&T Economy GDP 77 125 159 72 111 68

Direct Industry Employment 74 150 65 70 143 19

T&T Economy Employment 63 125 163 54 116 12


22010-2019 annualised real growth adjusted for inflation (%)

Total 181 countries or 13 regions (largest/highest/best is number 1; smallest/lowest/worst is number 181 or 13; 0 i s aggregate region no ranking

GENERAL MACROECONOMIC INDICATORS

The following charts illustrate how Travel & Tourism growth follows or varies from general macroeconomic growth

for various indicators. The bottom three charts illustrate information related to international visitor arrivals.

T&T Eco no my GDP Total GDP T&T Employ me nt Total Emp lo ymen t T&T Exp or ts Total Expo rts

T&T Personal Total Personal T&T Government Total Government

Consumption Consumption T&T Capital Investment Total Capital Investment Expenditure Expenditure

TR

AVEL&TOUR

ISMSATELLIT

EACCOUNT

ECUADOR

Exports (US$ mn)

ECUADOR

Personal Consumption (US$ mn) Capital Investment (US$ mn)

ECUADOR

Gross Domestic Product (US$ mn)

ECUADOR

Employment ('000 of jobs)

ECUADOR ECUADOR ECUADOR

Government Expenditure (US$ mn)

ECUADOR ECUADOR

International Visitor Average Spend (US$)Visitor Markets Index (1988=100) International Visitor Arrivals ('000)

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London e1W 3Ha, uK

teL: +44 (0) 20 7481 8007Fax: +44 (0) 20 7488 1008emaiL: [email protected]

WTTC Ecuador 2009

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