Travel & Tourism leaders forecast continued growth for 2008

A recent research produced by the World Travel & Tourism Council (WTTC) and Oxford Economics (OE) highlighted that Travel & Tourism has entered this recent period on the back of another solid performance in 2007.

Jean-Claude Baumgarten, President of the WTTC, said: "Tourism growth has been particularly rapid in developing countries in 2007 with the fastest average growth in tourism arrivals in the Middle East region at 12.9 per cent, according to UNWTO. These countries are not only recognising the development potential of Travel & Tourism and therefore investing heavily in new infrastructure and facilities but their citizens are also seeing rapid economic growth boost their incomes beyond the level where international travel becomes both a feasible and desired option."

Baumgarten's statement came at a media briefing held today during a flash visit to Dubai as part of preparations to the World Travel and Tourism Council's Summit. The global event will be held in Dubai under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in April 2008.

Khalid Bin Sulayem, Director General of Dubai Department of Tourism & Commerce Marketing (DTCM), added: "A continued policy for tourism has helped Dubai's Travel & Tourism industry accelerate and this growth will help it also rise above the potential economic downturn."

On global scale, international tourism arrivals increased in this year by nearly 6 per cent per cent, totalling to nearly 900 million tourists and marking the fourth successive year that arrivals' growth has exceeded its long-standing trend of 4 per cent (source: UNWTO).

The research developed by the WTTC & OE indicated that tourism spending per capita incomes has more than matched these increases. International air passenger traffic also rose from year to year in November rose at a record 9.3 per cent (source: IATA).

Nonetheless, the Travel & Tourism industry will face challenges in the year ahead. The deteriorating economic conditions, particularly in the housing and credit markets across the globe are increasing concerns for the industry. However, the slowdown is likely to have a limited impact, due to the growth of emerging markets and the easing in monetary policy by central banks.

Higher energy prices are a two pronged challenge as they squeeze household budgets globally and raise the cost of a key input for the Travel & Tourism industry.

Commenting on perspectives of Travel and Tourism, Baumgarten said that increasing oil revenues would offer producing countries wider opportunities to enhance their investments in tourism. He explained: "Strong oil income will promote investment in diversification projects often focussing on tourism's undoubted potential."

Dubai Strategic Plan for the year 2015 has identified tourism as one of the leading catalysts for the emirate's economic development. Dubai has achieved remarkable success as a favorite destination for regional and international tourists. Total revenues of Dubai hotels and hotel apartments in 2007 touched Dhs8.7bn supported by a seven per cent increase in guests, according to a recent announcement by DTCM.

In recognition of Dubai Government's vision and commitment, Dubai has been chosen to host this year's Global Travel & Tourism Summit. The event will be sponsored by pioneering Travel & Tourism companies including DTCM, Emirates Group, Jumeirah International, Nakheel and Dubailand.

The 8th Global Travel & Tourism Summit will be hosted by the Jumeirah Group and will take place on April 20-22, 2008 and will be the world's most significant public/ private partnership with the objective of driving the agenda on responsibility and the key role that Travel & Tourism plays.