Global tourism resilient, woes for France

The global travel and tourism sector is expected to grow by 3.1 per cent in 2016, the World Travel and Tourism Council says.

A plane leaving Newcastle Airport

The global travel and tourism sector is expected to grow by 3.1 per cent in 2016, the WTTC says. (AAP)

Travel and tourism will contribute less than previously forecast to the economies of France, Turkey and Brazil this year, hit by attacks, political and economic turmoil, though globally the sector is resilient, the World Travel and Tourism Council says.

Brazil is hosting the Olympic Games this year but its travel and tourism sector has suffered under a political crisis, its worst recession since the 1930s, and the Zika virus.

The sector's contribution to Brazil's gross domestic product (GDP) is expected to shrink by 1.6 per cent this year, against a previous forecast for a drop of 0.9 per cent, the WTTC said.

Islamist militant attacks in Paris, Brussels and Nice have resulted in lower demand for travel to Europe. In France, the travel and tourism sector's contribution to GDP will grow 1.1 per cent this year, down from a previous forecast of 2.9 per cent.

"The Paris incident did have an impact because it's the first point of entry to Europe for a lot of Asian and North American travellers," David Scowsill, president of the WTTC told Reuters.

The number of foreign tourists fell sharply in France in the second quarter of the year, official data showed on Friday. In France, the sector contributed 80.4 billion euros ($A119.54 billion), or 3.7 per cent of total GDP, in 2015.

A series of militant bombings in Turkey and a failed coup have also deterred tourists, and the sector's contribution to GDP there will shrink by 3.2 per cent this year, sharply lower than a previously forecast drop of 0.2 per cent.

Overall, however, the global travel and tourism sector is expected to grow by 3.1 per cent in 2016, faster than predicted global GDP growth of 2.3 per cent, driven by increasing numbers of travellers from Asian countries, especially China and India.

"There's lots of macro-economic weakness around, but the travel and tourism industry is doing very well. It's the same level of growth as 2015," Scowsill said.

He said despite security concerns, people were still travelling but had shifted destinations. Asian travellers were tending to choose Australia for vacations this year instead of Europe, for example.

Brazil's Olympic Games should help to boost demand for travel there next year, Scowsill said, although he said Brazil had to deal with its economic problems.

In 2015, the direct contribution of the sector to Brazil's GDP was 190.5 billion Brazilian reais ($A78.25 billion), equivalent to 3.3 per cent of total GDP, the WTTC said.

The fall in sterling as a result of Britain's vote to leave the European Union should boost demand for trips to Britain over the next six to eight months, helping to cancel out any reduction in spending on travel by Brits, Scowsill added.


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Source: AAP


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