Travel and tourism leaders forecast continued growth for 2008

Despite repercussions of the ongoing global credit crunch, travel and tourism leaders revealed that the industry will only moderately be affected and signalled continued growth rates for 2008 at a reduced pace. According to recent research by the World Travel & Tourism Council (WTTC) and Oxford Economics (OE), travel and tourism entered 2008 following another solid performance in 2007. International tourism arrivals increased in 2007 by nearly 6%, totalling nearly 900 million tourists and marking the fourth successive year that growth in the number of arrivals has exceeded its long-standing figure of 4% (source: UNWTO). Furthermore, research also indicates that tourism spending per capita has more than matched these increases. International air passenger traffic also rose at a record 9.3% from year to year (source: IATA).

In November, WTTC President Jean-Claude Baumgarten stated, "tourism growth has been particularly rapid in developing countries, with the fastest average growth in tourism arrivals in the Middle East region. These countries are not only recognising the development potential of travel and 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." The Dubai Department of Tourism & Commerce Marketing (DTCM) Director General, Khalid Bin Sulayem, added, "a continued policy for tourism has helped Dubai's travel and tourism industry accelerate and this growth will also help it rise above the potential economic downturn."

Nonetheless the travel and tourism industry does face challenges in the year ahead. 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 growth of emerging markets and loosening of 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 and tourism industry. Baumgarten stated that even this challenge has a positive angle, explaining how "higher revenues are boosting oil producer's incomes and raising available funds for investment in diversification projects, which often focus on tourism's undoubted potential."

Dubai certainly represents a nation that has truly embraced travel and tourism as a catalyst for economic growth and prosperity. In recognition of the Dubai government’s vision and commitment, it will host this year's Global Travel & Tourism Summit along with pioneering travel and tourism companies including DTCM, Emirates Group, Jumeirah International, Nakheel and Dubailand. The 8th Global Travel & Tourism Summit, hosted by the Jumeirah Group, will take place on 20-22 April 2008 and will be the world's most significant public/private partnership, with the objective of pushing forward the agenda on the responsibility and key role that travel and tourism plays.