Cities generate a massive $691 billion in Travel & Tourism GDP and provide employment to more than 17 million people, according to a report by WTTC.
The World Travel & Tourism Council (WTTC) has released its Cities Report for 2019, focusing on 73 major tourism city destinations. These cities account for $691 billion in direct Travel & Tourism GDP, representing a significant 25% of the sector's direct global GDP.
The report highlights the substantial growth of emerging markets in the travel industry. Cities in emerging tourism destinations such as Sri Lanka, Azerbaijan, Indonesia, and Saudi Arabia have shown impressive growth over the past decade. These economies have invested heavily in their tourism sectors, leading to rapid expansion in Travel & Tourism.
International visitors play a crucial role in these cities, accounting for almost half (45%) of tourism spending across the 73 cities in the study. For instance, in Riyadh, international visitor spending accounted for an impressive 86%, while in London, it was nearly twice as much as the operating costs of Transport for London, totalling $17.5 billion in 2018. Similarly, New York saw international visitors spend $21 billion last year, which is 3.8 times higher than the costs of the NYPD.
The report also emphasises the importance of diversifying tourism demand. Cities with an overreliance on domestic or international demand are more vulnerable to economic and geopolitical shocks. A high degree of seasonality can also strain infrastructure due to the increased demand during a narrow timeframe, putting pressure on cities' resources.
However, the report also underscores the strong growth potential in these developing regions. Travel & Tourism in emerging markets generates a larger share of high-wage jobs (33%) compared to advanced economies (19.5%). The top 10 global cities with the highest direct Travel & Tourism growth over the past decade are primarily in emerging and developing economies.
While the exact city names within these countries were not specified in the provided search results, the emphasis on these emerging markets aligns with WTTC’s focus on cities within economies investing heavily to boost Travel & Tourism growth during that timeframe.
The 2019 WTTC Cities Report offers a valuable insight into the current state and future potential of the travel and tourism industry, particularly in emerging markets. Accessing the full report directly would provide a more detailed list of the individual cities driving this growth.
- Emerging markets, such as those in Sri Lanka, Azerbaijan, Indonesia, and Saudi Arabia, have demonstrated significant growth in their travel and tourism industries, largely due to substantial investments in this sector.
- The rapid expansion of the tourism sector in emerging markets has led to a substantial increase in finance, as international visitors accounted for nearly half of the tourism spending across the 73 cities in the study, with cities like Riyadh and New York seeing fractions of their operating costs covered by visitor spending.
