- Global travel spending is still growing
- Slower pace than originally expected
- eakening economies and fears over terrorism.
The World Travel and Tourism Council, a group tasked by travel providers to promote tourism, predicts global travel spending for 2016 will grow by 3.1pc, down from a March forecast of 3.3pc but still outpacing global economic growth, t estimates at 2.3pc.
The group reports
- South Asia leads growth at 5.9pc, driven by strong economic prospects in India.
- Latin America is expected to be the worst performer, down 0.9pc, driven by weakness in Brazil.
- Northeast Asia and Southeast Asia to grow 4.7pc and 4pc respectively, stimulated by China growing at 6.3pc.
- North America growing at the global rate of 3.1pc.
- Europe to grow by a slower 2.2pc.
- In England weaker domestic spending and a 3pc drop in outbound trips will be offset by inbound international visitors as a result of the weaker English pound.
David Scowsill of WTTC said. macroeconomic problems have a much bigger impact on travel than terrorist attacks. Travellers aren’t going to allow isolated terrorist attacks to put them off travelling,”
Scowsill said destinations with tourist-specific attacks usually take two years to recover, while other types of attacks lead to a faster resumption of travel. Tourists worried about safety in France have chosen Spain or Italy instead.
Other travel groups are also seeing the slowdown in travel spending. The International Air Transport Association (IATA) recently noted that while more people are flying, the upward trend “has moderated since January” and thepc of seats occupied has slipped slightly.
Tony Tyler of IATA said in a statement “The fragile and uncertain economic backdrop, political shocks and a wave of terrorist attacks are all contributing to a softer demand environment,
In April, the Global Business Travel Association warned of slowing volume from US- originating business travellers.
