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									WTTC's 2005 Top Ten List of Travel & Tourism Economies

Apr 11, 05 | 1:53 am

The World Travel & Tourism Council (WTTC) released its 2005 Travel &
Tourism forecasts for 174 countries and the world and an assessment of the
impact of the Indian Ocean Tsunami on the industry today at the 5th Global
Travel & Tourism Summit in New Delhi, India.

Releasing forecasts prepared on its behalf by Oxford Economic Forecasting,
which follow the United Nations standard for Tourism Satellite Accounting,
the WTTC reported that the record robust recovery started in 2004 should
continue through 2005 at a healthy rate. WTTC also reported that the
December 2004 tsunami, which struck some tourism destinations around
the Indian Ocean, had a significant, but limited overall impact on the
tourism economies.

Worldwide for 2005, WTTC is forecasting:

      Demand: Encompassing all components of Travel & Tourism
       consumption, investment, government spending and exports is
       expected to grow 5.4% (real terms) and total $6.2 trillion in 2005.
       The ten-year annualized growth (2006-2015) forecast is 4.6% per
       annum illustrating the outlook for strong long-term growth.

      Visitor Exports: The continued strength of the Pound and Euro
       against the US dollar, is expected to push Visitor Exports to nearly
       $820 billion in 2005 or real growth of 7.3%.

      GDP: Travel & Tourism’s contribution to the world economy is
       illustrated by the direct industry impact of 3.8% of total GDP and the
       combined direct and indirect impact of the Travel & Tourism economy
       expected to total 10.6% in 2005.

      Employment: The global Travel & Tourism industry is expected to
       produce 2.1 million new jobs in 2005 over it’s 2004 level to total 74.2
       million jobs or 2.8% of total world employment. The broader
       perspective of the Travel & Tourism economy (direct and indirect) is
       expected to create more than 6.5 million new jobs for the world
       economy for a total of 221.6 million jobs dependent on Travel &
       Tourism or 8.3% of total employment.

WTTC President, Jean-Claude Baumgarten said, “We turned the corner in
2004 and it’s full steam ahead for Travel & Tourism in many countries and
regions around the world. Much of the pent up demand from three previous
years of terrorism, war and health concerns has been released in a record
level of Travel & Tourism demand. Consumers and business travelers have
voted their confidence in the economy by returning to holidays and business
trips in massive numbers. We’ve haven’t seen such a rebound in Travel &
Tourism growth for quite some time, it’s really quite exciting. For 2005 we
expect the rebound to continue at a sustainable pace.”
Speaking about the impact of the tsunami on the industry, Mr. Baumgarten
continued, “The tsunami was perhaps the most tragic humanitarian crisis of
our lifetime. Fortunately we have seen a massive response from
governments and industry to this tragedy. Although a number of Travel &
Tourism destinations and businesses suffered significant loss, steps are well
underway to restore these destinations and bring back the visitors. The key
is to inform and educate potential visitors about what is open and available
for business. The sooner visitors return to affected areas, the sooner these
economies will recover. Each and everyone of us can do our part to rebuild
and restore these economies by returning to our regular Travel & Tourism
routines.”

At the press event, the WTTC released its 2005 Top Ten List of Travel &
Tourism economies. For the second year in a row Montenegro has placed
first as the fastest growing Travel & Tourism economy in the world. India
and China placed second and third respectively illustrating the impact of the
emerging middle-classes has on Travel & Tourism growth.

Travel         &          Tourism             Demand,            2006-2015
(% Annualized Real Growth)

                         1 Montenegro           9.9
                         2 China                9.2
                         3 India                8.6
                         4 Reunion              8.3
                         5 Croatia              7.8
                         6 Sudan                7.7
                         7 Vietnam              7.7
                         8 Laos                 7.6
                         9 Czech Republic       7.5
                         10 Guadeloupe          7.2

WTTC also released its special assessment of the December 2004 Tsunami
on three Indian Ocean economies: Maldives, Sri Lanka and Thailand. In
each case, the analyses showed significant declines in visitor exports, while
increases were reported in government expenditures and capital investment
for marketing, promotion, recovery and rebuilding efforts to assist the
industry.

      In The Maldives, Visitor Exports are expected to fall 29.9% from pre-
       Tsunami growth forecasts for 2005, while Government Expenditures
       and Capital Investment are expected to increase 6.6% and 14.6%
       respectively. The bottom-line impact for The Maldives is a loss of
       30.4% or US$55 million in industry contribution to 2005 GDP and
       10,440 jobs.

      In Sri Lanka, Visitor Exports are expected to fall 21.4% from pre-
       Tsunami growth forecasts for 2005, while Government Expenditures
       and Capital Investment are expected to increase 13.1% and 12.8%
       respectively. The bottom-line impact for Sri Lanka is a loss of 14.1%
       or US$201 million in industry contribution to 2005 GDP and 66,840
       jobs.

      In Thailand, Visitor Exports are expected to fall 22.8% from pre-
       Tsunami growth forecasts for 2005, while Government Expenditures
       and Capital Investment are expected to increase 5.1% and 4.7%
       respectively. The bottom-line impact for Thailand is a loss of 16.7%
       or US$1.2 billion in industry contribution to 2005 GDP and 94,780
       jobs.

Richard Miller, Executive Vice President of WTTC said, “The total impact of
the Dec tsunami on 2005 Travel & Tourism is expected to approach US$ 3
billion and cost more than one quarter millions jobs. In most cases the jobs
will be recovered as soon as traffic begins to return to the affected areas,
but in the meantime the economies will continue to suffer. Although the
impact of the tsunami has been significant, it is generally limited for Travel
& Tourism to a short list of specific destinations.”

The WTTC report shows that the impact of 9/11 in the United States was
37.5 times larger in monetary terms than the tsunami and 2.8 times larger
in terms of impact on employment. The impact of SARS in Hong Kong
equals 40% of the tsunami monetarily and 10% in terms of impact on
employment. The Bali bombing in 2002 equals 20% of the tsunami impact
monetarily and was 1.8 times larger in terms of impact on employment.

About       The       World       Travel      &       Tourism        Council
The WTTC is the forum for business leaders in the Travel & Tourism
industry. With Chief Executives of some one hundred of the world’s leading
Travel & Tourism companies as its members, WTTC has a unique mandate
and overview on all matters related to Travel & Tourism. WTTC works to
raise awareness of Travel & Tourism as one of the world’s largest industries,
employing c. 200 million people and generating over 10% of world GDP.

www.wttc.org
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