international luxury travel market cannes, france december 8, 2003

International LuxuryTravel Market

Cannes, FranceDecember 8, 2003

The PerfectStorm

WTTC’s 2002Tourism Satellite Accounting

Research

WTTC’s 2003Tourism Satellite Accounting

Research

Base Case & Pessimistic War Scenario

Components of Travel & Tourism Demand

2003 Travel & Tourism Spending by Visitors

US$ 2.1 Trillion in 2003 9.9% of Total Personal

Consumption in Year 2003 2.2% Real Growth in 2003 4.8% Real Growth in 2004 3.7% Real Growth per annum

(2004-2013)

World - Personal T&T

2003 T&T Spending by Companies and Government Agencies

US$ 489 Billion in 2003US$ 423 Bn CorporateUS$ 66 Bn Government

0.6% Real Growth in 2003 4.8% Real Growth in 2004 3.7% Real Growth per

annum (2004-2013)

World - Business Travel

2003 Government Travel & Tourism

Services Provided to Individual Visitors and the Community-at-large

US$ 224 Billion in 2003 3.9% of Total Government

Expenditures in 2003 2.8% Real Growth in 2003 3.0% Real Growth in 2004 3.0% Real Growth per annum

(2004-2013)

World - Gov’t T&T Expenditures

2003 T&T Facilities, Equipment and Infrastructure by Public and Private Sectors

US$ 686 Billion in 2003 9.6% of Total Capital

Investment in 2003 2.8% Real Growth in 2003 3.9% Real Growth in 2004 4.3% Real Growth per annum

(2004-2013)

World - T&T Capital Investment

2003 T&T Spending by Inbound

Visitors US$ 531 Billion in 2003 5.9% of Total Exports in

2003 3.0% Real Growth in 2003 10.7% Real Growth in 2004 7.1% Real Growth per annum

(2004-2013)

World - Visitor Exports

2003 Consumer and Capital Goods Exported for Visitors and Travel & Tourism Companies

US$ 479 Billion in 2003 5.3% of Total Exports in

2003 8.9% Real Growth in 2003 8.9% Real Growth in 2004 7.2% Real Growth per annum

(2004-2013)

World - Other T&T Exports

Perspectives of Travel &

Tourism Supply / Production

Consumption = Travel & Tourism Industry

Demand = Travel & Tourism Economy

2003 Travel & Tourism GDP Associated with Visitor Consumption (Direct)

US$ 1.3 Trillion in 2003 3.7% of Total Gross Domestic

Production in 2003 1.1% Real Growth in 2003 4.8% Real Growth in 2004 3.6% Real Growth per annum

(2004-2013)

World - T&T Industry GDP

2003 Travel & Tourism GDP Associated with T&T Demand (Direct and Indirect)

US$ 3.5 Trillion in 2003 10.2% of Total Gross

Domestic Production in 2003

2.0% Real Growth in 2003 4.8% Real Growth in 2004 3.9% Real Growth per

annum (2004-2013)

World - T&T Economy* GDP

*WTTC Concept

2003 Travel & Tourism

Employment assoc. with Visitor Consumption (Direct)

67.4 Million Jobs in 2003 2.6% of Total Employment

in 2003 0.1% Real Growth in 2003 2.2% Real Growth per

annum (2004-2013)

World - T&T Industry Employment

2003 Travel & Tourism

Employment assoc. with T&T Demand (Direct and Indirect)

195 Million Jobs in 2003 7.6% of Total Employment

in 2003 1.5% Real Loss in 2003 2.4% Real Growth per

annum (2004-2013)

World - T&T Economy* Employment

*WTTC Concept

Regional and National

Perspectives

T&T Economy GDP

0%

5%

10%

15%

20%

0% 2% 4% 6% 8% 10%

North America

European Union

Northeast Asia

Other Western Europe

Latin America

Central and Eastern Europe

Oceania

Southeast AsiaMiddle East

South Asia

North Africa

Caribbean

Sub-Saharan Africa

T&T Economy GDP Growth 2004 -2013(Percent Annualized)

2003

T&

T E

cono

my

GD

P(P

erce

nt o

f Tot

al)

World Average

T&T Economy GDP

North America

European Union

Northeast Asia

Other Western Europe

Latin America

Central and Eastern Europe

Oceania

Southeast AsiaMiddle East

South Asia

North Africa

Caribbean

Sub-Saharan Africa

Size Represents 2003 US$

T&T Economy GDP

North America

European Union

Northeast Asia

Other Western Europe

Latin America

Central and Eastern Europe

Oceania

Southeast AsiaMiddle East

South Asia

North Africa

Caribbean

Sub-Saharan Africa

Top = High % of GDPBottom = Low % of GDP

Hig

h %

of G

DP

Low

% o

f GD

P

T&T Economy GDP

North America

European Union

Northeast Asia

Other Western Europe

Latin America

Central and Eastern Europe

Oceania

Southeast AsiaMiddle East

South Asia

North Africa

Caribbean

Sub-Saharan Africa

Left = Slow GrowthRight = Fast Growth

Slow Growth Fast Growth

T&T Demand

1 Angola 9.52 Mexico 9.53 Turkey 9.24 China 8.95 India 8.86 Botswana 8.57 Laos 8.48 Malaysia 8.29 Hong Kong 8.110 Vanuatu 7.8

WTTC’s Top Ten Industry Growers(2004-2013 Annualized Real Growth,

Percent)

T&T Capital Investment

0%

5%

10%

15%

20%

25%

0% 2% 4% 6% 8%

North America

European Union

Northeast Asia

Other Western Europe

Latin AmericaCentral and Eastern Europe

Oceania

Southeast Asia

Middle East

South Asia

North Africa

Caribbean

Sub-Saharan Africa

2003

T&

T C

apita

l Inv

estm

ent

(Per

cent

of T

otal

)

T&T Capital Investment Growth 2003 -2013 (Percent Annualized)

World Average

T&T Capital Investment

1 Mexico 10.52 Turkey 8.53 Finland 8.04 China 8.05 Argentina 7.76 Malaysia 7.67 India 7.58 Singapore 7.49 Chinese Taipei 6.910 Hong Kong 6.8

WTTC’s Top Ten Investors(2004-2013 Annualized Real Growth,

Percent)

Travel & Tourism: Resilient and Renewable