WTTC research shows Travel & Tourism in South Korea to outperform its economy over next ten years

London, UK, 2014-2-4 — /travelprnews.com/ — South Korea needs to continue to focus on policies, which support its Travel & Tourism industry’s excellent growth potential over the next decade. That is according to the World Travel & Tourism Council (WTTC), which has launched new research today. This shows Travel & Tourism offers excellent job and wealth prospects for the country.

The research shows that Travel & Tourism’s contribution to the economy in South Korea is expected to grow at an annual average of 4.7% over the next decade, compared to the total economy which is predicted to expand by an annual average of 3.3%.

The industry contributed $68 billion or 5.8% of South Korea’s economy in 2013, comparing favourably with the economic impact of other sectors such as higher education at 3.4%.

The research also shows that Travel & Tourism is a strong employer in South Korea. The industry provides 1.6 million jobs (6.3% of employment) in the country. Travel & Tourism directly supports double the number of jobs as the higher education sector and nearly three times as many jobs as the chemicals manufacturing sector in South Korea. Other key findings include the greater employment potential of Travel & Tourism than other sectors in South Korea. For every US$1 million in Travel & Tourism spending, 25 jobs are supported. This is more than double the average across all sectors of the economy and significantly more than financial services (where US$1 million supports 17 jobs) and auto manufacturing (where US$1 million supports 15 jobs).

David Scowsill, President & CEO of WTTC, is in Seoul to meet with business leaders to discuss the best way to harness the industry’s potential; “South Korea is the 11th fastest growing tourist economy in the world and the fastest in Asia. This latest research further underlines the significant and increasing economic contribution that Travel & Tourism is making to the country. WTTC encourages the South Korean government to further improve visa facilitation, which will make it easier for travellers to visit the country for short periods of time.”

Mr Scowsill continues: “We would warn against introducing or expanding tax schemes to exploit this tourist growth. Taxing the tourist does not lead to positive economic growth – in fact it leads to the opposite”.

Travellers in South Korea provide a significant source of revenue. In 2013, visitor spending totalled $21.5 billion or 18% of all service exports and 3.0% of all exports (including goods and services). $1 million in Travel & Tourism spending generates $1.1 million in GDP, which is similar to the impact of the agriculture and auto manufacturing sectors.

However, according to data from the Pacific Asia Travel Association (PATA), whilst the number of Chinese visiting South Korea soared in 2013, visitors from Japan dropped by 22% year on year. Mr Scowsill says the decline in Japanese visitors underlines the need for South Korea to continue to extend its marketing focus; “For many years, Japan has been the bedrock of the South Korean tourism industry. These figures indicate that South Korea must continue its efforts to market strongly to the burgeoning middle class in other Asian markets, encouraging them to experience everything that South Korea has to offer; from the natural beauty of its mountains, beaches, and ancient sites to the excitement of its cities”.

WTTC held its first regional Asia Summit at the Lotte Hotel, Seoul 10-11 September 2013. The Summit of industry leaders from the private and public sectors featured a keynote address by former British Prime Minister, Tony Blair and looked at how to best exploit the huge projected growth in tourism throughout China, Korea and the wider Pacific region. South Korea is looking to hold a WTTC Global Summit event in 2017, which would bring together global leaders and Government to discuss the most pressing global Travel & Tourism issues.

The World Travel & Tourism Council’s (WTTC) Global Summit this year is being held in Hainan, China on 24-25 April. Mr Kofi A. Annan, founding chair of the Kofi Annan Foundation and Secretary-General of the United Nations, 1997-2006 will provide the keynote address. In 2001, Mr Annan and the United Nations were jointly awarded the Nobel Prize for Peace. Kofi Annan was praised for being “pre-eminent in bringing new life to the organization” (Norwegian Nobel Committee, October 2001). Since leaving the United Nations, Kofi Annan has been active pressing for policies that will meet the needs of the poorest and most vulnerable, particularly in Africa. He continues to use his experience to mediate and resolve conflict. Joining Mr Annan on the speakers’ platform will be more than forty other leading figures from the worlds of business, sport and Travel & Tourism.

The 14th Global Summit in Hainan Province, China, will explore ‘Changing world, new perspectives’. Public and private sector leaders from outside and inside the industry will examine historical perspectives and their relevance for the future. They will look at Travel & Tourism from a new angle and seek to develop a new industry proposition that goes beyond the economic agenda, identifying how businesses can benefit from this new way of thinking.
“When tourism is married with sustainable and environmentally friendly policies, it has the potential to not just transform the economic prospects of a society for the better but be a fundamental force for equitable and positive change in many areas”, Mr Annan said.

– Ends –

Notes
Journalists wishing to attend the WTTC Global Summit to be held in Hainan, China, 24-25 April, should contact media@wttc.org

Subscribe to Notifications