Bangladesh records Tk 193b from Travel and Tourism - By Raquib Siddiqi haka : The government neglect to tourism continues, but Bangladesh has recorded Tk 193.0 billion as the direct contribution of Travel and Tourism to Gross Domestic Product (GDP) in 2012. This is 2.1 per cent of total GDP. The contribution of travel and tourism to GDP is forecast to rise by 7.7 per cent in 2013, and to rise by 6.4 per cent per annum, from 2013-2023, to Tk 384.7 billion in 2023 (in constant 2012 prices). Total contribution The total contribution of Travel and Tourism to GDP was Tk 394.8 billion or 4.3 per cent of GDP in 2012, and is forecast to rise by 7.5 per cent in 2013, and to rise by 6.8 per cent per annum to Tk 819.4 billion in 2023. Direct employment In 2012 Travel and Tourism directly supported 1,281,500 jobs--1.8 per cent of total employment. This is expected to rise by 4.4 per cent in 2013 and rise by 2.9 per cent per annum to 1,785,000 jobs--1.9 per cent of total employment in 2023. In 2012, the total contribution of Travel and Tourism to employment, including jobs indirectly supported by the industry, was 3.7 per cent of total employment--2,714,500 jobs. This is expected to rise by 4.2 per cent in 2013 to 2,829,500 jobs and rise by 3.2 per cent per annum to 3,891,000 jobs in 2023--4.2 per cent of total. Visitor exports Visitor exports generated Tk 7.7billion (0.4 per cent of total exports) in 2012. This is forecast to grow by 3.2 per cent in 2013, and grow by 4.9 per cent per annum, from 2013-2023, to Tk 12.8 billion in 2023--0.5 per cent of total. Investment Travel and Tourism investment in 2012 was Tk 37.3 billion, or 1.6 per cent of total investment. It should rise by 0.5 per cent in 2013, and rise by 6.0 per cent per annum over the next ten years to Tk 67.4 billion in 2023--1.5 per cent of total. Travel & Tourisms contribution to GDP The direct contribution of Travel and Tourism to GDP in 2012 was Tk 193.0 billion--2.1 per cent of GDP. This is forecast to rise by 7.7 per cent to Tk 207.8 billion in 2013. This primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). But it also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists. The direct contribution of Travel and Tourism to GDP is expected to grow by 6.4 per cent per annum to Tk 384.7 billion_ 2.2 per cent of GDP by 2023. The total contribution of Travel and Tourism to GDP (including wider effects from investment, the supply chain and induced income impacts, was Tk 394.8 billion in 2012--4.3 per cent of GDP and is expected to grow by 7.5 per cent to Tk 424.3 billion--4.4 per cent of GDP in 2013. It is forecast to rise by 6.8 per cent per annum to Tk 819.4 billion by 2023_ 4.7 per cent of GDP. Travel & Tourisms contribution to employment Travel and Tourism generated 1,281,500 jobs directly in 2012_ 1.8 per cent of total employment and this is forecast to grow by 4.4 per cent in 2013 to 1,338,500--1.8 per cent of total employment. This includes employment by hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). It also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists. By 2023, Travel and Tourism will account for 1,785,000 jobs directly, an increase of 2.9 per cent per annum over the next ten years. The total contribution of Travel and Tourism to employment was 2,714,500 jobs in 2012--3.7 per cent of total employment. This is forecast to rise by 4.2 per cent in 2013 to 2,829,500 jobs--3.8 per cent of total employment. By 2023, Travel and Tourism is forecast to support 3,891,000 jobs_ 4.2 per cent of total employment, an increase of 3.2 per cent per annum over the period. Visitor exports and investment Visitor exports are a key component of the direct contribution of Travel and Tourism. In 2012, Bangladesh generated Tk7.7 billion in visitor exports. In 2013, this is expected to grow by 3.2 per cent, and the country is expected to attract 391,000 international tourist arrivals. By 2023, international tourist arrivals are forecast to total 537,000, generating expenditure of Tk12.8 billion, an increase of 4.9 per cent per annum. Travel and Tourism is expected to have attracted capital investment of Tk 37.3 billion in 2012. This is expected to rise by 0.5 per cent in 2013, and rise by 6.0 per cent per annum over the next ten years to Tk 67.4 billion in 2023. Travel and Tourisms share of total national investment will rise from 1.5 per cent in 2013 to 1.5 per cent in 2023. Different components of Travel & Tourism Bangladesh Travel and Tourisms Contribution to GDP: Business vs Leisure, 2012. Leisure spending 73.2 per cent. Business spending 26.8 per cent. Leisure travel spending (inbound and domestic) generated 73.2 per cent of direct Travel and Tourism GDP in 2012 Tk 241.9 billion compared with 26.8 per cent for business travel spending Tk 88.5 billion. Leisure travel spending is expected to grow by 7.1 per cent in 2013 to Tk 259.0 billion, and rise by 6.1 per cent per annum to Tk 467.3 billion in 2023 Business travel spending is expected to grow by 7.4 per cent in 2013 to Tk 95.1 billion, and rise by 5.6 per cent per annum to Tk 164.8 billion in 2023. Bangladesh travel and tourisms contribution to GDP Domestic vs Foreign, 2012. Foreign visitor spending 2.3 per cent. Domestic spending 97.7 per cent. Domestic travel spending generated 97.7 per cent of direct Travel and Tourism GDP in 2012 compared with 2.3 per cent for visitor exports (ie, foreign visitor spending or international tourism receipts). Domestic travel spending is expected to grow by 7.3 per cent in 2013 to Tk 346.2 billion, and rise by 6.0 per cent per annum to Tk 619.4 billion in 2023. Visitor exports are expected to grow by 3.2 per cent in 2013 to Tk7.9 billion, and rise by 4.9 per annum to Tk 12.8 billion in 2023. Breakdown of Travel and Tourisms Total Contribution to Bangladesh GDP, 2012: Direct 48.9 per cent. Induced 19.8 per cent. Indirect 31.3 per cent. Indirect is the sum of supply chain 23.9 per cent; investment 5.0 per cent and government collective 2.4 per cent. The total contribution of Travel and Tourism to GDP is twice as large as its direct contribution. The Study The economic impact of travel and tourism in Bangladesh is based on study World Travel and Tourism Council. The WTTC has been investing in economic impact research for over 20 years. This research assesses the Travel and Tourism industrys contribution to GDP and jobs for 184 countries and 24 regions and economic groups in the world. The ten-year forecasts are unique in the information they provide to assist governments and private companies plan policy and investment decisions for the future. 2012 demonstrated again the resilience of the Travel and Tourism industry in the face of continued economic turmoil, as economic growth slowed and was even negative in key global markets. The latest annual research from WTTC and its research partner Oxford Economics, shows that Travel and Tourisms contribution to GDP grew for the third consecutive year in 2012, and created more than 4 million new jobs. The strongest growth in 2012 was evident in international demand as appetite for travel beyond national borders, from leisure and business visitors, remains strong. Defining the economic contribution of Travel & Tourism Travel and Tourism is an important economic activity in most countries around the world. As well as its direct economic impact, the industry has significant indirect and induced impacts. The UN Statistics Division-approved Tourism Satellite Accounting methodology (TSA RMF 2008) quantifies only the direct contribution of Travel & Tourism. But WTTC recognises that Travel and Tourisms total contribution is much greater, and aims to capture its indirect and induced impacts through its annual research. Direct contribution The direct contribution of Travel and Tourism to GDP reflects the internal spending on Travel and Tourism (total spending within a particular country on Travel and Tourism by residents and non-residents for business and leisure purposes) as well as government individual spending - spending by government on Travel and Tourism services directly linked to visitors, such as cultural (eg museums) or recreational (eg national parks). The direct contribution of Travel and Tourism to GDP is calculated to be consistent with the output, as expressed in National Accounting, of tourism-characteristic sectors such as hotels, airlines, airports, travel agents and leisure and recreation services that deal directly with tourists. The direct contribution of Travel and Tourism to GDP is calculated from total internal spending by netting out the purchases made by the different tourism sectors. This measure is consistent with the definition of Tourism GDP, specified in the 2008 Tourism Satellite Account: Recommended Methodolo-gical Framework (TSA: RMF 2008). Total contribution The total contribution of Travel and Tourism includes its wider impacts (ie, the indirect and induced impacts) on the economy. The indirect contribution includes the GDP and jobs supported by : Travel and Tourism investment spending_ an important aspect of both current and future activity that includes investment activity such as the purchase of new aircraft and construction of new hotels; Government collective spending, which helps Travel and Tourism activity in many different ways as it is made on behalf of the community at large - eg, tourism marketing and promotion, aviation, administration, security services, resort area security services, resort area sanitation services, etc; Domestic purchases of goods and services by the sectors dealing directly with tourists - including, for example, purchases of food and cleaning services by hotels, of fuel and catering services by airlines, and IT services by travel agents. The induced contribution measures the GDP and jobs supported by the spending of those who are directly or indirectly employed by the Travel and Tourism industry. Bangladesh moves forward in global tourism Bangladesh achieved significant leap in travel and tourism industry competitiveness index, according to the Travel and Tourism Competitiveness Report 2013. The biennial report, published by the World Economic Forum early this month, showed that the country climbed to 123rd from its earlier position of 129th in 2011. Switzerland, Germany, Austria, United Kingdom and United States lead the index of 140 countries when Haiti, Chad and Burundi, Sierra Leon and Guinea were the bottom five. India moved to 65th from earlier 68th, Sri Lanka to 74th from 81st and Pakistan to 122nd from 125th when Nepals position remained unchanged at 112th. The report, published under the theme, reducing barriers to economic growth and job creation, sees considerable movement in the Indexs top 10 countries. France fell four places from third in 2011 to seventh, while Spain climbed to fourth from eighth. Also showing strong improvement were the United Kingdom - up two places to fifth_ and Canada, up one place to eighth. Alongside Switzerland and Germany, the United States and Singapore maintained their positions, in sixth and 10th places, respectively. Sweden, the only other country in the top 10 to fall, dropped from fifth to ninth. The Index uses a combination of data from publicly available sources, international travel and tourism institutions and experts. It also incorporates the results of the executive opinion survey, a comprehensive annual survey conducted by the World Economic Forum and its network of partner institutes in the countries covered by the report. The survey provides data on many qualitative institutional and business environment issues. In addition, the report includes contributions from industry experts. Several chapters explore issues such as how visa facilitation can play a role in stimulating economic growth; the importance for policy-makers to leverage local competitive advantages to thrive in a volatile environment; the impact of the tourism sector on employment creation; and how the connectivity that aviation sector creates sustains economic development. Oct 2013
Posted on: Mon, 21 Oct 2013 07:15:01 +0000
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