The travel and tourism industry in Russia is bigger than the size of automotive manufacturing industry and directly supports almost as many jobs as the financial sector.
This is according to new research from the World Travel & Tourism Council (WTTC) sponsored by American Express and TUI AG, released today during a speech at the “Moscow International Travel Forum” in Russia by David Scowsill, President & CEO of WTTC.
The research, undertaken by Oxford Economics, shows that travel and tourism’s total contribution to GDP in Russia was RUB3.4 trillion (USUS$106 billion) in 2011, or 5.9% of total GDP, which is larger than the GDP of automotive manufacturing and chemical manufacturing. This compares to 4.8% for automotive manufacturing, 2.9% communications services, and 3.3% for chemicals.
Supporting 4 million direct, indirect, and induced jobs, travel and tourism in Russia generates more employment than the chemical industry and nearly as many jobs as the financial services sector.
The new research also showed that travel and tourism’s contribution to GDP is growing faster than most other sectors in Russia. It will grow by an average of 4% per annum over the next 10 years, a faster growth rate than the total economy.
It also highlights that travel and tourism is a significant source of export revenue for Russia.
In 2011, visitor exports totaled RUB517.2 billion (USUS$16 billion). This was 30% of all service exports and 3% of all exports including goods and services.
The study compared the effect of travel and tourism spending on GDP and the wider economy.
In Russia, RUB32 million (USUS$1 million) in travel and tourism spending:
– generates RUB48 million (US$1.5 million) in GDP, which is greater than all studied industry sectors
– generates RUB6 million (US$187,000) in the wholesale and retail sector
– supports 53 jobs, which is more than the average of the economy (38 jobs), financial services (35 jobs), manufacturing (29 jobs), and chemicals (26 jobs)
David Scowsill, President & CEO, WTTC, said: “These numbers are extremely significant. As a driver of economic recovery and growth in a very turbulent time, the industry stands apart for the sheer scale of its ability to create jobs and growth in every part of the globe and especially in Russia as shown by this study.
2013 is an important year for the Russian’s tourism industry as the country hosts the next T20 Tourism Ministers’ meeting and in the lead up to the Winter Olympics due to take place in Sochi in 2014, and, of course, the FIFA World Cup in 2018. It’s a great time for Russia to take notice of the travel and tourism industry as a generator of jobs and growth and ensure that sufficient investment and support is in place to ensure the success of these important events as well as the on-going growth of Russia’s travel and tourism.”
Bill Glenn, President, Global Corporate Payments and Business Travel, American Express, said: “With each release of regional data from the latest WTTC research, we continue to see the value that travel can bring to GDP, job creation, and other economic factors. We are pleased to sponsor this research and provide the industry with another valuable asset to use to promote the benefits of travel.”
Dr. Michael Frenzel, Chairman of the Executive Board, TUI AG, stated: “This research demonstrates the vast economic and social relevance of the travel and tourism industry in Russia, but also its potential. It is vital that the government puts the industry alongside Russia’s traditional industrial base when considering long-term policies to create jobs, growt,h and economic prosperity.”
At WTTC’s Global Summit in Tokyo in April, WTTC’s research revealed that travel and tourism’s direct contribution to world GDP at US$2 trillion or 2.8% is more than double the GDP of automotive manufacturing and one-third larger than the global chemicals industry. Travel and tourism generates roughly the same GDP as the global education and communications sectors, and about half that of the global banking and financial services industry.
To download the Russia study, please click here.