30 July 2012

The World Travel & Tourism Council (WTTC) has written to all 27 Finance Ministers in the European Union urging them to recognise the important role of the industry in stimulating economic growth and jobs, while avoiding unproductive knee-jerk tax hikes at a time of austerity.

The letter, written by Dr Michael Frenzel, Chairman of the Executive Board, TUI AG and Chairman, WTTC and David Scowsill, President & CEO, WTTC, reminds Finance Ministers that Travel & Tourism is a key generator of employment across the European Union directly generating 10 million jobs across Europe, substantially more than the automotive manufacturing (3.2 million), mining (3.6 million) and financial services sectors (8.5 million).

‘Given the labour intensity of Travel & Tourism, and as the above data shows, Travel & Tourism is one of the few economic sectors which can generate economic growth with jobs,’ the letter says. “Travel & Tourism is seen as a ‘cash cow’, an ‘easy source’ for generating quick money through new or expanded taxation. However, the evidence suggests that taxing tourism does not reap benefits:

Simple measures can be taken to stimulate Travel & Tourism, increase visitor revenue and therefore jobs. For example, a recent study by WTTC and the World Tourism Organisation showed how improvements in visa policies in G20 countries could increase Travel & Tourism employment by an additional 5 million jobs over three years and generate an additional US$206 billion in tourism exports. This research was presented to the G20 world leaders by President Caldern at the G20 meeting at Los Cabos in June.

The World Travel & Tourism Council is the global authority on the economic and social contribution of Travel & Tourism. It promotes sustainable growth for the industry, working with governments and international institutions to create jobs, to drive exports and to generate prosperity. In 2011 Travel & Tourism accounted for 255 million jobs globally. At US$6.3 trillion (9.1% of GDP) the sector is a key driver for investment and economic growth. For more than 20 years, the World Travel & Tourism Council has been the voice of this industry globally. Members are the Chairs, Presidents and Chief Executives of the world’s leading, private sector Travel & Tourism businesses. These Members bring specialist knowledge to guide government policy and decision-making, raising awareness of the importance of the industry as an economic generator of prosperity.

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