Spain tops the 2017 edition of the Travel & Tourism Competitiveness Report 2017, The World Economic Forum global rankings for the second time. However, Asia-Pacific is emerging as the most-improved region.
France followed in second and Germany (third), Japan (fourth, gaining five places), the United Kingdom (fifth), the United States (sixth, losing two places), Australia (seventh), Italy (eighth), Canada (ninth, up one) and Switzerland (10th, losing four places).
The World Economic Forum's Travel and Tourism Competitiveness Report 2017 ranked 136 countries on 14 pillars and gave an all-around picture of the best destinations for tourists in the world. The 136 economies covered by the report account for more than 98 percent of world GDP. For the sixth consecutive year, the travel & tourism (T&T) industry growth outperforms that of the global economy, showcasing the industry’s resilience in the face of global geopolitical uncertainty and economic volatility. The industry contributed $7.6 trillion to the global economy (10.2 percent of global GDP) and generated 292 million jobs (1 in 10 jobs on the planet) in 2016. Research shows that for every 30 new tourists to a destination one new job is created.
Europe is once again the region with the strongest overall T&T competitiveness performance. It boasts six of the 10 most competitive countries in the T&T sector and attracted 620 million of the 1.2 billion international visitors in 2016. While the region continues to improve, it does so at a slower rate than other less mature regions. Yet, to date, Europe remains the largest T&T market, almost twice as large as Asia-Pacific, the second largest and rapidly growing market.
Spain’s success can be attributed to its unique offer of both cultural (second) and natural (ninth) resources, combined with sound tourism service infrastructure (second), air transport connectivity (ninth) and strong policy support (fifth). Spain’s T&T sector has not only benefited from the recent ease of its fiscal policy, but also from diverted tourism from security-troubled Middle East.
The Americas is the macro-region with the second most improved in the Travel & Tourism Competitiveness Index (TTCI) performance at the aggregate level, just behind Asia-Pacific. International tourist arrivals have boomed, growing from 170 million in 2013 to more than 201 million in 2015. Of these, North and Central America welcome about 80 percent of these visitors and Latin America the remaining 20 percent.
The United States has the most T&T competitive economy in the Americas, ranking 6th globally, two places lower than in the previous edition. The country offers a very business-friendly environment (16th), with strong ICT readiness (19th) and qualified human resources (13th). The country’s wide global connectivity though air transport (2nd) and exceptional tourist service infrastructure (3rd) enable tourists to access its vast natural (10th) and cultural (13th) resources, and enhance business travel. However, the nation’s ranking has declined as a result of less appeal for American natural resources (down 7 places) and somewhat lower prioritization of the T&T sector (20th, down 3 places).
Japan is now the fourth most visited country in the world. Its tourism industry is growing rapidly, and at a much faster pace than expected. With international visitors amounting to 24 million in 2016, the new target from the government is set for 40 million by 2020.
While Japan overflows with ways to keep tourists entertained during the day, in comparison to cities in the United States and Europe, its nightlife falls short. As inbound tourism increases, the demand for night entertainment, which includes- musicals, live music, dance, club culture, and so forth is growingly evident.
The government is actively promoting the night economy movement in efforts to revitalize the economy. It invests almost 4.5 percent of the federal budget on activities related to the sector and has put into place effective marketing campaigns (27th). Japan has also managed to become more cost-competitive (94th, up 25) thanks to a substantial reduction of fuel prices and air-ticket taxes, which has reduced considerably the cost of travelling in the country despite a slight increase in the average cost of accommodation. The improvement in price competitiveness has been the main driver of Japan’s overall performance, combined with improvements in promoting cultural resources and preserving natural resources.
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Source: IREI