World travel industry expects optimistic turnover in 2014

Posted: December 18, 2013 in travel & tourism

The World Travel Market (WTM) 2013 Industry Report has predicted an optimistic outlook for the global travel and tourism industry in 2014.

According to the report, the forecast is mainly based on positive turn of events following the global economy’s new recovery from the recent financial downturn.

The report noted that the United States unemployment figures are at their lowest since December 2009, while the United Kingdom’s are at their lowest since February 2009, with Greece, the highest profile bailout by the European Union, predicted it will be out of a six-year long recession in 2014.

“The travel industry is following suit. 2012 was the first year more than one billion (1,035 billion) global trips were taken. 2013 is poised to be even better with the United Nations World Tourism Organization predicting a further 4 per cent increase, as almost 500 million trips were taken in the first half of the year (an increase of 5 per cent),” the report said.

Furthermore the Industry report noted that airline body IATA is predicting a collective profit of $11.7 billion for 2013 compared to $7.4 billion in 2012. The airline industry is predicted to make profits of $16.4 billion in 2014, which would make it the second most profitable year behind 2010’s $19.2 billion

“In addition, nine out of ten senior travel industry executives that the World Travel Market 2013 Industry Report polled are optimistic about the prospects for both their company and the wider industry as a whole in 2014. Interestingly, the percentage is slightly higher for the senior executives own companies (91 per cent) than it is for the industry (89 per cent).

“These figures include 39 per cent and 27 per cent who are ’very optimistic’ for their company’s and the industry’s prospects respectively. Seven out of ten say their businesses had seen an increase in demand over the past 12 months,” it read.

The report however, stressed that the travel and tourism industry still faces challenges with half of those polled highlighting the negative impact international and domestic conflicts can have on the industry.

“Taxes were identified by a quarter as the next biggest concern for business. For example, the UK’s Air Passenger Duty (APD) – a tax on outbound flights from the UK – increases again in 2014 (see more on APD in the Aviation Chapter). Visa regulations are highlighted by 16 per cent. Only 4 per cent highlight economic stability and consumer confidence as barriers to growth, which further demonstrates the industry’s optimism and highlights how the global economy has improved.”

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