UAE Benchmarking 2013

8/12/2019 UAE Benchmarking 2013

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Benchmarking Travel & Tourismin United Arab Emirates

How does Travel & Tourism compare to other sectors?

Summary of Findings, November 2013

Sponsored by:


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3World Travel & Tourism Council

Introduction

The World Travel & Tourism Council (WTTC) has spearheaded global analysis of theeconomic importance of the sector for over 20 years. This research has establishedthe contribution of Travel & Tourism on an ongoing basis to over 180 countries inabsolute size, share of the economy, and growth.

Around the world, WTTC research is referenced as the authoritative source of therole of Tourism in generating GDP, income, and employment.

WTTC is now releasing new research on the role that Travel & Tourism plays in theworld economy in comparison to other economic sectors.

The results of these comparisons provide new perspectives on the relativesignificance of Travel & Tourism as well as some of its unique advantages in drivingcurrent and future global economic growth.


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Summary of Research Structure

This updated WTTC research benchmarks Travel & Tourism against an assortment ofother sectors for twenty-five countries and for each world region.

Regions

World

Americas

Europe

Asia Pacific

Middle East

Africa

Japan

Mexico

Montenegro

Peru

Russia Serbia

South Africa

South Korea

Thailand

Turkey

UAE United Kingdom

USA

Countries

Argentina

Australia

Brazil

Canada

China Colombia

France

Germany

India

Indonesia

Italy Jamaica


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Summary of Research Structure

The following metrics are analysed by sector for each country:

GDP (size and share of economy)

Employment contribution (size and share of economy)

Historic growth

Expected growth

Export contribution

Strength of linkages to the rest of the economy


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Sectors referenced

The following sectors have been analysed in comparison to Travel & Tourism. They wereselected as having a similar breadth and global presence as Travel & Tourism.

Mining: includes the extraction of oil, natural gas, coal, metals, and related services

Education : includes all levels of educational services

Higher Education : includes learning that occurs at universities, academies, colleges,seminaries, and institutes of technology

Chemicals manufacturing : includes drugs & medicines, manufacture of basicpharmaceutical products and pharmaceutical preparations, plastics, rubber, paint, polishes,ink, perfumes, cosmetics, soap, cleaning materials, fertilizer, pesticides, other chemicals

Au tomotive manufacturing : includes motor vehicles and parts & accessories

Communications : includes post (national and private) and telecommunications

Banking: includes all banking activities and related services.

Financial services : includes banking, investment services, insurance


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8

United Arab Emirates



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Benchmarking Travel & Tourism in the United Arab Emirates: GDP

GDP Size

Travel & Tourism generated a total impact of $US 54 billion ofthe United Arab Emirates GDP in 2013.

Travel & Tourism GDP is larger than that of the education,automotive manufacturing, higher education, and chemicalsmanufacturing sectors.

In terms of its direct GDP, Travel & Tourism is slightly smallerthan the size of the financial services sector in the United

Arab Emirates.

GDP Share

Based on its direct, indirect, and induced GDP impact, Travel &Tourism generated 14.2% of the United Arab Emirates GDP in 2013.

This is larger than educations and automotive manufacturings GDPimpacts at 5.8% and 1.5%, respectively.

-10%0%

10%

20%

30%

40%

50%

60%

70%

C h e m

i c a

l s

m a n u

f a c t u r i n g

H i g h e r e

d u c a

t i o n

A u

t o m o

t i v e

m a n u

f a c t u r i n g

E d u c a

t i o n

T r a v e

l &

T o u r i s m

B a n

k i n g

C o m m u n

i c a

t i o n

s e r v

i c e s

F i n a n c

i a l s e r v

i c e s

M i n i n g

Indirect &Induced

Direct

UAE GDP Impact by Industryshare of total economy GDP

(50)

-

50

100

150

200

250

C h e m

i c a

l s

m a n u

f a c

t u r i n g

H i g h e r e

d u c a

t i o n

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t o m o

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f a c

t u r i n g

E d u c a

t i o n

T r a v e

l &

T o u r i s m

B a n

k i n g

C o m m u n

i c a

t i o n

s e r v

i c e s

F i n a n c

i a l s e r v

i c e s

M i n i n g

Indirect &InducedDirect

UAE GDP Impact by Industry

$US billion (2012 prices)


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Benchmarking Travel & Tourism in the United Arab Emirates: Employment

Employment Size

Travel & Tourism sustained a total of 394,000 direct, indirect,and induced jobs in the United Arab Emirates in 2013.

Travel & Tourism in the United Arab Emirates directlyemploys twenty two times as many jobs as the mining sectorand more people than every studied sector.

.

Employment Share

Travel & Tourism generated, either directly or indirectly, 11.3% ofemployment in the United Arab Emirates in 2013.

For every job directly in the Travel & Tourism sector, an additional jobis created on an indirect or induced basis.

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

C h e m

i c a

l s

m a n u

f a c t u r i n g

H i g h e r e

d u c a

t i o n

A u

t o m o

t i v e

m a n u

f a c t u r i n g

M i n i n g

B a n

k i n g

F i n a n c

i a l s e r v

i c e s

E d u c a

t i o n

C o m m u n

i c a

t i o n

s e r v

i c e s

T r a v e

l &

T o u r i s m

Indirect &Induced

Direct

UAE Employment Impact by Industryshare of total economy employment

-0.10.00.10.10.20.20.30.30.40.40.5

C h e m

i c a

l s

m a n u

f a c

t u r i n g

H i g h e r e

d u c a

t i o n

A u

t o m o

t i v e

m a n u

f a c t u r i n g

M i n i n g

B a n

k i n g

F i n a n c

i a l s e r v

i c e s

E d u c a

t i o n

C o m m u n

i c a

t i o n

s e r v

i c e s

T r a v e

l &

T o u r i s m

Indirect &Induced

Direct

UAE Employment Impact by Industry2012, millions


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Benchmarking Travel & Tourism in the United Arab Emirates: Growth

Growth Trends

Travel & Tourism direct industry GDP expanded 268%between 1990 and 2013 while the total economy expanded

just 156%.Higher education and communications services expanded884% and 506%, respectively, over the 23-year period.

Growth Forecasts

Travel & Tourism GDP is expected to grow at an annual average of4.8% over the next decade.

In comparison, the total economy is expected to expand 2.6%, whileauto manufacturing is forecast to grow 2.4% per annum in real,inflation-adjusted terms.

0

500

1,000

1,500

2,000

2,500

1 9 9 0

1 9 9 2

1 9 9 4

1 9 9 6

1 9 9 8

2 0 0 0

2 0 0 2

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2 0 1 0

2 0 1 2

2 0 1 4

2 0 1 6

2 0 1 8

2 0 2 0

2 0 2 2

Mining Chemicals manufacturing Automotive manufacturing Communication servicesEducation Higher educationFinancial services BankingTravel & tourism

UAE GDP Growt h by Sector (1990=100)

1.3%

2.4% 2.6%2.9% 3.2% 3.2%

3.5%

4.8% 5.5%

6.4%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%

7.0%

M i n i n g

A u t o m o t

i v e

m a n u

f a c t u r

i n g

T o t a l e c o n o m y

E d u c a

t i o n

F i n a n c

i a l s e r v

i c e s

C o m m u n i c a

t i o n

s e r v i c e s

B a n

k i n g

T r a v e l

&

T o u r

i s m

C h e m

i c a l s

m a n u

f a c t u r

i n g

H i g h e r e

d u c a

t i o n

UAE GDP Forecast by IndustryCAGR% 2013-2023


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Benchmarking Travel & Tourism in the United Arab Emirates: Exports

Tourisms Share of Exports

Travel & Tourism is a significant source of export revenue forthe United Arab Emirates.

In 2013, visitor exports totalled $34.1 billion. This was 98% ofall service exports and 9.3% of all exports (including goodsand services).

0

100

200

300

400

500

600

700

2 0 0 0

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2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

Travel & Tourism ExportsTotal Exports of Goods & Services

UAE Expor ts Growth , 2000-2013(2000=100)

Travel& Tourism,

34,173

Other Service

Exports, 616

33,800 34,000 34,200 34,400 34,600 34,800 35,000$US million

UAE Service Exports (2013)

Growth of Tourism Exports

Between 2000 and 2013, the United Arab Emirates Travel &Tourism exports expanded 424%.

Total exports of goods and services outpaced Travel &Tourism exports and grew 552% between 2000 and 2013.


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Benchmarking Travel & Tourism in the United Arab Emirates: Linkages

Comparing t he effect of $1 million in spending

Spending in a sector will have varying impacts on GDP,depending on the local value added and linkages to the rest of

the economy.In the United Arab Emirates, $1 million in Travel & Tourismspending (consumption) generates $1.2 million in GDP. Thisimpact of spending is greater than the manufacturing sector.

How much of T&T spending stays in th e economy?

When travellers spend money in a destination, not all of it remains inthe economy as some goods and services need to be imported. This

represents leakage to the economic value produced.In the United Arab Emirates, 8% of Travel & Tourism spending leaksout of the economy through imports. The manufacturing sector requiresimports amounting to 58%.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

A g r

i c u l

t u r e

M i n i n g

M a n u f a c

t u r i n g

C o m m u n

i c a t

i o n s

F i n a n c a l

S e r v i c e s

E d u c a

t i o n

T r a v e l

& T o u r

i s m

W h o l e E c o n o m y

Induced

IndirectDirect

Impact o f $1m spending - United Arab EmiratesGDP ($m)

0% 10% 20% 30% 40% 50% 60%

Agriculture

Mining

Manufacturing

Communications

Financal Services

Education

Travel & Tourism

Whole Economy

Supplier Imports Direct Imports

Leakages per $100 spend -United Arab Emirates


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Benchmarking Travel & Tourism in the United Arab Emirates: Employment Generation

Travel & Tourisms employment potential

For every $1 million in Travel & Tourism spending, 10 jobs

are supported. (4 direct, 4 indirect, and 2 induced)

This compares favourably to the average of the economy,which generates 9 jobs per $1 million in spending.

Financial services: 8 jobs per $1 million

Communications: 6 jobs per $1 million

Agriculture: 39 jobs per $1 million

0

5

10

15

20

25

30

35

40

45

A g r

i c u l

t u r e

M i n i n g

M a n u f a c

t u r i n g

C o m m u n

i c a t

i o n s

F i n a n c a l

S e r v i c e s

E d u c a

t i o n

T r a v e l

& T o u r

i s m

W h o l e E c o n o m y

InducedIndirectDirect

Employment imp act of $1m spending -

United Arab EmiratesJobs


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Benchmarking Travel & Tourism in United Arab Emirates

Direct, '000s Indirect +Induced , '000s

Tot al, 000s % totaleconomy

Mining 69 178 247 0.8%

Chemicals manufacturing 153 716 870 2.7%

Automotive manufacturing 133 456 589 1.8%

Communication services 1,297 2,999 4,296 13.5%

Education 2,727 2,444 5,171 16.2%

Higher education 476 426 902 2.8%

Financial services 1,148 3,280 4,428 13.9%

Banking 462 1,321 1,784 5.6%

Travel & tourism 1,023 1,427 2,451 7.7%

Employment, 2013

DirectIndirect +Induced

Total% total

economy

Mining 109 124 233 60.8%Chemicals manufacturing 2 -2 - 0.0%

Automotive manufacturing 2 4 6 1.5%

Communication services 20 66 87 22.6%

Education 6 16 22 5.8%

Higher education 1 3 4 1.0%

Financial services 32 57 89 23.2%

Banking 20 36 55 14.4%

Travel & Tourism 25 29 54 14.2%

GDP, 2013 ($US bil lio n, 2012 pri ces )


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Data Sources & Methodology



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Data sources and methodology: GDP and Employment

Main data sources for comparative sectors:

United Nations International Labour Organization;

OECD; CEIC Data Manager; Eurostat (European Commission); UK Office for National Statistics (ONS); Oxford Economics Cities and Regions Forecasting Service; UNESCO; Groningen Growth and Development Centre;

UN World Input-Output Database (WIOD); Oxford Economics Global Industry Model; Oxford Economics Global Economic Model; Oxford Economics UK Regional Model; and Various country-specific National Statistics Office websites

Travel & Tourism GDP and employment figures are drawn from Oxford Economicsanalysis for WTTC using the Tourism Satellite Account framework.


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Data sources and methodology: Exports

Main data sources:

World Trade Organization (WTO)

IMFBOPA

Oxford Economics.

Total exports, total service exports and total goods/merchandise exports are sourcedoriginally to national accounts and central bank balance of payments data.

Service exports taken from IMFBOPA database for all countries where possible. 2000 figures taken from above, 2013 estimated using 2012 shares of total and

applied to totals for 2013.

All currency figures are stated in 2012 US dollars.


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Data sources and methodology: Linkages

Main data sources: OECD, National Statistical Offices, Oxford Economics

Input-output tables for all countries were sourced from either the OECD or, when not available,National Statistical Offices. From the input-output tables, multiplier matrices were developed foreach economy, detailing the flow of spending in an economy that occurs as a consequence ofspending in a given industry.

For each of the comparator sectors, a spending shock of $1 million was simulated, with theresulting spending impacts in every industry in the economy recorded.

These spending outcomes were translated into gross value added (GVA) using the GVA/outputratios available in the input-output tables, and employment, using productivity level datadeveloped from the GDP and employment figures derived elsewhere in the study.

Travel & Tourism multipliers are drawn from Oxford Economics / WTTC ongoing Tourism Satellite Account analysis.

Global and regional multipliers were calculated as the weighted average of all relevant nations,with weightings assigned according to sector GDP.


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About WTTC and Oxford Economics

The World Travel & Tourism Council (WTTC)is the forum for business leaders in theTravel & Tourism industry. With ChiefExecutives of some one hundred of theworld's leading Travel & Tourism companies

as its Members, WTTC has a uniquemandate and overview on all matters relatedto Travel & Tourism.

WTTC works to raise awareness of Travel &Tourism as one of the world's largestindustries, supporting 260 million jobs andgenerating 9 per cent of world GDP in 2012.

WTTC advocates partnership between thepublic and private sectors, delivering resultsthat match the needs of economies, localand regional authorities and localcommunities with those of business.

Oxford Economics is one of the worldsleading providers of economic analysis,forecasts and consulting advice. Founded in1981 as a joint venture with OxfordUniversitys business college, Oxford

Economics enjoys a reputation for highquality, quantitative analysis and evidence-based advice.

For this, its draws on its own staff of over 70highly-experienced professional economists;a dedicated data analysis team; globalmodeling tools, and a range of partnerinstitutions in Europe, the US and in theUnited Nations Project Link. OxfordEconomics has offices in New York,Philadelphia, San Francisco, Chicago,London, Oxford, Belfast, Dubai, andSingapore.

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UAE Benchmarking 2013

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