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Published on : Monday, November 18, 2013
The World Travel Market 2013 Industry Report suggests optimistic outlook for the global travel and tourism industry in 2014. The global economy is slowly starting to recover following the recent financial downturn. US unemployment figures are at their lowest since December 2009, while the UK’s are at their lowest since February 2009. Greece, the highest profile bailout by the European Union, predicts 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% increase, as almost 500 million trips were taken in the first half of the year (an increase of 5%).
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.
Furthermore, 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%) than it is for the industry (89%).
These figures include 39% and 27% 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. However, the industry still faces some hurdles, 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%.
Only 4% 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.
Source: World Travel Market 2013 Industry Report.