Tag Archives: travel & tourism

T&T sector deal activity down by 22.5% YoY during Jan-Feb 2024: GlobalData

The travel and tourism sector witnessed the announcement of 93 deals* globally during the first two months of 2024, an year-on-year (YoY) decline of 22.5% compared to the announcement of 120 deals during the same period in 2023, reveals GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Deals Database reveals that the number of mergers and acquisitions (M&A) and venture financing deals declined while private equity deals volume showcased improvement during the period.

The number of M&A deals declined by 25.8%, whereas venture financing deals volume registered a YoY decline of 22.2%. Meanwhile, private equity deals volume increased from four during January-February 2023 to six during January-February 2024.

Aurojyoti Bose, Lead Business Fundamentals Analyst at GlobalData, comments: “The dent in deal-making sentiment across sectors and geographies amid the volatile market conditions has taken a toll on deal activity in the travel and tourism sector as well. As a result, the sector saw the announcement of less than 100 deals during the first two months of 2024.”

Most of the regions and key markets also registered a decline in deals volume during January-February 2024 compared to the same period during the previous year.

For instance, North America, Europe, Middle East and Africa and South and Central American region experienced decline in deals volume while Asia-Pacific region showcased marginal improvement.

Meanwhile, key markets such as the US, the UK and France registered decline in deals volume during January-February 2024 compared to the same period during the previous year, whereas India, South Korea, Australia witnessed some improvement.

Bose concludes: “Despite this downturn, areas of resilience and opportunity exist, particularly in regions like Asia-Pacific. As markets evolve, identifying pockets of growth and innovation becomes paramount for industry stakeholders.”

France to maintain its position as world’s most popular destination for international arrivals: WTTC

Latest flight booking data from the World Travel & Tourism Council (WTTC) and its knowledge partner ForwardKeys, shows France is set to keep its pole position as the world’s most popular destination for international arrivals this year.

The research reveals a positive outlook for France’s inbound travel, with arrivals set to almost reach pre-pandemic highs this year.

During her participation at the Destination France event taking place in Chantilly and hosted by President Macron, Julia Simpson, President & CEO, WTTC, praised France for its steely focus in recognising the economic and cultural value Travel & Tourism brings in jobs and contribution to GDP. This is achieved through a strong private sector working well with government and the regions.

According to latest analysis from WTTC and ForwardKeys, international arrivals in France for the first half of 2024 are at 93% of the same period in 2019, with the nation cementing its position as the world’s most popular destination.

International arrivals to France are surging significantly in the first half of this year, providing a welcome boost to the sector, which, at its peak, contributed EUR 220 billion to the national economy, and Travel & Tourism businesses up and down the country, supporting 2.7 million livelihoods.

Julia Simpson, President & CEO, WTTC, said, “France’s commitment to Travel & Tourism is not just reflected in the impressive data, but in the unwavering efforts of the government.

“President Macron recognises the real value Travel & Tourism brings to France in terms of the economy, jobs and its standing on the world stage. His support has ensured France remains the world’s most popular destination.”
Research also shows that airlines are ramping up their capacity to match the growing demand from around the world, with the number of seats set to surpass 2019 levels this year.

Olivier Ponti, Vice President Insights, ForwardKeys, added:, “With flight bookings on the rise and air carriers set to introduce a record number of seats, France enters 2024 in a strong position.

“Capitalising on the successful hosting of the Rugby World Cup 2023 and on the growing exposure provided by the upcoming Olympic Games, the country is set to be one of most thought-after destinations this year for both regional and long-haul markets.”

This rise in passenger capacity is led by Orly Airport, with an increase of 28%, reaching nearly eight million. Charles de Gaulle remains the busiest airport in France, to reach 18.5 million in the first six months of 2024, just 3% below 2019 levels.

Paris is the world’s most powerful city destination, but in 2024, other French cities are also going to be popular attractions for foreign visitors. Nice is among the top-performing European cities, with international arrivals expected to reach 94% of pre-pandemic levels.

Paris is the world’s most powerful city destination, but Nice has emerged as one of the top-performing European cities, with international arrivals expected to reach 94% of pre-pandemic levels.

France as a destination is becoming increasingly popular amongst Spanish and Canadian travellers, with international arrivals exceeding 2019 levels by more than 64% and 54%, respectively.

Irish and South Korean travellers are returning to France in their droves, with visitor numbers up from 2019 levels by 19% and 16%, respectively.

Travellers to France are also spending more money, with bookings of premium cabins witnessing a surge of 21% compared to pre-pandemic levels in the first half of the year.

Last year, WTTC’s Economic Impact Research (EIR) revealed that the French Travel & Tourism sector is expected to grow at an average of 3% annually over the next decade, twice the 1.5% annual growth rate of the country’s overall economy, to reach more than EUR 297 billion (9.7% of the total economy).

The forecast also revealed the Travel & Tourism sector in France, is expected to create more than 555,000 jobs in the next 10 years, averaging nearly 56,000 new jobs every year, reaching nearly 3.3 million employed within the sector by 2033.

WTTC Chair Highlights Africa’s Significance and Travel’s Transformative Power

Arnold Donald, Chair of WTTC, addressed the 23rd Global Summit in Rwanda, celebrating the transformative power of travel and acknowledging Rwanda’s profound significance.

Arnold Donald emphasized travel’s ability to foster tolerance, reduce fear of the unknown, and promote understanding among diverse cultures.

He extended a warm welcome to all attendees, recognizing them as industry leaders, visionaries, and emerging talents from around the world.

Donald highlighted Rwanda’s breathtaking natural beauty and wildlife, but emphasized that the true essence of the nation lies in its united and dynamic people.

Holding the Global Summit in Africa was deliberate and marks a historic moment for the Travel & Tourism sector. Donald praised Africa’s diversity with 54 countries, diverse languages, and 1.4 billion people.

Investment in Travel & Tourism in Africa has outpaced the global average since 2000, growing by nearly 350% between 2000 and 2019.

Donald expressed gratitude to sponsors, CEO Julia Simpson, and the entire WTTC staff for their contributions to the summit program. He also extended deep thanks to the hosts, the Republic of Rwanda, and specifically President Paul Kagame and CEO Francis Gatare.

He highlighted Rwanda’s Travel & Tourism sector, which attracted US$173 million in 2022. The sector is forecasted to rise to US$194 million, with expectations of substantial growth and job creation in the next decade.

Donald commended Rwanda’s commitment to carbon-neutrality and conservation, which aligns perfectly with the summit’s theme.

Donald’s address underscored the profound impact of travel, celebrated Rwanda’s significance, and highlighted the potential for growth in Africa’s Travel & Tourism sector. The summit in Rwanda was seen as a historic moment for the global Travel & Tourism industry.

WTTC’s Global Summit in Kigali opens with message of Tourism Recovery post-Covid

As the 23rd Global Summit of the World Travel & Tourism Council (WTTC) commenced in Kigali yesterday, a remarkable resurgence in the global Travel & Tourism sector was unveiled by WTTC President & CEO Julia Simpson. The industry is bouncing back to the vibrant levels witnessed in 2019, prior to the COVID-19 pandemic.

The most recent data, a result of the collaboration between WTTC and its partner Oxford Economics, paints a picture of a thriving global travel industry, with all regions rebounding at a pace surpassing previous predictions. Notably, the Asia-Pacific region leads this impressive resurgence.

Speaking at the inauguration of the Global Summit in Kigali, Simpson expressed her enthusiasm, saying, “Our latest data underscores our sector’s enduring appeal and resilience, recovering faster than anticipated. This trend underscores the enduring desire for travel among consumers. Despite China’s full recovery potential remaining untapped, the global travel sector is surpassing expectations.”

Revelation of Latest Sector Sustainability Figures

WTTC has recently introduced the latest Environmental Impact Research data (ESR) that is set to reshape the industry, in collaboration with the Sustainable Tourism Global Center (STGC), a division of the Ministry of Tourism of Saudi Arabia. This groundbreaking initiative was initiated during last year’s WTTC Global Summit in Riyadh.

The ESR data represents the most comprehensive environmental insights in the history of Travel & Tourism. It includes greenhouse gas emissions, energy consumption, and water usage across the sector’s supply chain, both domestically and internationally.

The data reveals that in 2019, Travel & Tourism accounted for 8.1% of global greenhouse gas emissions, 10.6% of total global energy consumption, and 0.9% of freshwater usage. This data, which encompasses 185 countries worldwide, will be updated annually with the latest statistics.

This initiative builds upon WTTC’s renowned Economic Impact Research and introduces customised factsheet for individual countries and major global regions. Additionally, a dedicated micro-site enables users to delve into the data in detail.

As the host of the inaugural WTTC Global Summit in Africa, Kigali’s event boasts an impressive lineup of speakers and delegates. Football legend Didier Drogba, renowned global economist Justin Urquhart-Stewart, and Francis Gatare, CEO of the Rwanda Development Board, are among the notable figures in attendance. Several Heads of State from the region are also participating.

Other prominent speakers include Climate Activist Ineza Umuhoza Grace, Chief Commercial Officer at Arsenal Football Club Juliet Slot, and David Pekoske, the TSA Administrator of the United States. The event in Kigali has drawn delegates from WTTC member organizations, international media, and government representatives from over 45 countries, making it a global focal point for the travel and tourism industry.

Travel & tourism sector deal activity down globally by 33% YoY in Q1-Q3: GlobalData

A total of 558 deals were announced in the travel and tourism sector globally during the first three quarters of 2023, which was a decline of 33% compared to the announcement of 833 deals during the same period in 2022, according to GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database also revealed all the deal types under coverage, and most of the key markets recorded a considerable year-on-year decline in the announcement of deals during Q1-Q3 2023 compared to Q1-Q3 2022.

For instance, mergers and acquisitions (M&A) deals volume for the travel and tourism sector declined by 34.6% during Q1-Q3 2023 compared to Q1-Q3 2022, while the total number of private equity deals and venture financing deals were down by 29.2% and 28.4%, respectively.

Aurojyoti Bose, Lead Analyst at GlobalData, said, “Geo-political tensions, Russia-Ukraine war, inflation, recession fears, and interest rate hikes seem to have been taking a toll on deal-making sentiments in the travel and tourism sector. Resultantly, we have been seeing subdued activity being experienced across several key markets across regions.”

North America witnessed a decline in deals volume by 43.9% during Q1-Q3 2023 compared to the same period in the previous year, while Europe, Asia-Pacific, the Middle East and Africa, and South and Central America regions experienced a decline of 39.7%, 12.7%, 16.7%, and 25%, respectively.

Similarly, key markets such as the US, the UK, South Korea, France, Australia, Japan, the Netherlands, and Canada recorded year-on-year decline in deals volume by 44.4%, 40%, 12.5%, 12.5%, 25.9%, 53.5%, 23.5%, and 35.3% during Q1-Q3 2023, respectively, compared to Q1-Q3 2022.

Meanwhile, China emerged as a notable exception and experienced growth in deals volume by 21.9% during Q1-Q3 2023 compared to Q1-Q3 2022, whereas deals volume for India remained at the same level.

WTTC forecasts investment in Travel & Tourism to reach USD 1.1 trillion

The World Travel & Tourism Council’s (WTTC) Travel & Tourism Economic Impact 2023 Global Trends Report has revealed an encouraging resurgence in Travel & Tourism investment, overcoming pandemic setbacks and signalling a strong return to growth.

From 2010 to 2019, investment grew steadily at 4.3% CAGR, growing from USD 754.6BN in 2010 to USD 1.1TN in 2019, or 4.5% of all economy-wide investment. COVID-19 hit hard, leading to a 24% decline in 2020 and a further 8% in 2021.

However, 2022 marked a turning point. Spurred by the global phenomenon of pent-up demand, Travel & Tourism investment surged to USD 856BN, up 11.1% from the previous year. Although this was 22.5% short of 2019 levels, this was still 53% higher in 2022, than it was in 2000.

In regions like Asia-Pacific and Africa, 2022 investment was 161% higher than in 2000, while Europe and the Middle East have shown more restrained growth. In these regions, the pandemic has undone much of the significant growth achieved in the last two decades.

Nevertheless, Travel & Tourism investment in these regions in 2022 stayed above the levels seen in 2000.

The US leads the top ten markets in terms of absolute investment in the sector in 2022 with USD 213 billion, showing a sector ready to thrive once again. China trails with a USD 146BN investment in 2022, with Saudi Arabia rounding out the top three with total investment of USD 42 billion in the same year.

Island destinations lead the top spots for Travel & Tourism investment as a total percentage share of their economies in 2022. The US Virgin Islands lead the way channelling 35% of total economic investment into Travel & Tourism, followed closely by Antigua & Barbuda at 34% and Aruba at almost 32%.

Private investment in new aircraft, hotels, and car fleets is essential for boosting the sector’s capacity. Public investment complements this growth, and together the combined investments create a powerful synergy.
The ripple effect is more jobs, bigger economies, and stronger communities.

Julia Simpson, President & CEO, WTTC, said, “Investment in Travel & Tourism is not just a numbers game; it is the heartbeat of global connectivity and economic revival. Despite the setbacks from the pandemic, 2022’s growth is a promising sign of what’s to come.

“Investment in Travel & Tourism is integral to the world’s recovery and growth. The sector’s resilience and potential for innovation continues to drive us forward. We remain confident, yet vigilant, in our pursuit of a brighter, more connected global future.”

WTTC forecasts robust 11.5% growth in investment in 2023, amounting to USD 955 billion, with a return to pre-pandemic levels anticipated by 2025. By 2033, WTTC forecasts a promising 6.1% average annual growth globally, with the strongest annualised growth rates projected to be in Asia-Pacific and the Caribbean.

However, the global hike in interest rates creates challenges for future investment. With central banks increasing interest rates to combat rising inflation, the cost of borrowing and products increases.

Higher interest rates could present a risk to future investment in the sector so it’s crucial that the public and private sectors work together to innovate to ensure the continual strengthening of this vital sector.