Market Forecast & Reviews

Since January 2008, international tourism growth has slowed dramatically due to the extremely unstable and unfavorable global economy. Factors such as the credit crunch, the financial crisis, commodity and oil price increases, and massive exchange rate fluctuations have damaged both business and consumer confidence and contributed to one of the most severe global recessions in history. According to the International Monetary Fund, the world's GDP is forecast to decline by 1.3% in 2009.

Although tourism has historically been more resilient than other economic sectors, it has never been immune, and international tourism demand has deteriorated under the influence of the current global recession. The UNWTO reports that despite 6% growth in the first half of the year, international tourist arrivals declined by 2% in 2008. Unfortunately, preliminary reports indicate a continuation of negative growth has continued through the first months of 2009.

However, in response to the current crisis many countries are already developing stimulus measures within their fiscal and monetary packages to mitigate the effects of the crisis on tourism, realizing that the sector can be a key driver of economic recovery. Some destinations are reducing taxes and improving travel facilitation, recognizing that it is now crucial to remove all obstacles to tourism, especially taxation and over regulation. Others have developed financial systems to support tourism enterprises, maintain/increase employment in the sector, and develop infrastructure.

summarized from UNWTO's "World Tourism Barometer," Volume 7, 2009

U.S. Travel Associations's Market Forecast & Reviews cover outbound travel and U.S. arrivals from Brazil, Canada, Japan, Germany, and the United Kingdom.  The reports focus on economic, political, social, and travel conditions both within their country of focus and globally.

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