Georgetown: Guyana earned a whopping $47 billion in revenue through its travel and tourism sector in 2013, a total contribution of 7.6 per cent to the country’s Gross Domestic Product (GDP) and revenues are expected to drastically rise to $69.2 billion in 2024.
The 2014 World Travel and Tourism Council report on the performance of Guyana’s tourism sector in 2013 reveals that the industry has been performing exceptionally well by contributing significantly to the economy through the attraction of foreign investments, creation of thousands of jobs and generating visitor exports. The report also projected remarkable growth in the local tourism sector within the coming years.
The total contribution to travel and tourism includes the indirect impacts and induced impacts on the economy. The indirect contribution includes the GDP and jobs supported by tourism investment spending (construction of new hotels), government collective spending (tourism marketing and promotion), and domestic purchases of goods and services (food at restaurants, services by airlines).
Induced contribution on the other hand measures the GDP and jobs supported by the spending of those who are directly or indirectly employed by the travel and tourism industry.
According to the report, the direct contribution of travel and tourism to GDP was $18.8 billion (3 per cent of total GDP) in 2013. This forecast is to rise to $26.8 in 2024.
Direct contribution differs from total contribution. The direct contribution of travel and tourism to GDP reflects the internal spending on travel and tourism (total spending within a particular country on Travel & Tourism by residents and non-residents for business and leisure purposes) as well as government ‘individual’ spending – spending by government on Travel & Tourism services directly linked to visitors, such as cultural (museums) or recreational (national parks).
Additionally, travel and tourism generated 8000 jobs directly in 2013 (3.3 per cent of total employment). These employments include employment by hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). It also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists. By 2024, Travel & Tourism will account for 7000 jobs directly, a decrease of 0.6 per cent over the next ten years.
The total contribution of Travel & Tourism to employment (including wider effects from investment, the supply chain and induced income impacts) was 19,000 jobs in 2013 (8 per cent of total employment). By 2024, Travel & Tourism is forecast to support 19,000 jobs (but by a drop of 0.5 per cent of total employment).
In addition, the tourism industry saw visitor exports generating $14.5 billion. Visitor exports are a key component of the direct contribution of Travel & Tourism.
By 2024, international tourist arrivals are forecast to total 248,000, generating expenditure of $18.8 billion, an increase of 2.5 per cent.
The report also noted that travel and tourism investment in 2013 was $3.5 billion (2.6 per cent of total investment. It is expected to rise to $4.4 billion in 2024. (All values are in constant 2013 prices & exchange rates).
Meanwhile, November 1 marked the beginning of Tourism Awareness Month (TAM) where government will embark on a series of activities aimed at promoting the country’s best tourists attractions and destinations.
TAM 2015 is being celebrated under the theme “Growing the business of tourism through product innovation.”
Tourism Minister Cathy Hughes in her message to the nation, noted that the theme perfectly reflects what her Ministry embodies as its priority in transforming Guyana’s variety of tourism products such as eco-tourism, adventure tourism, community-based tourism, heritage sports, bird watching, entertainment, agriculture, and arts tourism into innovative, marketable and revenue earning businesses that can be self sustained and grow branch by branch.
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