THE 2008 TRAVEL & TOURISM ECONOMIC RESEARCH UNITED KINGDOM. Travel & Tourism - The Winds of Change

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1 THE 28 TRAVEL & TOURISM ECONOMIC RESEARCH Travel & Tourism - The Winds of Change

2 CHAIRMAN: Gilles Pélisson Naresh Goyal Dionísio Pestana James Wilson CEO Chairman Chairman Chief Executive Officer Geoffrey J W Kent Accor Jet Airways India Ltd Group Pestana Istithmar Real Estate - Africa & Indian Ocean Chairman & CEO Abercrombie & Kent Stevan Porter Arthur de Haast Charles Petruccelli Philip Wolf President, The Americas Global Chief Executive Officer President Global Travel Services CEO VICE CHAIRMEN: InterContinental Hotels Group PLC Jones Lang LaSalle Hotels American Express PhoCusWright, Inc Peter R B Armstrong Christopher Rodrigues CBE Sir Stelios Haji-Ioannou Fernando Pinto Peter Yesawich President & CEO Chairman Chairman & Founder CEO Chairman and CEO Rocky Mountaineer Vacations VisitBritain easygroup TAP Air Portugal Ypartnership Edouard Ettedgui Jeffrey C Rutledge Pansy Ho Wolfgang Prock-Schauer Mei Yunxin Group Chief Executive President Managing Director Chief Executive Officer President Mandarin Oriental Hotel Group AIG Travel, Inc Shun Tak Holdings Limited Jet Airways India Ltd Beijing Tourism Group Maurice Flanagan CBE Jyotsna Suri James Hogan Bob Puccini Tim Zagat Executive Vice Chairman Chairperson & Managing Director CEO CEO Co-Founder, Co-Chair & CEO Emirates Airline & Group Bharat Hotels Ltd Etihad Airways The Puccini Group Zagat Survey LLC Michael Frenzel Jonathan M Tisch Raimund Hosch Duan Qiang Sarmad Zok Chairman of the Executive Board Chairman & CEO President & CEO Chairman Chief Executive Officer TUI AG Loews Hotels Messe Berlin GmbH Beijing Tourism Group Kingdom Hotel Investments Stephen P Holmes Brett Tollman Larry Kellner David Radcliffe HONORARY MEMBERS: President, Chairman & CEO President Chairman & CEO Chief Executive Wyndham Worldwide The Travel Corporation Continental Airlines Hogg Robinson plc André Jordan David Mongeau Vincent A Wolfington Dara Khosrowshahi Jay Rasulo Chairman Chairman Chairman President & CEO Chairman André Jordan Group Avington Global Alliance Advisors LLC Expedia Inc Walt Disney Parks and Resorts Immediate Past Chairman WTTC Jonathan S Linen EXECUTIVE COMMITTEE: Tom Klein Kurt Ritter Adviser to the Chairman GLOBAL MEMBERS: Group President President & CEO American Express Sabre Travel Network and The Rezidor Hotel Group Philippe Bourguignon Sabre Airline Lord Marshall of Knightsbridge Vice Chairman & CEO Mohammed Al Habbai Executive Vice President Marty Salfen Chairman Revolution Places CEO Sabre Holdings General Manager, Global Travel & Pirelli UK plc Dubailand Transportation Industry Marilyn Carlson Nelson Nigel Knowles IBM Sir Frank Moore, AO Chair & CEO Eric Anderson Joint CEO Chairman Carlson President & CEO DLA Piper Per Setterberg FT Moore P/L Space Adventures CEO Alex Christou Ali Kolaghassi Global Refund Group Frank Olson Managing Partner Giovanni Angelini Vice Chairman & CEO Chairman of the Board Accenture CEO & Managing Director Saraya Holdings Sonu Shivdasani The Hertz Corporation Shangri-La Hotels & Resorts Chairman & CEO Jeff Clarke RK Krishna Kumar Six Senses Resorts & Spas Gérard Pélisson President & CEO Ted J Balestreri Vice Chairman Co-Chairman, Supervisory Board Travelport Chairman & CEO Taj Hotels, Resorts & Palaces Regine Sixt Accor Cannery Row Company Senior Vice President Andrew Cosslett Sixt rent a car Carl Ruderman CEO Paul Brown Michael Latimer Chairman InterContinental Hotels Group PLC President President & CEO David Stein Universal Media Partner Services Group Oxford Properties Group Chairman Gabriel Escarrer Jaume Expedia Inc The Stein Group Tommaso Zanzotto Co-Vice Chairman & CEO Jabu Mabuza President Sol Meliá Simón Barceló Vadell CEO Ian Swain TZ Associates Ltd Chairman & CEO Tsogo Sun Group President Manuel Fernando Espírito Santo Barceló Hotels & Resorts Swain Tours Chairman André Martinez CHAIRMAN EMERITUS: Espírito Santo Tourism Raymond Bickson Chairman Global Lodging & Yassin K Talhouni Managing Director Managing Director CEO James D Robinson III Edward P Gilligan Taj Hotels, Resorts and Palaces Morgan Stanley Zara Investment Holding Co Ltd General Partner Vice Chairman & Group CEO RRE Ventures Business-to -Business Khalid bin Sulayem Khater Massaad Robin Tauck WTTC Chairman ( ) American Express Company Director General Chairman President Dubai Department of Tourism Al Hamra Hotels Management Est Tauck World Discovery IMMEDIATE PAST Richard R Kelley and Commerce Marketing CHAIRMAN: Chairman Geoff Muirhead CBE Jaume Tàpies Outrigger Enterprises Group Giorgio Boscolo Group Chief Executive President Vincent A Wolfington CEO The Manchester Airports Group Relais & Châteaux Chairman Emeritus Gary L Kessler Boscolo Group Carey International, Inc President & COO Christopher J Nassetta Andrew C Taylor WTTC Chairman (24 27) Carey International Inc Rattawadee Bualert President & CEO Chairman & CEO President Hilton Hotels Corporation Enterprise Rent-A-Car FORMER CHAIRMEN: Kuoni Travel Holding Ltd lebua Hotels & Resorts Co, Ltd John M Noel Kathleen Taylor Sir Ian Prosser Gerald Lawless Chris J Cahill President & CEO President & Chief Operating Retired Chairman Executive Chairman President & COO The Noel Group Officer InterContinental Hotels Group PLC Jumeirah Group Fairmont Hotels & Resorts AIG Travel Guard Four Seasons Hotels & Resorts WTTC Chairman (21 23) Manfredi Lefebvre D Ovidio Ed Cespedes Tom Nutley José Antonio Tazón Harvey Golub Chairman CEO Chairman President & CEO Retired Chairman & CEO Silversea Cruises Tralliance Corporation Reed Travel Exhibitions Amadeus IT Group SA American Express WTTC Chairman ( ) Antonio Lucio David Clifton Chris O'Donnell John Ueberroth Chief Marketing Officer Managing Director, EMEAA Chief Executive Officer Chairman & CEO Robert H Burns Visa Inc Interval International Nakheel Preferred Hotel Group Chairman Robert H Burns Holdings Limited J W Marriott, Jr Jim Compton Deepak Ohri Matthew D Upchurch WTTC Chairman ( ) Chairman & CEO Senior Vice President, Marketing Managing Director CEO Marriott International, Inc Continental Airlines lebua Hotels & Resorts Co, Ltd Virtuoso PRESIDENT: Alan Parker Laurence Geller Jean Gabriel Pérès Willie Walsh Jean-Claude Baumgarten Chief Executive President & CEO President & CEO Chief Executive Whitbread plc Strategic Hotels & Resorts Mövenpick Hotels & Resorts British Airways plc 1 February 28

3 28 1-year trend Gross Domestic Product (GDP) 9.2% KEY FACTS AT A GLANCE THE 28 TRAVEL & TOURISM ECONOMIC RESEARCH The contribution of Travel & Tourism to Gross Domestic Product (GDP) is expected to rise from 9.2% (GBP133.1 bn or US$262.3 bn) in 28 to 9.3% (GBP223.5 bn or US$399.2 bn) by %.9% 1.6% Employment The contribution of the Travel & Tourism Economy to employment is expected to rise from 2,734, jobs in 28, 8.6% of total employment, or 1 in every 11.6 jobs to 2,958, jobs, 8.7% of total employment or 1 in every 11.6 jobs by 218. Growth Real GDP growth for the Travel & Tourism Economy is expected to be.9% in 28 and to average 2.9% per annum over the coming 1 years. Exports Export earnings from international visitors and tourism goods are expected to generate 1.6% of total exports (GBP41.4 bn or US$81.5 bn) in 28, growing (nominal terms) to GBP81.2 bn or US$145. bn (9.9% of total) in 218. World ranking (out of 176 countries) ABSOLUTE RELATIVE GROWTH size contribution to national economy forecast Travel & Tourism Gross Domestic Product (2 constant US$ bn) Travel & Tourism Employment (' jobs) 25 3,5 2 3, 2,5 15 2, 1 1,5 5 1, Direct Industry T&T Economy as a whole Direct Industry T&T Economy as a whole THE WORLD TRAVEL & TOURISM COUNCIL (WTTC) IS THE BUSINESS LEADERS' FORUM FOR TRAVEL & TOURISM WORKING WITH GOVERNMENTS TO RAISE AWARENESS OF THE IMPORTANCE OF THE WORLD'S LARGEST GENERATOR OF WEALTH AND JOBS 28 World Travel & Tourism Council 1-2 QUEEN VICTORIA TERRACE, SOVEREIGN COURT, LONDON E1W 3HA, TEL: +44 () or +44 () FAX: +44 () or + 44 () enquiries@wttc.travel.

4 CONTENTS TRAVEL & TOURISM THE WINDS OF CHANGE Introduction 3 Summary Economic Impact and Real Growth 4 Travel & Tourism's Economic Impact 6 National, Regional and World Summary Tables 7 TSA Concepts & Structure 8 Travel & Tourism Satellite Account Gross Domestic Product 1 Employment 11 Total Demand 12 Visitor & Other Exports 13 Satellite Account Tables 14 Ranking and Range 16 General Macroeconomic Indicators 16 USE OF MATERIAL IS AUTHORISED, PROVIDED SOURCE IS ACKNOWLEDGED 1-2 Queen Victoria Terrace, Sovereign Court, London E1W 3HA, United Kingdom, TEL:+44 () FAX:+44 () enquiries@wttc.travel 2

5 THE WORLD TRAVEL & TOURISM COUNCIL (WTTC) IS THE BUSINESS LEADERS' FORUM FOR TRAVEL & TOURISM, WORKING WITH GOVERNMENTS TO RAISE AWARENESS OF THE IMPORTANCE OF THE WORLD'S LARGEST GENERATOR OF WEALTH AND JOBS. Measurement of that importance is best achieved through the construction of Travel & Tourism Satellite Accounts, analogous to the national income accounts routinely published by government statistical offices worldwide. The 28 Tourism Satellite Accounting research sponsored by Accenture and produced by Oxford Economics constructs such accounts for 176 countries and follows the standardised United Nations methodology for measurement of Travel & Tourism s economic impact on personal consumption, business spending, capital investment, government expenditures, exports and imports, culminating in quantification of the contribution to gross domestic product and employment. Globally, this research shows that Travel & Tourism currently employs nearly 24 million people and creates 1% of world GDP. Recent years have seen rapid growth in Travel & Tourism and last year was no exception, with the broad-based expansion continuing. International tourist arrivals surged again, reaching nearly 9 million, and visitor spending more than matched that growth. New destinations are emerging as investment in fresh facilities continues and overseas travel is becoming both a feasible and an affordable choice for an increasing proportion of the world s population. This expansion is expected to continue in 28, although the deterioration in economic conditions means that growth in Travel and Tourism GDP and employment will slow moderately. Challenges come from the US slowdown and the weak dollar, higher fuel costs and concerns about climate change. But the continued strong expansion in emerging countries both as tourism destinations and an increasing source of international visitors means that the industry s prospects remain bright into the medium term. WTTC is very proud, with Accenture and Oxford Economics, to build on the success of its tourism research of these past 17 years and therefore welcomes you to the 28 edition of WTTC s Travel & Tourism Satellite Accounting Research, Travel & Tourism: The Winds of Change. Jean-Claude Baumgarten President, World Travel & Tourism Council Geoffrey J W Kent Chairman, World Travel & Tourism Council Chairman & CEO, Abercrombie & Kent 3

6 ECONOMIC IMPACT IN 28 'S TRAVEL & TOURISM IS EXPECTED TO GENERATE GBP133 BN (US$262 BN) OF ECONOMIC ACTIVITY (GDP). THE INDUSTRY'S DIRECT IMPACT INCLUDES: Direct Industry GDP Direct Industry Employment GBP 49 bn 998, (US$97 bn) equivalent to 3.4% of total GDP jobs representing 3.2% of total employment HOWEVER, SINCE TRAVEL & TOURISM TOUCHES ALL SECTORS OF THE ECONOMY, ITS REAL IMPACT IS EVEN GREATER. 'S TRAVEL & TOURISM ECONOMY DIRECTLY AND INDIRECTLY ACCOUNTS FOR: Economy GDP Economy Employment GBP 133 bn 2,734, (US$262 bn) equivalent to 9.2% of total GDP jobs representing 8.6% of total employment Exports, Services & Merchandise Capital Investment GBP 41 bn GBP 23 bn (US$82 bn) equivalent to 1.6% of total exports (US$46 bn) equivalent to 8.9% of total investment Government Expenditure GBP 9 bn (US$17 bn) equivalent to a 2.7% share 4

7 REAL GROWTH IN 28, TRAVEL & TOURISM IN IS FORECAST TO SEE REAL GROWTH OF: Direct Industry GDP Direct Industry Employment.9 %.5 % to GBP49 bn (US$97 bn) to 998, jobs Economy GDP Economy Employment.9 %.7 % to GBP133 bn (US$262 bn) to 2,734, jobs OVER THE NEXT TEN YEARS, 'S TRAVEL & TOURISM IS EXPECTED TO ACHIEVE ANNUALISED REAL GROWTH OF: Direct Industry GDP Direct Industry Employment 2.7 %.6 % to GBP81 bn (US$144 bn) in 218 to 1,56,79 jobs in 218 Economy GDP Economy Employment 2.9 %.8 % to GBP224 bn (US$399 bn) in 218 to 2,958, jobs in 218 Demand - Travel & Tourism Visitor Exports - Travel & Tourism 3.7 % 4.2 % to GBP369 bn (US$659 bn) in 218 to GBP46 bn (US$82 bn) in 218 Capital Investment - Travel & Tourism Government Expenditure - Travel & Tourism 3.6 % 3. % to GBP42 bn (US$74 bn) in 218 to GBP15 bn (US$26 bn) in 218 5

8 ECONOMIC IMPACT TRAVEL & TOURISM (T&T) ENCOMPASSING TRANSPORT, ACCOMMODATION, CATERING, RECREATION AND SERVICES FOR VISITORS IS ONE OF THE WORLD S HIGHEST PRIORITY INDUSTRIES AND EMPLOYERS. GDP United Kingdom - The Travel &Tourism Industry is expected to contribute directly 3.4% to Gross Domestic Product (GDP) in 28 (GBP49.2 bn or US$97. bn), rising in nominal terms to GBP8.8 bn or US$144.3 bn (3.4% of total) by 218. The T&T Economy contribution (% of total) should rise from 9.2% (GBP133.1 bn or US$262.3 bn) to 9.3% (GBP223.5 bn or US$399.2 bn) in this same period. European Union - The Travel & Tourism Industry is expected to post a direct GDP contribution of 3.6% in 28, while the Travel & Tourism Economy contribution will be 1.2%. Worldwide - In 28, the Travel & Tourism Industry should contribute 3.4% directly to worldwide GDP. The broader Travel & Tourism Economy should contribute 9.9% to world GDP in 28. GROWTH United Kingdom - The Travel & Tourism Economy is expected to grow by 2.9% per annum in real terms between 29 and 218. European Union - The Travel & Tourism Economy is expected to post average annualised gains of 2.8% between 29 and 218. Worldwide - Travel & Tourism is a high-growth activity, which is forecast to increase its total economic activity by 4.% worldwide in real terms over the next ten years. EMPLOYMENT United Kingdom - Travel &Tourism Economy employment is estimated at 2,734, jobs in 28, 8.6% of total employment, or 1 in every 11.6 jobs. By 218, this should total 2,958, jobs, 8.7% of total employment or 1 in every 11.6 jobs. The 998, T&T Direct Industry jobs account for 3.2% of total employment in 27 and are forecast to total 1,57, jobs or 3.1% of the total by 218. European Union - The Travel & Tourism Industry is expected to generate directly 8,79, jobs in 28 (3.9% of total employment), while the broader Travel & Tourism Economy will account for 23,938, jobs (1.8% of total employment). Worldwide - Travel & Tourism is human resource intensive, creating quality jobs across the full employment spectrum. In 28, one in 11.9 jobs will be generated by the Travel & Tourism Economy. The Travel & Tourism Economy accounts for 8.4% of global employment. Today there are 8.7 million Travel & Tourism Direct Industry jobs and million jobs in the Travel & Tourism Economy, and these will rise to 98. million Travel & Tourism Direct Industry jobs and million Travel & Tourism Economy jobs by 218. DEMAND United Kingdom - In 28, Travel & Tourism is expected to post GBP24.8 bn (US$43.7 bn) of economic activity (Total Demand), growing to GBP368.7 bn (US$658.6 bn) by 218. European Union - Travel & Tourism Demand is expected to reach US$2,727.7 bn in 28, growing to US$4,75.5 bn in 218. Worldwide - In 28, it is expected to post US$7,892 bn of economic activity (Total Demand) and this is forecast to grow to US$14,838 bn by 218. VISITOR EXPORTS United Kingdom - Exports make up a very important share of Travel & Tourism's contribution to GDP. Of United Kingdom's total exports, Travel & Tourism is expected to generate 1.6% (GBP41.4 bn or US$81.5 bn) in 28, increasing to GBP81.2 bn or US$145. bn (9.9% of total), in 218. European Union - Travel & Tourism exports are expected to represent 11.7% of total exports in 28. Worldwide - Travel & Tourism is a major exporter, with inbound visitors injecting foreign exchange directly into the economy. CAPITAL INVESTMENT United Kingdom - Travel & Tourism Capital Investment is estimated at GBP23.3 bn, US$45.9 bn or 8.9% of total investment in year 28. By 218, this should reach GBP41.5 bn, US$74.1 bn or 9.4% of total. European Union - Travel & Tourism Capital Investment is estimated to total US$351.8 bn in 28, or 8.9% of total regional capital investment. Worldwide - Travel & Tourism is a catalyst for construction and manufacturing. In 28, the public and private sectors combined are expected to spend US$1,353.5 bn worldwide - 9.4% of total investment, rising to US$3,145.5 bn or 9.8% of the total, in 218. GOVERNMENT United Kingdom - Government Travel & Tourism operating expenditures in United Kingdom in 28 are expected to total GBP8.7 bn (US$17.1 bn), or 2.7% of total government spending. In 218, this spending is forecast to total GBP14.7 bn (US$26.3 bn), or a 2.7% share. European Union - Government Travel & Tourism operating expenditures are estimated to total US$118.6 bn in 28, or a 3.2% share. Worldwide - Travel & Tourism is both a generator and receiver of government funds. Globally, in 28, Travel & Tourism is expected to garner US$38.8 bn of government expenditures, or 3.8% of total expenditures. By 218, government spending on Travel & Tourism should increase to US$616.3 bn - 4.% of total government expenditure. 6

9 SUMMARY TABLES ESTIMATES AND FORECASTS GBP bn % of Total Growth 1 GBP bn % of Total Growth 2 Personal Travel & Tourism Business Travel Government Expenditures Capital Investment Visitor Exports Other Exports T&T Demand Direct Industry GDP T&T Economy GDP Direct Industry Employment , T&T Economy Employment 3 2, , real growth adjusted for inflation (%); annualised real growth adjusted for inflation (%); 3 ' jobs EUROPEAN UNION US$ bn % of Total Growth 1 US$ bn % of Total Growth 2 Personal Travel & Tourism 1, , Business Travel Government Expenditures Capital Investment Visitor Exports Other Exports T&T Demand 2, , Direct Industry GDP T&T Economy GDP 1, , Direct Industry Employment 3 8, , T&T Economy Employment 3 23, , real growth adjusted for inflation (%); annualised real growth adjusted for inflation (%); 3 ' jobs WORLDWIDE US$ bn % of Total Growth 1 US$ bn % of Total Growth 2 Personal Travel & Tourism 3, , Business Travel , Government Expenditures Capital Investment 1, , Visitor Exports 1, , Other Exports , T&T Demand 7, , Direct Industry GDP 2, , T&T Economy GDP 5, , Direct Industry Employment 3 8, , T&T Economy Employment 3 238, , real growth adjusted for inflation (%); annualised real growth adjusted for inflation (%); 3 ' jobs 7

10 TSA CONCEPTS & STRUCTURE The Travel & Tourism Satellite Account is based on a demand-side concept of economic activity, because the industry does not produce or supply a homogeneous product or service as traditional industries (agriculture, electronics, steel, etc) do. DEMAND-SIDE ACCOUNTS GBP bn PERSONAL TRAVEL & TOURISM 15.5 More formally known as Travel & Tourism Personal Consumption, this category includes all personal spending by an economy's residents on Travel & Tourism services (lodging, transportation, entertainment, meals, financial services, etc) and goods (durable and non-durable) used for Travel & Tourism activites. Spending may occur before, during or after a trip. Spending covers all Travel & Tourism, outbound and domestic. TRAVEL & TOURISM CONSUMPTION BUSINESS TRAVEL 25.9 Formally know as Intermediate Consumption of Travel & Tourism or more simply business travel, this category of expenditures by government and industry includes spending on goods and services (transportation, accommodation, meals, entertainment, etc) for employee business travel purposes. Total Travel & Tourism expenditures made by and on behalf of visitors (goods and services) in the resident economy. GOVERNMENT EXPENDITURES - Individual 5.4 Formally known as Non-Market Services (Individual), this category includes expenditures (transfers or subsidies) made by government agencies to provide Travel & Tourism services directly linked to individual visitors such as cultural (eg art museums), recreational (eg national park) or clearance (eg immigration/customs) etc to visitors. VISITOR EXPORTS 24.1 Expenditures by international visitors on goods and services within the resident economy GOVERNMENT EXPENDITURES - Collective 3.3 Formally known as Non-Market Services (Collective), this category includes operating expenditures made by government agencies on services associated with Travel & Tourism, but not directly linked to any individual visitor, instead these expenditures are generally made on behalf of the 'community at large', such as tourism promotion, aviation, administration, security services and resort area sanitation services, etc. TRAVEL & TOURISM DEMAND CAPITAL INVESTMENT 23.3 Formally known as Capital Formation, this category includes capital expenditures by direct Travel & Tourism industry service providers and government agencies to provide facilities, equipment and infrastructure to visitors. The nominal aggregate of tourism activity in the resident economy. OTHER EXPORTS 17.3 Consumer goods (such as clothing, electronics or petrol) exported for ultimate sale to visitors, or capital goods (such as aircraft or cruise ships) exported for use by Travel & Tourism industry providers

11 Instead, Travel & Tourism is an industrial activity defined by the diverse collection of products (durables and non-durables) and services (transportation, accommodation, food and beverage, entertainment, government services, etc) that are delivered to visitors. There are two basic aggregates of demand (Travel & Tourism Consumption and Total Demand) and, by employing input/output modelling separately (large arrows) to these two aggregates, the Satellite Account is able to produce two different and complementary aggregates of Travel & Tourism Supply: the Travel & Tourism Industry and the Travel & Tourism Economy. The first captures the explicitly defined production-side industry contribution (ie direct impact only), for comparison with all other industries, while the second captures the broader economy-wide impact, direct and indirect, of Travel & Tourism. SUPPLY-SIDE ACCOUNTS GBP bn TRAVEL & TOURISM INDUSTRY SUPPLY 49.2 TRAVEL & TOURISM INDUSTRY GDP (Direct) ' jobs Direct Gross Domestic Product (also know as Value-Added) and Employment associated with Travel & Tourism Consumption. This is the explicitly defined Supply-side Industry contribution of Travel & Tourism that can be compared one-for-one with the GDP and Employment contribution of other industries in the economy. Establishment in this category include traditional Travel & Tourism providers such as airlines, hotels, car rental companies, etc. 5.4 TRAVEL & TOURISM INDUSTRY GDP (Indirect) Indirect Gross Domestic Product associated with Travel & Tourism Consumption. This is the upstream resident economy contribution which comes about from suppliers to the traditional Travel & Tourism industry. Establishments in this category include fuel and catering companies, laundry services, accounting firms, etc TRAVEL & TOURISM INDUSTRY IMPORTS The value of goods imported by direct and indirect Travel & Tourism Industry establishments TRAVEL & TOURISM ECONOMY SUPPLY ' jobs 2,733.8 TRAVEL & TOURISM ECONOMY GDP (Direct and Indirect) Direct and Indirect Gross Domestic Product (also know as Value-Added) and Employment associated with Travel & Tourism Demand. This is the broadest measure of Travel & Tourism's contribution to the resident economy. Establishments in this category include those described above as well as manufacturing, construction, government, etc. that are associated with Capital Investment, Government Services and Non- Visitor Exports TRAVEL & TOURISM ECONOMY IMPORTS The value of goods imported by direct and indirect Travel & Tourism Economy establishments

12 GROSS DOMESTIC PRODUCT United Kingdom's T&T Direct Industry is expected to contribute 3.4% to Gross Domestic Product (GDP) in 28 (GBP49.2 bn or US$97. bn), rising in nominal terms to GBP8.8 bn or US$144.3 bn (3.4% of total) by 218. The T&T Economy contribution (% of total) should rise from 9.2% (GBP133.1 bn or US$262.3 bn) to 9.3% (GBP223.5 bn or US$399.2 bn) in this same period. TRAVEL & TOURISM SATELLITE ACCOUNT COUNTRY REGION WORLD ,2 1, ,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Travel & Tourism Gross Domestic Product Travel & Tourism Economy GDP (2 constant US$ bn) (real growth, %) Direct Industry GDP T&T Economy GDP EUROPEAN UNION Travel & Tourism Gross Domestic Product v REGION Travel & Tourism Economy GDP (2 constant US$ bn) (real growth variance, %) Direct Industry GDP T&T Economy GDP WORLDWIDE Travel & Tourism Gross Domestic Product v WORLDWIDE Travel & Tourism Economy GDP (2 constant US$ bn) (real growth variance, %) Direct Industry GDP T&T Economy GDP WTTC League Table Extract 28 WTTC League Table Extract 1-Yr Real Growth Travel & Tourism Economy GDP % of total GDP Travel & Tourism Economy GDP Annualised, % 1 39 Greece Australia Spain Greece Australia United States France Canada United States United Kingdom Canada Spain Italy France Japan Japan United Kingdom Germany Germany Italy 1.8 1

13 EMPLOYMENT United Kingdom's 998, T&T Direct Industry jobs account for 3.2% of total employment in 28 and are forecast to total 1,57, jobs or 3.1% of the total by 218.The contribution of the Travel & Tourism Economy to employment is expected to rise from 2,734, jobs in 28, 8.6% of total employment, or 1 in every 11.6 jobs to 2,958, jobs, 8.7% of total employment or 1 in every 11.6 jobs by , 2,5 2, 1,5 1, 5 3, 25, 2, 15, 1, 5, 3, 25, 2, 15, 1, 5, Travel & Tourism Employment Travel & Tourism Economy Employment (' Jobs) (real growth, %) Direct Industry jobs EUROPEAN UNION v REGION Travel & Tourism Employment Travel & Tourism Economy Employment (' Jobs) (real growth variance, %) Direct Industry jobs WORLDWIDE v WORLDWIDE Travel & Tourism Employment Travel & Tourism Economy Employment (' Jobs) (real growth variance, %) Direct Industry jobs T&T Economy jobs T&T Economy jobs T&T Economy jobs COUNTRY REGION WORLD TRAVEL & TOURISM SATELLITE ACCOUNT WTTC League Table Extract 28 WTTC League Table Extract 1-Yr Real Growth Travel & Tourism Economy Employment % of total emp Travel & Tourism Economy Employment Annualised, % 3 Greece Greece Spain Spain France Australia Italy France Australia Japan Japan United Kingdom.8 74 Canada United States.6 76 United States Canada.5 87 Germany Italy.5 9 United Kingdom Germany.2 11

14 TOTAL DEMAND United Kingdom Travel & Tourism is expected to generate GBP24.8 bn (US$43.7 bn) of economic activity (Total Demand) in 28, growing (nominal terms) to GBP368.7 bn (US$658.6 bn) by 218. Total Demand is expected to grow by 1.6% in 28 and by 3.7% per annum, in real terms, between 29 and Total Demand represents 4.63% of world market share. TRAVEL & TOURISM SATELLITE ACCOUNT COUNTRY REGION WORLD Total Demand 28 Personal T&T % Business T&T % Gov't Expenditures % Capital Investment % Visitor Exports % Other Exports % MARKET SHARE OF EUROPEAN UNION Travel & Tourism Total Demand (real growth, %) v REGION Travel & Tourism Total Demand Total Demand 28 (real growth variance, %) United Kingdom % Rest of Region % WORLDWIDE Total Demand 28 United Kingdom % Rest of World % v WORLDWIDE Travel & Tourism Total Demand (real growth variance, %) WTTC League Table Extract 28 WTTC League Table Extract 1-Yr Real Growth Travel & Tourism Total Demand Real Growth % Travel & Tourism Total Demand Annualised, % 1 71 Australia Australia Greece Greece Spain Canada Canada United Kingdom France United States Japan Germany Germany France United Kingdom Japan United States Spain Italy Italy

15 VISITOR & OTHER EXPORT EARNINGS Visitor Exports play an important development role for the resident Travel & Tourism Economy. United Kingdom's Travel & Tourism is expected to generate 1.6% of total exports (GBP41.4 bn or US$81.5 bn) in 28, growing (nominal terms) to GBP81.2 bn or US$145. bn (9.9% of total) in , 25, 2, 15, 1, 5, Travel & Tourism Exports Travel & Tourism Visitor Exports (2 constant US$ bn) (real growth, %) Visitor Exports EUROPEAN UNION Travel & Tourism Exports v REGION Travel & Tourism Visitor Exports (2 constant US$ bn) (real growth variance, %) Visitor Exports WORLDWIDE Travel & Tourism Exports v WORLDWIDE Travel & Tourism Visitor Exports (2 constant US$ bn) (real growth variance, %) Visitor Exports Other Exports Other Exports Other Exports COUNTRY REGION WORLD TRAVEL & TOURISM SATELLITE ACCOUNT WTTC League Table Extract 28 WTTC League Table Extract 1-Yr Real Growth Travel & Tourism Visitor Exports % of total exports Travel & Tourism Visitor Exports Annualised, % 37 Greece Japan Spain Canada Australia United States United States Australia France Germany Italy France United Kingdom United Kingdom Canada Greece Germany Spain Japan Italy

16 SATELLITE ACCOUNT TABLES Travel & Tourism - GBP bn E 28F 218F Personal Travel & Tourism Business Travel & Tourism Corporate Government Government Expenditures - Individual Visitor Exports Travel & Tourism Consumption Government Expenditures - Collective Capital Investment Other Exports Travel & Tourism Demand Travel & Tourism Direct Industry Employment (') ,56.8 Gross Domestic Product Travel & Tourism Economy Employment (') 2, , , , ,714. 2, ,957.5 Gross Domestic Product Travel & Tourism Accounts as % of National Accounts E 28F 218F Personal Travel & Tourism Government Expenditures Capital Investment Visitor & Other Exports Travel &Tourism Imports Travel & Tourism Direct Industry Employment Gross Domestic Product Travel & Tourism Economy Employment Gross Domestic Product Travel & Tourism Real Growth (per annum except 218 = 1-year annualised) E 28F 218F Personal Travel & Tourism Business Travel & Tourism Government Expenditures Capital Investment Visitor Exports Other Exports Travel & Tourism Consumption Travel & Tourism Demand Travel & Tourism Direct Industry Employment Gross Domestic Product Travel & Tourism Economy Employment Gross Domestic Product E - Estimate; F - Forecast 14

17 SATELLITE ACCOUNT TABLES Travel & Tourism - US$ bn E 28F 218F Personal Travel & Tourism Business Travel & Tourism Corporate Government Government Expenditures - Individual Visitor Exports Travel & Tourism Consumption Government Expenditures - Collective Capital Investment Other Exports Travel & Tourism Demand Travel & Tourism Direct Industry Employment (') ,56.8 Gross Domestic Product Travel & Tourism Economy Employment (') 2, , , , ,714. 2, ,957.5 Gross Domestic Product Travel & Tourism 2 Constant US$ bn E 28F 218F Personal Travel & Tourism Business Travel & Tourism Government Expenditures - Individual Visitor Exports Travel & Tourism Consumption Government Expenditures - Collective Capital Investment Other Exports Travel & Tourism Demand Gross Domestic Product Travel & Tourism Industry Travel & Tourism Economy E - Estimate; F - Forecast 15

18 TRAVEL & TOURISM SATELLITE ACCOUNT RANKING AND RANGE Year 28 country rankings for United Kingdom within world countries' list United Kingdom Absolute Size Relative Size Growth 1 Absolute Size Relative Size Growth 2 Personal Travel & Tourism Business Travel Government Expenditures Capital Investment Visitor Exports Other Exports Travel & Tourism Demand Direct Industry GDP T&T Economy GDP Direct Industry Employment T&T Economy Employment real growth adjusted for inflation (%); annualised real growth adjusted for inflation (%) Total 176 countries or 13 regions (largest/highest/best is number 1; smallest/lowest/worst is number 176 or 13; is aggregate region no ranking GENERAL MACROECONOMIC INDICATORS The following charts illustrate how Travel & Tourism growth follows or varies from general macroeconomic growth for various indicators. The bottom three charts illustrate information related to international visitor arrivals Gross Domestic Product (US$ bn) Exports (US$ bn) T&T Economy GDP Total GDP T&T Employment Total Employment T&T Exports Total Exports Personal Consumption (US$ bn) Employment (' of jobs) Capital Investment (US$ bn) Government Expenditure (US$ bn) Visitor Markets Index (1988=1) International Visitor Arrivals (') T&T Personal Total Personal T&T Government Total Government Consumption Consumption T&T Capital Investment Total Capital Investment Expenditure Expenditure International Visitor Average Spend (US$)

19 The World Travel & Tourism Council is the forum for business leaders in the Travel & Tourism industry. With Chief Executives of one hundred of the world's leading Travel & Tourism companies as its Members, WTTC has a unique mandate and overview on all matters related to Travel & Tourism. WTTC works to raise awareness of Travel & Tourism as one of the world's largest industries, employing approximately 238 million people and generating nearly 1% of world GDP. Each year WTTC, together with its research partner, Oxford Economics, produces comprehensive reports that quantify and forecast the economic impact of Travel & Tourism for 176 economies and the world. To download one-page summaries, the full reports or spreadsheets, visit World Travel & Tourism: The environment of a changing, dynamic world The rapid growth of emerging economies, closer economic integration across geographies, and unparalleled advances in information and communications technologies are converging - and at Accenture we call this fast-evolving economic geography the "multi-polar world". Never before have travelers enjoyed such a range of destinations at such affordable cost. Never before has travel and tourism contributed so much to so many national economies in terms of employment, tax and GDP. But despite continued forecasts of steady growth, the industry is continually challenged to address unexpected crises, to be environmentally sustainable and to achieve high performance. The changing, dynamic world we currently live in has been brought on by the complexities of globalization and with it the demand to provide increasingly personalized services to customers or, in the case of governments, citizens. Some organizations have limited their ability to grow by focusing on eliminating cost to the exclusion of innovation, customer centricity and addressing the increasing demand of green travel as a differentiating factor. The winners are taking a more balanced view. Within this context, Accenture proactively helps clients in travel and tourism to navigate the opportunities and challenges of a multi-polar world in their quest to achieve high performance. Assisting WTTC to provide tools for analysis, benchmarking, forecasting and planning An elite provider of economic analysis, forecasting and modelling, Oxford Economics possesses the skills and experience to assist you to get to grips with the drivers of your business. Over the last 25 years Oxford Economics has built a diverse and loyal client base of over 3 organisations worldwide, including international organisations, governments, central banks, and both large and small businesses. Headquartered in Oxford, England, with offices in London, Belfast, Philadelphia and Basel, Oxford Economics employs over 4 full-time, highly qualified, economists and data specialists, while maintaining links with a network of economists in universities worldwide. For more information please take advantage of a free trial on our website, or contact John Gaster, Oxford Economics, Abbey House, 121 St Aldates, Oxford, OX1 1HB, United Kingdom.Tel ; jrgaster@oxfordeconomics.com

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