Travel & Tourism Sector Ranking South Korea
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1 Travel & Tourism Sector Ranking South Korea Summary of Findings, November 2013
2 Introduction Sector Ranking Analysis In order to better understand the importance of the Travel & Tourism industry in a global context, it is beneficial to compare the industry s performance and contributions to other major industries/sectors. Oxford Economics and WTTC created a ranking of Travel & Tourism across all sectors of the economy using various industry classifications across countries. Performance measures included in the analysis are: Employment (industry jobs & % contribution) GDP (GDP impacts and % of national GDP) The results of the analysis not only provide a comparison of Travel & Tourism to other industries, but also provide a view of how Travel & Tourism s contributions in different markets have performed over time. Countries included in the analysis are: Australia Germany South Korea United Kingdom United States Note: Please be aware that the data and figures that follow will involve some double-counting with regards to the Travel & Tourism sector, which contributes towards a range of related sectors in the table above (for example Hotels, Restaurants, Inland transport, Water transport, Air transport and Retail trade, motorcycles; repair of household goods ). Accordingly, total employment and gross domestic product (GDP) for South Korea will be the sum of the 59 sectors excluding Travel & Tourism. The Travel & Tourism sector is included separately given the approach used to devise the economic contribution estimates for the sector, using published Tourism Satellite Accounts (TSAs), GDP by expenditure and inputoutput framework as outlined in the following methodology document - It is not possible given this approach to estimate the Travel & tourism and non Travel & Tourism components of individual sectors i.e. to split up the number of jobs or amount of GDP in Hotels or Restaurants that is Travel & tourism related or otherwise. 2
3 Retail trade Construction Education Restaurants Wholesale trade & commission trade Other business activities Health care & social work Agriculture Public administration and defence Sewage and refuse disposal Post and telecommunications Radio, television & communication equipment Other service activities Travel & tourism Real estate Financial intermediation Travel & Tourism in South Korea - Total Employment Total Employment There were nearly 25 million jobs in South Korea in South Korea - Total Employment by Industry (000's) 2013 Travel & Tourism generated 616,000 jobs in South Korea in 2013, ranking 14 th among major industries. This is larger than real estate s and financial remediation s employment of 569,000 and 546,000, respectively, and slightly less than other service activities employment of 620,000. 2,500 2,000 1,500 2,174 1,761 1,712 1,653 1,522 1,514 1,456 1,256 1,182 Travel & Tourism s employment is approximately half of the employment in the agriculture and public administration sectors, which had 1.3 million and 1.2 million jobs, respectively. Travel & Tourism employment is approximately 28% of the employment in the retail trade industry, which had the highest number of jobs in South Korea in 2013 with nearly 2.2 million. 1,
4 Radio, tv, comm. equip. Real estate Public administration and defence Construction Education Post and telecom. Health care & social work Retail trade Financial intermediation Motor vehicles & trailers Other business activities Wholesale trade and commission trade Basic metals Chemicals and chemical products Machinery and equipment Agriculture Travel & tourism Insurance and pension funding Electricity and gas Inland transport Travel & Tourism in South Korea- % Total Economy Employment Share of Employment Travel & Tourism contributed 2.1% of South Korea s total employment base. This is larger than the contributions of insurance and pension funding, electricity and gas, and inland transport, which were 2.0%, 2.0%, and 1.8%, respectively. Travel & Tourism s employment contribution is less than half the impact of the financial intermediation and health care and social work industries, which each had GDP impacts of 4.5% Travel & Tourism s employment contribution is approximately 25% of the retail trade sector, which had the highest employment contribution in South Korea in 2013 at 7.9% in South Korea - % Total Economy GDP by Industry % 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 7.9% 6.7% 6.0% 5.6% 5.4% 5.0% 4.5% 4.5% 4.5% 3.8% 3.3% 3.3% 3.2% 3.2% 2.7% 2.4% 2.1% 2.0% 2.0% 1.8% 4
5 Travel & Tourism in South Korea Industry Employment (2013, 2023) Rank Industry Industry Employment (000's) Industry Share of Total Rank Industry Employment Employment (000's) Share of Total Employment 1 Retail trade, motorcycles; 2, % 1 Health care & social work 2, % 2 Construction 1, % 2 Retail trade, motorcycles; 1, % 3 Education 1, % 3 Education 1, % 4 Restaurants 1, % 4 Construction 1, % except of motor 5 vehicles and motorcycles 1, % 5 Other business activities 1, % 6 Other business activities 1, % 6 Restaurants 1, % 7 Health care & social work 1, % 7 except of motor 1, % 8 Agriculture 1, % 8 Public administration and defence; compulsory social 1, % Public administration and defence; compulsory social 9 security 1, % Sewage and refuse disposal, sanitation and similar 9 activities % Sewage and refuse disposal, sanitation and similar 10 activities % 10 Agriculture % 11 Post and telecommunications % 11 Post and telecommunications % 12 Radio, television and communication equipment % 12 Radio, television and communication equipment % 13 Other service activities % 13 Travel & tourism % 14 Travel & tourism % 14 Real estate activities % 15 Real estate activities % 15 Other service activities % and pension 16 funding % and pension 16 funding % 17 Recreational, cultural and sporting activities % 17 Recreational, cultural and sporting activities % 18 Machinery and equipment, not elsewhere classified % 18 Motor vehicles, trailers and semi-trailers % 19 Motor vehicles, trailers and semi-trailers % 19 Machinery and equipment, not elsewhere classified % 20 Hotels % 20 Research and development % 5
6 Travel & Tourism in South Korea Employment Share & Ranking Share of Employment & Ranking In 1990, Travel and Tourism s employment contribution ranked11th among major industries, contributing 2.8% of South Korea s employment base. By 2000, the industry s employment share increased to 2.6% and raised the industry s rank to 9th, showing the increasing importance of Travel & Tourism to South Korea s economy. After the global recession of 2008, Travel and Tourism s employment share dropped to 2.3%, and the industry s rank dropped to 14 th. Travel & Tourism s employment share has remained relatively flat over the past five years and is 2.5% in South Korea - Travel & Tourism: % Total Economy Employment & Industry Rank 3.00% 2.50% 2.00% 1.50% 1.00% 2.8% 11th 2.6% 9th 2.3% 14th 2.5% 2.5% 13th 14th 2.7% 13th 0.50% 0.00%
7 Travel & Tourism in South Korea Industry Performance (Employment) % total economy employment Rank Retail trade, Retail trade, Retail trade, Retail trade, 1 Agriculture (14.7) (9.8) (8.6) (8.8) (8.7) Health care & social w ork (7.9) 2 Retail trade, (8.2) 3 Construction (7.6) 4 motorcycles (6.5) 5 Restaurants (6.1) Restaurants (7.3) Agriculture (9.8) Construction (7.7) Construction (7.1) Construction (7.1) motorcycles (7.5) Education (7.4) Education (7) Education (6.9) Education (7.2) Construction (7.5) Restaurants (6.7) Restaurants (6.7) Restaurants (6.6) Construction (7.1) motorcycles (6.2) motorcycles (6.2) motorcycles (6.1) Retail trade, (7.7) Other business activities (6.8) 6 Education (4.7) Education (5.6) Agriculture (6) Other business activities (5.9) Other business activities (6.1) Restaurants (6) 7 Textiles (3.3) Public administration and defence; compulsory social security (3.6) Other business activities (5.8) Health care & social w ork (5.6) Health care & social w ork (5.9) 8 Inland transport (3.2) Other business activities (3.4) Health care & social w ork (3.6) Agriculture (5.1) Agriculture (5) motorcycles (5.1) Public administration and defence; compulsory social security (5) Sew age and refuse disposal, sanitation and similar activities (3.9) 9 Public administration and defence; Public administration and defence; Public administration and defence; Public administration and defence; Travel & tourism (2.6) compulsory social security (2.8) compulsory social security (3.6) compulsory social security (4.6) compulsory social security (4.8) 10 Radio, television and communication Machinery and equipment, not elsew here Sew age and refuse disposal, sanitation Sew age and refuse disposal, sanitation Sew age and refuse disposal, sanitation equipment (2.8) classified (2.1) and similar activities (3.2) and similar activities (3.3) and similar activities (3.4) Agriculture (3.8) 11 Travel & tourism (2.8) Radio, television and communication Radio, television and communication Post and telecommunications (2.6) equipment (2.1) equipment (2.8) Post and telecommunications (2.9) Post and telecommunications (3.1) 12 Machinery and equipment, not elsew here Radio, television and communication Radio, television and communication Radio, television and communication Other service activities (2.1) Post and telecommunications (2.8) classified (2.4) equipment (2.6) equipment (2.8) equipment (2.7) 13 Wearing apparel, dressing and dying of fur (2.2) Post and telecommunications (2.1) Other service activities (2.5) Travel & tourism (2.5) Other service activities (2.5) Travel & tourism (2.7) 14 Recreational, cultural and sporting activities (2.2) Health care & social w ork (2) Travel & tourism (2.3) Other service activities (2.5) Travel & tourism (2.5) Real estate activities (2.6) 15 Leather, leather and footw ear (2) Sew age and refuse disposal, sanitation Real estate activities (2.2) and similar activities (2) and pension funding (2.3) Real estate activities (2.3) Other service activities (2.4) 16 Recreational, cultural and sporting Hotels (1.9) and pension funding (1.9) activities (2.3) and pension funding (2.2) and pension funding (2.2) and pension funding (2.3) 17 Food and beverages (1.9) Recreational, cultural and sporting Recreational, cultural and sporting Recreational, cultural and sporting Real estate activities (2.2) and pension funding (1.9) activities (2.2) activities (2.2) activities (2) 18 Other service activities (1.8) Recreational, cultural and sporting Machinery and equipment, not elsew here Machinery and equipment, not elsew here Machinery and equipment, not elsew here Motor vehicles, trailers and semi-trailers activities (1.9) classified (2) classified (2) classified (1.9) (1.9) 19 Motor vehicles, trailers and semi-trailers Motor vehicles, trailers and semi-trailers Motor vehicles, trailers and semi-trailers Motor vehicles, trailers and semi-trailers Machinery and equipment, not elsew here Textiles (1.8) (1.7) (1.7) (1.8) (1.8) classified (1.8) 20 Hotels (1.6) Inland transport (1.7) Hotels (1.6) Hotels (1.7) Hotels (1.7) Research and development (1.6) 7
8 Radio, tv, comm. equip. Real estate Public administration and defence Construction Education Post and telecom. Health care & social work Retail trade Financial intermediation Motor vehicles & trailers Other business activities Wholesale trade and commission trade Basic metals Chemicals and chemical products Machinery and equipment Agriculture Travel & tourism Insurance and pension funding Electricity and gas Inland transport Travel & Tourism in South Korea - Total GDP Total GDP Travel & Tourism generated US$24 billion in GDP in South Korea in This is larger than the GDP of insurance and pension funding, electricity and gas, and inland transport, which amounted to $24 billion, $23 billion and $21 billion, respectively. Travel & Tourism s GDP impact is slightly less than the impact of the agriculture industry and is less than 50% of the financial intermediation industry s impact of $52 billion. Travel & Tourism s GDP impact is approximately 25% of the radio, tv, and commercial equipment industry s impact of $92 billion. South Korea - Total GDP by Industry (US$bn, 2012 prices and exchange rates) Travel & Tourism s GDP impact ranks 17 th among major industries. 8
9 Travel & Tourism in South Korea - % Total GDP Share of GDP Travel & Tourism contributed 2.1% of South Korea s total GDP in This is larger than the contributions of insurance and pension funding, electricity and gas, and inland transport, which were 2.0%, 2.0%, and 1.8%, respectively. Travel & Tourism s GDP contribution is slightly less than the agriculture industry s contribution 2.4% and is approximately half of the health care and social work s and post and telecom s contributions of 4.5% and 5.0%. Travel & Tourism s GDP impact is approximately 33% of the impact of the real estate industry sector and is approximately 25% of the impact of the radio, tv, commercial equipment industry, which had the highest GDP contribution of 7.9% in 2013 South Korea - % Total Economy GDP by Industry % 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 7.9% Radio, tv, comm. equip. 6.7% Real estate 6.0% 5.6% 5.4% Public administration and defence Construction Education 5.0% 4.5% 4.5% 4.5% Post and telecom. Health care & social work Retail trade Financial intermediation 3.8% 3.3% 3.3% 3.2% 3.2% Motor vehicles & trailers Other business activities Wholesale trade and commission trade Basic metals Chemicals and chemical products 2.7% 2.4% 2.1% 2.0% 2.0% 1.8% Machinery and equipment Agriculture Travel & tourism Insurance and pension funding Electricity and gas Inland transport 9
10 Travel & Tourism in South Korea Industry GDP (2013, 2023) Rank Industry Industry GDP Share of Industry GDP Share of Rank Industry (US$ bn) Total GDP (US$ bn) Total GDP 1 Radio, television and communication equipment % 1 Radio, television and communication equipment % 2 Real estate activities % 2 Real estate activities % Public administration and defence; compulsory social 3 security % Public administration and defence; compulsory social 3 security % 4 Construction % 4 Construction % 5 Education % 5 Education % 6 Post and telecommunications % 6 Post and telecommunications % 7 Health care & social work % 7 and pension % Retail trade, motorcycles; 8 repair of household goods % Retail trade, motorcycles; 8 repair of household goods % and pension 9 funding % 9 Health care & social work % 10 Motor vehicles, trailers and semi-trailers % 10 Basic metals % 11 Other business activities % 11 Other business activities % except of motor 12 vehicles and motorcycles % 12 Motor vehicles, trailers and semi-trailers % 13 Basic metals % 13 Machinery and equipment, not elsewhere classified % 14 Chemicals and chemical products % 14 Chemicals and chemical products % 15 Machinery and equipment, not elsewhere classified % 15 except of motor % 16 Agriculture % 16 Insurance and pension funding, except compulsory social % 17 Travel & tourism % 17 Travel & tourism % Insurance and pension funding, except compulsory social 18 security % 18 Electricity and gas % 19 Electricity and gas % 19 Agriculture % 20 Inland transport % 20 Water transport % 10
11 Travel & Tourism in South Korea GDP Share & Ranking Share of GDP & Ranking In 1990, Travel and Tourism s GDP contribution ranked 11 th among major industries, contributing 2.8% of South Korea s GDP. By 2000, the industry s employment share decreased to 2.5% and dropped the industry s rank to 15 th. As other industries, such as the motor vehicle manufacturing and telecommunications industry, increased in importance, Travel and Tourism s GDP contribution dropped to 2.1%, causing its rank to drop to 17 th among major industries. Travel & Tourism s employment share and rank has remained relatively flat over the past five years and is currently 2.1% (and still ranked 17 th ) in South Korea - Travel & Tourism: % Total Economy GDP & Industry Rank 3.00% 2.50% 2.00% 1.50% 1.00% 2.8% 11th 2.5% 15th 2.1% 2.1% 2.1% 17th 17th 17th 1.7% 17th 0.50% 0.00%
12 Travel & Tourism in South Korea Industry Performance (GDP) % total economy GDP Rank Construction (12.3) Real estate activities (9.1) Real estate activities (7.5) Radio, television and communication Radio, television and communication Radio, television and communication equipment (7.8) equipment (7.9) equipment (9.1) 2 Real estate activities (8.8) Construction (7.9) Construction (6.9) Real estate activities (6.7) Real estate activities (6.7) Real estate activities (5.8) 3 Public administration and defence; Public administration and defence; Public administration and defence; Public administration and defence; Public administration and defence; Public administration and defence; compulsory social security (8.7) compulsory social security (6.9) compulsory social security (6) compulsory social security (5.9) compulsory social security (6) compulsory social security (5.7) 4 Education (8) Education (6.1) Radio, television and communication equipment (5.9) Construction (5.7) Construction (5.6) Construction (5.3) Retail trade, Retail trade, 5 (5.2) (5.1) Education (5.9) Education (5.3) Education (5.4) Education (5.2) 6 Agriculture (5.1) Post and telecommunications (4.7) and pension funding (4) Post and telecommunications (4.8) Post and telecommunications (5) Post and telecommunications (5.1) 7 8 motorcycles (4.3) and pension funding (4.1) motorcycles (3.9) Health care & social w ork (3.8) and pension funding (4.6) Retail trade, (4.3) Retail trade, (4.5) and pension funding (4.5) Health care & social w ork (4.5) Retail trade, (4.5) and pension funding (4.4) Retail trade, (4.2) 9 Health care & social w ork (4) Post and telecommunications (3.6) Health care & social w ork (3.9) Health care & social w ork (4.4) Health care & social w ork (4.1) and pension funding (4.5) 10 Inland transport (3.1) Agriculture (3.5) Motor vehicles, trailers and semi-trailers Motor vehicles, trailers and semi-trailers Motor vehicles, trailers and semi-trailers (3.4) (3.9) (3.8) Basic metals (3.8) 11 Travel & tourism (2.8) Other business activities (3.3) Other business activities (3.4) Basic metals (3.4) Other business activities (3.3) Other business activities (3.5) 12 Other business activities (2.6) Radio, television and communication Motor vehicles, trailers and semi-trailers equipment (3) (3.4) motorcycles (3.3) motorcycles (3.3) motorcycles (3.3) 13 Basic metals (2.4) Chemicals and chemical products (2.7) Basic metals (3.2) Other business activities (3.3) Basic metals (3.2) Machinery and equipment, not elsew here classified (3.3) 14 Restaurants (1.8) Basic metals (2.6) Chemicals and chemical products (2.9) Chemicals and chemical products (3.1) Chemicals and chemical products (3.2) Chemicals and chemical products (3.2) 15 Chemicals and chemical products (1.7) Travel & tourism (2.5) Agriculture (2.8) Machinery and equipment, not elsew here classified (2.9) Machinery and equipment, not elsew here classified (2.7) motorcycles (2.9) Motor vehicles, trailers and semi-trailers Machinery and equipment, not elsew here Insurance and pension funding, except 16 Textiles (1.6) Agriculture (2.4) Agriculture (2.4) (2.3) classified (2.5) compulsory social security (2.5) 17 Food and beverages (1.5) Inland transport (2) Travel & tourism (2.1) Travel & tourism (2.1) Travel & tourism (2.1) Travel & tourism (2.1) Motor vehicles, trailers and semi-trailers Machinery and equipment, not elsew here Insurance and pension funding, except 18 Electricity and gas (1.9) Electricity and gas (2) Electricity and gas (2) (1.4) classified (2) compulsory social security (2) Insurance and pension funding, except 19 Post and telecommunications (1.4) Restaurants (1.9) Inland transport (1.9) Electricity and gas (2) Agriculture (2) compulsory social security (2) 20 Recreational, cultural and sporting activities (1.3) Electricity and gas (1.8) Insurance and pension funding, except compulsory social security (1.9) Inland transport (1.8) Inland transport (1.8) Water transport (1.8) 12
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