TRAVEL & TOURISM CITY TRAVEL & TOURISM IMPACT 2017 MIDDLE EAST & AFRICA

TRAVEL & TOURISM CITY TRAVEL & TOURISM IMPACT 07 MIDDLE EAST & AFRICA

TRAVEL & TOURISM CITY IMPACT As the world rapidly urbanises, there is a need to manage that growth with effective planning. A successful city is one where business, infrastructure, resources, and environment meet with quality jobs and effective government support. Gloria Guevara Manzo, President & CEO World Travel & Tourism Council THE IMPORTANCE OF CITIES 5.5% of the global population live in urban areas in 06, and is predicted to increase to 60% by 050..8BN international tourism arrivals per year expected by 030, with particular growth in cities. 65 global cities analysed in the latest research from the World Travel & Tourism Council. F or over 5 years, the World Travel & Tourism Council (WTTC) has been quantifying the economic and employment impact of Travel & Tourism at the country and regional level. This data is a key source of information for decision-makers within governments, investment banks, academia, and multilateral organisations across the world and particularly within the 85 countries for which we provide detailed reports. It allows us to state with confidence the fact that Travel & Tourism is one of the largest sectors in the world, supporting more than 0% of global economic activity and 9 million jobs: in 0 jobs worldwide. Now, for the first time, WTTC has produced research that looks at the economic and employment impact of Travel & Tourism in cities. Future growth and success for the sector requires recognising and monitoring the trends that will drive future travel habits. According to the UN, the urban population of the world has grown rapidly from 76 million in 950 to over four billion in 06 and today, 5.5% of the world s population lives in urban areas. This proportion is expected to increase further to 60% by 050, with nearly all of the increase concentrated in Asia and Africa. With international tourism arrivals set to rise to.8 billion a year by 030 (UNWTO), and billions more domestic travellers expected, the city share of these arrivals shows particular growth. Understanding the rate and concentration of city tourism compared to country tourism growth is an important need for policy makers. Our research looks at 65 global cities, chosen for being among the top ranked for arrivals and spending by visitors. Across all cities in our study, even despite being selected as key Travel & Tourism centres, there are enormously differing levels of importance. Travel & Tourism s share of city GDP in Cancún, for example, is as much as 9.%, whereas in Los Angeles, with its much more diversified economy, the sector represents only.% of its GDP. The difference in the share of employment is also just as marked, ranging from supporting 38.5% of all employment in Cancún to just 0.8% in Osaka. With highest levels of growth concentrated in Asia, this research importantly provides forecasts for how these figures may change over the decade ahead. As the world rapidly urbanises, there is a need to manage that growth with effective planning. A successful city is one where business, infrastructure, resources, and environment meet with quality jobs and effective government support. Goal. of the UN Sustainable Development Goals calls out the need for cities to strengthen efforts to protect and safeguard the world s cultural and natural heritage. The role of Travel & Tourism in contributing to this goal in cities cannot be underestimated, both in creating civic pride and jobs, and, on a pure financial basis, through the export revenue generated by international visitors. Cities are growing increasingly large and influential and are accounting for a greater proportion of global tourism demand. WTTC is proud to provide the evidence base to help public and private bodies make the correct decisions for the future growth of a sustainable Travel & Tourism sector. Gloria Guevara Manzo President & CEO FOREWORD WTTC annual economic impact analysis https://www.wttc.org/research/economic-research/economic-impact-analysis/ For more information, please contact: ROCHELLE TURNER Research Director rochelle.turner@wttc.org EVELYNE FREIERMUTH Policy & Research Manager evelyne.freiermuth@wttc.org Cover: Aerial view, Hong Kong CITY TRAVEL & TOURISM IMPACT 07

SUMMARY These two regions, the Middle East and Africa, are enormous geographically, extremely diverse culturally and small in terms of Travel & Tourism GDP. In 06, Travel & Tourism for the whole of the 5 countries of Africa, the world's second-largest and second-most-populous continent, contributed US$66. billion or 3.% of GDP to the economy. Trans-continental Middle East, home to 8 nations, provided 3.3% of GDP or $8. billion. Collectively these two regions represent only 6.% of the global economic contribution of the sector. In 06, the largest Travel & Tourism economies in these two regions, Egypt, South Africa, and Morocco were ranked 39th, 0th, and nd respectively, out of 85 countries in terms of their direct GDP contribution, with Travel & Tourism generating over US$8 billion for each economy. The majority of the cities included in this study within the Middle East and Africa regions are relatively small in terms of Travel & Tourism market size. However, the sector makes a large contribution to GDP overall and the cities are important centres for the countries. This report looks within the countries at the ten cities of Abu Dhabi, Cairo, Cape Town, Dubai, Durban, Lagos, Marrakech, Mecca, Riyadh, and Tehran. These ten cities alone directly contribute % of Travel & Tourism GDP for these regions, a proportion forecast to grow to % over the next decade. Cities are important hubs for tourism within countries The importance of cities as tourism destinations is illustrated by comparing a city s direct GDP contribution with that for the wider country. Cities with a relatively higher contribution of GDP from Travel & Tourism than for the country are important destinations and tourism hubs within that country, especially for leisure travel. Dubai is the largest tourism city by market size within the region and it is a big hub for both business and leisure travel. It accounts for a majority of Travel & Tourism GDP for the United Arab Emirates (UAE) and overshadows activity in Abu Dhabi despite the latter s rapid growth over the past decade. Dubai, United Arab Emirates SUMMARY MIDDLE EAST & AFRICA TRAVEL & TOURISM IN THE MIDDLE EAST AND AFRICA 6.% Middle East and Africa share of global direct Travel & Tourism GDP..8% of all jobs in the two regions collectively. are supported by Travel & Tourism. In only three of the ten cities in this study is Travel & Tourism less valuable to the city than to the whole country: Abu Dhabi, Cairo, and Riyadh. The share of GDP generated by Travel & Tourism is lower in Abu Dhabi (.7%) than for United Arab Emirates as a whole (5.%). This is partly due to the large oil industry in the city, but also due to comparison with the relatively high contribution from Dubai. Cairo is an important centre for business and antiquities and Travel & Tourism contributes.7% of the city s economy. Direct Travel & Tourism contribution to Egypt, including to the main Red Sea resort markets, has a much greater share of the country s economy (3.%). Travel & Tourism in Saudi Arabia has had a relatively low profile until the recent 030 strategy to develop the sector as a key tool for diversifying the economy from oil and gas. Although the capital s tourism generated US$3. billion in 06,.% of the city s GDP, its share is lower than the 3.3% that the sector brings to Saudi Arabia. Travel & Tourism GDP is generated by spending from both international and domestic visitors and has been calculated to be consistent with estimates of the sector impact for countries and with other economic activity. Calculation in this report also allows direct comparison across cities relying on consistent methodology and definitions. Calculations for this report focus on 65 important global city destinations and estimate the GDP and employment directly generated by Travel & Tourism activity. Calculation is fully consistent with the WTTC annual economic impact analysis by country and also relies on inputs from Oxford Economics Global City Travel (GCT) database. Study includes: Abu Dhabi, Cairo, Cape Town, Dubai, Durban, Lagos, Marrakech, Mecca, Riyadh, Tehran. CITY TRAVEL & TOURISM IMPACT 07 5

SUMMARY Travel & Tourism is an important tool for job creation in cities Growth in tourism activity can have a disproportionately large impact on job creation. For example, in Mecca, Travel & Tourism directly contributes 7.3% of the city s GDP, but.6% of employment. Nearly in 8 jobs in the city are directly generated by Travel & Tourism. A similar pattern exists in Cape Town, where tourism accounts for 7.5% of city GDP and 0.8% of employment. Cape Town, South Africa Cape Town s tourism revenue relies on both business and leisure visitors, and 7.5% of GDP was generated by Travel & Tourism in 06. This share has risen over the past decade, partly due to weak activity in other sectors. However, Travel & Tourism also benefited from South Africa hosting the World Cup during this period. Marrakech, Morocco Marrakech is a large leisure hub where 7% of its GDP is due to Travel & Tourism. This is much higher than for Morocco as a whole (8.%). Overall, Marrakech is responsible for 7.5% of Morocco s Travel & Tourism GDP. Lagos, Nigeria In Lagos, the most populous city within these two regions, and one of the world s fastest growing, Travel & Tourism contributed just US$ billion in 06, placing it 60th out of the full list of 65 cities for the size of its direct contribution from Travel & Tourism. Cairo, Egypt Reliance on domestic demand raises different risks in Travel & Tourism over the past decade has varied considerably across cities related to their diverse source markets. Just as the countries within these two regions are diverse, so too are the sources of demand. Cities that are heavily reliant on domestic demand can be more exposed to risks in the domestic economy. Many of these cities have large internal markets, but international demand could be improved in some cases by better connectivity and a change in policies regarding visas. Lagos is heavily reliant on large volumes of domestic business travel and is exposed to domestic economic fortunes. Domestic traveller spend accounts for 9.6% of the total. Robust growth over the past decade has not been sufficient to significantly raise the contribution of Travel & Tourism to total city GDP or employment. Cairo has had a five-fold increase in domestic visitor arrivals over the past decade, the highest rate of increase for all cities in these two regions and second only to Chongqing, China, in the full list of 65 cities studied. As numbers of international visitors fell after terror and security events, the governmentsponsored Egypt in our Hearts initiative to subsidise domestic holidays for Egyptians is likely to have contributed to growth in the last few years. The scale of the financial and business services sector in some cities helps to attract business travellers. A large public sector also attracts visitors on government-related business, but GDP generated by these visitors is low compared to that from other output. Among the ten cities in this study, Marrakech is the one most heavily dependent on international visitor spending. It is a large leisure destination within Morocco, and foreign spending accounts for 90.% of the total contribution to GDP with France representing one-third of the international market. This is a far greater proportion than the 67.% of the international spend for the country more widely. As a major airport hub, key stopover destination, and with a small population base, it s not surprising that the share of international spend in Dubai stands at 87.6%. Domestic visitor arrivals have however tripled (385,800 up to. million) in the years from 007 to 06. Travel & Tourism in Abu Dhabi, also a significant hub but far less of a leisure destination, is evenly balanced between domestic and international spending. Riyadh also has a high reliance on the international market, with 83% of visitor spend from international sources a share that has doubled in the past ten years. In the ten years to 06, international arrivals tripled in Abu Dhabi and Riyadh, while more than doubling in Tehran. In the past decade, international visitor arrivals have only fallen in Mecca. In Abu Dhabi and Riyadh, where other industries dominate the city economies, Travel & Tourism employment contributes a higher share of employment than GDP. However, the proportion of the sector s employment for the city is lower than in the country overall. Large cities in emerging markets often involve a more diverse range of activities than in the rest of the country. These cities follow the pattern in the developed world with lower Travel & Tourism productivity than in other sectors. In all the Middle Eastern and African cities covered by this research, the number of jobs generated by Travel & Tourism will increase over the next decade, highlighting the growing importance of the sector as a creator of jobs in the future. In all but two cities, Durban and Riyadh, Travel & Tourism ten-year growth for the city will exceed or match that projected for the country. In Cairo and Marrakech, the forecast city employment growth over the next decade is double that expected for the two countries. Riyadh, Saudi Arabia Growth cities Cities in the Middle East saw notable growth in their share of total tourism demand as airlines in the region added routes and grew as hubs for intercontinental travel. Abu Dhabi and Dubai were the fastest growing cities outside of Asia, helped primarily by international demand. They are linked to rising demand from Asia but also benefited greatly from improved connectivity. Both cities are home to important hub airports for airlines on intercontinental routes. There is scope for improved connectivity for many other cities within the Middle East and Africa which would support faster growth in the future. Within Saudi Arabia, investment and construction has increased capacity and connectivity to allow faster growth. Riyadh s growth rate of 7.9% has been much stronger than that of Mecca at 3.8% but Mecca s growth is set to pull ahead over the next ten years. 6 WORLD TRAVEL & TOURISM COUNCIL CITY TRAVEL & TOURISM IMPACT 07 7

SUMMARY INTERNATIONAL DOMESTIC 3 9 8 5 6 7 FIGURE : % INTERNATIONAL SPEND OF CITY TRAVEL & TOURISM* 90.% Marrakech 87.6% Dubai 3 83% Riyadh 50.8% Abu Dhabi 5 9.% Tehran 6 7.8% Mecca 7.5% Durban 8 0% Cape Town 9 33.% Cairo 0 7.% Lagos FIGURE 3: TOURISM MARKET SIZE & GROWTH* City tourism GDP % growth, 006-6 CAGR 0 8 6 0 Abu Dhabi Riyadh Cairo Tehran Lagos Durban FIGURE : MIDDLE EAST & AFRICA CITIES SUMMARY * GDP Contribution Mecca Cape Town Dubai City tourism GDP, city GDP, 06 Employment Contribution (000s) Marrakech 0 5 0 5 0 5 30 GDP Growth Employment Growth 006 06 006 06 06-06- Abu Dhabi.0.6 3..7 6..7 5. 3.3. 3.5 56. 3.6 7.% 3.% 0 Cairo. 3.3..7..6 09.3 3.3 7.3.6 9..3 5.7% 5.7% FIGURE : TOP MIDDLE EAST & AFRICA CITY DESTINATIONS, 06* Tourism Market Size (Tourism GDP, US$ bn) Share of City GDP (City tourism GDP % of total city GDP) Share of Country GDP (City tourism GDP % of country tourism GDP) Dubai. Marrakech 7.0 Dubai 60.9 Cape Town Dubai.8 6..0 5.9.0 7.5. 9. 3.7 8.7 0.9 0.6 00.0 7.6 90.5 9. 58.5 0.8 69. 0.8 3.5 3. 3.6. 6.%.0% 6.3%.8% Tehran 3.7 Dubai 9. Tehran 30.9 Durban 0.7.9 0.8 3.5.. 3.6 3.7 56. 5.0 78. 6.0 6.% 3.3% 3 Riyadh 3. Cape Town 7.5 Lagos 6.7 Abu Dhabi 3. Mecca 7.3 Cape Town 3. Lagos 0.8.7.0.7 3..3 68..8 9.6.8 3.0. 5.7% 3.8% 5 Mecca 3. Tehran 3.5 Abu Dhabi 7. 6 Cape Town.0 Durban 3.5 Riyadh 6.3 7 Lagos.0 Abu Dhabi.7 Cairo 6.0 Marrakech Mecca 0.6 36.6. 9.6 0.6 7.0 3. 7.3. 3.6 6.6 6.6 8. 35.0 83. 7. 70..6 9.0.6 09. 9.9 6.6 0.7 8.6%.5% 7.5%.5% 8 Cairo. Lagos.7 Mecca 5. 9 Durban 0.8 Riyadh. Durban 8.7 0 Marrakech 0.6 Cairo.7 Marrakech 7.5 Riyadh Tehran.6.8.6.5 3.. 3.7 3.5 6.5.8 5.6 3. 59.9 3. 57.5.5 95. 3. 09.3 3.5 0.9.8 3.7 3. 6.7%.5%.%.0% 8 WORLD TRAVEL & TOURISM COUNCIL CITY TRAVEL & TOURISM IMPACT 07 9

SELECTED CITIES BY MARKET SIZE (GDP) DUBAI TEHRAN Investment in connectivity has led to strong growth of international arrivals and share of 9.% After strong growth over the last decade, ambitious international visit targets require further investment 9.% Direct GDP contribution from Travel & Tourism 88% Share of revenue from international spending Top source markets: India % Saudi Arabia % UK 8% USA % China % Dubai has enjoyed strong growth in arrivals and tourism spending, especially from foreign visitors, over the past decade. This has resulted in an increase in the contribution of Travel & Tourism to the city s GDP from 5.9% in 006 to 9.% in 06. Growth in foreign demand has been facilitated by improvements in connectivity as the number of flight connections has increased for large and growing source markets. Dubai is an important hub for intercontinental travel and many travellers have been encouraged to break their trip with a stay in the city. Further growth in connectivity as well as developments in visitor attractions should FIGURE 5: DUBAI DIRECT TRAVEL & TOURISM GDP, 006-6* continue to draw visitors to Dubai, and the contribution of Travel & Tourism to the city is forecast to rise over the next decade. However, the rapid growth in arrivals has been undermined in recent years by some lower average spending. Development has occurred ahead of demand growth, partly due to the requirement for extra capacity for the Expo. Prices for tourism products and services, such as hotel room rates, have fallen and remain relatively low. This extra capacity will ultimately allow the city to meet further growth from large and rapidlygrowing source markets. Revenue will recover as pricing and average spending picks up. Bolstered by the 05 landmark nuclear deal, giving Tehran access to western business opportunities, the Islamic Republic of Iran has set an ambitious goal to increase the number of international visitor arrivals from.8 million in 0 to 0 million by 05. If Tehran, which contributes 30.9% of the country s Travel & Tourism economic impact, were to have an equal share in this growth, it would mean a four-fold growth rate for the capital. Tehran is one of the largest urban areas in the Middle East and a major industrial and commercial centre. The capital is where most foreign visitors arrive and it boasts two international airports; the old Mehrabad International Airport and new Imam Khomeini International Airport. Over the past year, air connectivity has been boosted by increased service from a number of European centres including Austria, the Netherlands, and Italy. 3.5% Direct GDP contribution from Travel & Tourism 9% Share of revenue from international spending Top source markets: UAE 5% Turkey 3% Germany 8% USA 6% China % FIGURE 6: TEHRAN DIRECT TRAVEL & TOURISM GDP, 006-6* 5 0 5 0 5 0 006 0 0 06 % 0% 8% 6% % % 0% The Travel & Tourism contribution to GDP in Tehran has more than doubled in the past ten years and is expected to increase by.5 times in the next ten years. Significant growth, and that which will achieve the ambitious government plans, will require further infrastructure and human capital development. Tehran accounts for nearly a third of Iran s overall Travel & Tourism GDP and 0% of overall tourism employment. Surprisingly, given the rhetoric between the two nations, the USA is one of the top international source markets for the country, representing 6% of all visitors. 6 5 3 0 0% 006 0 0 06 % 3% % % Dubai Summary UAE Summary Tehran Summary Iran Summary 06 006-6 06-6 06 006-6 06-6 06 006-6 06-6 06 006-6 06-6. 0.9 0.9% 6.3% 8.7 3.6.% 6.% 3.7 5.6 8.9%.%.9 8.7 7.8%.6% 9.% 0.6% - - 5.% 5.3% - - 3.5% 3.% - -.9%.7% - - 69. 3.6 6.%.8% 37.3 39.7 9.%.% 09.3 3.7 6.6%.0% 559.7 668..%.8% 0.8%.% - - 5.% 5.7% - - 3.5% 3.% - -.%.% - - 0 WORLD TRAVEL & TOURISM COUNCIL CITY TRAVEL & TOURISM IMPACT 07

SELECTED CITIES BY MARKET SIZE (GDP) ABU DHABI Growth impeded by a reduction in average spend, but expected to outpace neighboring Dubai in percentage terms Abu Dhabi has enjoyed the strongest growth in Travel & Tourism spending and GDP in the region and the fastest growing of all cities in the study outside of Asia over the past decade. Tourism GDP has increased more than threefold since 006 from $.0 billion to $3. billion. Growth has been faster than for Dubai, helped by even greater expansion in connectivity. Similar to the trend in Dubai, recent growth has been hampered by a reduction in average spending, including falls in hotel room rates as new capacity has outpaced demand. The fall in average spending per day has been more evident than for Dubai. Slower growth is expected for the next ten years than over the past decade. Although Abu Dhabi should continue to outpace Dubai in percentage terms, spending volumes and the level of Travel & Tourism GDP are predicted to remain well below that in Dubai due to more limited overall capacity for visitors. Travel & Tourism as a share of total GDP in Abu Dhabi will also remain lower than in Dubai. The large oil sector in Abu Dhabi is an important influence in this comparison. As the oil price picks up again, the share of GDP generated by Travel & Tourism will fall despite strong growth. However, the Travel & Tourism share of non-oil GDP should increase in Abu Dhabi..7% Direct GDP contribution from Travel & Tourism 5% Share of revenue from international spending Top source markets: India % UK 8% China 8% Philippines 6% Egypt 5% FIGURE 7: ABU DHABI DIRECT TRAVEL & TOURISM GDP, 006-6* 7 6 5 3 006 0 0 06 0 0% 3%.5% %.5% % 0.5% CAPE TOWN South Africa s economy has been struggling with recession, rising unemployment and an increasing population. Despite this difficult economic environment, Travel & Tourism has been fairly resilient, particularly the international market. Cape Town, as a large hub for the sector, is an important stabilising factor for the economy and for employment. Over the past ten years, while Travel & Tourism GDP growth has been low for the city (.5%), it has performed better than South Africa as a whole (.0%). In 06, Travel & Tourism generated 7.5% of the city s GDP and around one in nine people in Cape Town were employed in the Travel & Tourism sector, compared with in in the wider country. The share of jobs in Travel & Tourism businesses in Cape Town has increased from 8.3% in 007 to 0.8% in 06, emphasising the sector s importance as a source of job creation opportunities. The Travel & Tourism contribution to GDP has increased marginally over the past ten years from US$.8 billion to US$ billion. While this hides the year on year declines experienced since 0, it is positive in the face of modest domestic visitor volumes and Cape Town s objective of attracting higher yield travellers. During the two years following the FIFA World Cup, GDP from Travel & Tourism reached a peak of US$.6 billion a figure that our forecasts suggest will next be reached in 0. Travel & Tourism, which can create much needed jobs and economic growth for the country needs government support in investment particularly in easy entry regulations for international visitors. Demonstrates T&T resilience despite tough economic landscape, outperforming national T&T contribution FIGURE 8: CAPE TOWN DIRECT TRAVEL & TOURISM GDP, 006-6* 3 0 006 0 0 06 0% 9% 8% 7% 6% 5% % 3% % % 0% Abu Dhabi Summary UAE Summary Cape Town Summary South Africa Summary 06 006-6 06-6 06 006-6 06-6 06 006-6 06-6 06 006-6 06-6 3. 6..8% 7.% 8.7 3.6.% 6.%.0 3.7.5% 6.% 8.7 6.5.0% 6.6%.7%.7% - - 5.% 5.3% - - 7.5% 8.7% - - 3.0% 3.6% - -. 56. 0.3% 3.% 37.3 39.7 9.%.% 58.5 3.5.7%.0% 76.3,057.6 3.%.0% 3.5% 3.6% - - 5.% 5.7% - - 0.8% 3.% - -.6% 5.7% - - WORLD TRAVEL & TOURISM COUNCIL CITY TRAVEL & TOURISM IMPACT 07 3

SELECTED CITIES BY MARKET SIZE (GDP) 3 METHODOLOGY MARRAKECH Heavy dependence on leisure tourism, primarily from France and other foreign markets City and Metro Definitions A wide geographic definition of cities has been used in this study to include metros or greater city areas rather than measuring just the urban core. The bulk of the reliable and consistent economic data across cities is available for this broader definition. Hence, to ensure consistent estimates of economic contribution this definition was adopted. Marrakech is a large leisure destination within Morocco and is reliant on Travel & Tourism. It is an important sector for the city, directly generating 7.0% of total GDP. Marrakech s tourism industry is highly dependent on international demand, to a much greater extent than in Morocco overall. Spending from foreign visitors provided 90% of Travel & Tourism GDP in 06. The city attracts a large volume of travel from France: around one-third of international tourist arrivals were from France. A large reliance on international demand, and in particular from Western European markets, has not helped Marrakech in recent years. Spending has FIGURE 9: MARRAKECH DIRECT TRAVEL & TOURISM GDP, 006-6*.6.. 0.8 0.6 0. 0. 0 006 0 0 trended downwards over the past six years while the contribution of Travel & Tourism to GDP has slipped from a high of around 37% to the current 7%. Tourism businesses in the city had to cut rates to attract guests as terror attacks in other countries in the region scared off visitors. Renewed growth from major source markets is essential to support this crucial sector and support jobs in the city. Roughly one in four employees were directly employed by Travel & Tourism businesses in 06. The sector was even more important as an employer ten years ago when it accounted for around one in three employees. 06 7% Direct GDP contribution from Travel & Tourism 90% Share of revenue from international spending Top source markets: France 3% UK 0% Spain 9% Italy 7% Germany 6% Marrakech Summary Morocco Summary 06 006-6 06-6 06 006-6 06-6 0.6. 0.0% 8.6% 8.3 6..% 7.0% 7.0% 3.6% - - 8.% 8.5% - - 70. 09. -.%.5% 89.0,0.7-0.9%.3%.6% 9.9% - - 7.% 7.7% - - 0% 35% 30% 5% 0% 5% 0% 5% 0% Consistent definitions across cities have been used in all cases to ensure comparability. In the instances where travel data are only reported for a narrow city centre definition or for a wider geographic area, estimates are based on multipliers using all available sector or industry data. City travel data are collated in Oxford Economics Global City Travel (GCT) database using a narrow definition of the city in many cases, consistent with widespread reporting. GCT data used in this study have been adjusted accordingly. Further details are in the methodology appendix. GVA Methodology Calculation of economic impact reconciles two methodologies for cities consistent with the country level economic impacts estimated as part of the WTTC annual economic research. Results from the two methodologies are used as cross-checks to refine assumptions and derive a final combined estimate. Supply-side: Sectoral output by city is the starting point for analysis. Tourism ratios consistent with country level estimates are imposed to understand the proportion of output generated by tourism activity. As an example, if a city has a high concentration of activity in the hotels and restaurants sector then it is fair to assume that a large proportion of this activity is generated by tourist spending. This city will therefore have a large economic contribution from tourism. Demand-side: Tourism spend for each city as a destination is calculated first according to GCT definitions of cities which quantifies arrivals, overnights average spending and total tourism revenue. Where necessary, this is grossed-up to the wider metro definition for consistency. A ratio of GVA to Gross Output is then applied, consistent with the WTTC annual economic research and the industrial structure for the country and the city. Employment Methodology Tourism employment by city is derived from the Travel & Tourism GVA and labour productivity. Labour productivity for tourism characteristic sectors is estimated for the cities and the countries. A productivity multiplier is derived for the city relative to the country according to this sectoral detail and is then applied to country labour productivity from WTTC s annual economic research. METHODOLOGY WORLD TRAVEL & TOURISM COUNCIL CITY TRAVEL & TOURISM IMPACT 07 5

THE AUTHORITY ON WORLD TRAVEL & TOURISM WORLD TRAVEL & TOURISM COUNCIL (WTTC), The Harlequin Building, 65 Southwark Street, London SE 0HR, United Kingdom Tel: + (0) 07 8 8007 Email: enquiries@wttc.org www.wttc.org World Travel & Tourism Council: City Travel & Tourism Impact 07 - December 07. All rights reserved. The copyright laws of the United Kingdom allow certain uses of this content without our (i.e. the copyright owner s) permission. You are permitted to use limited extracts of this content, provided such use is fair and when such use is for non-commercial research, private study, review or news reporting. The following acknowledgment must also be used, whenever our content is used relying on this fair dealing exception: Source: World Travel & Tourism Council: City Travel & Tourism Impact 07 - December 07. All rights reserved. If your use of the content would not fall under the fair dealing exception described above, you are permitted to use this content in whole or in part for non-commercial or commercial use provided you comply with the Attribution, Non-Commercial.0 International Creative Commons Licence. In particular, the content is not amended and the following acknowledgment is used, whenever our content is used: Source: World Travel & Tourism Council: City Travel & Tourism Impact 07 - December 07. All rights reserved. Licensed under the Attribution, Non-Commercial.0 International Creative Commons Licence. You may not apply legal terms or technological measures that legally restrict others from doing anything this license permits.