Travel & Tourism Sector Ranking United Kingdom Summary of Findings, November 2013
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 vehicles and motorcycles; repair of household goods ). Accordingly, total employment and gross domestic product (GDP) for the UK 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 input-output framework as outlined in the following methodology document - http://www.wttc.org/site_media/uploads/downloads/2013_methodology.pdf. 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
United Kingdom Note: Please be aware that the 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 Accommodation,, pipelines, Water transport, Air transport and vehicles and motorcycles ). Accordingly, total employment and gross domestic product (GDP) for the UK will be the sum of the 85 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 input-output framework as outlined in the following methodology document - http://www.wttc.org/site_media/uploads/downloads/2013_methodology.pdf. 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 Accommodation or that is Travel & tourism related or otherwise. 3
Retail trade Education Human health Food and beverage Public administration and defence Wholesale trade Specialised construction Travel & tourism Social work Services to buildings & landscape Residential care Land transport Travel & Tourism in the United Kingdom - Total Employment Total Employment There were nearly 32 million jobs in the United Kingdom in 2013. Travel & Tourism generated more than 1 million jobs in the United Kingdom in 2013, ranking 8 th among major industries. United Kingdom - Total Employment by Industry (000's) 2013 3,500 3,000 2,500 3,142 2,727 2,316 This is larger than social work, services to buildings and landscaping, and residential care services employment of 955,000, 836,000, and 768,000, respectively. Travel & Tourism s employment is nearly half of the employment in the human health sector, which had 2.3 million jobs and a third of the employment in the retail trade industry, which had the most jobs in the United Kingdom in 2013 with more than 3.1 million. 2,000 1,500 1,000 500-1,618 1,529 1,185 1,131 1,023 955 836 768 767 4
Retail trade Education Human health Food and beverage Public administration and defence Wholesale trade Specialised construction Travel & tourism Social work Services to buildings & landscape Residential care Land transport Travel & Tourism in the United Kingdom - % Total Economy Employment Share of Employment Travel & Tourism contributed 3.2% of the United Kingdom s total employment base. This is larger than social work, services to buildings and landscape, and residential care contributions of 3.0%, 2.6%, and 2.4%, respectively. Travel & Tourism s employment contribution is less than half the impact of the human health industry, which each had a GDP impact of 7.3% Travel & Tourism s employment contribution is nearly 33% of the retail trade sector, which had the highest employment contribution in United Kingdom in 2013 at 9.9% in 2013. United Kingdom - % Total Economy Employment by Industry 2013 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 9.9% 8.6% 7.3% 5.1% 4.8% 3.7% 3.5% 3.2% 3.0% 2.6% 2.4% 2.4% 5
Travel & Tourism in the United Kingdom Industry Employment (2013, 2023) Rank Industry Industry Employment (000's) 2013 2023 Industry Share of Total Rank Industry Employment Employment (000's) Share of Total Employment 1 vehicles and motorcycles 3,142 9.9% 1 vehicles and motorcycles 3,460 10.2% 2 Education 2,727 8.6% 2 Education 2,601 7.6% 3 Human health 2,316 7.3% 3 Human health 2,344 6.9% 4 1,618 5.1% 4 1,785 5.2% compulsory social 5 security 1,529 4.8% compulsory social 5 security 1,367 4.0% vehicles and 6 motorcycles 1,185 3.7% vehicles and 6 motorcycles 1,315 3.9% 7 1,131 3.5% 7 Travel & tourism 1,292 3.8% 8 Travel & tourism 1,023 3.2% 8 1,244 3.7% 9 Social work without accommodation 955 3.0% 9 Services to buildings and landscape 1,009 3.0% 10 Services to buildings and landscape 836 2.6% 10 Social work without accommodation 969 2.8% 11 Residential care 768 2.4% 11 Employment 910 2.7% 12 pipelines 767 2.4% 12 902 2.7% 13 Employment 763 2.4% 13 pipelines 843 2.5% 14 754 2.4% 14 Residential care 774 2.3% consultancy and related 15 658 2.1% consultancy and related 15 758 2.2% 16 Construction of buildings 628 2.0% 16 Activities of head offices; management consultancy 752 2.2% Activities of head offices; management consultancy 17 602 1.9% 17 Construction of buildings 742 2.2% Architectural and engineering ; technical testing 18 and analysis 554 1.7% Architectural and engineering ; technical testing 18 and analysis 665 2.0% Financial service, except insurance and pension 19 funding 549 1.7% 19 Real estate 604 1.8% Wholesale and retail trade and repair of motor vehicles 20 and motorcycles 537 1.7% 20 Sports and amusement and recreation 587 1.7% 6
Travel & Tourism in the United Kingdom Employment Share & Ranking Share of Employment & Ranking In 1990, Travel and Tourism s employment contribution ranked 8th among major industries, contributing 3.1% of the United Kingdom s employment base. United Kingdom - Travel & Tourism: % Total Economy Employment & Industry Rank 4.00% 3.8% By 2000, the industry s employment share increased to 3.4% and raised the industry s rank to 8th, showing the increasing importance of Travel & Tourism to the United Kingdom s economy. After the global recession of 2008, Travel and Tourism s employment share dropped slightly to 2.8%, and the industry s rank dropped to 14th. 3.50% 3.00% 2.50% 2.00% 3.1% 8th 3.4% 8th 2.8% 9th 3.1% 8th 3.2% 8th 7th Travel & Tourism has rebounded nicely since 2008, and its employment share is currently 3.2%, ranking it 8 th. 1.50% 1.00% 0.50% 0.00% 1990 2000 2008 2012 2013 2023 7
Travel & Tourism in the United Kingdom Industry Performance (Employment) % total economy employment Rank 1990 2000 2008 2012 2013 2023 1 vehicles and motorcycles (9.7) vehicles and motorcycles (10.2) vehicles and motorcycles (10.1) vehicles and motorcycles (9.9) vehicles and motorcycles (9.9) vehicles and motorcycles (10.2) 2 Education (7.1) Education (7.5) Education (8.2) Education (8.6) Education (8.6) Education (7.6) 3 compulsory social security (6) Human health (6) Human health (6.8) Human health (7.3) Human health (7.3) Human health (6.9) 4 (5.2) compulsory social security (5.4) compulsory social security (5.4) (5.1) (5.1) (5.2) 5 6 7 8 9 10 11 12 13 14 15 Human health (5.2) (4.4) vehicles and motorcycles (4) (4.7) (4.4) vehicles and motorcycles (4.3) Travel & tourism (3.1) Travel & tourism (3.4) Social w ork w ithout accommodation (2.5) Social w ork w ithout accommodation (2.6) pipelines (2.4) pipelines (2.2) Financial service, except Financial service, except insurance and pension funding insurance and pension funding (2.4) (2.2) Services to buildings and landscape (2.2) Employment (2.2) Wholesale and retail trade and Services to buildings and repair of motor vehicles and landscape (2.1) motorcycles (2.1) Manufacture of fabricated metal products, except machinery and (2.1) equipment (1.9) Wholesale and retail trade and Residential care (1.8) repair of motor vehicles and motorcycles (2) (5) (5) vehicles and motorcycles (3.9) Social w ork w ithout accommodation (2.9) Travel & tourism (2.8) Employment (2.6) Services to buildings and landscape (2.3) pipelines (2.3) (2.2) Financial service, except insurance and pension funding (2.1) Other personal service (2) compulsory social security (4.9) vehicles and motorcycles (3.7) (3.6) compulsory social security (4.8) vehicles and motorcycles (3.7) (3.5) Travel & tourism (3.1) Travel & tourism (3.2) Social w ork w ithout accommodation (3) Services to buildings and landscape (2.6) Social w ork w ithout accommodation (3) Services to buildings and landscape (2.6) compulsory social security (4) vehicles and motorcycles (3.9) Travel & tourism (3.8) (3.7) Services to buildings and landscape (3) Social w ork w ithout accommodation (2.8) Employment (2.4) Residential care (2.4) Employment (2.7) Residential care (2.4) pipelines (2.4) (2.3) (2) pipelines (2.4) Employment (2.4) (2.4) (2.1) (2.7) pipelines (2.5) Residential care (2.3) (2.2) 8
Real estate Human health Retail trade Education Public administration and defence Wholesale trade Computer programming & consultancy services and insurance Financial service Specialised construction Travel & tourism Activities of head offices; management consultancy Food and beverage Construction of buildings Legal and accounting Travel & Tourism in the United Kingdom - Total GDP Total GDP Travel & Tourism generated US$60 billion in GDP in the United Kingdom in 2013. United Kingdom - Total GDP by Industry (US$bn, 2012 prices and exchange rates) 2013 250 232 This is larger than the GDP of of head offices/management consultancy, construction of buildings and legal and accounting services, which were $59 billion, $55 billion and $53 billion, respectively. 200 150 100 149 148 147 126 111 105 82 80 77 Travel & Tourism s GDP impact is slightly less than 50% of the impact of public administration 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 real estate industry s impact of $232 billion. 50-60 59 56 55 53 Travel & Tourism s GDP impact ranks 17 th among major industries. 9
Real estate Human health Retail trade Education Public administration and defence Wholesale trade Computer programming & consultancy services and insurance Financial service Specialised construction Travel & tourism Activities of head offices; management consultancy Food and beverage Construction of buildings Legal and accounting Travel & Tourism in the United Kingdom - % Total GDP Share of GDP Travel & Tourism contributed 2.4% of the United Kingdom s total GDP in 2013. This is larger than the contributions of of head offices/management consultancy, construction of buildings and legal and accounting services, which were 2.4%, 2.2% and 2.1%, respectively. Travel & Tourism s GDP contribution is more than half the impact of the wholesale trade industry and is 40% of the impact of the human health industry. Travel & Tourism s GDP impact is approximately 25% of the impact of the real estate industry, which had the highest GDP contribution of 9.3% in 2013 United Kingdom - % Total Economy GDP by Industry 2013 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 9.3% 6.0% 5.9% 5.9% 5.1% 4.4% 4.2% 3.3% 3.2% 3.1% 2.4% 2.4% 2.3% 2.2% 2.1% 10
Travel & Tourism in the United Kingdom Industry GDP (2013, 2023) 2013 2023 Rank Industry Industry GDP Share of Industry GDP Share of Rank Industry (US$ bn) Total GDP (US$ bn) Total GDP 1 Real estate 232 9.3% 1 Real estate 333 10.5% 2 Human health 149 6.0% 2 vehicles and motorcycles 188 5.9% 3 vehicles and motorcycles 148 5.9% 3 Human health 166 5.2% 4 Education 147 5.9% 4 consultancy and related 161 5.1% compulsory social 5 security 126 5.1% 5 Education 152 4.8% vehicles and 6 motorcycles 111 4.4% vehicles and 6 motorcycles 142 4.5% consultancy and related 7 105 4.2% compulsory social 7 security 128 4.0% services and insurance 8 82 3.3% services and insurance 8 113 3.5% Financial service, except insurance and pension 9 funding 80 3.2% Financial service, except insurance and pension 9 funding 100 3.1% 10 77 3.1% 10 Travel & tourism 95 3.0% 11 Travel & tourism 60 2.4% 11 Activities of head offices; management consultancy 94 3.0% Activities of head offices; management consultancy 12 59 2.4% 12 93 2.9% 13 56 2.3% 13 80 2.5% 14 Construction of buildings 55 2.2% 14 72 2.3% 15 53 2.1% 15 Construction of buildings 72 2.2% 16 pipelines 45 1.8% 16 Employment 63 2.0% 17 Employment 42 1.7% Architectural and engineering ; technical testing 17 and analysis 59 1.8% 18 Social work without accommodation 40 1.6% 18 pipelines 58 1.8% Wholesale and retail trade and repair of motor vehicles 19 and motorcycles 39 1.6% 19 Services to buildings and landscape 57 1.8% Architectural and engineering ; technical testing 20 and analysis 38 1.5% Wholesale and retail trade and repair of motor vehicles 20 and motorcycles 50 1.6% 11
Travel & Tourism in the United Kingdom GDP Share & Ranking Share of GDP & Ranking In 1990, Travel and Tourism s GDP contribution ranked 9 th among major industries, contributing 3.0% of the United Kingdom s GDP. United Kingdom - Travel & Tourism: % Total Economy GDP & Industry Rank 4.00% By 2000, the industry s employment share increased to 3.4%, maintaining the industry s rank of 9 th. After the global recession of 2008, Travel and Tourism s employment share dropped below 2000 levels to 2.2%, causing its rank to drop to 13 th among major industries. Travel & Tourism s employment share and rank has improved slightly over the past five years and is currently 2.4% (and ranked 11 th ) in 2013. 3.50% 3.00% 2.50% 2.00% 1.50% 3.0% 9th 3.4% 9th 2.2% 13th 2.4% 2.4% 11th 11th 3.0% 10th 1.00% 0.50% 0.00% 1990 2000 2008 2012 2013 2023 12
Travel & Tourism in United Kingdom Industry Performance (GDP) % total economy GDP Rank 1990 2000 2008 2012 2013 2023 1 Real estate (8.9) Real estate (8) Real estate (8.4) Real estate (9.3) Real estate (9.3) Real estate (10.5) Education (7.1) Education (6.5) Education (6) Human health (6) 2 vehicles and motorcycles (5.9) vehicles and motorcycles (5.9) 3 4 5 6 7 8 9 10 11 12 13 14 15 compulsory social security (6.7) vehicles and motorcycles (5.9) (5.5) vehicles and motorcycles (4.7) Human health (4.3) Financial service, except insurance and pension funding (3.7) compulsory social security (5.5) vehicles and motorcycles (5.5) (4.6) Human health (4.4) vehicles and motorcycles (4.4) Financial service, except insurance and pension funding (3.6) Travel & tourism (3) Travel & tourism (3.4) pipelines (2.7) (2.4) Wholesale and retail trade and repair of motor vehicles and motorcycles (1.9) pipelines (2.5) (2.3) (2.1) Education (5.8) Human health (5.9) compulsory social security (5) Human health (5) (4.5) vehicles and motorcycles (4.3) Financial service, except insurance and pension funding (4) (3.4) services and insurance (3) Activities of head offices; management consultancy (2.3) (2.3) Construction of buildings (1.9) (2) Travel & tourism (2.2) Manufacture of fabricated metal products, except machinery and equipment (1.9) Manufacture of food products (1.8) services and insurance (1.8) Manufacture of food products (1.7) (2.2) pipelines (2.1) vehicles and motorcycles (5.8) compulsory social security (5.1) vehicles and motorcycles (4.3) (4.1) services and insurance (3.3) Financial service, except insurance and pension funding (3.2) (3.2) vehicles and motorcycles (5.9) Education (5.9) compulsory social security (5.1) vehicles and motorcycles (4.4) (4.2) services and insurance (3.3) Financial service, except insurance and pension funding (3.2) (3.1) Travel & tourism (2.4) Travel & tourism (2.4) (2.3) Activities of head offices; management consultancy (2.3) Activities of head offices; management consultancy (2.4) (2.3) Construction of buildings (2.3) Construction of buildings (2.2) (2.1) (2.1) Human health (5.2) (5.1) Education (4.8) vehicles and motorcycles (4.5) compulsory social security (4) services and insurance (3.5) Financial service, except insurance and pension funding (3.1) Travel & tourism (3) Activities of head offices; management consultancy (3) (2.9) (2.5) (2.3) Construction of buildings (2.2) 13