International Tourist Arrivals Up 6 Percent thru April 2017

Global tourist destinations received 369m international arrivals (overnight visitors) in the first four months of the year – a growth of +6 percent year-on-year, according to the UN World Tourism Organization (UNWTO).

Sustained growth in most major destinations, coupled with a ‘steady rebound’ in others, has driven business confidence to a 10-year high, research from the UNWTO World Tourism Barometer found.

With few exceptions, international arrivals around the world were generally positive, with the Middle East (+10 percent), Africa (+8 percent), Europe (+6 percent), Asia Pacific (+6 percent) and the Americas (+4 percent) enjoying robust growth.

UNWTO Secretary-General Taleb Rifai said in a statement: “Destinations that were affected by negative events during 2016 are showing clear signs of recovery in a very short period of time, and this is very welcoming news for all, but particularly for those whose livelihoods depend on tourism in these destinations.”

Europe’s rebound in international arrivals comes after mixed results last year due to security concerns that impacted traffic to many destinations.

Notable performances were seen in the Southern Mediterranean (+9 percent) and Western Europe (+4 percent), while Northern Europe (+9 percent) posted a solid return and Central and Eastern Europe (+4 percent) recorded figures broadly in line with last year.

The Americas was strengthened by South America and Central America (both +7 percent), while arrivals in the Caribbean and North America grew by 2 percent and 3 percent respectively.

Growth across Asia Pacific’s sub-regions were led by South Asia (+14 percent), Oceania (+7 percent), South East Asia (+6 percent) and North East Asia (+5 percent).

Analysts’ appraisals of Asia Pacific’s progress in travel and tourism will be encouraged by the news that China’s GDP has grown by 6.9 percent in Q2, surpassing growth expectations of 6.8 percent for the quarter.

The Shanghai Composite Index traded down at almost 2.5 percent of its value at one point in the early half of the day, but recovered to close at 3,176 (CST) as stock markets in general reacted favorably to the news.

The sustained momentum shrugs off fears of a potential Chinese slowdown, as the government moves to tackle concerns over bank lending and a potential debt bubble burst.

The Shanghai Composite Index closed trade at 3,176 today (CET) as global stock markets were buoyed by China’s 6.9 percent Q1 GDP growth. Source: Market Watch.

Retail spending in particular reportedly picked up by 10.8 percent in Q2, according to a Reuters calculation based on official data.

Moreover, the results position the country well on track to achieve Beijing’s year-end GDP growth target of 6.5 percent.

“The better than consensus print for Chinese Q2 GDP (6.9 percent vs. 6.8 percent) suggests that the economy is maintaining momentum with both industrial output and fixed asset investment somewhat stronger than estimates,” commented Shilen Shah, Bond Strategist at Investec Wealth & Investment.

“Retail sales were somewhat stronger; however, the underlying data suggests that external demand and capex remain the key drivers of growth.”

UNWTO data reveals China still tops the rankings for international tourism expenditure at $261bn (+12 percent) in 2016, with the US second at $124bn (+8 percent).

Source: TR Business