3rd T.20 Ministers' Meeting (France, 2011)

“Tourism is one of the first economic activities which took back the road of the growth at the world level. In 2010, the number of international tourists increased by 7 % to reach 940 million tourists. This recovery has been confirmed at the beginning of 2011 with a 5 % progress during the first eight months of the year, with the prospect to reach one billion of cross border tourists by 2012.
Considering the significant economic and social potential of tourism for the global economy, employment and sustainable development, the G20 members to register the importance and impact of tourism as a topic of discussion in the coming years summits”.

'Paris Declaration' (3rd T.20 Ministers´Meeting, France, 2011)

Background Reports

The Indirect Impact of Tourism: An Economic Analysis

Executive Summary

The main purpose of this report is to show the importance and the role of the indirect economic effects of tourism on growth and GDP, employment and foreign trade. Tourism's role in the economy is often perceived as being limited to the hospitality industry (cafes, hotels and restaurants) and outbound and inbound travel agencies and carriers, which form the leading service sector in many countries. However, the economic impact of tourism is much greater, since many inputs are needed in order to produce tourism and leisure services, spanning the whole range of farm, agrifood and industrial production, including the production of capital goods as well as construction and public works.
Highlighting these indirect impacts of tourism is regarded as a priority by the T20 countries and the World Tourism Organization (UNWTO), which has produced methodological tools such as Tourism Satellite Accounts (TSAs). Assessing the economic impacts of tourism helps to inform the conduct of stimulus policies in response to international economic and financial crises. It shows that tourism can become a driver of recovery, fostering stable and sustainable economic growth, provided that sectoral support policies are implemented taking the central role of tourism into account.

Full Report - 'The Indirect Impact of Tourism: An Economic Analysis'

UNWTO Study - Exploring the Full Economic Impact of Tourism for Policy Making - Extending the Use of the Tourism Satellite Account through Macroeconomic Analysis Tools

Executive Summary

The Tourism Satellite Account (TSA) is a unique tool now available to policymakers in many countries to document the direct Gross Domestic Product (GDP) and employment contributions of tourism to national economies.
Policymakers are also interested in estimating other aspects of the economic impact of tourism by using TSA data to estimate the income and government revenue generated by Tourism Consumption and incorporating the secondary effects of this spending on the economy. These secondary effects “multiply” the impacts of tourism through engaging additional suppliers and households in servicing Tourism Expenditure. Moreover, policymakers seek to understand how external and policy-induced “shocks” to the economy will affect tourism‟s contributions.
Three macroeconomic analysis tools are available for policy-makers to extend the understanding of the economic benefits of Tourism Expenditure: the Input-Output Model, the Social Accounting Matrix and the Computable General Equilibrium Model. This paper summarizes each of these in turn, describes their relationships, discusses strengths and weaknesses, and suggests how TSA data can be used as input in deriving estimates of the overall economic impact of tourism. Such analysis is the precondition for an accurate understanding of tourism as part of a national economy, enabling the integration of tourism into broader economic policy.

Full Report - ' Exploring the Full Economic Impact of Tourism for Policy Making'

Useful Links
Ministers of Tourism of major world economies call on decision-makers to use tourism to stimulate the economy - 27 October 2011