Benefits of Tourism

Corthwright MarshallResearch & Development Officer

Ministry of Tourism & Civil Aviation

Tourism enriches

Individual Families Communities All the World

Tourism

2005 Tourism Satellite Accounting Highlights:

In 2005, Travel & Tourism is expected to generate:

– US$ 6,201.49 billion of economic activity

– 10.6% of total GDP– 221,568,000 jobs or

8.3% of total employment

Caribbean Highlights:

14.8 per cent of the Caribbean’s GDP (2004) 2.4 million jobs representing 15.5 per cent of

total employment 4.1 per cent GDP annual growth over the next

10 years 2.8 per cent annual growth in Travel & Tourism

employment over 10 year period share of GDP and employment to 16.5 and 17.1

per cent respectively by 2014

INDIRECTLY ACCOUNTS FOR:

2,416,500 jobs representing 15.5 percent of total employment

US$28.4 billion of Gross Domestic Product (GDP) equivalent to 14.8 percent of total GDP

US$7.4 billion of Capital Investment or 21.7 percent of total investment

US$1.9 billion of Government Expenditures or an 8.2 percent share.

Benefits of Tourism to local economy

Travel & Tourism is without question the foremost export sector in Antigua and Barbuda and possesses the inherent ability to – diversify the Caribbean economy– stimulate entrepreneurship– catalyze investment– create large numbers of sustainable jobs – help social development in local communities.

ECONOMIC IMPACT

IN 2005, ANTIGUA AND BARBUDA'S TRAVEL & TOURISM IS EXPECTED TO GENERATE XCD2,259.1 MN (US$836.7 MN) OF ECONOMIC ACTIVITY (TOTAL DEMAND)

THE INDUSTRY'S DIRECT IMPACT INCLUDES:– 10,573 jobs representing 35.0 percent of total

employment– UD$218.6 million (or XCD 590.2 million) of Gross

Domestic Product equivalent to 25.) percent of total GDP.

ECONOMIC IMPACT cont’d

SINCE TRAVEL & TOURISM TOUCHES ALL SECTORS OF THE ECONOMY, ITS REAL IMPACT IS EVEN GREATER. ANTIGUA AND BARBUDA'S TRAVEL & TOURISM ECONOMY DIRECTLY AND INDIRECTLY ACCOUNTS FOR:– 28,662 jobs representing 95.0 percent of total

employment– US$751.0 million of Gross Domestic Product (GDP)

equivalent to 86.0 percent of total GDP;– US$231.4 million of Capital Investment or 51.8

percent of total Investment; and– US$61.8 million of Government Expenditures or 27.8

percent share.

Economic Forecast

Contribution of Antigua and Barbuda’s Travel & Tourism by 2015– 3.40% per annum, in real terms,

between 2006 and 2015– 32,454 jobs, one in every 1.1 jobs– US$12,481 or 37.1% of GDP– 52% of Capital Investment

Capital Investment

Travel & Tourism Government Expenditure

Market Share of Caribbean Total Demand

Market Share of World Total Demand

To maximize the benefits and ensure regional spread

Greater co-operation between all leading policy-makers – and the private sector

Better management of tourism growth– Long-term planning – Tourism Strategic Plan

or Master Plan

REALIZING THE POTENTIAL

Factors to ensure the sustainability of future growth include:– A favorable government fiscal policy– A climate that is conducive to business –

offering attractive incentives for investment – Sustained and effective marketing and

promotion– Environmentally friendly policies– Clearly defined, long-term development plan – Create Linkages– Safety and Security

Strategic Signals

Creates new and diversified products/ markets/ services

Incorporate local communities in planning and operation

Develop partnership between administrators and operators

Create value Invest in the environment Improve host-tourist awareness More focused and increased marketing and promotion

“ It is the objective of my Ministry and the Government of Antigua and Barbuda to create the environment where we do not only teach our people to smile but given them a reason to smile. We intent to make this ideal the bedrock of our new tourism policy”   Tourism Minister – Hon. Harold Lovell

Antigua & Barbuda The Best Brand in Caribbean Tourism