Sizing and tracking the world travel market has always seemed such an unfriendly  and complex task to most of us. And, to what end for individual  supplier brands or travel agents, luxury or otherwise?

In the current issue of Luxury Travel 360 newsletter we offer top line data  and important insights on The Economic Scorecard in global travel from Oxford Economics

And so…The Scorecard 2007

• $740 Billion in direct TRAVEL EXPENDITURES including domestic and international travelers
• $1.3 Trillion in direct, indirect and induced TRAVEL EXPENDITURES including international travelers’s spending in the U.S
• $109 Billion in TAX REVENUE for local, state, and federal governments
• Each U.S. household would pay $994 MORE IN TAXES without the tax revenue generated by travel and tourism in the U.S

• $7.0 Trillion as the amount of “economic activity generated by travel and tourism in 2007
• $2.85 Trillion is the amount the WTTC says was actually spent by consumers on travel and tourism

But what does this economic scorecard really tell those of us who make a living marketing travel? What purpose is served for destinations, developers, leading travel supplier brands?

For insight we turn to Adrian Cooper of Oxford Economics, which compiles WTTC statistics- Here are a few excerpts- from our conversation

• “ Figuring out how much the world spends on travel and tourism is a significant  challenge.  For one thing, tourism is a compilation of many industries—and 100% of none”
•  “Each country collects its own statistics on inbound and outbound travel spending and methods vary around the world. The challenge is even greater when quantifying the spending of domestic visitors, when no border is crossed.   It is the diversity and linkages of the tourism sector that creates the need for surveys and economic models to quantify it.”
• “ Despite all the uncertainties, industry leaders agree that it’s important to do the counting—not only the big picture of worldwide spending, but how much is spent on all those segments. It’s important, they say, because it demonstrates to government show how large the industry is, and helps players in the industry itself know how to operate today and plan for tomorrow.
• “Tourism companies purchase goods and services from across the entire spectrum of the economy, creating indirect benefits to utility companies, farmers, accountants, and nearly every other sector.  These indirect impacts are quantified for WTTC.  However, WTTC figures do not include multiplier effects – which are the impacts of incomes as they are spent and re-spent in the economy.”
• Travel Industry Association in the U.S. includes a multiplier effect, while WTTC does not.  However, the WTTC research includes in the impact of tourism capital investment such as the construction of new hotels.”
• Visit www.tourismeconomics.com -- a rich resource.

      Hershel Sarbin - This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Related Recent Stories-Excerpts:

 The Elusive Math of Luxury Travel

You can’t manage what you don’t measure, goes the old management maxim and yet, — with new brands, new players, as well as old companies reinventing themselves, all scrambling to capture a piece of the luxury travel market, nobody — truly nobody — seems to be measuring it. 
Maybe it simply cannot be done. But how could that be?  Read on for our series on The Magical Math of Luxury Marketing--starting now!

http://www.luxurytravel360.com/ResourceCenter/IssuesInsights/Test1.html

The Editors Select: Fortune Magazine Sept 17, 2007

• Luxury Goods Annual Retail Sales Soar to $220 billion.

• Global millionaires reach 9,500,000 in 2006; double a decade ago.

• What Insights for Luxury Travel Marketers in U.S. and Beyond?

And Now! The Mighty Math of Luxury Travel—ILTM Survey Cannes

• The global luxury travel business now comprises an estimated 25 million annual arrivals (3% of total international arrivals) accounting for 25% of international tourism spend - at least US$180 billion.   On average, spend per trip is estimated at between US$10,000 - 20,000.

• The luxury travel boom is being fueled by the increase in High Net Worth Individuals (HNWI) - those with at least US$ 1million in net financial assets - and also by the growth in their individual wealth.  The number of HNWI grew by 8.3 % in 2006 and their individual wealth grew by 11.4%.*  * World Wealth Report (Merrill Lynch and Capgemini)

• Wealth is concentrating to an even greater extent amongst Ultra High Net Worth Individuals (Ultra HNWI) - those with financial assets worth at least US $30 million - whose number increased by 11.3 per cent in 2006 with their assets growing by 16.8 per cent