Business Daily (Nairobi)

Africa: Tourism Defies Economic Downturn to Realise Growth

The tourism sector weathered the global economic downturn to register growth in the first four months of the year, the latest industry statistics show.

United Nations World Tourism Organisation (UNWTO) data indicate that international tourism expanded at the rate of five per cent in the first four months of the year compared to the same period last year despite the slow down in key markets such as the US.

The UNWTO said the trend was in line with past performance when international tourism showed resilience to various types of shocks, including security threats, geopolitical tensions or natural and man-made crises.

Tourism sector growth was expected to decline this year due to the subdued global economic climate and the resulting drop in consumer spending.

"Demand for hospitality and travel depends on how the global economy evolves and consumers react. Both are directly linked to oil and food prices," the secretary general of the UNWTO, Francesco Frangialli, said.

High cost of jet fuel has forced airlines to introduce extra-charges on air tickets forcing customers to dig deeper into their pockets to access the service.

Most airlines have been adjusting their ticket prices upwards to meet overhead costs. Some airlines have opted to reduce their capacity and lay off workers.

Data from the International Air Transport Association (IATA) shows passenger traffic grew by three per cent during the same period with Africa recording negative growth of 5.6 per cent.

Airports Council International (ACI), an international body that pursues interests of airport operators, also recorded moderate growth in terms of world passenger traffic in its member airports.

Total passengers volumes grew by only three per cent as of May 2008.

Despite the high cost of travel the UNWTO says that the sector is expected to record positive growth in 2008 - though at a slower pace compared to last year.

Mr Frangialli says that given the current state of the global economy, tourism industry players are cautious on future projection though the sector is expected to realise positive growth.

Since 2004 until 2007 international tourism has shown strong growth of above seven per cent mainly boosted by a strong world economy leading to increased demand.

Tagged: Africa, Travel

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