Property Investment Research - Caribbean set for 10 years growth
Published on 15th August 2008 by Don Ross
CARIBBEAN TRAVEL & TOURISM TO GENERATE INCREASED ECONOMIC ACTIVITY (GDP).
According to the latest report from the World Travel & Tourism Council the Caribbean’s travel & tourism industry is set to generate $40 Billion of economic activity (GDP).
Drawing on the expertise of Accenture and Oxford Economics, the WTTC believe that globally, Travel & Tourism currently employs nearly 240 million people and creates 10% of world GDP.
The report further states that recent years have seen rapid growth in Travel & Tourism and last year was no exception, with the broad-based expansion continuing. But, importantly, it identifies that new destinations are emerging as investment in fresh facilities continues and overseas travel is becoming both a feasible and an affordable choice for an increasing proportion of the world’s population.
It appears that the Caribbean is one of the major benefactors of these trends. Below is a summary of the report’s key findings regarding the effects of travel and tourism on the Caribbean economy. These statistics are vital to property investors who look to invest in holiday markets as returns are directly affected by the size and growth of the holiday market. Popularity in this competitive marketplace is not only an indicator of both capital growth in property value but also secures the continued revenue stream that covers the cost of mortgage repayments whilst the capital value is growing. The better the growth the better the investment.
Further, a shrewd investor will always keep an eye on the exit so that they can realise the best value when they liquidate their investment. Continued growth in tourism and increased popularity of location are both major factors in demonstrating the value of an investment property and make it easier to maximise your profit when selling on.
KEY FACTS AT A GLANCE
THE 2008 TRAVEL & TOURISM ECONOMIC RESEARCH
Gross Domestic Product (GDP)
The contribution of Travel & Tourism to Gross Domestic Product (GDP) is expected to rise from 14.8% (US$39.9 bn) in 2008 to 14.9% (US$69.9 bn) by 2018.
Employment
The contribution of the Travel & Tourism Economy to employment is expected to rise from 2,148,000 jobs in 2008, 12.9% of total employment, or 1 in every 7.8 jobs to 2,692,000 jobs, 13.8% of total employment or 1 in every 7.2 jobs by 2018.
Growth
Real GDP growth for the Travel & Tourism Economy is expected to be 2.1% in 2008 and to average 3.3% per annum over the coming 10 years.
Exports
Export earnings from international visitors and tourism goods are expected to generate 18.2% of total exports (US$30.9 bn) in 2008, growing (nominal terms) to US$54.7 bn (18.7% of total) in 2018.
10 Year Trend
The trend for all indicators is upwards.
Don Ross
General Manager of Ward & Co, has a vast range of experience in both financial services and property development. As an international speaker he has provided the inspiration that has led to wealth creation around the globe.
