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Joint Site of Ministries of Foreign Affairs of BRICS Member States

Thursday, March 16, 2017

BRICS Tourism Spend Analytics: Overview & Forecast to 2025

BRICS denotes a grouping of five emerging economies of the world that are Brazil, Russia, India, China and South Africa. As these five countries are showing a positive economic outlook and strong potential for growth, they are the obvious choice as being the most sought after and attractive tourist destinations, both inbound and outbound. A rising affluent and middle class in all these five countries, especially China and India holds a great potential for the development of tourism in this bloc of countries.

Sound economic fundamentals and rising economic prosperity of BRICS nations is one of the key driving factors for the development of tourism in this bloc. There is a rise in disposable income in these countries and a new affluent middle class has emerged in these countries that spends greatly on tourism and leisure. Especially, countries such as China and India are leading the world in terms of outbound tourism and are showing promising growth even in the inbound tourism sector. However, external factors such as terrorism may make a dent in the inflow of tourists in this bloc of nations. Also, the tourist infrastructure in countries such as India is still developing and may not be developed as per the desired levels. This may act as a restraint in the development of tourism in BRICS. However, tourism being an important sector of the economy of BRICS, all the concerned governments are encouraging the development of tourist infrastructure and spending on the development of adequate facilities for the international travellers.

As per the data provided by the World Travel and Tourism Council, the direct share of travel and tourism to the India’s GDP was INR 2668.3 Bn in the year 2015, which comprised 2.0% of the total GDP of India. This is forecasted to increase by 7.1% in the year 2016 and is projected to rise by 7.9% per annum during the forecast period of 2016-2026 and reach a figure of INR 6115.5 Bn in the year 2026, and will comprise 2.4% of the total GDP.

In the year 2015, visitor exports in India generated INR 1249.3 Bn, which comprised 4.2% of the share of the total exports. This is forecast to grow by 5.3% in the year 2016, and is projected to grow by 7.2% per annum, reaching a figure of INR 2625.6 Bn in the year 2026, which will comprise 3.8% of the total exports of India.

As per the data provided by the World Travel and Tourism Council, travel and tourism contributed BRL 190.5 Bn to the Brazilian GDP in the year 2015 that comprised 3.3% of the entire GDP of Brazil. This is forecast to fall by 0.9% in the year 2016 and is projected to rise by 2.9% per annum during the forecast period of 2016-2026 and reach a figure of BRL 251.8 Bn in the year 2026, and will comprise 3.7% of the total GDP.

In the year 2015, visitor exports in Brazil generated BRL 20.4 Bn, which comprised 2.7% of the share of total exports. This is forecast to grow by 8.2% in 2016, reaching a figure of BRL 47.3 Bn in the year 2026, which will comprise 3.5% of total exports of Brazil.

According to World Travel and Tourism Council data, the share of travel and tourism to Chinese GDP was CNY 1407.9 Bn in the year 2015 that comprised 2.1% of the total GDP of China. This is forecast to rise by 6.1% in the year 2016, and is projected to grow by 7.4% per annum during the forecast period of 2016-2026 and reach a figure of CNY 3064.3 Bn in the year 2026, and will comprise 2.6% of the total GDP.

In the year 2015, visitor exports in China generated CNY 384.6 Bn, which comprised 2.6% of the share of total exports. This is forecast to grow by 2.1% in 2016, reaching a figure of CNY 404.2 Bn in the year 2026, which will comprise 1.9% of total exports of China.

As per the World Travel and Tourism Council data, the share of travel and tourism to Russian GDP was RUB 1106.3 Bn in the year 2015 that comprised 1.5% of total GDP of Russia. This is forecast to rise by 1.5% in the year 2016, and is projected to grow by 3.4% per annum during the forecast period of 2016-2026 and reach a figure of RUB 1574.1 Bn, and will comprise 1.8% of the total GDP.

In the year 2015, visitor exports in Russia generated RUB 826.0 Bn, which comprised 3.5% of the share of total exports. This is forecast to grow by 6.4% in 2016, reaching a figure of RUB 1592.3 Bn in the year 2026, which will comprise 6.1% of total exports of Russia.

According to the data provided by World Travel and Tourism Council, the share of travel and tourism to South African GDP was ZAR 118.6 Bn in the yeah Ar 2015 that comprised 3.0% of the total GDP of South Africa. This is forecast to rise by 3.9% in the year 2016, and is projected to grow by 3.8% per annum during the forecast period of 2016-2026 and reach a figure of ZAR 178.3 Bn, and will comprise 3.4% of the total GDP.

In the year 2015, visitor exports in South Africa generated ZAR 115.0 Bn, which comprised 9.1% of the share of total exports. This is forecast to grow by 5.1% in 2016, reaching a figure of ZAR 211.6 Bn in the year 2026, which will comprise 11.8% of total exports of South Africa.

Source: SATPRNews