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High Oil Prices Yet To Impact On Tourism
Says WTO
A recently concluded WTO report demonstrates
that up to the moment, the impact of high
oil prices in international tourism has
been little. Experts consulted in the framework
of this research project note that only
a small percentage of the increase in oil
prices as been passed onto consumers in
terms of final purchase price, says WTO
Chief of Market Intelligence, Augusto Huéscar.
In addition, the imposition of surcharges
by many airlines does not appear to have
discouraged demand for air transport - at
least for the time being. According to the
latest data from IATA, passenger traffic
from January through September 2005, increased
by 8.3 per cent, with airlines in the Middle
East and in Africa reporting double-digit
growth rates.
Demand for international tourism has remained
strong through 2005. WTO’s estimates
for the year, as published in the October
issue of the WTO World Tourism Barometer,
show that 2005 is expected to end with a
growth of 5 to 6% in international tourist
arrivals, which can be considered exceptional.
International tourism is not only on track
to consolidate the bumper year it had in
2004 (+10.7%), but it will also exceed the
forecast long-term average growth of 4%.
The effect was rather indirect, as price
hikes contributed to the deterioration of
the economic situation, and consequently
to the corrosion of consumers’ purchasing
power. “But, while the past oil price
peaks had a significant negative impact
on tourism through to the economy at large,
on this occasion the global economy has
remained relatively steady and the inflationary
pressure appears to be limited for now”
underscores WTO Secretary-General, Mr Francesco
Frangialli.
Transport companies suffer increases in
fuel price of course the first and most
directly. “The airlines hardest hit
by the rises will be those in the US still
dealing with the aftermath of previous year’s
negative events”, he explains, “although
continuing high oil prices may also affect
tourist flows to developing nations as their
airlines’ capacity to absorb such increase
is significantly lower”.
Barring other unforeseen shocks, WTO is
confident that tourism will “continue
to show healthy growth globally”, albeit
with changes in the strength of particular
generating markets and destinations and
perhaps a bigger push in intra-regional
travel, says Mr. Frangialli.
(BTN/World Tourism Organization-WTO)
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