Page 14 - TFWA World Exhibit 2024 Special Edition

INSIDER

946 million, falling behind inflation has
cost concessionaires $946 million in the
aggregate.
In light of rapidly rising operating
and capital costs, this revenue shortfall is a
staggering blow to the industry.

Conclusion
The impact on concessionaires is
dramatic. Airport concessions are low
margin businesses. Considering the impact
of the four facts just discussed – as well
as changes such as the increasing costs of
goods – the representative free cash flow
return on sales is now zero
This is not the picture of a sustainable
business model … for anybody, for any
businessconcludes ARRA.
To see more information from ARRA,
go to www.arra-airports.com/

WTTC: U.S. remains the most powerful Travel & Tourism market

The U.S. continues to be the world’s growing influence in the sector. Italy and to reach US$1.9 trillion, while domestic
most powerful Travel & Tourism market, Spain complete the top 10, contributing tourists are projected to spend more than
contributing a record-breaking $2.36 US$231.3 billion and US$227.9 billion, ever before, reaching US$5.4 trillion, an
trillion to the nation’s economy last year, respectively. increase of 10.3% over 2019 levels.
according to the World Travel & Tourism
Council’s (WTTC) 2024 Economic Impact Emerging markets gaining Looking forward - challenges and
Trends Report, released in September. WTTC predicts China will become the sustainability
Despite the slow return of spending biggest Travel & Tourism market over the Travel & Tourism investment grew
from international travelers, the money next decade, with India moving up to 4th 13% in 2023 to reach more than US$1
spent in the U.S. was almost double the position. trillion, with a return to pre-pandemic
economic contribution of its nearest rival, These shifts illustrate the dynamic levels anticipated by 2025.
China, with a GDP contribution of US$1.3 nature of the global Travel & Tourism However, the WTTC warns that
trillion in 2023, sector, with emerging markets gaining high interest rates around the world could
Germany is in third place with travel ground and traditional powerhouses create challenges for future investment.
and tourism contributing US$487.6 billion maintaining their strongholds. “It is therefore crucial that the public and
to the economy, while Japan, which was In 2023, China’s sector surge led private sectors work together to innovate to
in 5th place in 2022, jumped up to 4th with an astounding year on year growth ensure the continual strengthening of this
position, generating US$297 billion in of 135.8%, while other Asian countries, vital sector,” comments the global tourism
economic contributions. such as Hong Kong SAR, Malaysia, and organization.
The United Kingdom completes the the Philippines recovered soon after the The report also highlights the
top five with US$295.2 billion in economic removal of travel restrictions. sector’s commitment to sustainability,
contributions. According to the report, many key showcasing the decoupling of growth
France, the world’s most popular destinations will profit from a surge in from greenhouse gas emissions and the
destination, retained its sixth position international spending this year compared increasing opportunities for women, young
with a contribution of US$264.7 billion, to pre-pandemic levels, with Saudi Arabia, people, and marginalized communities.
followed closely by Mexico at US$261.6 up 91.3% compared to 2019, Türkiye Technological advancements,
billion, showcasing its continued appeal as (+38.2%), Kenya (+33.3%), Colombia particularly in AI, are expected to further
a major tourist destination. (+29.1%) and Egypt (+22.9%) leading the enhance the travel experience and drive
India came in eighth, rising from way. future growth.
10th position, with US$231.6 billion in Globally, international visitor
economic contributions, highlighting its spending is set to grow by nearly 16%

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