The contribution of travel and tourism (T&T) to gross domestic product (GDP) growth in Papua New Guinea (PNG) is expected to rise further in 2014 and beyond.
This is revealed by World Travel and Tourism Council (WTTC) that studied the contribution of travel and tourism to GDP in selected countries around the world.
“The direct contribution of Travel & Tourism to GDP reflects the ‘internal’ spending on Travel & Tourism as well as government ‘individual’ spending,’’ the report says.
The report highlights that spending in this case refers to spending by government on Travel & Tourism services directly linked to visitors, such as cultural (for example, museums) or recreational (such as national parks)” WTTC states.
The report adds; “The direct contribution of Travel & Tourism to GDP is calculated to be consistent with the output, as expressed in National Accounting, of tourism-characteristic sectors such as hotels, airlines, airports, travel agents and leisure and recreation services that deal directly with tourists.
The direct contribution of Travel & Tourism to GDP is calculated from total internal spending by ‘netting out’ the purchases made by the different tourism sectors.
This measure as the report states is consistent with the definition of Tourism GDP, specified in the 2008 Tourism Satellite Account.
According to the report, the direct contribution of Travel & Tourism to PNG’s GDP was PGK369.5mn (1.0% of total GDP) in 2013, and is forecast to rise by 4.5% in 2014, and to rise by 4.3% pa, from 2014-2024, to PGK589.1mn (1.0% of total GDP) in 2024.