One-quarter of Portugal's economic output comes from tourism industry
In a positive turn of events for the global travel industry, tourism has been making significant contributions to the economies of various countries. Let's take a closer look at some of the latest figures from Europe and beyond.
Iceland continues to lead the pack in terms of the relative importance of tourism demand in GDP, with a share of 18.9% in 2023. Portugal, on the other hand, held the second spot, with a share of 16.6%. Overnight stays in tourist accommodation establishments in Portugal showed positive growth rates from 2021 to 2024, with higher growth for non-residents.
Tourism's economic impact in Portugal is quite substantial. In 2024, tourism activity generated a total contribution of 34 billion euros to GDP, corresponding to 11.9%. This figure represents a significant increase from the previous years.
Finland also saw a steady tourism sector, with the same share of CTTE in GDP in 2022 and 2023 (5.6%). Wages in the tourism sector represented 8.4% of total wages in the national economy in 2023.
Across the Atlantic, Peru's tourism sector has been growing steadily. In 2024, tourism contributed about $21.6 billion to Peru's GDP, representing 7.5% of the economy. Over the past four years, tourism's contribution to Peru's GDP has grown significantly, with expectations for the sector to surge to $23 billion by 2025.
However, it's important to note that while tourism's contribution to GDP growth decreased in 2024, it still remained positive. Tourism accounted for only 15% of GDP growth in 2024, a decline from the 48% in 2023. Despite this, tourism contributed 0.3 percentage points to real GDP growth in 2024, compared to 1.1 percentage points in 2023.
Full-time employment in tourism activities grew by 14.2% between 2021 and 2022, above the national economy's growth rate of 5.7%. Consumption generated by tourism in 2024 amounted to €47.227 billion and maintained the relative weight in GDP observed in 2023 (16.6%).
It's worth mentioning that all other countries, with the exception of Finland, registered increases in the share of Tourism Consumption in the Economic Territory (CTTE) in GDP from 2022 to 2023, reflecting the sector's recovery in the post-pandemic period.
The national economy (GVA and GDP) grew 6.2% and 6.4% respectively in 2024, while the Direct Gross Value Added Generated by Tourism grew at a slightly greater rate. In 2023, employment in the tourism sector represented 9.8% of total employment in the national economy.
The tourism sector's growth rate exceeded that of the global economy in 2024, indicating a robust recovery and a promising future for the industry. Despite a slowdown in some areas, tourism's contribution to economic growth remained positive in 2024.
In conclusion, the tourism sector continues to play a significant role in the economies of various countries, with many countries experiencing growth in their tourism sectors. The industry's recovery from the pandemic has been robust, with expectations for continued growth in the future.
A) The tourism industry in Portugal generated a total contribution of €34 billion to GDP in 2024, representing 11.9% of the country's economy, marking a significant increase from previous years.
B) In addition to Portugal, the tourism sector in Peru also had a growth of 7.5% to Peru's GDP in 2024, with tourism's contribution to the GDP expected to surge to $23 billion by 2025.
C) Besides the economic benefits, the tourism sector's growth rate in 2024 exceeded that of the global economy, signifying a resilient recovery and a promising future for the industry.
D) Opportunities for business investments and wealth management in the tourism sector can be particularly attractive, as many countries have reported positive trends in the evolution of their tourism industries post-pandemic.
