Zero growth expected for world tourism

By Gabriel Lazarus
Bloomberg News

MADRID — The World Tourism Organization sees "zero growth" in global tourism this year as slowing economic expansion reduces demand for travel.

The 139-country organization also expects to report that tourism grew between 2.5 percent and 3 percent in 2001, said Dawid Jacobus de Villiers, the organization's deputy secretary-general. That followed 7.4 percent growth in 2000.

"Although we don't expect negative growth this year, performance will be linked to an economic upturn" de Villiers said. "Indications are that the (world) economy will pick up in the second half of this year."

Six percent of global economic output is derived from tourism, and the industry accounts for 120 million jobs, the organization said yesterday.

De Villiers added that the United States, Mexico and other countries in Latin America may still feel the effects of the Sept. 11 terrorist attacks in 2002. The industry saw a "serious" global decline in the weeks immediately following the attacks, de Villiers said.

Spanish travel companies' stocks have recovered from their post-Sept. 11 lows on optimism for a recovery, almost rebounding to pre-attack levels.

The group would not provide country-specific details on expectations for tourism growth.

Tourism represents 11 percent of Spain's gross domestic product.