Tourism industries - economic analysis


Data extracted in April 2018

Planned article update: April 2019

Highlights
In 2015, one in ten enterprises in the European non-financial business economy belonged to the tourism industries, employing 12.7 million persons.
Nearly four out of five enterprises in tourism industries in the EU operated in accommodation (13 %) or food and beverage serving (65 %) activities in 2015.
In 2015, more than half (52 %) of the enterprises in the tourism industries in the EU were located in Italy, France, Spain and Germany.

Number of enterprises: evolution for different sectors of the economy, EU-28, 2012-2015 (index 2012=100)


This article presents recent statistics on the tourism industries in the European Union (EU). While tourism statistics focus on either the accommodation sector or the demand side (from households), and relate mainly to physical flows (arrivals or nights spent at tourist accommodation or trips made by residents of a country), this analysis is based on economic data extracted from other areas of official statistics, in particular structural business statistics (SBS) and short-term business statistics (STS). Thus a more complete economic analysis of this sector can be drawn, which is an important motor for many countries' economies and labour markets.

The publication "International Recommendations for Tourism Statistics 2008" lists ten internationally comparable activities and two country-specific ones for the tourism sector, also called "tourism industries" or "tourism characteristic activities". This article focuses on a subset of these that has relevance for the EU (the other activities proved to be of limited relevance for European tourism or have limited coverage in SBS).

The reader is strongly encouraged to consult the "Data sources and availability" section before using the presented data, in order to avoid overestimating or underestimating the economic importance of tourism for some industries.

Full article

Key economic indicators

The discussion below refers to four selected indicators: number of enterprises, number of persons employed, turnover and value added at factor cost – firstly at EU level, secondly at country level.

In 2015, one in ten enterprises in the European non-financial business economy belonged to the tourism industries (see Table 1, Table 2). These 2.4 million enterprises employed 12.7 million persons. Enterprises in industries with tourism related activities accounted for 9.2 % of the persons employed in the non-financial business economy and 21.5 % of persons employed in the services sector.

Table 1: Key economic indicators for the tourism industries, EU-28, 2015 - Source: Eurostat (sbs_na_sca_r2), (sbs_na_1a_se_r2)


Table 2: Key economic indicators for the tourism industries, percentages, EU-28, 2015 - Source: Eurostat (sbs_na_sca_r2), (sbs_na_1a_se_r2)

The tourism industries' shares of total turnover and value added at factor cost were relatively lower, with the tourism industries accounting for 3.8 % of the turnover and 5.7 % of the value added of the non-financial business economy. These figures very likely reflect - among other explanations - the higher share of micro, small and medium-sized enterprises and the level of part-time employment in many tourism industries.

As explained in the "Data sources and availability" section, tourism industries do not provide services only to tourists. Their employment, turnover, etc. is also related to services provided to non-tourists. In Tables 1 and 2, the subdivision “mainly tourism” and “partially tourism” takes this into account. For instance, 3.3 million persons are employed in industries that are assumed to serve predominantly tourists while 9.3 million persons are employed in industries where the customers are likely to be a mix of tourists and non-tourists (e.g. restaurants).

Figure 1 presents the growth of the sectors from 2012 to 2015. Tourism industries (mainly and partially) showed a stronger growth than the total economy for all indicators concerned. Looking at those industries that are 'mainly tourism' the value added recorded a growth of +24 % between 2012 and 2015, the number of enterprises grew by +14 %, the turnover by +11 % and the number of persons employed by +6 % (for the total economy the corresponding growth rates were +14 %, +5 %, +5 % and +3 % respectively).

Figure 1: Evolution of indicators for different sectors of the economy, EU-28, 2012-2015 (index 2012=100) - Source: Eurostat (sbs_na_sca_r2), (sbs_na_1a_se_r2)

Analysis by subsectors

Nearly four out of five enterprises in the tourism industries operated in accommodation (NACE I55) or food and beverage serving activities (NACE I56): 13 % and 65 % respectively (see Table 1, Table 2, Figure 2). Looking at the number of persons employed, the weight of these activities was 79 % of all persons employed in the tourism industries. However, in terms of turnover and value added, their share was much lower (50 % of turnover, 56 % of value added).

Figure 2: Number of enterprises, turnover, value added at factor cost and number of persons employed, EU-28, 2015 (%) - Source: Eurostat (sbs_na_sca_r2), (sbs_na_1a_se_r2)

The turnover of passenger transport related industries (parts of NACE H49, H50, H51) represented 26 % of the turnover for all tourism industries: half of this share (13 %) came from the subsector of passenger air transport (NACE H5110).

Travel agencies (NACE N7911) and tour operators (NACE N7912) recorded a turnover of 159 billion euro in 2015. These activities represented 15 % of the turnover in tourism industries, compared with a 7 % share in value added at factor cost and a 3 % share in employment and in number of enterprises.

Geographical analysis

More than half (52 %) of the 2.4 million enterprises in the tourism industries in the EU in 2015, were located in four Member States: 361 thousand in Italy, 331 thousand in France, 278 thousand in Spain (not including taxi operation) and 257 thousand in Germany (not including passenger rail transport interurban) (see Table 3).

Table 3: Number of enterprises, 2015 - Source: Eurostat (sbs_na_sca_r2), (sbs_na_1a_se_r2)

Looking at the available Member States' data, in terms of employment (see Table 4), Germany (not including passenger rail transport interurban) and the United Kingdom recorded each 2.3 million persons employed in the tourism industries, followed by Italy (1.4 million) and Spain (1.3 million, not including taxi operation). The highest share of employment in the tourism industries in the total non-financial business economy of the country was observed in Greece and Cyprus (both above 20 %) (note that data on total employment in the tourism industries is missing for a significant number of countries).

Table 4: Number of persons employed, 2015 - Source: Eurostat (sbs_na_sca_r2), (sbs_na_1a_se_r2)

The availability of country data on turnover and value added is very fragmented (see Table 5, Table 6). Turnover amounted to EUR 240 billion for the United Kingdom, followed by France (144 billion) and Germany (142 billion, excluding passenger rail transport interurban).

Table 5: Turnover or gross premiums written, 2015 (in million EUR) - Source: Eurostat (sbs_na_sca_r2), (sbs_na_1a_se_r2)


Table 6: Value added at factor cost, 2015 (in million EUR) - Source: Eurostat (sbs_na_sca_r2), (sbs_na_1a_se_r2)

For the United Kingdom, value added amounted to EUR 103 billion while the highest shares of value added in the tourism industries in the total non-financial business economy of the country were observed in Cyprus, Greece and Malta (all above 10 %).

Infra-annual analysis

The above analysis was based on structural business statistics (SBS). While SBS is a rich and comprehensive source of information on European businesses, these statistics are only provided annually. Compared to other sectors of the economy, the tourism sector has a relatively strong seasonal component, hence the need to look at infra-annual data to complete the analysis. Short-term business statistics provide monthly and quarterly indices for a subset of tourism industries. For the analysis in this article, an aggregate was created including NACE divisions H51 (Air travel), I55 (Accommodation) and N79 (Travel agency, tour operator and other reservation service and related activities).

Figure 3 shows for the EU-28, for the years 2005 to 2017, the quarterly evolution of the turnover, seasonally adjusted or working days adjusted, for the above mentioned tourism industries (index: average 2015 = 100). The graph shows an upward trend that was only interrupted from the first quarter of 2009 until mid-2010 (start of the worldwide financial turmoil).

Figure 3: Calendar and seasonally adjusted turnover for tourism aggregate (H51_I55_N79), quarterly data, EU-28, 2005-2017 (index=average for 2015) - Source: Eurostat (sts_setu_q)

Figure 4 shows for the EU-28, for the period January 2007 to November 2017, the monthly evolution of the working days adjusted turnover in accommodation, and the nights spent in tourist accommodation establishments (index: average 2015 = 100) . As expected, the two series follow a similar pattern in terms of peak and trough periods, however the variability appears to be more pronounced for the physical flows (nights spent) as compared with the monetary flows (turnover).

Figure 4: Monthly turnover (adjusted by working days) for NACE division I55 (accommodation) and monthly nights spent at tourist accommodation, EU-28, 2007-2017 (index=average for 2015) - Source: Eurostat (sts_setu_m), (tour_occ_nim)

Figure 5 shows, for the years 2005 to 2017, the quarterly working days adjusted turnover for the above mentioned group of tourism industries for two countries: Croatia, which presents the highest seasonality in terms of turnover and Finland which has the lowest seasonality.

Figure 5: Turnover adjusted by working days for tourism aggregate (H51_I55_N79), quarterly data, Croatia (highest seasonality) and Finland (lowest seasonality), 2005-2017 (index=average for 2010) - Source: Eurostat (sts_setu_q)

Source data for tables and graphs

Data sources

Structural business statistics (SBS) are a main component of business statistics in the European Statistical System (ESS) and describe the structure, main characteristics and performance of economic activities across the European Union. Data is available at a detailed level of economic activities, which allow for the identification and selection of industries that are part of the tourism sector. According to the International Recommendations for Tourism Statistics 2008 the tourism sector (also: 'tourism industries' or 'tourism characteristic activities') includes ten internationally comparable activities and two country-specific activities – this article focuses on the former. An overview of these activities (and the corresponding codes in the international classifications ISIC and NACE) is given in Table 7. All these activities are covered by SBS, except for culture, sports and recreation.

Table 7: List of tourism industries

This article uses a fine-tuned list of the tourism industries, better adapted to the European setting and avoiding overestimations of the economic variables. Activities omitted include "other accommodation" (NACE 5590), "other food service activities" (NACE 5629) and "real estate activities" (NACE 68), these activities are not sufficiently related to tourism to justify their inclusion in the current analysis.

Existing business statistics (SBS, STS) cannot distinguish between services provided to tourists and to non-tourists – typical examples include restaurants catering to tourists but also to locals and railway passenger transport used by tourists as well as by commuters. For this reason, this analysis considers these industries in their totality. Considering the total turnover or employment overestimates the true economic importance of tourism for these industries, but on the other hand, tourism also contributes to other industries not listed in Table 7. The approach used in this article should not be confused with the methodological framework to compile tourism satellite accounts (TSA); the most recent Eurostat statistical report on TSA in Europe is available from the Eurostat website.

Notwithstanding these shortcomings, SBS data allow for an economic analysis of the sector which is not possible using only tourism statistics. A second relevant source within existing business statistics is short-term business statistics (STS). STS can fill the gap of information on turnover or prices where monthly accommodation statistics are limited to evolutions in flows of tourists. As a trade-off with its strong timeliness, STS is available with a lower granularity of activities for services; as a consequence the further analysis of monthly economic indicators focuses on air transport (NACE H51), accommodation (NACE I55) and travel agency, tour operator reservation service and related activities (NACE N79).

Context

Tourism statistics focus on the accommodation sector on the one hand and the demand side (from households) on the other hand. ESS tourism statistics relate mainly to physical flows: arrivals or nights spent at tourist accommodation establishments or trips made by residents of a country.

This article presents economic data extracted from other areas of official business statistics, in particular structural business statistics (SBS) and short-term business statistics (STS), in order to provide users with a better economic analysis of this sector, which is an important motor for many countries' economies and labour market.

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Monthly data on tourism industries (t_tour_indm)
Annual data on tourism industries (t_tour_inda)</noprint>


Monthly data on tourism industries (tour_indm)
Annual data on tourism industries (tour_inda)
Annual enterprise statistics for special aggregates of activities (NACE Rev. 2) (sbs_na_sca_r2)
Annual detailed enterprise statistics for services (NACE Rev. 2 H-N and S95) (sbs_na_1a_se_r2)
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