Egypt’s anticipated tourism sector losses in 2020 value $12-$13bn, says trade affiliation | Salaam Gateway

Posted on April 4th, 2021 via Daily News Egypt – According to Ehab Abdel Aal, Treasurer of the Cultural Tourism Association, the expected losses of the Egyptian tourism sector in 2020 are between $ 12 billion and $ 13 billion.

Speaking to Daily News Egypt, Abdel Aal said that although the Egyptian government had not made an official statement on the level of the losses, it was to be expected soon.

“Egypt’s tourism revenue was $ 16 billion a year, but in 2020 Egypt made only $ 2.5 billion in January and February,” he said.

In particular, the World Travel and Tourism Council (WTTC) announced in its latest report that the global travel and tourism sector suffered losses of $ 4.5 billion in 2020 due to the novel coronavirus (COVID-19) pandemic Has.

The data was released on Monday in their annual Economic Impact Report (EIR), which outlined the devastating impact of the pandemic on the global travel and tourism sector in 2020.

The annual EIR reviews the global travel and tourism private sector and shows the sector’s contribution to GDP. It found that was down an astonishing 49.1% compared to the global economy as a whole, which declined just 3.7% last year.

There were tremendous losses in 2020, showing the first full picture of a sector struggling to survive in the face of crippling travel restrictions and quarantines. These continue to threaten the urgent global economic recovery.

Overall, the sector’s contribution to global GDP fell to $ 4.7 billion in 2020, representing 5.5% of the global economy, from nearly $ 9.2 billion, or 10.4%, in the previous year.

In 2019, when the global travel and tourism sector flourished, creating one in four new jobs worldwide, the sector contributed 10.6% or 334 million jobs worldwide.

However, in 2020 and as the pandemic hit the heart of travel and tourism, over 62 million jobs were lost, a decrease of 18.5%. This means that only 272 million people were employed in the industry worldwide.

These job losses have been felt across the travel and tourism ecosystem, with small and medium-sized enterprises (SMEs), which make up 80% of all businesses in the sector, particularly hard hit.

In addition, the impact on women, youth and minorities as one of the most diverse sectors in the world has been significant.

However, the threat persists as many of these jobs are currently supported by government retention programs and reduced hours without which a full recovery of travel and tourism could be lost.

The WTTC has praised governments around the world for their swift response. The global tourism agency fears, however, that governments will not be able to sustain threatened jobs indefinitely and will instead have to turn to the sector to help its recovery.

This will ensure it can fuel the revitalization of the global economy by rescuing businesses and creating much-needed new jobs and saving the millions of livelihoods that depend on the sector.

The report also reveals a shocking loss in international travel spending, down 69.4% year over year.

Domestic travel spending decreased 45%, a smaller decrease due to some domestic travel in a number of countries.

Road to recovery

The year 2020 through early 2021 was ruinous for travel and tourism, and millions of people around the world are locked.

However, WTTC research shows that resuming international mobility and travel by June 2021 will significantly increase GDP and employment at the global and country levels.

According to the study, the sector’s contribution to global GDP could soar this year, increasing by 48.5% year over year. Research also shows that its contribution could hit almost the same level in 2022 as it did in 2019, with a further 25.3% year-over-year increase.

The WTTC also predicts that the 62 million jobs lost in 2020 could return by 2022 if the global vaccine rollout resumes swiftly and travel restrictions eased just before the busy summer season.

The Council strongly supports the resumption of safe international travel in June this year if governments adhere to their four principles of recovery. This includes a comprehensive coordinated international testing regime for all unvaccinated travelers on departure to remove quarantines.

It also includes: improved health and hygiene protocols and the mandatory wearing of masks; Moving to individual risk assessments for travelers instead of risk assessments for countries; and continued support to the sector, including tax, liquidity and worker protection.

According to WTTC, the introduction of digital health passports like the recently announced Digital Green Certificate will help the sector recover.

The global tourism organization urges governments around the world to come up with a clear and decisive roadmap that will allow companies to grow their businesses in order to recover from the aftermath of the pandemic.

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