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The World Travel and Tourism Council (WTTC), which represents the private sector Travel & Tourism worldwide, has published its annual Economic Impact Report (EIR).
The report reveals the devastating impact of COVID-19 on the global travel industry over the past year, as well as hopeful research showing the sector could fully recover by 2022 if international travel resumes this June.
COVID-19 has had a devastating impact on the travel industry
It’s no surprise that COVID-19 has had a devastating impact on the global tourism industry, but the report shows just how far-reaching the impact has actually been. The global travel and tourism sector lost nearly $ 4.5 trillion, according to WTTC.
The report shows that the sector’s contribution to GDP is down 49.1% compared to the global economy as a whole, which is only down 3.7%.
The global travel and tourism sector was responsible for creating one in four jobs worldwide in 2019, accounting for 10.6% (334 million) jobs worldwide. More than 62 million of these jobs were lost during the pandemic – an 18% decrease. These job losses affected the entire sector, with small and medium-sized enterprises (SMEs) being particularly affected.
Overall, the sector’s contribution to global GDP decreased by half compared to the previous year. In 2020, the sector contributed $ 4.7 trillion (5.5% of the global economy), up from nearly $ 9.2 trillion in 2019 (10.4%).
More jobs are still threatened without the travel and tourism sector fully recovering, as many government restraint systems and working time reductions are currently supported.
While the WTTC has praised governments around the world for their swift response, they fear governments cannot continue to support these threatened jobs indefinitely. Instead, governments need to help the tourism sector recover so that it can continue to fuel the global economy.
Gloria Guevara, WTTC President and CEO, has said: “We must commend the swift action by governments around the world to save so many endangered jobs and livelihoods thanks to various restraint systems without which today’s numbers would be far worse.
“However, the annual WTTC Economic Impact Report shows the full extent of the pain our sector has endured over the past 12 months, which has unnecessarily destroyed so many lives and businesses, large and small.
“With the sector’s contribution to GDP falling by nearly half, it is more important than ever that Travel & Tourism has the support it needs to fuel the economic recovery that will help the world recover from the effects of GDP can pandemic. “
The report also showed a massive loss in international travel spending, down 69.4% year over year. Domestic travel decreased 45%, a smaller decrease due to the fact that many countries allowed domestic travel over the past year.
The travel and tourism sector could fully recover by 2022
The report shows that swift action by governments could return job losses and GDP contribution to pre-pandemic levels by 2022.
WTTC research shows that the resumption of international mobility and travel by June this year will significantly increase GDP at the global and country levels.
The sector’s contribution to global GDP could increase sharply this year, increasing by 48.5% year over year. The research also shows that in 2022 its contribution could be close to 2019 levels, with a further 25.3% increase over the previous year.
The report also predicts that the 62 million jobs lost in 2020 could return by 2022 if vaccine rollouts continue swiftly and travel restrictions are eased ahead of the summer tourism season.
WTTC advocates resuming international travel in June
As travel restrictions and quarantines continue to threaten the recovery of the global economy, The WTTC strongly advocates that international travel be safely resumed in June 2021.
It is recommended that governments follow their four principles of recovery, which include a comprehensive coordinated international testing regime on departure for all unvaccinated travelers to remove quarantines.
The recommendations also include improved health and hygiene protocols, as well as 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.
The Council also said the introduction of digital health passportslike the recently announced Digital Green Certificate in Europewill support the sector’s recovery.
The global tourism organization urges governments around the world to provide a clear and decisive roadmap such as: Boris Johnson has done in the UK. This gives companies time to grow their businesses to recover from the devastating losses of the pandemic.
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