WTTC: U.S. Journey & Tourism sector suffered $766 billion 2020 loss

The World Travel & Tourism Council WTTC’s annual Economic Impact Report (EIR) found that the US travel and tourism sector suffered a significant loss of $ 766 billion in 2020.

In 2019, the US travel and tourism sector had a GDP of nearly $ 1.9 trillion. However, research by WTTC found that the country saw the sector’s contribution to GDP decline by 41% in 2020, a year the COVID-19 pandemic devastated the industry. With the US being the largest travel and tourism economy in the world, the country’s recovery plays an important role in the sector’s recovery on a global scale.

According to the report, Travel & Tourism supported more than 16.5 million jobs in 2019 (10.5% of total US employment). In 2020, the US Travel & Tourism jobs decreased 33.2% to 11.1 million (7.5% of total US employment). Globally, the sector saw a staggering 62 million (18.5%) decline in jobs in 2020 alone.

“Travel & Tourism is critical to creating jobs and financial returns for the entire US economy,” said Gloria Guevara, President / CEO of WTTC. “The decline in the industry due to the pandemic is being felt across the board among families, business owners and tour operators who rely on a thriving sector for a living. A restart of international travel will create more job opportunities and allow the country’s economy to revive. Our research shows that the sector’s contribution to global GDP for travel and tourism could increase sharply in 2021 if mobility and international travel resume by this summer. “

International and domestic travel play a key role in recovering the US economy. The loss in travel spending and unemployment was felt across the country, with small and medium-sized enterprises (SMEs), which make up 80% of all travel and tourism businesses, hit hard. In addition, the impact on women, youth and minorities as one of the most diverse sectors in the world has been significant.

The resurgence of travel and tourism businesses in the U.S. private sector will increase profits across the industry as a key component of the overall financial contributions that drive public initiatives and campaigns.

The country’s domestic travel spending changed less dramatically, declining 37.1%, while spending on international visitors declined 76.7% in 2020 – from $ 181.2 billion in 2019 to just $ 42.2 billion. USD in 2020.

The US market and the global travel and tourism sectors are steadily trending in the right direction for recovery due to the efforts of the Biden government. The $ 14 billion allocated to airlines under the previously announced American Rescue Plan Act of 2021, coupled with the rapid adoption of vaccines, provides an opportunity for companies within the sector to regain losses and restore jobs across the industry.

“WTTC welcomes the swift action taken by the Biden government to effectively combat COVID-19 through a robust vaccine roll-out, a firm stance when wearing masks to prevent further spread, and a much-needed incentive for the travel and tourism sectors,” she said. “These steps are critical to resuming international travel and reinvigorating the US economy through the travel sector.”

WTTC expects that a resumption of international travel by June this year will give the necessary boost to restore employment opportunities in the US and stimulate the economy.

The global tourism organization also reported that public and private collaboration is key to revitalizing the sector. Following its recent meeting with business leaders, WTTC is confident that the Biden government will continue to work closely with the private sector in its efforts to restore international travel.

“WTTC supports the CDC’s recent announcements regarding the effectiveness of vaccinations in enabling travelers to move safely and hopes the health organization will take a more standardized approach to support a safe and seamless restart to travel,” said Guevara. “While the introduction of vaccines in the US has restored confidence in travel, WTTC firmly believes that the key to safely entering the sector by the summer and revitalizing millions of jobs in a comprehensive testing regime for unvaccinated people travelers, the mandatory wearing of masks and improved health and hygiene protocols are across the board. “

The safe reopening of the travel and tourism sectors in the US and around the world is the way forward, according to WTTC. A clear and consistent framework for comprehensive pre-departure testing for all non-vaccinated travelers, improved health and safety protocols and the mandatory wearing of masks will restart the sector.