The global Travel and Tourism sector suffered a massive loss of almost US$4.5 trillion last year due to the pandemic, says a major new report from the World Travel and Tourism Council. The vast losses run up during 2020 paint the first full picture of a sector struggling to survive in the face of what the WTTC calls “crippling travel restrictions and unnecessary quarantines.”
The figures were revealed in the WTTC’s s annual Economic Impact Report (EIR), which further stated that the sector’s contribution to GDP dropped a staggering 49.1% compared to the overall global economy, which dropped by just 3.7% in last year.
Altogether, the sector’s contribution to global GDP plummeted to US$4.7 trillion in 2020 (5.5% of the global economy), from nearly US$9.2 trillion the previous year (10.4%).
In 2019, when global Travel and Tourism was thriving and generating one in four of all new jobs around the world, the sector contributed 10.6% (334 million) jobs globally, according to the WTTC.
However last year, as the pandemic raged, more than 62 million jobs were lost in Travel and Tourism, representing a drop of 18.5%, leaving just 272 million employed across the industry globally.
Moreover, the threat persists, says the WTTC, as many of these jobs are currently supported by government retention schemes and reduced hours, which without a full recovery of Travel and Tourism could be lost.
The report also reveals a shocking loss in international travel spending, which was down 69.4% on the previous year. Domestic travel spending fell by 45%, a lower decline due to some internal travel in a number of countries.
“We must praise the prompt action of governments around the world for saving so many jobs and livelihoods at risk, thanks to various retention schemes, without which today’s figures would be far worse,” stated WTTC President and CEO Gloria Guevara. “However, WTTC’s annual Economic Impact Report shows the full extent of the pain our sector has had to endure over the past 12 months, which has needlessly devastated so many lives and businesses, large and small.
“With the sector’s contribution to GDP plunging by almost half, it’s more important than ever that Travel and Tourism is given the support needed so it can help power the economic recovery, which will be instrumental in enabling the world to revive from the effects of the pandemic.”
The route to recovery
While 2020 and the winter of 2021 have been “ruinous” for Travel and Tourism, with millions around the world in lockdown, WTTC says its research shows that if international mobility and travel is resumed by June, it will significantly boost global and country level GDPs – and jobs.
WTTC predicts that if the global vaccine rollout continues at pace, and travel restrictions are relaxed just before the busy summer season, the 62 million jobs lost in 2020 could return by 2022.
However, the WTTC says vaccines aren’t enough and advises governments to provide a “clear and decisive” roadmap for the resumption of safe international travel that includes a comprehensive coordinated international testing regime upon departure for all non-vaccinated travellers in order to eliminate quarantines; enhanced health and hygiene protocols and mandatory mask wearing; shifting to individual traveller risk assessments instead of country risk assessments; and continued support for the sector, including fiscal, liquidity and worker protection.
WTTC also advocates the introduction of digital health passes, such as the recently announced ‘Digital Green Certificate’, to support the sector’s recovery.