While the effect of the COVID-19 pandemic has been felt across the entire Travel & Tourism ecosystem, 2021 saw the beginning of the recovery for the sector. For over 30 years, the World Travel & Tourism Council (WTTC) has been quantifying the economic impact of Travel & Tourism, highlighting the importance of the sector globally. The 2022 annual research which covers 185 countries/economies, and 26 regions of the world, reveals the extent of the recovery in 2021.
Prior to the pandemic, Travel & Tourism (including its direct, indirect, and induced impacts) was one of the world’s largest sectors, accounting for 1 in 4 of all new jobs created in the world, 10.3% of all jobs (333 million), and 10.3% of global GDP (USD 9.6 trillion). Meanwhile, international visitor spending amounted to USD 1.8 trillion in 2019 (6.8% of total exports). Travel & Tourism enables socio-economic development, job creation and poverty reduction. This in turn drives prosperity and significant positive social impact, providing unique opportunities to women, minorities, and young people. The benefits of Travel & Tourism spread far beyond its direct impacts in terms of GDP and employment, with indirect gains extending through the entire travel ecosystem as well as the supply chain linkages to other sectors.
The effect of COVID-19 emphasised the tremendous importance and positive contribution of Travel & Tourism. In 2020, 62 million jobs were lost, leaving just 271 million employed across the sector globally. This 18.6% decrease was felt across the entire sector, with Small and Medium Sized Enterprises (SMEs) — which make up around 80% of all global businesses in the sector— being particularly affected alongside women, the young and minorities. Meanwhile, the sector suffered losses of almost USD 4.9 trillion, with its global contribution to GDP declining by 50.4% year-on-year, compared to a 3.3% decline of the global economy.
While 2021 saw the beginning of the recovery for the global Travel & Tourism sector, this was slower than expected, due in part to the impact of the Omicron variant, stringent and inconsistent border restrictions and the lack of coordination among governments to tackle the pandemic. Travel & Tourism’s contribution to GDP increased by USD 1 trillion (+21.7% rise) in 2021 to reach USD 5.8 trillion, while the sector’s share of the whole economy increased from 5.3% in 2020 to 6.1% in 2021. Additionally, the sector saw the recovery of 18.2 million jobs, representing an increase of 6.7%.
However, the future outlook is positive, and our sector is once again showing its resilience and ability to bounce back. Despite the difficulties the sector has been facing, our projections point to a strong decade of growth. Travel & Tourism GDP is set to grow on average by 5.8% annually between 2022 and 2032, outpacing the growth of the overall economy (2.7% per year). Our research shows that Travel & Tourism GDP could return to 2019 levels by the end of 2023. What is more, the sector is expected to create nearly 126 million new jobs within the next decade. While government support has been instrumental throughout this crisis, the swift recovery of the sector will only be possible if leaders and public officials work together and provide clear and consistent rules.
Governments need to focus on co-existing with COVID-19 while enhancing preparedness for future crises, offering safe travel experiences, supporting equitable vaccine distribution, and continuing to ease the conditions of entry to destinations.
WTTC believes that the best policy and planning decisions are made with authoritative, reliable, and accessible data. That is why WTTC will continue to engage with governments and the private sector to disseminate information and provide data to enable leaders across the world to build a clear path to a sustainable and inclusive recovery of the sector.
While the effect of the COVID-19 pandemic has been felt across the entire Travel & Tourism ecosystem, 2021 saw the beginning of the recovery for the sector. For over 30 years, the World Travel & Tourism Council (WTTC) has been quantifying the economic impact of Travel & Tourism, highlighting the importance of the sector globally. The 2022 annual research which covers 185 countries/economies, and 26 regions of the world, reveals the extent of the recovery in 2021.
Prior to the pandemic, Travel & Tourism (including its direct, indirect, and induced impacts) was one of the world’s largest sectors, accounting for 1 in 4 of all new jobs created in the world, 10.3% of all jobs (333 million), and 10.3% of global GDP (USD 9.6 trillion). Meanwhile, international visitor spending amounted to USD 1.8 trillion in 2019 (6.8% of total exports). Travel & Tourism enables socio-economic development, job creation and poverty reduction. This in turn drives prosperity and significant positive social impact, providing unique opportunities to women, minorities, and young people. The benefits of Travel & Tourism spread far beyond its direct impacts in terms of GDP and employment, with indirect gains extending through the entire travel ecosystem as well as the supply chain linkages to other sectors.
The effect of COVID-19 emphasised the tremendous importance and positive contribution of Travel & Tourism. In 2020, 62 million jobs were lost, leaving just 271 million employed across the sector globally. This 18.6% decrease was felt across the entire sector, with Small and Medium Sized Enterprises (SMEs) — which make up around 80% of all global businesses in the sector— being particularly affected alongside women, the young and minorities. Meanwhile, the sector suffered losses of almost USD 4.9 trillion, with its global contribution to GDP declining by 50.4% year-on-year, compared to a 3.3% decline of the global economy.
While 2021 saw the beginning of the recovery for the global Travel & Tourism sector, this was slower than expected, due in part to the impact of the Omicron variant, stringent and inconsistent border restrictions and the lack of coordination among governments to tackle the pandemic. Travel & Tourism’s contribution to GDP increased by USD 1 trillion (+21.7% rise) in 2021 to reach USD 5.8 trillion, while the sector’s share of the whole economy increased from 5.3% in 2020 to 6.1% in 2021. Additionally, the sector saw the recovery of 18.2 million jobs, representing an increase of 6.7%.
However, the future outlook is positive, and our sector is once again showing its resilience and ability to bounce back. Despite the difficulties the sector has been facing, our projections point to a strong decade of growth. Travel & Tourism GDP is set to grow on average by 5.8% annually between 2022 and 2032, outpacing the growth of the overall economy (2.7% per year). Our research shows that Travel & Tourism GDP could return to 2019 levels by the end of 2023. What is more, the sector is expected to create nearly 126 million new jobs within the next decade. While government support has been instrumental throughout this crisis, the swift recovery of the sector will only be possible if leaders and public officials work together and provide clear and consistent rules.
Governments need to focus on co-existing with COVID-19 while enhancing preparedness for future crises, offering safe travel experiences, supporting equitable vaccine distribution, and continuing to ease the conditions of entry to destinations.
WTTC believes that the best policy and planning decisions are made with authoritative, reliable, and accessible data. That is why WTTC will continue to engage with governments and the private sector to disseminate information and provide data to enable leaders across the world to build a clear path to a sustainable and inclusive recovery of the sector.
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