October 7. The travel and tourism sector’s continued sluggish recovery will see its year-over-year contribution to global gross domestic product (GDP) rise by less than one third in 2021, according to new research from the World Travel & Tourism Council (WTTC). WTTC, which represents the global travel and tourism private sector, says the recovery of the sector has been hampered by the lack of international coordination, severe travel restrictions and slower vaccination rates in some parts of the world, which still affect many regions of the world.
In 2019, the travel and tourism sector generated nearly $9.2 trillion to the global economy, but in 2020 the pandemic brought travel and tourism to an almost complete standstill, which resulted in a 49.1 percent drop, representing a punishing loss of nearly $4.5 trillion. While the global economy is set to receive a modest 30.7 percent year-over-year increase from travel and tourism in 2021, this will only represent $1.4 trillion and is mainly driven by domestic spending.
The economic modelling was conducted by Oxford Economics on behalf of WTTC and calculated a baseline scenario based on the current global vaccination rollout, consumer confidence and relaxed travel restrictions in some in regions around the world. The research reveals that at the current rate of recovery, travel and tourism’s contribution to the global economy could see a similar moderate year-over-year rise of 31.7 percent in 2022.
Last year, WTTC revealed the loss of a staggering 62 million travel and tourism jobs around the world and with the current pace of recovery, jobs are set to rise by only 0.7 percent this year. Similarly, research shows a more hopeful potential year-on-year jobs rise across the sector next year, up 18 percent.
Source: Insider Travel Report