WTTC: Global Travel and Tourism Sector Lost Around €3,8 Trillion in 2020 Due to COVID-19
The World Travel and Tourism Council has revealed the disastrous impact that COVID-19 had on the Travel and Tourism sector in 2020 – a massive loss of around €3,8 trillion – through the Council’s annual Economic Impact Report (EIR) presented on March 25, 2021.
The World Travel and Tourism Council’s annual EIR shows that the contribution of the sector to world GDP dropped a shockingly 49.1 percent, which compared to the total global economy dropped by only 3.7 percent last year.
WTTC indicated that the travel sector’s overall contribution to global GDP dropped to around €4 trillion in 2020, or 5.5 percent of the global economy, from about €7,8 trillion the previous year, or 10.4 percent.
During 2019, when the travel sector was thriving and providing one in four jobs, the industry contributed by providing 10.6 percent of jobs globally, AtoZSerwisPlus.com reports.
The majority of losses during 2020 represent the struggles of the sector due to travel restrictions and quarantine.
More than 62 million jobs were lost during 2020, portraying a drop of 18.5 percent and leaving only 272 million people employed in the industry across the entire Travel and Tourism industry. The threat of losing any further jobs remains since these jobs are currently supported by the government’s preservation plans and reduced working hours.
“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,” WTTC President and CEO Gloria Guevara said.
The Economic Impact Report also pointed out that domestic travel spending fell by 45 percent and international travel spending was down 69.4 percent compared to 2019.
“With the sector’s contribution to GDP plunging by almost half, it’s more important than ever that Travel & 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,” Guevara added.
While the last two years have been disastrous for the travel and tourism sector, WTTC insists that if there is international mobility and travel is restarted by June of 2021, the global GDP will increase tremendously, and the lost jobs will be returned.
According to the EIR research, the sector’s contribution to the global GDP could rise to 48.5 percent year-on-year and reach the same amount as in 2019 by 2022, with a year-on-year rise of 25.3 percent.
Additionally, WTTC anticipates that if the vaccines are distributed as planned and the travel restrictions are eased before the summer season, the 62 million jobs lost in 2019 could return by the year 2022.
WTTC strongly encourages the revitalization of safe international travel in 2021, and it highlights the importance of the Digital Green Certificate, which would support the recovery of the sector.
