WTTC Economic Trends Report Reveals COVID-19’s Dramatic Impact on Travel & Tourism
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Asia-Pacific was the worst performing region, with the sector’s contribution to GDP dropping a damaging 53.7%, compared to the global fall of 49.1%, according to the new annual Economic Trends Report from the World Travel & Tourism Council (WTTC).
The report reveals the full dramatic impact of travel restrictions designed to curb COVID-19 on the global economy, individual regions, and its job losses worldwide.
International visitor spending was particularly hard hit across Asia Pacific, falling by 74.4%, as many countries across the region closed their borders to inbound tourists. Domestic spending witnessed a lower but equally punishing decline of 48.1%.
Travel & Tourism employment in the region fell by 18.4%, equating to a shocking 34.1 million jobs.
However, despite this decline, Asia-Pacific remained the largest region for the sector’s employment in 2020, accounting for 55% (151 million) of all global Travel & Tourism jobs.
Virginia Messina, Senior Vice President WTTC, said: “WTTC data has laid bare the devastating impact the pandemic has had on Travel & Tourism around the world, leaving economies battered, millions without jobs and many more fearing for their future.”
The report also revealed the European Travel & Tourism sector suffered the second biggest economic collapse last year, dropping 51.4% (€987 BN).
The report showed domestic spending in Europe declined by 48.4%, offset by some intra-regional travel, however international spending fell at an even sharper rate, by 63.8%. Despite this, Europe remained the top global region for international visitor spending.
Travel & Tourism GDP in Africa dropped 49.2% in 2020, in line with the global average. Domestic spending declined by 42.8%, while international spending saw a much steeper contraction at 66.8%.
In terms of employment losses, Africa suffered disproportionately more than other regions, falling 29.3%, representing a staggering 7.2 million jobs.
Travel & Tourism’s contribution to GDP in the Middle East decreased significantly in 2020, dropping 51.1%. While domestic spending declined 42.8%, international spending saw a much steeper fall of 70.3%, in part driven by severe restrictions.
The Caribbean, which is as a region highly reliant upon international visitors, was the worst affected ‘sub-region’ globally. Its Travel & Tourism GDP fell 58% last year, from 14.1% of its total economy in 2019, to just 6.4% in 2020.