WTTC: Global tourism recovers 95% of its pre-pandemic contribution to GDP
The World Travel & Tourism Council (WTTC) noted through its annual Economic Impact Report (EIR) that the sector is approaching its 2019 global GDP contribution levels when travel was at its peak, projecting a 95% recovery compared to 2019 by the close of the current year.
As such, the sector is forecast to reach $9.5 trillion, or 9.2% of global GDP, just 5% below what the sector accounted for in 2019, prior to the COVID-19 health crisis.
It is worth noting that 34 of the 185 countries analyzed have already surpassed pre-pandemic levels in terms of their contribution to GDP. Moreover, according to research conducted by WTTC in collaboration with Oxford Economics, the sector is also forecast to recover to 96% of the 2019 employment level, with the generation of 24 million new jobs this year.
WTTC forecasts that, by the end of 2023, nearly half of the 185 countries will have fully recovered to pre-pandemic levels or be within 95% of full recovery.
A look back at the past year
Last year, despite economic and geopolitical difficulties, the Travel & Tourism sector’s recovery continued gradually, growing by 22% compared to 2021, to reach $7.7 trillion in its contribution to global GDP.
This recovery accounted for 7.6% of the global economy in 2022, the sector’s largest contribution since 2019, although its contribution to global GDP was still 22.9% below that year’s levels.
The research shows that the ongoing conflict in Ukraine and prolonged travel restrictions imposed by several countries such as China had a significant impact on the global sector’s recovery.
From its pre-pandemic peak of more than 334 million jobs in the global tourism sector, the pandemic led to losses of more than 70 million jobs, with 2020 ending with only 263 million people employed.
However, thanks to the staggered revival of travel, by 2022 it was possible to reach 295 million jobs, or one out of every 11 jobs worldwide.
In 2022, foreign visitor spending grew by a record 82% to reach $1.1 trillion, demonstrating that international travel is on track for a solid recovery.
Julia Simpson, WTTC President and CEO, said, “The Travel & Tourism sector continues to recover at a strong pace, demonstrating its resilience and people’s enduring desire to travel.
“By the end of the year, the sector’s contribution will be closer to 2019 levels. We expect 2024 to be the year that exceeds those levels.”
Simpson said the recovery will accelerate this year as Chinese travelers re-enter the market.
What will the next decade look like?
The world tourism body forecasts that the sector will increase its contribution to GDP to $15.5 trillion by 2033, representing 11.6% of the global economy and employing 430 million people worldwide, with nearly 12% of the workforce employed in the sector.
