North American travel and tourism GDP will reach $3.1 trillion by 2032

According to the latest Economic Impact Report (EIR) from the World Travel & Tourism Council (WTTC), released today, the North American travel and tourism sector is expected to grow at an average annual rate of 3.9 % over the next ten years. These projections put it ahead of average growth rates of 2% in the regional economy and put the industry on track to reach an impressive $3.1 trillion by 2032.

The recently released EIR by WTTC, compiled in partnership with Oxford Economics, also projects that travel and tourism in North America will create 9.5 million new jobs over the next decade, with employment growing at an average rate of 3.7% per year.

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The world’s leading tourism group predicts the industry’s recovery will continue to gather pace for the remainder of 2022 and its contribution to GDP will rise 38.2% to $2.1 trillion, with an increase of 19 % of employment in the sector.

The most recent WTTC report also indicates that the economic recovery in travel and tourism is on track to reach pre-pandemic levels as early as next year. Employment in the sector is expected to lag slightly, rebounding to pre-pandemic levels by 2024.

“The pandemic has cost the North American travel and tourism sector 8.85 million jobs and nearly $1.1 trillion in GDP in 2020,” said Julia Simpson, President and CEO of WTTC. . She continued: “The U.S. travel and tourism sector is showing a strong recovery. While we respect the tough decisions of the CDC during the pandemic, science indicates that antigen testing for returning U.S. citizens and visitors is redundant. Other economies removed all restrictions, current antigen test slows US recovery.

Infographic, World Travel & Tourism Council, WTTC, Economic Impact Report 2022
Infographic illustrating data from the 2022 WTTC Economic Impact Report. (photo courtesy of the World Travel & Tourism Council)

The US Travel Association and the American Society of Travel Advisors (ASTA) have both issued similar statements, encouraging the government to eliminate the inbound test requirement for re-entry into the US, saying the outdated restriction is preventing resumption sector complete.

Last year, the travel and tourism sector’s contribution to GDP was 33.7% below 2019 levels, reaching $1.5 trillion. The final numbers are believed to have been low in part due to the Omicron variant and the fact that many foreign countries have tightened border restrictions due to its emergence.

In 2021, the United States led with the most inbound arrivals, while Mexico had the most outbound departures. And together they launched the North American travel and tourism industry.

Infographic, World Travel & Tourism Council, WTTC, Economic Impact Report 2022
Infographic illustrating data from the 2022 WTTC Economic Impact Report. (photo courtesy of the World Travel & Tourism Council)

Prior to the COVID-19 pandemic, the North American travel and tourism sector produced 8.9% ($2.3 trillion) of the overall global economy in 2019, a figure that has fallen to 5% (1 .25 trillion) in 2020 as the industry came to a halt at the height of the global crisis. Employment in the sector has suffered an equally devastating blow, with contributions to employment falling by 35% between 2019 and 2020.

Despite the severity of the setbacks of the past two years, WTTC’s 2022 EIR predicts the tide is finally turning for travel and tourism, with growing momentum and growth as the industry emerges from the difficulties that have mired it during the peak of the pandemic.

For more information, visit www.wttc.org.

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