One in three of all new jobs is expected to be in travel and tourism
Travel and tourism GDP could reach 2019 levels by 2023
Manila, Philippines: The latest Economic Impact Report (EIR) from the World Travel & Tourism Council reveals that the travel and tourism sector is expected to create nearly 126 million new jobs over the next decade.
The bullish forecasts of the World Travel & Tourism Council (WTTC), which represents the global private travel and tourism sector, also shows that the sector will be a driver of global economic recovery, creating one in three new jobs.
The announcement was made today by Julia Simpson, President and CEO of the World Travel & Tourism Council, in his keynote address at his prestigious global summit in the Philippines.
The prediction was delivered in the capital, Manila, in front of more than 1,000 delegates from the global travel and tourism industry, including CEOs, business leaders, ministers, travel experts and international media.
The EIR report shows that travel and tourism GDP is expected to grow at an average rate of 5.8% per year between 2022 and 2032, outpacing the 2.7% growth rate of the global economy, for reach $14.6 trillion (11.3% of the total world economy). .
And in a further cause for optimism, the report also shows that global travel and tourism GDP could reach pre-pandemic levels by 2023 – just 0.1% below 2019 levels. The sector’s contribution to GDP is expected to rise massively by 43.7% to nearly US$8.4 trillion by the end of 2022, or 8.5% of total global economic GDP, or just 13.3% of less than 2019 levels.
This will be accompanied by an increase in employment in travel and tourism, which is expected to approach 2019 levels in 2023, only 2.7% below.
Julia Simpson, President and CEO of WTTC, said: “Over the next decade, travel and tourism will create 126 million new jobs worldwide. In fact, one in three new jobs will be related to our sector.
“Looking forward to this year and next, the WTTC predicts a brighter future, with GDP and employment expected to reach pre-pandemic levels by next year.
“The recovery in 2021 has been slower than expected partly due to the impact of the Omicron variant but mainly due to an uncoordinated approach by governments who rejected the advice of the World Health Organization, who argued that closing borders would not stop the spread of the virus, but would only serve to harm economies and livelihoods.
Looking back a year, the latest WTTC EIR report also revealed that 2021 saw the start of recovery for the global travel and tourism sector.
Its contribution to GDP soared 21.7% year-on-year to over $5.8 trillion.
Before the pandemic, the travel and tourism sector’s contribution to GDP was 10.3% (US$9.6 trillion) in 2019, falling to 5.3% (nearly US$4.8 trillion) in 2020 when the pandemic was at its peak, which was a staggering 50% loss. .
The sector has seen a recovery of more than 18 million travel and tourism jobs, which represents a positive increase of 6.7% in 2021.
The sector’s contribution to the global economy and jobs would have been higher had it not been for the impact of the Omicron variant, which has rocked the recovery around the world, with many countries reinstating severe travel restrictions.
The EIR WTTC 2022 report also shows that travel and tourism GDP is expected to jump by an average annual rate of 5.8% over the next decade.
This compares to the more modest average annual growth rate of 2.7% for the global economy over the same period.
Global travel and tourism employment is expected to grow by 3.5% in 2022, accounting for 9.1% of the global job market, lagging 10% on 2019 levels.
A look at Asia Pacific
The 2022 WTTC EIR report clearly indicates that the travel and tourism sector across Asia-Pacific is set to rebound significantly and over the next decade is expected to create nearly 77 million new jobs.
At the same time, the sector’s contribution to GDP is expected to increase at an average annual rate of 8.5% between 2022 and 2032, more than double the 4% growth rate of the region’s overall economy.
Last year, the contribution of the travel and tourism sector to GDP increased by 16% to reach US$1.58 trillion after a 58.8% collapse in 2020 due to the impact of the pandemic.
Meanwhile, job creation in 2021 was boosted by 6.2%, accounting for 8.6% of all jobs in the region, after falling by almost a fifth (18.9%) the last year.
The EIR 2022 report marks a vast change of fortune for the once-struggling global travel and tourism sector, which has been reeling from the impact of the pandemic, due to the widespread introduction of unnecessary and extremely detrimental.
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