The travel and tourism industry is one of the fastest growing sectors around the world. It is best described as traveling for pleasure. Since the pandemic has come into play the growth of this ecosystem has declined.
Between 2006 to 2019 the travel and tourism industry contributed over $9.25 trillion to the world’s economy.
The United States has the largest tourism market across the world. It has contributed the highest sum accounting to $580.7 billion towards the global economy. However, France takes the lead when it comes to international tourism, it showed the highest growth in spending as of 2020.
The tourism sector employs at least 50% of the world’s women and youth workforce and its growth rate is faster than the global economy.
When the World Health Organization (WHO) declared the coronavirus outbreak as a pandemic, all international travel destinations announced travel restrictions and 27% immediately closed down.
Some of the biggest online travel agencies such as Expedia Group and Book Holdings reported net income less than half of the year from before.
Lockdowns and restrictions have directly impacted 120 million tourist jobs worldwide and $2 trillion losses in global GDP.
The World Tourism Organization has reported that the first few months of 2020 takes the award for worst period as it had witnessed a drop of 72% in tourists when compared to 2019 levels, and during 2021 there was a dip of 83% in tourists compared to 2020 levels.
Asia-Pacific nations continue to be the most affected region. These countries experienced a fall of 94% in arrivals during the first few months of this year. Europe follows second with 83% and then Africa with 81%.
Since there was a fall in global travel, receipts sunk by roughly $930 billion in 2020 and international spending by visitors was just $536 billion. This was about one-third of the amount spent during 2019.
Things are starting to look optimistic for these sectors because people are getting vaccinated, lockdowns and travel restrictions are being taken off along with standardized safety measures being put in place for a safe journey.
Domestic tourism is expected to recover sooner than International tourism. Several experts have said 2022 might be the year the industry bounces back. Expected to see a jump in international tourism by at least 50 to 60%. However 2023-2024 is predicted to be the year we reach 2019 levels.
By 2026 the global Travel and Tourism ecosystem is projected to cross $8.9 trillion. With an annual growth rate of 3.1%.