What
World Travel & Tourism Council (WTTC), which represents the global travel and tourism private sector, released the results of a report detailing the critical role that the travel industry will have in the economic recovery in the Americas once the COVID-19 pandemic has been combatted. In its latest annual Economic Impact Report (EIR), WTTC shares that in 2019, travel and tourism accounted for 8.8% of the total economy in the Americas and approximately 45 million jobs, or 9.8% of the total workforce. The report also reveals that international visitor spend totaled $324 billion, representing 7.3% of all exports.
Why It Matters
According to the EIR, the travel and tourism sector supports one in 10 (330 million) jobs, making a 10.3% contribution to global GDP and generating one in four of all new jobs. In particular, it’s important for government leaders to understand that travel and tourism is vital to an overall economic recovery and that legislation needs to support the industry’s recovery.
Fast Facts
- On a global level, the travel and tourism sector outperformed the 2.5% rate of global GDP growth for the ninth consecutive year in a row, thanks to an annual GDP growth rate of 3.5%. This made it the global economy’s third-highest sector in terms of GDP growth. For two consecutive years, travel and tourism GDP growth outpaced the overall economy, growing at 2.2% in 2019, while the overall economy showed a 1.9% growth.
- According to the report, the Americas had a higher percentage of leisure travel (74%) compared to business travel (26%). In terms of spending, the region relies heavily on domestic sources, with 81% attributed to domestic spending versus 19% on international spending.
- A breakdown by WTTC shows Asia Pacific to be the top performing region worldwide with a growth rate of 5.5%, followed closely by the Middle East at 5.3%. The U.S. and European Union both demonstrated a steady growth rate of 2.3%.
What They Are Saying
“WTTC’s 2020 Economic Impact Report (EIR) shows how the economic recovery in the Americas depends greatly on travel and tourism,” said Gloria Guevara, president and CEO of the WTTC. “In 2019, travel and tourism was a total of 8.8% of the entire economy. Once this pandemic is at an end, producing new jobs, and bringing business and leisure travelers back, will encourage suppliers of all sizes to restore their efforts to meet the demand.”
“Over the coming months, it will be crucial to call upon governments all over the world to ensure the survival of travel and tourism — which currently has up to 75 million jobs at immediate risk globally and up to 5.9 million at risk in the U.S. alone,” Guevara said. “The WTTC’s ongoing partnerships with government organizations will be key as we look to pave the way to economic recovery.”
The Details
World Travel & Tourism Council
www.wttc.org
Read more from TravelAge West about the COVID-19 outbreak.
