What: COVID-19’s Impact on Tourism May Cost the Global GDP More than $4 Trillion for 2020 and 2021
A new report from the United Nations World Tourism Organization (UNWTO) and United Nations Conference on Trade and Development (UNCTAD) reveals the extent of the damage caused by the COVID-19 pandemic to the global economy, with much of the deficit due to a steep drop in international tourism arrivals. According to the report, tourism and its adjacent sectors were responsible for $2.4 trillion lost in 2020, and a similar loss may be repeated in 2021 unless conditions improve.
Why It Matters: To Recover, a Global Vaccination Effort Is Needed
The crash in tourism due to the pandemic has created a domino effect, impacting other sectors that are linked to it. However, the damage is uneven across countries due to differences in vaccination rates: Losses are reduced in developed countries with widespread access to COVID-19 vaccines, and are heightened in those that do not have high vaccination rates. This inequity is increasing the total loss on a global scale, and could delay full recovery even more. A widespread, unified vaccination effort should be enacted as soon as possible to minimize future economic downturn.
Fast Facts:
- According to UNWTO, international tourist arrivals declined by about 1 billion (or 73%) between January and December 2020. In the first quarter of 2021, the UNWTO World Tourism Barometer points to a decline of 88%.
- International tourism and its closely linked sectors suffered an estimated loss of $2.4 trillion in 2020 due to the direct and indirect impacts of a steep drop in international tourist arrivals, according to the June 30 report.
- COVID-19 vaccination rates range from below 1% of the population in some countries, to above 60% in others. Developing countries have suffered the largest reductions in tourism in 2020, with a drop in arrivals estimated at between a 60% and 80% drop in arrivals.
- Tourism is expected to recover faster in countries with high vaccination rates, such as France, Germany, Switzerland, the U.K. and the U.S., the report says.
- Other barriers to recovery include travel restrictions, slow containment of the virus, low traveler confidence and an economic downturn.
- International tourism is expected to rebound in the second half of 2021, but the report still shows a loss of between $1.7 trillion and $2.4 trillion this year, compared with 2019 levels, when assessing the economic effects of three possible scenarios.
What They Are Saying: Advancing Vaccination Efforts Is Critical to Recovery, Especially for Developing Countries
"The world needs a global vaccination effort that will protect workers, mitigate adverse social effects and make strategic decisions regarding tourism, taking potential structural changes into account,” said Isabelle Durant, acting secretary general for UNCTAD.
“Tourism is a lifeline for millions, and advancing vaccination to protect communities and support tourism’s safe restart is critical to the recovery of jobs and generation of much-needed resources, especially in developing countries, many of which are highly dependent on international tourism,” said Zurab Pololikashvili, secretary general for UNWTO.
The Details
United Nations World Tourism Organization
