Research by the World Travel and Tourism Council (WTTC) reveals that countries’ GDP is only expected to increase by less than a third, with tourism recovering more slowly than expected.
According to a press release from WTTC, the lack of international coordination, strict travel restrictions and slow vaccination rates in many countries and regions have severely affected the tourism sector and kept it lagging, TheSchengen.com reports.
This research was conducted by Oxford Economics on behalf of WTTC and was based on current worldwide vaccination rates, consumer confidence, and the world’s least stringent entry and travel restrictions.
Moreover, it shows that based on the recovery of tourism and travel, the global scene could see an average rise of 31.7 percent in 2020. Last year, about 62 million people lost jobs related to the sector, and this number is set to rise by Only 0.7 per cent this year. However, research data predicts 18 percent year-over-year growth in sector jobs.
Julia Simpson, president of the World Trade Center Tourism, said research shows that the travel and tourism sector is beginning to wake up. However, travel restrictions and uneven administration of vaccines affected recovery expected to be just under a third.
Last year, 62 million travel and tourism jobs were lost globally, and our data shows a tiny 0.7 percent increase this year. While the coming year looks more positive in terms of the global economy and jobs, the current rate of recovery is simply not fast enough and is, for the most part, driven by domestic travel, which will not bring about a full economic recovery,” he noted.
She highlighted that simplifying travel rules could save jobs and boost the economy. Furthermore, the research shows that the travel and tourism sector can have more positive outcomes if the following criteria are met:
Passengers who have been fully vaccinated are allowed to move freely, regardless of their country of origin or destination. The vaccination and recovery certificate system can be digitized so that travelers can prove their status worldwide in a more time-efficient manner. All vaccines authorized by the World Health Organization (WHO) worldwide and those measures approved by strict regulatory authorities (SRA) must be recognized. All relevant authorities must agree that international travel is safe with additional health and safety protocols in place.
During the pre-pandemic years, the travel and tourism sector brought nearly $90.2 trillion to the global economy. In 2020, the contribution of this sector decreased by 49.1 percent, representing a loss of $4.5 trillion. The 30.7 percent increase in the sector only made up for the $1.4 trillion, which was mainly caused by domestic spending.
The council sees this year that the global economy could grow by 37.5 percent, hitting a record $6.4 trillion compared to $4.7 trillion in 2020. Jobs in this sector are expected to exceed 2019 levels, with an increase of 20.1 percent each year. , accounting for more than 349 million jobs.