WTTC: U.S. was least-affected region economically by pandemic

Despite a 42.4% decline in travel & tourism GDP in 2020, the Americas was the least affected major region globally by the COVID-19 pandemic, according to the new annual Economic Trends Report from the World Travel & Tourism Council (WTTC). As a result, it remained the largest region in terms of its economic importance, accounting for 35% of global direct travel & tourism GDP. While domestic spending dropped by 38.9%, international spending saw a significantly sharper decline of 72.1% due to severe travel restrictions on inbound visitors.

The report reveals the full dramatic impact of travel restrictions designed to curb COVID-19 on the global economy, individual regions and job losses worldwide.

Asia-Pacific was the worst performing region, with the sector’s contribution to GDP dropping 53.7%, compared to the global fall of 49.1%. International visitor spending was particularly hard hit, falling by 74.4%, as many countries across the region closed their borders to inbound tourists. Domestic spending witnessed a lower decline of 48.1%. Travel & tourism employment in the region fell by 18.4%, equating to a shocking 34.1 million jobs. However, despite this decline, Asia-Pacific remained the largest region for the sector’s employment in 2020, accounting for 55% (151 million) of all global travel & tourism jobs.

“WTTC data has laid bare the devastating impact the pandemic has had on travel & tourism around the world, leaving economies battered, millions without jobs and many more fearing for their future,” said Virginia Messina, SVP, WTTC. “Our annual Economic Trends Report shows just how much each region has suffered at the hands of the crushing travel restrictions brought in to control the spread of COVID-19. WTTC believes governments around the world should take advantage of their vaccine rollouts, which could significantly ease travel restrictions on travel, and help power the wider global economic recovery.”

The report also revealed the European travel & tourism sector suffered the second biggest economic collapse last year, dropping 51.4%. This significant and damaging decline was in part due to continuing mobility restrictions to curb the spread of the virus. Domestic spending in Europe declined by 48.4%, offset by some intra-regional travel, however, international spending fell 63.8%. Despite this, Europe remained the top global region for international visitor spending. However, travel & tourism employment still suffered across the continent, falling 9.3%, equating to a loss of 3.6 million jobs.

Travel & tourism GDP in Africa dropped 49.2% in 2020, in line with the global average. Domestic spending declined by 42.8%, while international spending saw a much steeper contraction at 66.8%. In terms of employment losses, Africa suffered disproportionately more than other regions, falling 29.3%, representing 7.2 million jobs.

In the Middle East, travel & tourism’s contribution to GDP decreased 51.1% in 2020. While domestic spending declined 42.8%, international spending fell 70.3%, in part driven by severe restrictions. The region, which was highly reliant on international tourism in 2019, saw international spending as a share of total travel & tourism spending drop from 62% of the total in 2019 to just 46% in 2020. However, domestic spending grew in share, from 38% of the total in 2019 to 54% in 2020.

The Caribbean, which as a region is highly reliant upon international visitors, was the worst affected “sub-region” globally. Its travel & tourism GDP fell 58% last year, from 14.1% of its total economy in 2019, to just 6.4% in 2020.

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