Global tourism recovers to 95% of its contribution to pre-pandemic GDP

The World Travel and Tourism Council ( WTTC ) pointed out, through its Annual Economic Impact Report (EIR), that the sector is approaching its levels of contribution to global GDP of 2019, when the trips were at their highest point, projecting a recovery of 95%, compared to 2019, at the end of the current year.

In this way, it is forecast that the sector will reach 9.5 billion dollars, that is, 9.2% of global GDP, only 5% below what the sector represented in 2019, before the health crisis due to COVID-19.

It should be noted that 34 of the 185 countries analyzed have already exceeded pre-pandemic levels in terms of their contribution to GDP. Furthermore, according to research conducted by WTTC in collaboration with Oxford Economics , the sector is also forecast to recover to 96% of the 2019 employment level, with the creation of 24 million new jobs this year.

The WTTC forecasts that by the end of 2023, almost half of the 185 countries will have fully recovered to pre-pandemic levels or will be within 95% of full recovery.

A retrospective look at last year

Last year, despite the economic and geopolitical difficulties, the recovery of the Travel and Tourism sector continued gradually, with which it managed to grow by 22% compared to 2021, reaching 7 .7 trillion dollars in its contribution to global GDP. 

This recovery represented 7.6% of the world economy in 2022, the sector's largest contribution since 2019, although its contribution to world GDP was still 22.9% below that year's levels.

The research shows that the ongoing conflict in Ukraine and the prolonged travel restrictions imposed by several countries such as China had a significant impact on the recovery of the global sector.

From its pre-pandemic peak of more than 334 million jobs in the global tourism sector, the pandemic caused more than 70 million job losses, ending 2020 with just 263 million people employed.

However, thanks to the staggered reactivation of travel, in 2022 it was possible to reach 295 million jobs, that is, one in 11 jobs worldwide.

In 2022, foreign visitor spending grew by a record 82% to reach $1.1 trillion, showing that international travel is on track for a strong recovery. 

Julia Simpson, President and CEO of the WTTC, said: "The Travel & Tourism industry continues to recover at a good pace, demonstrating its resilience and people's enduring desire to travel. "By the end of the year, the industry's contribution will

be closer to 2019 levels. We expect 2024 to be the year that exceeds those levels.”

Simpson said the recovery will accelerate this year as Chinese travelers re-enter the market. 

What will the next decade be like?

The world tourism body forecasts that the sector will increase its contribution to GDP to $15.5 trillion by 2033, representing 11.6% of the global economy and employing 430 million people worldwide, with almost 12% of the active population employed in the sector.