Global tourism suffers $4.5 trillion losses in 2020

MANILA, Philippines — The global tourism sector suffered a total of $4.5 trillion in losses last year, forcing 62 million workers out of their jobs due mainly to travel restrictions brought about by the pandemic.

The World Travel and Tourism Council (WTTC) reported yesterday that the global tourism industry lost nearly $4.5 trillion in 2020 as the sector struggled to survive the movement restrictions and quarantine measures imposed by governments.

As such, tourism’s contribution to world GDP slipped to $4.7 trillion, or 5.5 percent of the global economy, last year, from $9.2 trillion, or 10.4 percent of the global economy, in 2019.

Worse, the sector cut more than 62 million workers throughout 2020, reducing its labor force to 272 million, from 334 million in 2019.

According to the WTTC, tourism accounts for one in four new jobs created across the globe prior to the health crisis.

Based on the WTTC’s report, most of the job losses were observed in micro, small and medium enterprises. MSMEs make up about 80 percent of the sector, and they employ mostly women, youth and minorities.

WTTC president and CEO Gloria Guevara said as much as governments should be thanked for responding to the pandemic, the threats of business closures and job losses in tourism remain, with most borders shut to leisure travel.

“However, WTTC’s annual economic impact report shows the full extent of the pain our sector has had to endure over the past 12 months, which has needlessly devastated so many lives and businesses large and small,” Guevara said.

“Clearly, no one wants to go through what so many have had to suffer during the past difficult 12 months,” she said.

The WTTC is urging governments to resume international travel by June. In doing this, tourism is projected to expand its contribution to world GDP by 48.5 percent and revert its contribution to world economy to 2019 levels.