A major new report has revealed the vital contribution that Travel & Tourism will make to Asia-Pacific’s, EU's and the Americas economic recovery, once the COVID-19 pandemic has been combated.

The publication by the World Travel & Tourism Council (WTTC), which represents the global Travel & Tourism private sector, of its annual Economic Impact Report (EIR), shows how big a part Travel & Tourism played in driving the economy in the region last year.

Asia-Pacific, the fastest growing region during 2019, driven by the continued growth in middle income households, visa facilitation, improved connectivity and government prioritisation of the sector, Travel & Tourism generated $2,971 billion USD towards GDP, or 9.8% of the region’s economy, growing by 5.5% from the previous year, ahead of the overall regional economy for the fifth consecutive year, which grew by 4.2%. 

International visitor spend totalled a staggering $548 billion USD, representing 6.6% of the region’s total exports. 

Further evidence of the importance of Travel & Tourism in the region, is demonstrated by the research that shows over the last five years, the region was a world leader in job creation, with Travel & Tourism creating more than 21 million new jobs, equating to 56% of all new jobs globally.

The comprehensive report also showed leisure travel makes up the majority of total Travel & Tourism spend (81%), with only 19% being attributed to business travel. When considering domestic and international spend the numbers skewed similarly, with domestic visitor spend making up 74% of the total, and international making up 26%.

China led the region in 2019 in terms of GDP and employment size, with strong performances in other major Asian markets such as Vietnam, Malaysia and the Philippines. 

Travel & Tourism supports more jobs in China than in any other country in the region - nearly 80 million jobs, or, 10.3% of total employment. The Travel & Tourism economy in the country grew by 9.3% and is the second largest in the world – making up 11.3% of China’s overall economy.

Malaysia and Vietnam also witnessed significant growth, up 6.6% and 7.7% respectively, with both displaying an even split between domestic and international visitor spending, with 49% of visitor spend from domestic travellers and 51% of spend from international. The majority of the Travel & Tourism spending in both countries overwhelmingly came from leisure travel, with Malaysia attributing 86% of visitor spend to leisure, and Vietnam attributing 90%. 

The Philippines also saw significant growth by 8.6% once again, making up 25.3% of the total economy in the country and supporting 24.1% of total employment (more than 10 million jobs). Leisure spending made up 66% of total visitor spending, and 85% was made up of domestic visitors.

Gloria Guevara, WTTC President & CEO, said: “WTTC’s 2019 Economic Impact Report (EIR) shows how intrinsic Travel & Tourism was last year to the economy in Asia-Pacific, making it the fastest growing region in the world in terms of its contribution to GDP, supporting more than 182 million jobs or 9.6% of the total number of people employed.

“Our report underscores how vital Travel & Tourism will be in powering the recovery of the region’s economy, generating new jobs and driving visitors back to Asia-Pacific, having a positive economic domino effect on suppliers large and small throughout the industry.

“Until then it is crucial that all governments throughout the region help to protect Travel & Tourism as the backbone of the regional and global economy, which is currently in a fight for survival. Our research shows that up to 75 million jobs globally are at immediate risk, with more than 48 million at risk across the Asia Pacific region alone, highlighting how critically the sector requires support.”

On a global level, the Travel & Tourism sector outperformed the 2.5% rate of global GDP growth for the ninth consecutive year in a row, thanks to an annual GDP growth rate of 3.5%. This made it the global economy’s third highest sector in terms of GDP growth.

The EIR shows the sector supporting one in 10 (330 million) jobs, making a 10.3% contribution to global GDP and generating one in four of all new jobs.

A breakdown by WTTC shows Asia Pacific to be the top performing region worldwide with an impressive growth rate of 5.5%, followed very closely by the Middle East at 5.3%. The US and EU both demonstrated a steady growth rate of 2.3%, while the fastest growing country among was Saudi Arabia.

EU Travel & Tourism sector will be critical to the EU’s economic recovery, says WTTC

Sector shows significant growth compared to overall economy.

During 2019, Travel & Tourism was responsible for 22.6 million jobs, or 11.2% of the EU’s total workforce. It also generated 1,319 billion Euro’s GDP, or 9.5% to the EU economy. Whilst the EU’s overall economy grew by just 1.4%, the Travel & Tourism sector showed significant growth of 2.3% on the previous year. 

The comprehensive report also showed the EU is the largest region in the world in terms of international spending at a staggering 427 billion Euros in 2019, representing 6.2% of the EU’s total exports.

Leisure spending helped generate jobs throughout the EU with analysis from the report showing across the EU it accounted for an overwhelming 81% of all cash spent, compared to less than a fifth (19%) for business.

The largest EU economies in terms of total Travel & Tourism contribution to GDP were also revealed to be Germany (US$347 billion), Italy (US$260 billion), France (US$229 billion) and Spain (US$198 billion). 

Gloria Guevara, WTTC President & CEO, said: “WTTC’s 2019 Economic Impact Report (EIR) shows how intrinsic the Travel & Tourism sector was last year to the EU economy, responsible for more than 22 million jobs or 11.2% of the total number of people employed.

“Our analysis underscores how vital the Travel & Tourism sector will be in powering the recovery of the EU economy, generating new jobs and driving visitors back, having a positive economic domino effect on suppliers large and small throughout the industry on the continent.

“Until then it is crucial that all governments throughout the EU help to protect a sector which is the backbone of the European and global economy, which is currently in a fight for survival with up to 75 million jobs globally are at immediate risk, with 6.4 million at risk across the EU alone.”

Travel & Tourism Sector Key in Economic Recovery in the Americas According to World Travel & Tourism Council 

Travel & Tourism Accounts for 8.8% of Total Economy in the Region.

In its latest annual Economic Impact Report (EIR), WTTC shared that in 2019, Travel & Tourism accounts for 8.8% of the total economy in the Americas and approximately 45 million jobs, or 9.8% of their total workforce. The report also reveals international visitor spend totaled $324 billion, representing 7.3% of all exports.

Gloria Guevara, WTTC President & CEO, said: “WTTC’s 2020 Economic Impact Report (EIR) shows how the economic recovery in the Americas depends greatly on Travel & Tourism. In 2019, Travel & Tourism was a total of 8.8% of the entire economy. Once this pandemic is at an end, producing new jobs and bringing business and leisure travelers back will encourage suppliers of all sizes to restore their efforts to meet the demand.”

According to the report, Americas had a higher percentage of leisure travel with 74% compared to 26% for business travel. In terms of spending the region relies heavily on domestic which will be critical to the region’s recovery with 81% attributed to domestic spending vs. 19% international spending.

For two consecutive years, Travel & Tourism GDP growth outpaced the overall economy, growing at +2.2% in 2019, while the economy showed a +1.9% growth. 

“Over the coming months, it will be crucial to call upon governments all over the world to ensure the survival of Travel & Tourism - which currently has, up to 75 million jobs at immediate risk globally, with up to 5.9 million at risk in the USA alone.  The WTTC’s ongoing partnerships with government organizations will be key as we look to pave the way to economic recovery”, added Guevara.