Tourism Industry to Lose Over $1 Trillion and Can Reduce Global GDP By Up to 2.8%
Tourism is ranked as the third largest export sector in the global economy. It accounts for over 30% of exports for many of the small island developing states (SIDS).
For some islands like St. Lucia, the figure is actually 90%. In 2019, tourism accounted for 10% of all exports in Africa. Worldwide, it generated 7% of all trade and employed 1 in 10 people. Moreover, there were 1.5 billion international tourist arrivals and 8.8 billion domestic arrivals in 2019.
On the other hand, between January and August 2020, the number of international tourist arrivals dropped by 70% according to the World Tourism Organization (UNWTO). It resulted in a $730 billion loss for tourism exports. This was eight times the losses experienced throughout the 2009 global financial crisis. APAC led the way with a 79% drop while Africa and EMEA shed 69% each.
During the first four months of 2020, the US saw the highest loss in tourism revenue, losing $30.71 billion. Countries in Europe accounted for 50% of the top 10 regions that suffered the highest revenue losses. Meanwhile, the Caribbean made up 50% of the top 10 countries that had the highest GDP losses during the period.
China’s domestic tourism sector is projected to suffer a 52% decline in 2020 based on a study by the China Tourism Academy. A report from the World Travel & Tourism Council (WTTC) stated that Italy could lose up to €36.7 billion from travel and tourism in 2020.
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