August 26 - A staggering £22 billion looks set to be lost from the UK economy due to the collapse of international travel during 2020, according to the World Travel & Tourism Council (WTTC).

 

Travellers and tourists are staying away from the UK in droves because of continuing uncertainty around travel restrictions designed to curb the spread of COVID-19.

 

As a result, this year international visitor spending could plunge by 78% compared to 2019 levels, equating to a loss of £60 million a day, or £420 million a week, to the UK economy.

 

The severe impact on UK Travel & Tourism is laid bare by WTTC as the economic fallout from coronavirus continues to burn its way through the sector. Nearly three million jobs in the UK supported by Travel & Tourism are at risk of being lost in a ‘worst case’ scenario mapped out by WTTC economic modelling.

 

According to WTTC’s 2020 Economic Impact Report, during 2019, Travel & Tourism was responsible for almost four million UK jobs, or 11% of the country’s total workforce. It also generated nearly £200 billion GDP, or 9% to the UK economy.

 

WTTC analysis of international travel spending in the UK during 2019 reveals it reached almost £28.2 billion, accounting for 17% of the total tourism spend in the UK. Domestic travel spending was last year responsible for the other 83%.

 

A further breakdown reveals how crucial spending from international travellers during 2019 was to the UK economy. Every month it accounted for £2.35 billion or £540 million a week – and £77.3 million a day.

 

Between 2016 and 2018, the largest inbound source markets to the UK were travellers from the U.S and France, each accounting for 10% of all international arrivals, with Germany coming in third with 9%, and Ireland and Spain in joint fourth place with 7% each.

 

Data for 2018, which is the most up-to-date available, shows how dependent London in particular is on international visitor spending. It accounted for a massive 85% of all tourism spending in the city, with domestic tourists making up the remaining 15%.

 

The US was the most important source market for the city with 15% of arriving visitors, with France in second place with 9% of arrivals, Germany in third place with 8% of arrivals, and Spain in fourth position with 7%.

 

As one of the world’s most popular cities for international visits, the loss of this international visitor spending – which accounted for a staggering six pounds out of every seven spent in London – could have a profound long-term impact on the UK’s capital for years to come.

 

According to WTTC’s 2020 Economic Impact Report, during 2019, Travel & Tourism was responsible for one in 10 jobs (330 million total), making a 10.3% contribution to global GDP and generating one in four of all new jobs. For more information, please visit wttc.org

 

 

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