/ WTTC research reveals Travel & Tourism sector’s contribution to UK GDP slumped a shocking £148 billion in 2020

Impact of COVID-19 sparks a 62.3% collapse in the sectors GDP

Supplier: World Travel and Tourism Council
Location: Europe

April 8 – The World Travel & Tourism Council’s annual Economic Impact Report (EIR) reveals that the dramatic collapse of the UK’s Travel & Tourism sector has wiped out a staggering £148 billion from the UK economy.

 

The annual EIR from the World Travel & Tourism Council (WTTC), which represents the global Travel & Tourism private sector, shows the sector’s contribution to GDP, dropped by a precipitous 62.3%.

 

Travel & Tourism GDP fell from £238 billion (10.1%) in 2019 before the pandemic struck, to just £90 billion (4.2%), a mere 12 months later, in 2020.

 

The year of crippling travel restrictions, and ineffective quarantines, which have brought international travel to a grinding halt, has resulted in the loss of 307,000 Travel & Tourism jobs across the country.

 

However, WTTC believes the true picture could be significantly worse, if not for government fiscal and liquidity incentives, as well as furlough and job protection schemes which across all sectors is currently protecting more than 11 million jobs, hiding the true extent of the losses and the devastating social impact they could bring.

 

According to latest figures*, the UK government is estimated to have spent more than £46 billion on job retention schemes, with that figure expected to rise to £80 billion by the time the programs end in October 2021.

 

These job losses were felt across the entire UK Travel & Tourism ecosystem, with SMEs, which make up eight out of 10 of all businesses in the sector, particularly affected. Furthermore, as one of the world’s most diverse sectors, the impact on women, youth and minorities was significant.

 

The number of those employed in the UK Travel & Tourism sector tumbled from 4.27 million in 2019, to 3.96 million in 2020 – a fall of 7.2%.

 

The report also revealed domestic visitor spending declined by 63.2% due to nationwide lockdowns, while international spending fared even worse, because of stringent travel restrictions, ineffective quarantines and constantly changing government policies, causing a fall of 71.6%

 

WTTC says the key to unlocking safe international travel can be achieved through a clear and science-based framework to reopen international travel.

 

All non-vaccinated travellers should face a comprehensive testing regime before departure, as well as enhanced health and hygiene protocols, including mandatory mask wearing. Digital health passes, such as the European Commission’s Digital Green Certificate, would display a traveller’s COVID-19 status, which would further enable safe international travel.

 

These measures would be the foundation to build the recovery of the many millions of jobs lost due to the pandemic and reduce the terrible social implications these losses have had on communities dedicated to Travel & Tourism and upon ordinary people who have been isolated by COVID-19 restrictions.

 

 


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