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After a sharp decline in 2020 due to the pandemic, the global tourism industry grew by nearly 25% in 2021, and by a further 22% in 2022, according to the annual report of the World Travel and Tourism Council (WTTC). In 2019, the tourism industry contributed more than 10% to global GDP, and in 2023, it is expected to generate more than $9.5 trillion, reaching over 95% of the 2019 figure.
Accordingly, a global recovery is expected in 2024. The slow but steady return of the Chinese tourist market is one of the factors contributing to this recovery. From there, this sector will continue to grow.
Bangkok streets, Thailand, are packed with people attending the Songkran water festival in 2023. Photo: Reuters.
"We expect 2024 to surpass 2019," said Julia Simpson, president and CEO of WTTC.
According to the study, by the end of 2022, tourism activities in 34 out of 185 countries studied had returned to pre-pandemic levels (in terms of GDP contribution). The two leading countries were the United States and the Dominican Republic. Also according to WTTC, at least 50 more countries will recover to 95-100% of pre-pandemic levels by the end of this year.
In its study, WTTC also indicated that North America and Latin America would recover to pre-pandemic levels by the end of 2023. Europe, the Middle East, Africa, and Asia-Pacific would recover in 2024, followed by Caribbean nations in 2025.
The recovery doesn't mean the number of trips is back to pre-pandemic levels. Inflation and rising travel costs have made travel more expensive. Demand for travel surged in many regions in 2021 and 2022 as countries gradually reopened their borders. But in 2023, the number of trips didn't grow as strongly.
According to a report by Riskline, a global travel risk assessment company based in Denmark, higher airfare and hotel prices will "significantly restrict travel in 2023." Political instability is the next contributing factor. Meanwhile, data from Morning Consult, one of North America's fastest-growing technology companies, shows varying levels of willingness to travel across regions. The trend of wanting to travel is higher in South Korea and Western Europe.
Tourists will cut back on travel expenses rather than cancel trips. One example is that domestic travel demand among Americans is cooling down this year, but they are planning to travel abroad more frequently.
In 2019, the tourism industry provided jobs for 334 million people, an all-time high. In 2020, approximately 70 million people lost their jobs. In 2021, 11 million jobs were restored, and an additional 21.6 million in 2022. In 2023, the tourism industry provided over 300 million jobs, reaching 95% of pre-pandemic levels.
In 2033, WTTC forecasts that the tourism sector will employ approximately 430 million people worldwide, representing nearly 12% of the global workforce, contributing $15.5 trillion and accounting for 11.6% of global GDP.
