Latin America Will Exceed Pre-Pandemic Tourism Revenues
The WTTC pointed out via the Annual Economic Impact Report (EIR) that this year the sector’s economic contribution to Latin America’s GDP will exceed pre-pandemic levels, as it will contribute US$319.5 billion to the regional economy (1.2% above 2019).
Likewise, by the end of 2023, employment levels in the region are projected to reach 17 million jobs occupied by the tourism sector, and with this, the 2019 figure would be exceeded by 0.1 percent.
According to the same report, it is estimated that by the end of 2023, Latin America’s tourism sector will account for 7.9% of its total economy.
In 2022, the sector contributed 7.6% to the region’s GDP, contributing US$302.6 billion to Latin America’s economy, a growth of 34% compared to the previous year.
Recovery in Sight
It also contributed almost 16.4 million jobs or 7.7% of all jobs in the region. This figure represents an increase of 17.7% compared to 2021.
Julia Simpson, WTTC President, and CEO, said, “Latin America’s Travel & Tourism sector continues its recovery, demonstrating its resilience and people’s enduring desire to travel.
Gradual Recovery of Travel
Globally, despite economic and geopolitical difficulties, the Travel & Tourism sector’s recovery in 2022 continued gradually, growing by 22% compared to 2021, reaching US$7.7 billion in its contribution to GDP.
As a result of this recovery, the sector accounted for 7.6% of the global economy in 2022, the industry’s highest contribution since 2019, although its contribution to global GDP was still 22.9% below that year’s levels.
The pandemic saw the loss of more than 71 million jobs in the sector globally. However, thanks to the gradual recovery of travel, it was possible to reach 295 million jobs by 2022, or one in every 11 jobs worldwide.
Notably, 34 of the 185 countries analyzed have already surpassed pre-pandemic levels in terms of their contribution to GDP. Furthermore, according to research conducted by WTTC in collaboration with Oxford Economics, it is also forecast that the global travel sector will recover to 96% in its employment levels concerning 2019, with the generation of 24 million new jobs this year.
WTTC estimates that by the end of 2023 nearly half of the 185 countries will have fully recovered to pre-pandemic levels or be within 95% of full recovery.
Tourism Facts
Before the pandemic, Travel & Tourism (including its direct, indirect, and induced impacts) accounted for 1 in 5 new jobs created across the world during 2014-2019, and 10.3% of all jobs (334 million) and 10.4% of global GDP (US$10 trillion) in 2019. Meanwhile, international visitor spending amounted to US$ 1.9 trillion in 2019.
WTTC’s latest annual research shows:
In 2022, the Travel & Tourism sector contributed 7.6% to global GDP, an increase of 22% from 2021 and only 23% below 2019 levels.
2022 there were 22 million new jobs, representing a 7.9% increase in 2021 and only 11.4% below 2019.
Domestic visitor spending increased by 20.4% in 2022, only 14.1% below 2019.
International visitor spending rose 81.9% in 2022 but is still 40.4% behind 2019.
Cities Economic Impact Report
The World Travel & Tourism Council’s (WTTC) Cities Economic Impact Report for 2022 quantifies the economic contribution of Travel & Tourism in 82 cities around the world.
These pages capture the extent of cities’ recovery from the crisis and outline how tourism in cities will grow over the next decade.
Key highlights include:
Ten cities out of the 82 analyzed in the report are already projected to exceed 2019 direct Travel & Tourism GDP contribution by 2022.
Between 2022 and 2032, the most robust annual average growth in direct Travel & Tourism GDP is expected to be concentrated in Asia-Pacific.
Many significant cities remain iconic destinations that hold the key attractions for visitors.
Within the next ten years, the sector is projected to increase its share of economic activity in 82 major cities, generating up to 8% of all jobs in these cities combined.