Travel Sector Expected to Rebound in the US and Worldwide
The World Travel & Tourism Council’s (WTTC) has released its latest Economic Impact Report, and it paints a positive outlook for travel in general and especially the United States.
Prior to the pandemic, Travel & Tourism (including its direct, indirect and induced impacts) accounted for 1 in 4 of all new jobs created across the world, 10.6% of all jobs (334 million), and 10.4% of global GDP (US$9.2 trillion). But during the pandemic in 2020, the sector suffered a loss of almost US$4.5 trillion, with the contribution to GDP dropping by a staggering 49.1% compared to 2019. For comparison, there was a 3.7% GDP decline of the global economy in 2020.
But now people are traveling again, and the report says that the United States is leading the world in the global recovery. The travel and tourism sector is projected to see big year-over-year growth this year and the next, and it is expected to exceed even pre-pandemic levels.
The U.S. travel and tourism sector is projected to have a year-over-year growth of 35.6%, with a total contribution of nearly $1.5 trillion to the Gross Domestic Product (GDP). That’s about 5% higher than the international travel and tourism sector, which will increase 30.7% this year. If the recovery continues into next year, the U.S. could again see a growth of 28.4% year-over-year, bringing the travel and tourism sector’s contribution above pre-pandemic levels.
In 2020, the U.S. travel and tourism industry reported a loss of over 5.5 million jobs. This year, employment is expected to rise by 26.2 percent, an increase of 2.9 million more jobs for a total of 14 million. In 2022, employment is predicted to increase another 19.7 percent, creating another 2.75 million new jobs, exceeding pre-pandemic levels with a total of 16.72 million jobs.
The Economic Impact Report also found that this year’s domestic travel spending has increased 40.4%, with another 22.9% increase year-over-year expected in 2022. As the country reopens its borders to the world, international spending by travelers in the U.S. is also expected to rise almost 228% year-over-year in 2022.
HT: Travel Pulse
Lower Spend - Chase Ink Business Preferred® 100K!
Chase Ink Business Preferred® is a powerful card that earns 3X Ultimate Rewards points in a broad range of business categories on the first $150K in spend per year. Right now earn 100K Chase Ultimate Rewards points after Learn more about this card and its features!
Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
