COVID-19 Pandemic Causes $2.6 Trillion Loss in Tourism Revenues

September 21, 2023

The United Nations World Tourism Organization (UNWTO) has released a report highlighting the severe economic impact of the COVID-19 pandemic on the global tourism industry. The report is titled “International Tourism Highlights, 2023 Edition – The Impact of COVID-19 on Tourism (2020–2022)”.

How severely was the tourism industry impacted by the COVID-19 pandemic, according to the UNWTO report?

The UNWTO report reveals that the tourism industry lost $2.6 trillion in export revenues due to the COVID-19 pandemic, which was one and a half times more than what it earned in 2019. International tourist arrivals declined by 72% from 1.5 billion in 2019 to 400 million in 2020.

How did the export revenues from international tourism change during the pandemic years?

In 2020, export revenues from international tourism dropped to 62% of pre-pandemic levels, representing a loss of $1.1 trillion. This decline accounted for 44% of the global loss in international trade in that year. Although there was a partial recovery in 2021 and 2022, revenues remained significantly below 2019 levels.

How did the pandemic impact tourism’s contribution to global exports and GDP?

In 2019, revenues from international tourism accounted for 7% of global exports. However, this proportion dropped to 3% in 2020 and 2021 before rebounding to 4% in 2022. The pandemic caused tourism’s contribution to global GDP, measured in tourism direct gross domestic product (TDGDP), to decline from 4% in 2019 to 2% in 2020 and 2021. It then increased to 2.5% in 2022, as per preliminary estimates. In 2020, export revenues plummeted to 62% of pre-pandemic levels, accounting for 44% of the global loss in international trade.

What trends were observed in international tourist arrivals and export revenues in 2021 and 2022?

In 2021, international tourist arrivals increased by 12%, reaching 456 million. Export revenues also rebounded slightly but remained 59% below 2019 levels at $761 billion. In 2022, 963 million tourists traveled internationally, more than double the number in 2021. However, this was still 34% lower than pre-pandemic levels in 2019. Export revenues reached $1.25 trillion, reflecting a 52% increase from 2021 but remained 34% below 2019 levels.

What is the overall economic impact of the COVID-19 pandemic on tourism, as highlighted in the report?

The report states that the pandemic led to a loss of 2.6 billion international tourist arrivals in 2020, 2021, and 2022, nearly double the arrivals recorded in 2019. Additionally, tourism’s economic contribution, measured as tourism direct gross domestic product (TDGDP), was halved from 4% of global GDP in 2019 to 2% in 2020 and 2021. It increased to 2.5% in 2022 according to preliminary estimates. The total loss in TDGDP over the three years amounted to $4.2 trillion.

« Previous Post Next Post »