In the latest Economic Impact Research (EIR) by the World Travel & Tourism Council (WTTC), it has been revealed that the EU Travel & Tourism sector is projected to bounce back, reaching 98 per cent of its pre-pandemic peak in 2019.
The sector is expected to contribute €1.44 billion to the economy this year, coming close to the pre-pandemic high of €1.47 billion recorded in 2019, SchengenVisaInfo.com reports.
Additionally, WTTC’s forecast predicts the creation of over 687,000 jobs in the Travel & Tourism sector this year, recovering almost 90 per cent of the jobs lost during the COVID-19 pandemic. This would bring the workforce in the sector to exceed 22.4 million, with one in nine workers across the EU employed in Travel & Tourism.
In the previous year, the Travel & Tourism sector experienced significant growth, as its GDP contribution increased by 40.5 per cent to surpass €1.37 billion. This substantial growth accounted for 8.7 per cent of the EU’s economy, bringing it closer to the pre-pandemic high of 9.6 per cent in 2019.
Furthermore, the sector demonstrated impressive job creation, adding two million more jobs compared to the previous year, resulting in a total of 21.8 million jobs across the EU. This signifies that one in ten individuals in the EU workforce was employed in the Travel & Tourism sector.
According to the annual research conducted by the global tourism body, the sector has made significant strides in recovering from the pandemic’s impact. It has managed to restore 3.1 million out of the 3.6 million jobs lost during the challenging period.
In the previous year, the EU experienced a resurgence in international travellers, leading to a remarkable growth in spending by overseas visitors.
The spending from international tourists increased by 81 per cent year on year, reaching nearly €385 billion. This surge in spending reflects the renewed confidence and interest of international travellers in visiting EU destinations.
Furthermore, domestic visitor spending demonstrated a complete recovery in 2022, surpassing the pre-pandemic high of €809 billion and reaching an impressive €814 billion.
“The Travel & Tourism sector in the EU is recovering strongly with high visitor demand. The number of jobs created by Travel & Tourism stands at 21.8MN, but by the end of this year, it will reach nearly 22.5MN jobs, just two per cent behind 2019 numbers,” WTTC President & CEO Julia Simpson pointed out.
Simpson also noted that Travel & Tourism is not only a crucial economic growth sector but also a major contributor to job creation in the EU, in particular in countries like Germany, Italy, Spain, and France.
The recent Cities Economic Impact Report indicates that Paris retains its position as the world’s most popular tourist destination.
The global tourism body has presented a positive forecast for the Travel & Tourism sector, indicating that by 2033, its GDP contribution is projected to increase to almost €1.9 billion. This represents more than ten per cent of the EU economy. Additionally, the sector is anticipated to employ over 26.3 million individuals across the region, implying that one in eight EU residents will be working in the Travel & Tourism sector.