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Tourism Slump Results in Global GDP Losses

Updated at: 
Wednesday, June 30, 2021
 at
12:45 pm

A report by UNCTAD states that the international tourism industry along with its closely related sectors experienced an approximate $2.4 trillion loss in 2020. The predictions for global GDP losses for 2021 are worse and could be anywhere between $1.7 trillion and $2.4 trillion. Covid-19 vaccination rates vary across the world, with some populations ranging below 1% and some above 60%.

The tourism economy is expected to recover faster in developed countries with higher vaccination rates, countries like France, Germany, Switzerland, the United Kingdom and the United States. Unfortunately, the report predicts to see a 75% reduction of tourism in developing countries due to limited and slow rollout of vaccinations. In 2020, UNCTAD estimated that a period between 4 to 12 months of travel halt could lead to a global economy reduction between $1.2 trillion and $3.3 trillion, however the losses this year are worse and combined with the losses from last year, we are looking at a total $4 trillion loss in global GDP.

Shanzae Tariq
Shanzae Tariq
Shanzae Tariq

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