The World Travel & Tourism Council (WTTC) has released its 2023 Economic Impact Research (EIR), revealing promising projections for the European travel and tourism sector. According to the report, the sector is expected to reach 98 per cent of its 2019 peak, making a significant contribution of EU 1.44 billion to the economy this year, coming close to the pre-pandemic high of EU 1.47 billion.
Furthermore, the WTTC predicts that the sector will create more than 687,000 jobs in 2023, recovering nearly 90 per cent of the jobs lost during the Covid-19 pandemic. This would result in over 22.4 million people being employed in the EU Travel and Tourism sector, equating to approximately one in nine workers across the region.
Reflecting on the previous year, the Travel & Tourism sector saw its GDP contribution grow by 40.5 per cent, amounting to over EU 1.37 billion. This accounted for 8.7 per cent of the EU’s economy, moving closer to the 2019 high of 9.6 per cent. The sector also witnessed the creation of an additional two million jobs in comparison to the previous year, reaching a total of 21.8 million jobs, which constituted one in ten jobs in the EU.
According to the WTTC’s research, the sector has now recovered 3.1 million of the 3.6 million jobs lost during the pandemic. Additionally, international visitor spending experienced a remarkable 81 per cent year-on-year growth, reaching nearly EU 385 billion. Domestic visitor spending fully rebounded in 2022, surpassing the pre-pandemic high of EU 809 billion and reaching EU 814 billion.
The G20 Tourism Working Group Meeting and Ministerial Meeting in Goa also marked a significant milestone in advancing sustainable tourism practices with finalisation of the Goa roadmap. The meeting was deemed a success, said Tourism Secretary, V Vidyavathi, adding that a complete government approach would be adopted, ensuring that five priorities are shared with central ministries and states for effective implementation.
“The Travel & Tourism sector in the EU is recovering strongly with high visitor demand. The number of jobs created by Travel & Tourism stands at 21.8 million, but by the end of this year, it will reach nearly 22.5 million jobs, just two per cent behind 2019 numbers,” Julia Simpson, President & CEO of the WTTC, stated, while commenting on these positive trends. Looking ahead, the WTTC predicts substantial growth for the sector in the next decade. By 2033, it foresees the sector’s GDP contribution reaching almost EU 1.9 billion, constituting over 10 per cent of the EU economy. Moreover, the sector is expected to employ more than 26.3 million people across the region, meaning approximately one in eight EU residents will be working in travel and tourism.
These projections underline the significance of the travel and tourism sector as a key driver of economic growth and job creation in the EU. Countries such as Germany, Italy, Spain, and France rely on the sector’s vitality. The WTTC’s recent Cities Economic Impact Report also highlighted that Paris remains the world’s most popular tourist destination.
Overall, the outlook for the EU travel and tourism sector appears positive, with a strong recovery trajectory and encouraging prospects for the coming years.
