$425 million a day being lost to the U.S. economy
London, UK., Sept. 2, 2020 - A devastating $155
billion looks set to be lost from the U.S. economy due to the collapse of
international travel during 2020, according to latest research conducted by the
World Travel & Tourism Council (WTTC).
WTTC, which represents the global Travel & Tourism
private sector, says the massive decline in the number of international
travellers and tourists visiting the U.S due to the COVID-19 pandemic, could
result in international visitor spending dropping by a staggering 79%.
This catastrophic loss to the American economy equates to a
shortfall of $425 million a day, or nearly $3 billion a week, to
the country’s economy.
WTTC and its Members recently called upon President Donald
Trump and the other leaders of the G7 countries, urging for a coordinated
approach to be taken in leading the recovery response to the crisis.
The harsh impact on U.S. Travel & Tourism is laid bare
by WTTC as the economic fallout from coronavirus continues to burn its way
through the sector. Nearly 12.1 million jobs in the U.S. supported by Travel
& Tourism are at risk of being lost in a ‘worst case’ scenario mapped out
by WTTC economic modelling.
According to WTTC’s 2020 Economic Impact Report, during
2019, Travel & Tourism was responsible for 16.8 million jobs in the US, or
10.7% of the country’s total workforce. It also generated $1.8 trillion, or 9%
to the American economy.
Gloria Guevara, WTTC President & CEO, said: “The
economic pain and suffering caused to millions of households across the U.S,
who are dependent upon Travel & Tourism for their livelihoods, is evident
from our latest shocking figures.
“The lack of international visitors to the US due to the
pandemic could wipe out more than $155 billion from the US economy alone – a
loss of $425 million a day – from which it may take years to recover. It could
also threaten New York’s position as one of the world’s premier hubs for
business and leisure travel.
“International coordination to re-establish transatlantic
travel would provide a boost for the Travel & Tourism sector. It would
benefit airlines and hotels, travel agents and tour operators and revitalise
the millions of jobs in the supply chain which are dependent upon international
travel across the Atlantic.
“We urgently need to replace blanket quarantine measures
with rapid, comprehensive and cost-effective test and trace programmes at
departure points across the country. This investment will be significantly less
than the impact of blunt quarantines which have devastating and far-reaching
socio-economic consequences.
“The recent $750 million deal with Abbott labs for $5 rapid
test is very promising in this respect, and we hope that it allows the U.S to
continue to reopen and can prove as a blueprint for a way forward for other
countries. Targeted test and tracing will help rebuild consumer confidence to
travel.
“A fast turnaround test and trace system in place for all
departing passengers means that governments could consider reinstating travel
between America and major international hubs, a move which would help
kick-start the economic global recovery.”
WTTC analysis of international travel spending in the U.S
during 2019 reveals it reached $195.1 billion, accounting for 16% of the total
tourism spend in the country. Domestic travel spending last year was
responsible for the other 84%.
A further breakdown reveals how crucial spending from
international travellers during 2019 was to the economy. Every month it
accounted for nearly $16.3 billion, or $3.7 billion a week – and an incredible,
$534.5 million a day.
Between 2016 and 2018, the largest inbound source markets to
the US were travellers from Canada and Mexico, accounting for 26% and 24% of
all international arrivals respectively, with the UK coming in third with 6%,
and Japan in fourth place with 5%.
Data for 2018, which is the most up-to-date available, shows
how New York City is particularly dependent on international visitor spending
compared to the U.S. as a whole. It accounted for 45% of all tourism spending
in the city, with domestic tourists making up the remaining 55%.
The UK was the most important source market for the city
with almost one in 10 of all international arrivals (9%), with China in second
place with 8%, and Canada and Brazil in joint third place with 7% of
arrivals.
The loss of this international visitor spending could have a
profound long-term impact on New York for many years to come.
According to WTTC’s 2020 Economic Impact Report,
during 2019, Travel & Tourism was responsible for one in 10 jobs (330
million total), making a 10.3% contribution to global GDP and generating one in
four of all new jobs.
Media Contact:
WTTC Headquarters
The Harlequin Building
65 Southwark Street
London SE1 0HR
United Kingdom
Tel: +44 (0) 207 481 8007
Email: enquiries@wttc.org
Website: https://wttc.org/
Registered in the United Kingdom, Reg. No. 2506591
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