€100 million a day being lost to the Italian economy
London, UK., Sept. 2, 2020 - A devastating €36.7 billion
looks set to be lost from the Italian 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 Italy, due to the COVID-19 pandemic, could
result in international visitor spending dropping by a staggering 82%.
This catastrophic loss to the Italian economy equates to a
shortfall of €100 million a day, or €700 million a week, to the country’s
economy.
WTTC and its Members recently called upon Prime Minister
Giuseppe Conte and the other leaders of the G7 countries, to urge for a
coordinated approach to be taken to lead the global recovery response to the
crisis.
The harsh impact on Italian Travel & Tourism is laid
bare by WTTC as the economic fallout from coronavirus continues to burn its way
through the sector. Some 2.8 million jobs in Italy which are supported by
Travel & Tourism are at risk of being lost in a ‘worst case’ scenario
mapped out by WTTC economic modelling.
Across Europe, in the ‘worst case’ scenario, that figure
rises to more than 29m (29.5m) Travel & Tourism jobs.
According to WTTC’s 2020 Economic Impact Report, during
2019, Travel & Tourism was responsible for almost 3.5 million jobs in
Italy, or 14.9% of the country’s total workforce. It also generated €232.9
billion GDP, or 13% to the Italian economy.
Gloria Guevara, WTTC President & CEO, said: “The
economic pain and suffering caused to millions of households across Italy, who
are dependent upon a thriving Travel & Tourism for their livelihoods, is
evident from our latest shocking figures.
“The lack of international travel caused by the pandemic
could wipe out more than €36 billion from the Italian economy alone – a loss of
€100 million a day – from which it could take many years to recover. It could
also threaten Milan’s position as global financial powerhouse for business, and
Rome as a major leisure destination.
“International coordination to re-establish transatlantic
travel would provide a vital 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.”
“We must replace any stop-start 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.
“Targeted test and tracing will also rebuild the much-needed
consumer confidence to travel. It will enable the restoration of vital ‘air
corridors’ between countries and regions with similar COVID-19 case rates.
“A fast turnaround test and trace system in place for all
departing passengers means the government could consider reinstating travel
between Italy and major international hubs, a move which would help kick-start
the economic global recovery.
WTTC analysis of international travel spending in Italy
during 2019 reveals it reached almost €45 billion, accounting for 24% of the
total tourism spend in the country. Domestic travel spending last year was
responsible for the other 76%.
A further breakdown reveals how crucial spending from
international travellers during 2019 was to the Italian economy. Every month it
accounted for €3.74 billion or €861 million a week – and €123 million a day.
Between 2016 and 2018, the largest inbound source markets to
Italy were travellers from the Germany, accounting for one in five (20%) of all
international arrivals, with the US and France both coming in second with 8%,
and the UK in third place with 6%.
Data for 2018, which is the most up-to-date available, shows
how Rome is dependent on international visitor spending. It accounted for 66%
of all tourism spending in the city, with domestic tourists making up the
remaining 34%.
The US was the most important source market for the city
with 18% of arriving visitors, with Spain in second place with 8% of arrivals,
the UK in third place with 7% of arrivals, and Germany in fourth position with
6%.
The loss of this international visitor spending could have a
profound long-term impact on the Italian capital for 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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