Travel & Tourism sector’s contribution to UK GDP slumped a shocking £148 billion in 2020

Travel & Tourism sector’s contribution to UK GDP slumped a shocking £148 billion in 2020

The World Travel & Tourism Council’s annual Economic Impact Report (EIR) today reveals that the dramatic collapse of the UK’s Travel & Tourism sector has wiped out a staggering £148 billion from the UK economy.

The annual EIR from the World Travel & Tourism Council (WTTC), which represents the global Travel & Tourism private sector, shows the sector’s contribution to GDP, dropped by a precipitous 62.3%.

Travel & Tourism GDP fell from £238 billion (10.1%) in 2019 before the pandemic struck, to just £90 billion (4.2%), a mere 12 months later, in 2020.

The year of crippling travel restrictions, and ineffective quarantines, which have  brought international travel to a grinding halt, has resulted in the loss of 307,000 Travel & Tourism jobs across the country.

However, WTTC believes the true picture could be significantly worse, if not for government fiscal and liquidity incentives, as well as furlough and job protection schemes which across all sectors is currently protecting more than 11 million jobs, hiding the true extent of the losses and the devastating social impact they could bring.

According to latest figures*, the UK government is estimated to have spent more than £46 billion on job retention schemes, with that figure expected to rise to £80 billion by the time the programs end in October 2021.

These job losses were felt across the entire UK Travel & Tourism ecosystem, with SMEs, which make up eight out of 10 of all businesses in the sector, particularly affected. Furthermore, as one of the world’s most diverse sectors, the impact on women, youth and minorities was significant.

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