The World Travel and Tourism Council (WTTC) has shared updates from several countries in its latest economic impact report, showing that travel and tourism in Japan, South Korea, South Africa and others are expected to grow and recover at an unprecedented rate.
The economic impact report highlighted countries such as Japan, South Korea, South Africa, Indonesia, Saudi Arabia and Nigeria. The six countries are expected to experience high growth in their respective travel and tourism industries, creating millions of new jobs and outpacing the rest of their economies.
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Each country-specific report noted that each country’s economic recovery would have been faster had the Omicron variants not spurred a global reinstatement of certain travel restrictions.
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Japan
WTTC’s latest forecast predicts that Japan’s tourism industry could reach pre-pandemic levels as early as next year, contributing 40 trillion yen to Japan’s gross domestic product, down just 2.2 percent from 2019.
The industry is expected to grow by an average of 2.6% per year over the next decade, outpacing the Japanese economy’s 0.7% growth rate. It is expected to account for 7.8% of Japan’s entire economy. By the end of this year alone, travel and tourism are expected to account for 6.5% of Japan’s entire GDP.
By the end of 2032, the industry is expected to add 68,000 new jobs and 683,000 new jobs annually, with a total of 6.2 million employees.
“After the throes of Japan’s tourism industry, the future looks brighter.
Two years of restrictions on liquidity have hurt the industry, and there is reason to be optimistic that the industry is finally seeing the light at the end of the tunnel,” said WTTC President and CEO Julia Simpson. “But there is still work to be done. The cancellation of testing and the promotion of international travel will further fuel the growth of the industry and accelerate the recovery process. “
South Korea
In South Korea, employment in the tourism industry is expected to grow substantially, with 49,000 new jobs expected to be created annually by 2032.
South Korea’s travel and tourism GDP is projected to grow by 4.8% annually through 2032, outpacing the country’s overall GDP growth rate of 1.8%. By 2032, the industry will account for 4.8% of the country’s entire economy.
Additionally, South Korea’s tourism revenue will be close to pre-pandemic levels by 2023, with a projected GDP of 83.4 trillion won, just 4.7% lower than in 2019.
This year, the industry’s GDP is expected to grow by more than 30 percent, contributing 3.5 percent to the country’s overall economy. Employment is expected to remain around 1.3 million.
“We applaud the government [the] Easing travel restrictions will undoubtedly have a positive impact and restore millions of jobs,” Simpson said. “However, many countries around the world no longer require pre-departure testing, and we urge governments to follow suit and allow travelers to move freely again . “
South Africa
The future of South Africa’s travel and tourism economy looks very bright, the report said.
The industry’s GDP is projected to grow by 7.8% annually over the next decade, well above the 1.8% growth rate for the economy as a whole, and it accounts for 7.4% of the economy as a whole.
Around 800,000 new jobs are expected to be created over the next decade, with around 1.9 million employed by 2032.
This year alone, employment is expected to reach 1.1 million, and industry GDP growth is expected to reach 3.8%.
Before the pandemic, South Africa’s tourism industry employed 1.5 million people and accounted for 6.4% of the country’s total GDP. The pandemic devastated the economy, resulting in a 29.9% drop in employment and a 55.6% loss in GDP.
“While the prospects for South Africa’s tourism industry are bright, the recovery this year will be slower than expected…” Simpson said. “However, the long-term forecast looks very optimistic with the GDP contribution and job creation increasing.”
Indonesia
The country expected to see the fastest growth in the tourism workforce over the next decade is likely to be Indonesia, which is expected to create a staggering 5 million new jobs by 2032, employing 16 million jobs nationwide.
Its tourism industry is also expected to boom, with annual GDP growth of 10% over the next decade. By contrast, its overall economy is projected to grow at an annual rate of 5.1% through 2032. It will contribute 7.2% to Indonesia’s overall economy.
By the end of the year, Indonesia’s tourism GDP is expected to grow by 57.2% to $45.5 billion, accounting for 3.6% of the country’s GDP. Employment will slow, rising 2.1%.
During the pandemic, employment fell by more than 15%, and the industry’s economic contribution fell by more than 50%.
“Indonesia’s tourism industry is recovering strongly, and both GDP and employment forecasts are very optimistic,” Simpson said. “…Indonesia is an important destination, attracting millions of tourists before the pandemic, and highly dependent on tourism. We commend the Indonesian government for placing travel and tourism at the top of the upcoming G20 global agenda. Forefront.”
Saudi Arabia
Saudi Arabia, which will host the 22nd WTTC Global Summit later this year, is growing its tourism industry faster than any other country in the Middle East.
It will grow at an average annual rate of 11% through 2032, more than six times the 1.8% growth rate of the country’s overall economy. Tourism is expected to account for 17.1% of Saudi Arabia’s economy by 2032.
Employment is also likely to double over the next decade, adding 1.4 million new jobs for a total of nearly 3 million.
Growth in the industry is expected to be 2% above pre-pandemic levels by 2023. Employment is projected to grow by 14.1% by the end of 2023, bringing the total industry employment to 1.8 million.
“During these difficult times for our industry, the Saudi Arabian government has recognized the importance of tourism and led the world’s recovery,” Simpson said. She praised the country’s tourism minister, Ahmed al Khateeb, for his efforts to make the industry a priority in the country. “I would like to commend Ahmed Al Khateeb for his strong leadership during this crisis, driving the growth of the industry with unprecedented investment and new ways of tourism.”
Nigeria
Travel and tourism in Nigeria is also expected to grow over the next decade.
2.6 million new jobs are expected to be added by 2032, with employment in the industry exceeding 5.1 million.
The industry’s GDP is also set to grow by 5.4% per year over the next decade, accounting for 4.9% of Nigeria’s total economy, and growing faster than the country’s 3% per year growth rate.
In the short term, tourism in Nigeria is also expected to grow. In terms of GDP, it will grow by just 3.5% from pre-pandemic levels, but employment is expected to rise by 4.3% by the end of 2022.
“The pandemic has had a catastrophic impact on Nigeria’s tourism industry, removing billions from the economy and affecting the livelihoods of millions,” Simpson said. “After two years of severe and extreme disruption, After disruptive travel restrictions battered the industry, the future looks brighter, with our industry expected to create more than 2.5 million jobs over the next decade.”
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