This archive report was first published on 14 July 2021.
As the world struggles to recover from the Covid-19 pandemic, the tourism sector remains one of the hardest hit industries. According to a recent report by the United Nations World Tourism Organisation (UNWTO), the losses occasioned by the pandemic are expected to be worse than previously projected.
Released this month, the UNWTO report paints a gloomy picture of the tourism sector's recovery, with a rebound to pre-pandemic performance expected earliest in 2023 or later. The report highlights the devastating impact of the pandemic on the global economy, with a projected loss of more than $4 trillion for 2020 and 2021.
South Africa tops the list of the most affected countries, with a significant decline in tourist arrivals in 2020. The report also notes that the number of international tourists arrivals globally declined by 74% in 2020 compared to the previous year, with many developing countries experiencing a decline of 80-90%.
Despite some improvement expected in the northern summer and autumn, the report warns that the indirect effects of the decline in tourism are even more devastating, with labour and capital remaining unused and the lack of demand for intermediate goods and services having a negative upstream effect on many sectors.
Experts interviewed for the report are pessimistic about the sector's recovery, with nearly half predicting a return to 2019 levels in 2024 or later. The report recommends implementation of three policy dimensions to support the tourism sector, including restoring traveller confidence, safeguarding jobs, and making strategic decisions about the future of tourism.
