The World Travel and Tourism Council’s recent Economic Impact (EIR) has revealed that next year Canada’s Travel and Tourism sector will achieve the country’s economic recovery with the contribution of GDP reaching pre-pandemic levels.
The World Travel and Tourism Council (WTTC) forecast also reveals that the sector’s contribution to Canada’s GDP could reach CAD157 billion next year, which means only 0.8 percent below 2019 levels, VisaGuide.World reports.
In addition, the report shows that this year the sector’s contribution to GDP is expected to increase by 25.4 percent to $138 billion, reaching 5.3 percent of total economic GDP.
Travel and Tourism GDP is expected to grow by an average of 4.4 percent per year over the next decade, which means doubling the growth rate of 1.9 percent of the country’s overall economy to reach almost $213 billion or 6.8 percent of the total economy.
Yet, employment in this sector has grown at a slower pace with only three percent this year, reaching about 1.5 million jobs. However, the report foresees that the sector is also projected to create more than half a million jobs over the next decade, averaging more than 50,000 new jobs each year.
“After the agony suffered by Canada’s Travel & Tourism, businesses across the country can finally breathe a sigh of relief as the sector begins to recover from the ravages of the pandemic,” WTTC President & CEO Julia Simpson pointed out in this regard.
According to her, after two years of hardships due to the pandemic, the outlook for the future is much brighter now for both jobs and the economy.
Before the pandemic started, Canada’s Travel and Tourism contribution to GDP was 6.3 percent or CAD158.1 billion, dropping to just 3.7 percent or CAD88.8 billion in 2020, representing a staggering 43.8 percent loss.
In 2019 the sector also supported almost 1.7 million jobs, falling to just under 1.4 million in 2020, when the pandemic devastated the sector.
According to the global tourism body’s latest EIR report, after the significant decline in 2020, the recovery of Canada’s Travel and Tourism sector saw its start in 2021. Its contribution to GDP last year grew by 24.4 percent year on year, reaching $110.4 billion.
The Travel and Tourism sector saw a recovery of more than 116,000 jobs, representing a positive increase of 8.4 percent to almost 1.5 million.
Moreover, the sector’s contribution to the economy and employment could have been higher had it not been for the enormous impact of the Omicron variant, which has shaken economic recovery in many countries of the world.
The recent WTTC EIR Report also revealed that 14 million new jobs are expected to be created for the African travel and tourism sector in the next decade.
According to the report, from 2022 through 2023, the GDP of Travel and Tourism is projected to grow at an average rate of 6.8 percent, which shows a double growth rate of 3.3 percent of the region’s overall economy, to reach almost US$279 billion or 7.2 percent of the total economy.