September 3 - A devastating $155 billion looks set to be lost from the U.S. 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 the U.S due to the COVID-19 pandemic, could result in international visitor spending dropping by a staggering 79%.

 

This catastrophic loss to the American economy equates to a shortfall of $425 million a day, or nearly $3 billion a week, to the country’s economy.

 

WTTC and its Members recently called upon President Donald Trump and the other leaders of the G7 countries, urging for a coordinated approach to be taken in leading the recovery response to the crisis.

 

The harsh impact on U.S. Travel & Tourism is laid bare by WTTC as the economic fallout from coronavirus continues to burn its way through the sector. Nearly 12.1 million jobs in the U.S. supported by Travel & Tourism are at risk of being lost in a ‘worst case’ scenario mapped out by WTTC economic modelling.

 

According to WTTC’s 2020 Economic Impact Report, during 2019, Travel & Tourism was responsible for 16.8 million jobs in the US, or 10.7% of the country’s total workforce. It also generated $1.8 trillion, or 9% to the American economy.

 

WTTC analysis of international travel spending in the U.S during 2019 reveals it reached $195.1 billion, accounting for 16% of the total tourism spend in the country. Domestic travel spending last year was responsible for the other 84%.

 

A further breakdown reveals how crucial spending from international travellers during 2019 was to the economy. Every month it accounted for nearly $16.3 billion, or $3.7 billion a week – and an incredible, $534.5 million a day.

 

Between 2016 and 2018, the largest inbound source markets to the US were travellers from Canada and Mexico, accounting for 26% and 24% of all international arrivals respectively, with the UK coming in third with 6%, and Japan in fourth place with 5%.

 

Data for 2018, which is the most up-to-date available, shows how New York City is particularly dependent on international visitor spending compared to the U.S. as a whole. It accounted for 45% of all tourism spending in the city, with domestic tourists making up the remaining 55%.

 

The UK was the most important source market for the city with almost one in 10 of all international arrivals (9%), with China in second place with 8%, and Canada and Brazil in joint third place with 7% of arrivals.

 

The loss of this international visitor spending could have a profound long-term impact on New York for many 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.

For more information, please visit wttc.org

 

 

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