Home Economy China Seen Surpassing US As Biggest Travel And Tourism Industry By 2032

China Seen Surpassing US As Biggest Travel And Tourism Industry By 2032

China Seen Surpassing US As Biggest Travel And Tourism Industry By 2032
Photo Collected: Planet of Hotels

China will become the world’s most extensive travel and tourism market. In this regard, the country is expected to overtake the United States by 2032. In 2021, the East Asian country was ranked second. The World Travel and Tourism Council (WTC) has given estimates. However, the United States retained its position as the world’s most extensive and powerful travel and tourism market in 2021. It is calculated by contributing to the Gross Domestic Product (GDP). However, according to the WTC Economic Impact Report, the United States could lose its top spot within the next decade. The article is about China Seen Surpassing US As Biggest Travel And Tourism Industry By 2032.

By 2032, the annual contribution of this sector to China’s GDP may increase to 390 billion dollars. This is several times more than 81 thousand 430 million dollars in 2021. The world’s most populous country is recovering from the COVID-19 disaster. China’s domestic tourism sector has seen a boost despite the imposition of lockdown at various times, given the increase in corona infection.

Meanwhile, the contribution of the travel and tourism sector to the US GDP in 2021 has reached 127 billion dollars. In 2019, the contribution of this sector was 1 lakh 97 billion dollars. The world’s largest economy has retained its top spot thanks to growing domestic demand despite travel restrictions due to COVID-19. As a result, the sector will continue to grow in size in the coming years. By 2032, the contribution of this sector to the US economy is predicted to reach 266 billion dollars. However, at this time, the country will fall behind China in the second position in the travel and tourism market.

According to the travel agency, Germany, Japan, Italy, India, France, Mexico, the United Kingdom, and Spain were the world’s top 10 travel and tourism markets in 2021, after the United States and China. According to forecasts, by 2032, the top 10 countries on the list will remain unchanged, but their position will change. The top 10 countries will be China, the USA, India, Germany, Japan, the UK, France, Mexico, Italy, and Spain at that time.

Overall, the travel and tourism sector’s contribution to global GDP is expected to grow at an average annual rate of 5.8 percent by 2022-32. This is more than double the economic growth forecast of 2.7 percent. During this period, the sector will create 12.6 million new job opportunities. WTC President and CEO Julia Simpson said the travel and tourism sector remains resilient despite the impact of the COVID-19 restrictions.

The industry will continue to recover despite macroeconomic challenges. With few exceptions, people around the world are traveling again. Also, we are seeing a recovery in business travel. In the next ten years, the growth rate of the travel and tourism sector will outpace the global economy. The WTC estimates that business travel worldwide will increase by more than 41 percent this year. Rapid recovery is expected, especially in the Asia-Pacific region. Business travel is expected to grow at an annual rate of 5.5 percent over the next ten years.

One of the sectors most affected by the COVID-19 restrictions in 2020 was travel and tourism. The sector has come to a standstill as countries close their borders to prevent the spread of coronavirus. That year, 62 million people lost their jobs and faced losses of 4.90 billion dollars. As a result, the sector’s contribution to global GDP was down by 50.4 percent compared to the previous year. However, the recovery in the sector started in 2021. But recovery was slower than expected due to the Omicron outbreak and lack of coordination between governments. Last year, the sector’s contribution to the GDP increased by 21.7 percent to 580 thousand billion dollars. Besides, one crore 82 new jobs have been created in the industry.

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