Travel bans and other restrictions imposed due to the COVID-19 pandemic have taken a toll on the tourism industry worldwide. Recently, strictures have been lifted from various Asian countries, including Japan. This has accelerated the recovery process of the tourism industry. As a result, Asia-Pacific is ahead in recovery compared to other regions. It is estimated that by 2023, the region will succeed in fully recovering the tourism industry compared to the other areas of the world. So, Tourism Industry of Asia Pacific Recovering.
The London-based World Travel and Tourism Council (WTTC) recently published its annual report. The report presents, Travel and Tourism Economic Impact; Asia-Pacific saw a 59 percent drop in tourism revenue compared to pre-pandemic levels in 2020, more than the rest of the world. Moreover, recovery efforts in the region were largely stagnant in 2021 as most countries maintained strict border restrictions. During that time, tourism income increased by about 16 percent, but less than 28 percent in Europe and 2 percent in North America.
However, the gap is expected to narrow in the Asia-Pacific region this year. According to the forecast, travel revenue for the overall economy will increase by 71 percent. Because in 2022, the amount of travel in the Asia-Pacific region has increased. Restrictions were first eased in India and Australia. Then Malaysia, Thailand, and other Southeast Asian countries lifted their travel restrictions. Japan, South Korea, and northern Taiwan have recently lifted their pandemic restrictions.
Therefore, the WTTC report expects continued gains around the Asia-Pacific travel industry in 2023. Furthermore, it said 2024 is set to be another year of positive growth for the region. According to the report, the tourism sector will contribute more than 32 percent of the region’s GDP by 2025, which is higher than the Middle East’s 30 percent. Also will be more than in every other region.
The report estimates that the average annual growth rate of the world economy will be 2.7 percent by 2022-32. Yet, at the same time, the tourism sector’s contribution to the world economy is expected to grow at an average rate of 5.8 percent annually. Moreover, the rate is higher in the Asia-Pacific region than in other areas. As a result, the WTTC report expects the tourism sector’s contribution to GDP to grow at an average annual rate of 8.5 percent.
Along with the tourism industry’s recovery, the WTTC predicts that the travel industry will create approximately 126 million new jobs over the next decade; 65 percent is in the Asia-Pacific region. Among these, tourism industry employment will be created in Indonesia, Thailand, and the Philippines. It is estimated that 5.3 million, 3.5 million, and 3.15 million new jobs will be added in the next decade, respectively. But if China continues to limit international travel, its full recovery capacity in Asia by 2023 could be at risk.
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