The COVID-19 pandemic took a massive toll on the world tourism industry. Even the wealthiest nations suffered enormous economic losses. However, with the reopening of the international borders of various countries, the world travel and tourism industry are expected to revive in 2022.
Travel and tourism are expected to revive globally. According to the World Travel and Tourism Council, USA’s tourism sector is projected to improve in 2022 substantially.
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The US economy amid the pandemic
Since the pandemic began, the USA has always been in the news for various reasons like the high number of cases, one of the world’s first vaccination drives, the Great Resignation, the most recent Omicron spike followed by the highest CPI in 40 years in the country.
All the above causes have periodically captured the USA in the limelight. Additionally, the Omicron wave affected a large number of people in the country; the wave peaked around mid-January with an average of 700000 positive cases each day.
Just when the news of high inflation levels has been escalating, the World Travel and Tourism Council (WTTC) released a report showcasing the substantial recovery of the US’s tourism industry in 2022.
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WTTC projects US’s tourism recovery to exceed pre-pandemic levels.
The United States is one of the most popular travel destinations globally. Every year millions of international tourists visit the US. In 2019, the travel and tourism industry contributed US$1.87 trillion to the country’s annual output, as per WTTC. But, unfortunately, with the advent of the coronavirus pandemic, the country’s tourism sector has been under sheer pressure.
However, with the reopening of the international borders of most countries, the US’s travel sector is about to reach the dawn of recovery from the aftermath of the coronavirus pandemic. WTTC has released a report showcasing that the travel and tourism sector’s contribution to the country’s GDP will be USD 2 trillion in 2022.
That means, if the projection holds correct, the US economy will benefit with around a 6.2% increase in the tourism receipts compared to the 2019 levels. The Council further stated that the US would have a strong recovery this year with a high number of Easter and summer travel bookings.
After a dreadful 2020, the US tourism sector did welcome a steady recovery in 2021. And, according to the WTTC, the industry is now about to enter a full-fledged recovery period. Apart from Easter and summer travel bookings, the primary reasons for an optimistic forecast are the decrease in Omicron cases, the efficacy of the vaccine and booster doses, easing out of travel restrictions and the rising consumer confidence.
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Thus, this consumer-led economic recovery creates a positive outlook for the sector. Oxford Economics also supports the report published by WTTC. Both organisations have suggested that if the vaccine and booster rollout continue to occur at an effective rate, the sector will surpass the economic contributions made before the pandemic.
Additionally, the report suggested that domestic tourism spending would be around USD 1.1 trillion, 11.3% more than the pre-pandemic levels. The employment level in the industry may also surpass the pre-pandemic levels. The sector this year is expected to cater 16.8 million jobs.
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Besides, WTTC has urged governments globally to ease travel restrictions and maintain vaccine and booster rollout. To maintain social distancing, more digital solutions should be adopted, according to WTTC.
SOURCE: KALKINE MEDIA
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