The World Travel and Tourism Council (WTTC) has revealed that Japan’s travel and tourism sector could reach near pre-pandemic levels next year.
Economic Impact Report (EIR) forecasts from WTTC show that the sector’s contribution to Japan’s GDP could reach nearly 40 trillion yen by the end of 2023, 2.2% below levels. of 2019.
The sector’s contribution to GDP fell to 3.5% (18.4 trillion yen) in 2020, representing a loss of 54.8% compared to 2019.
Over the next ten years, travel and tourism GDP is expected to grow an average of 2.6% per year, more than three times the 0.7% growth rate of the country’s overall economy, to reach more than 46.7 trillion yen (7.8% of the total economy).
The data also reveals that employment will surpass pre-pandemic levels to reach more than 5.8 million employees by the end of the year, and more than 6.2 million by the end of 2032.
Japan reopened to tourists in June, although strict restrictions are still in place, including requiring travelers to be part of a travel package, buying medical insurance and wearing masks in all public places.
Julia Simpson, WTTC President and CEO, said:
“After the pain in travel and tourism in Japan, the outlook for the future is much brighter. After two years of mobility restrictions that have plagued the sector, there is cause for optimism as the sector finally sees the light at the end of the tunnel.
“But there is still work to be done. Removing testing and facilitating international travel will further boost industry growth and accelerate recovery. »
The latest report from the global tourism body also reveals that 2021 marked the beginning of the recovery of the travel and tourism sector in Japan. He said the contribution to the economy and jobs “could have been higher” if Omicron had not led to the reinstatement of travel restrictions.