London, UK – The World Travel & Tourism Council (WTTC) has revealed that Japan’s travel and tourism sector will provide a significant boost to the country’s economic recovery next year, with its contribution to GDP expected to reach near levels. from those before the pandemic.
WTTC’s Economic Impact Report (EIR) forecast shows the sector’s contribution to Japan’s GDP could reach nearly 40 trillion yen by the end of 2023, just 2.2% below levels of 2019.
The data also reveals that employment will surpass pre-pandemic levels, recovering more than 23,000 jobs, to reach more than 5.8 million by the end of the year.
Over the next decade, 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). ).
Forecasts also reveal that the sector is expected to create nearly 683,000 jobs over the next decade, averaging more than 68,000 new jobs each year, to reach more than 6.2 million employees by the end of 2032.
By the end of this year, the report shows that the sector’s contribution to GDP is expected to increase by 60% to more than 36.2 trillion yen, or 6.5% of total economic GDP.
While employment levels in the sector are expected to grow at a slower pace (1.9%), by the end of this year over 5.6 million people will be working in the sector.
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, which have plagued the sector, there are reasons 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. »
Before the pandemic, Japan’s travel and tourism sector’s contribution to GDP was 7.3% (40.8 trillion yen) in 2019, falling to just 3.5% (18.4 trillion yen) in 2020 , which was a shocking loss of 54.8%.
The sector also supported 5.8 million jobs in 2019, falling to just under 5.3 million in 2020 when the pandemic devastated the sector.
The latest EIR report from the global tourism body also reveals that 2021 has seen the start of the recovery for Japan’s travel and tourism sector.
Last year, its contribution to GDP climbed 22.9% year on year, to 22.7 trillion yen.
The sector also saw a recovery of more than 210,000 travel and tourism jobs, representing a positive increase of 4% to 5.5 million.
The sector’s contribution to the economy and jobs could have been higher had it not been for the impact of the Omicron variant, which has rocked the recovery around the world, with many countries reinstating severe travel restrictions.
The World Travel and Tourism Council (WTTC) represents the global travel and tourism private sector. Members include 200 CEOs, Presidents and Presidents of leading global travel and tourism companies from all geographies spanning all industries. For more than 30 years, the WTTC has been committed to raising awareness among governments and the public of the economic and social importance of the travel and tourism sector.
According to WTTC’s 2021 Economic Impact Report, in 2020, a year in which it was devastated by the COVID-19 pandemic, travel and tourism contributed 5.5% to global GDP and were responsible for 272 million jobs.
WTTC Press Office