Japan’s tourism sector expected to return to pre-pandemic levels in 2023: WTTC

The WTTC’s Economic Impact Report (EIR) forecasts that Japan’s travel and tourism sector is expected to contribute nearly 40 trillion yen ($293.5 billion) to the country’s GDP by the end of the year. end of 2023, only 2.2% below 2019 levels.

The report marked 2021 as the start of the industry’s recovery in Japan.

WTTC report finds employment to surpass pre-pandemic levels by end of 2022

Before the pandemic, the sector’s contribution to GDP was 40.8 trillion yen in 2019, falling to 18.4 trillion yen in 2020, a loss of 54.8%. In 2021, its contribution to GDP increased by 22.9% year-on-year to 22.7 trillion yen.

In 2019, the sector supported 5.8 million jobs, falling to just under 5.3 million in 2020, and saw a recovery of over 210,000 jobs in travel and tourism reaching 5.5 million .

Julia Simpson, President and CEO of WTTC, said: “After two years of mobility restrictions, which have damaged the sector, there is cause for optimism as the sector finally sees the light at the end of the day. tunnel.

“But there is still work to be done. Removing testing and facilitating international travel will further boost industry growth and accelerate recovery. »

The WTTC 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 to over 46.7 trillion yen. This will create nearly 683,000 jobs over the next 10 years, averaging over 68,000 new jobs each year, to reach over 6.2 million employees by the end of 2032.

By the end of 2022, the sector’s contribution to GDP is expected to increase by 60% to over 36.2 trillion yen, or 6.5% of total economic GDP.

Employment levels in the travel and tourism sector are expected to grow at a slower pace, with more than 5.6 million people working in the sector by the end of this year.