With new restrictions introduced worldwide due to the spread of the Omicron variant of the Covid-19, the trajectory of the tourism sector, especially international tourism, remains uncertain, the Department of Economic Affairs said in the annual Economic Survey.
“In normal times, tourism sector is a major contributor to GDP growth, foreign exchange earnings and employment. However, the pandemic has had a debilitating impact on world travel and tourism everywhere, including India,” it noted.
The Department said that at the time of writing the Survey, new restrictions were being introduced worldwide due to the spread of the Omicron variant, and thus, the trajectory remains uncertain.
As per the World Tourism Barometer of the United Nation’s World Tourism Organization (January 2021), International Tourist Arrivals (ITA) declined by 74% globally in 2020 over the previous year, with restrictions on travel, low consumer confidence and a global struggle to contain the Covid-19 spread.
The ITA had reached 1.5 billion in 2019 and had come to 381 million in 2020, leading to an estimated loss of $1.3 trillion in export revenues, the Survey noted, adding that this weakness in international tourism has continued in 2021.
During January/September 2021, the ITA worldwide was 20% lower than the same period in 2020 and 64% below 2019 levels.
“The resumption of international tourism will continue to depend largely on a coordinated response among countries in terms of travel restrictions, harmonised safety and hygiene protocols and effective communication to help restore consumer confidence,” the Department said.
It said this is particularly critical at a moment when cases are surging in some regions and new variants are emerging in different parts of the world.
