Global slump hits UK tourism

UK attractions were already hit by foot-and-mouth

Up to a quarter of a million jobs may be lost in the UK tourism industry, new figures indicate.

Up to 10m jobs will have been lost worldwide, with the cutbacks blamed on last September's terrorist attacks in the US.

The World Travel and Tourism Council (WTTC) believes by the end of this year total industry spending will be 7.4% lower than in 2000 because of the attacks.

The industry has reacted positively and swiftly through cutting costs

Jean-Claude Baumgarten
WTTC

But industry experts believe the end of 2002 will see stabilisation and the first signs of recovery with a return to strong growth in 2003.

Prior to 11 September worldwide spending on travel and tourism was expected to grow both last year and this.

But following the terrorist attacks the air industry was hit hard as well as tourism in general as consumer confidence wilted in the downturn.

The report praises the industry's response to the crisis, although many labour leaders in the UK and US say industry used 11 September as an excuse to lay off staff.

WTTC experts forecast record growth for 2003 with a massive rebound across the travel and tourism industry and as many as 6.8m jobs returning.

Continued partnership

"Our research results show a very clear picture of last year's impact on the industry and how that will continue in the months ahead," says Jean-Claude Baumgarten, WTTC president.

"But the industry has reacted positively and swiftly through cutting costs, creative advertising, innovative promotions and seeking new market opportunities.

"In my mind 2002 is dedicated to stabilisation and recovery, and this process requires continued partnership between the private and public sectors."

Mr Baumgarten said 2003 would see demand for global travel and tourism increase in real terms by 6%.

"During this process we will see the creation of 6.8 million jobs, replacing most of the business and jobs lost in the extended wake of September 11."