UK economy loses £22 billion as virus ravages tourism — study

LONDON — Britain's economy will lose about £22 billion ($29 billion, 24 billion euros) this year on the coronavirus-induced collapse of global travel, which could imperil 3 million jobs, an industry body forecast on Wednesday.

International visitor spending could plunge by 78 per cent from 2019, equating to a loss of £60 million per day or £420 million a week, the World Travel & Tourism Council (WTTC) predicted in a key report.

"Travellers and tourists are staying away from the UK in droves because of continuing uncertainty around travel restrictions designed to curb the spread of COVID-19," the WTTC stated.

It continued: "The severe impact on UK travel and tourism is laid bare by WTTC as the economic fallout from coronavirus continues to burn its way through the sector.”Nearly 3 million jobs in the UK supported by travel and tourism are at risk of being lost in a 'worst case' scenario mapped out by WTTC economic modelling."

The country’s economy shrank by one fifth in the second quarter, more than any European neighbour, as the lockdown plunged the country into its deepest recession on record.

Tourists remain reluctant to visit because Britain is the European country worst hit by the coronavirus.

'Years to recover' 

Travel has also been discouraged after the UK government recently re-imposed quarantine on those returning from countries including Austria, Croatia, France, The Netherlands and Spain.

The WTTC added on Wednesday that London has been hardest hit by the travel collapse because around 85 per cent of tourist spending in the capital is from foreign visitors.

"The economic pain and suffering caused to millions of households across the UK, who are dependent upon Travel & Tourism for their livelihoods, is evident from the latest figures," added WTTC President Gloria Guevara in the report.

"The lack of international travel caused by the pandemic could wipe out more than £22 billion from the UK economy alone... from which it could take years to recover. 

"It could also threaten London's position as one of the world's premier hubs for business and leisure travel which could see other destinations take over.

"We urgently need to replace stop-start quarantine measures with rapid, comprehensive and cost-effective test and trace programmes at departure points across the country."

British tourism's lobbying body VisitBritain had forecast on Tuesday that the number of foreign tourists will plummet by 73 per cent in 2020 to 11 million people on the back of the pandemic, which has grounded aircraft worldwide.