The European travel sector suffered the second biggest economic collapse due to Covid-19 last year, dropping 51.4% or €987 billion.
Asia Pacific was the region hit hardest by the pandemic according to a new annual economic trends report from the World Travel & Tourism Council.
The decline in Europe was in part due to continuing mobility restrictions to curb the spread of the virus.
Domestic spending in Europe fell by 48.4%, offset by some intra-regional travel, however international spending dropped at an even sharper rate, by 63.8%.
Despite this, Europe remained the top global region for international visitor spending.
However, employment still suffered across the Continent, falling 9.3%, equating to a loss of 3.6 million travel and tourism jobs.
The report revealed the full dramatic impact of travel restrictions designed to curb Covid-19 on the global economy, individual regions, and its job losses worldwide.
Asia-Pacific was the worst performing region, with the sector’s contribution to GDP dropping 53.7%, compared to a global fall of 49.1%.
International visitor spending was particularly hard hit across Asia Pacific, falling by 74.4%, as many countries across the region closed their borders to inbound tourists. Domestic spending dropped by 48.1%.
Travel and tourism employment in the region fell by 18.4%, equating to 34.1 million jobs.
However, Asia-Pacific remained the largest region for the sector’s employment in 2020, accounting for 55% – 151 million – of all global jobs in the sector.
Despite a 42.4% decline in travel and tourism GDP in 2020, the Americas region was the least affected globally.
As a result, it remained the largest region in terms of its economic importance, accounting for 35% of global direct travel and tourism GDP.
While domestic spending dropped by 38.9%, international spending saw a significantly sharper decline of 72.1% due to severe travel restrictions on inbound visitors.
More regional holidays, with extensive research and planning, and the great outdoors, will reign in the short-term, according to the report.
While the pent-up demand is significant, ever-changing travel restrictions have affected consumer confidence to book.
WTTC senior vice president Virginia Messina said: “WTTC data has laid bare the devastating impact the pandemic has had on travel and tourism around the world, leaving economies battered, millions without jobs and many more fearing for their future.
“Our annual economic trends report shows just how much each region has suffered at the hands of the crushing travel restrictions brought in to control the spread of Covid-19.
“WTTC believes governments around the world should take advantage of their vaccine rollouts, which could significantly ease travel restrictions on travel, and help power the wider global economic recovery.”