Project TEEM: Travel Employment Enhancement Mandate

The global travel and tourism industry has experienced tremendous growth in recent years and is one of the world’s largest and most dynamic industries. With the expansion and diversification of the global economy, travel and tourism have emerged as key components of economic development in countries around the world.

The industry saw a sharp decline in jobs in 2020 due to the pandemic but is now showing signs of recovery. According to the World Travel & Tourism Council, 1.8 million jobs were lost globally in 2020, a drop of nearly 6%. However, the industry gained back 1.2 million jobs in 2021, with a further 4.5 million jobs to be created by 2025. This would represent an overall increase of 10.5% at the global level by the end of 2025, significantly less than the level prior to the pandemic.

Demand for Talent

The need for talent in the global travel and tourism industry is expected to rise significantly over the next five years. According to a recent study by IBM ThinkForce, the sector will require a total of 8.4 million new hires by 2025. The study further predicts a shift in the skill-sets demanded by the industry, with more specialized skills such as data analysis, digital marketing and advanced customer service being increasingly sought.

Background Trends Indicate

In terms of regional trends, available data indicates that the highest employment growth in the travel and tourism industry occurred in the Asia-Pacific region, with jobs in the region increasing by over 7 million between 2013-2017. This was followed by Europe, where jobs in the sector increased by 4 million over the same period. It is noteworthy, however, that while jobs were increasing in these regions, they were also declining in other regions such as the Middle East and Africa, likely due to political and economic instability in these areas.

Age Group and Geography

The study by IBM ThinkForce predicts that the biggest surge in job growth will be seen in the 18-34 age group, with this segment experiencing a 17.5% increase in job numbers by the year 2025. The younger generation is expected to drive the sector’s growth in the future, as they are seen to be more comfortable with embracing new technologies and innovation.

In terms of geography, the report identifies both developed and emerging markets which are expected to benefit most from the job market expansion. The US, China and India are identified as the top three markets that are expected to drive growth in the sector. However, other countries such as Indonesia, Brazil and the UK are also expected to benefit from an increase in employment numbers during the 2021-2026 period.

Conclusion

The global travel and tourism industry is currently experiencing significant disruption due to the COVID-19 pandemic. However, the sector is expected to experience a job market recovery over the next five years, with total employment projected to reach 8.4 million by 2025. The biggest need for talent will be in the 18-34 age group and in both developed and emerging markets. The US, China, India, Indonesia, Brazil and the UK are expected to be among the top countries driving job growth over the period 2021-2026.

Project TEEM Purpose

Project TEEM aims to conduct industry surveys and share available empirical data forecasting employment numbers in global travel and tourism for 2021-2026.  The project will identify from employers where the biggest need for talent lies, which sector, age group and geographic regions will benefit most. It is important to establish who is interested in working in the sector, why and how do we attract more individuals.