About three and a half years ago, the world came to a standstill. Practically overnight, life changed. Streets that were once full of people became empty. Airports, hotels, restaurants, and popular tourist attractions shut their doors. A virus—something most of us knew very little about—forced us to stay home, cancel plans, and rethink how we live.
While many of us were dealing with the emotional, physical, and mental challenges of the pandemic, one industry was especially hard-hit: tourism. In some countries, tourism makes up 30%, 40%, or even over 50% of the entire economy. That’s huge. For those places, losing tourism was like having the rug pulled out from under them.
This is the beginning of a series where we’ll explore how deeply the COVID-19 pandemic changed the tourism sector. This first post takes a look back at what happened, how different countries have recovered, and what we’ve learned along the way.
When Tourism Came to a Halt
When borders closed, flights were grounded, and people were ordered to stay home, the global tourism industry was suddenly in crisis. Countries that rely on tourism to survive economically were especially vulnerable.
Think about popular travel destinations like the Maldives, Jamaica, or the Dominican Republic. Their economies depend heavily on foreign tourists spending money in hotels, restaurants, souvenir shops, and local tours. When international travel stopped, so did their main source of income.
Worse, many of these countries didn’t have strong social safety nets. That means people who lost their tourism-related jobs didn’t have unemployment insurance, food assistance, or other government support to fall back on. The crisis wasn’t just economic—it was deeply personal and painful for millions of families.
Businesses Faced Unexpected Financial Disasters
Tourism businesses faced financial situations that were almost impossible to plan for. Hotels had taken bookings months in advance. Tour operators had been paid upfront for packages. Suddenly, all of those bookings had to be canceled. But instead of receiving income, many businesses were now expected to refund customers—sometimes without having the money available to do so.
Some companies had taken out loans based on future cash flow expectations. When the money stopped coming in, they couldn’t pay those debts. Expensive hotel projects, resorts, and attractions that were halfway built came to a standstill. Investment froze. Staff had to be let go. Tourism wasn’t just paused—it was almost wiped out.
Initial Predictions: A Long Road to Recovery
In May 2020, just a couple of months after the pandemic was declared, tourism experts agreed on one thing: recovery wasn’t going to be quick. They estimated it would take around three years—until 2023—for the global tourism industry to get back on its feet.
That seemed like a long time back then. But now, in hindsight, we can ask: Were they right? How close are we to where we were before the pandemic?
A Slow but Steady Comeback
According to the World Tourism Organization (UNWTO), between January and July of 2023, international tourist arrivals had reached about 84% of pre-pandemic levels. That’s a strong sign that the industry is bouncing back, but the recovery has not been the same everywhere.
Let’s break it down by region:
- The Middle East is actually doing better than before the pandemic, with tourist numbers reaching 120% of their 2019 levels.
- Africa is also recovering well, reaching 92%.
- Europe is close behind, at 91%.
- The Americas (North, Central, and South America) are at about 87%.
- Asia and the Pacific, however, are still lagging behind at just 61%.
Why such a big difference? The answer lies in each region’s approach to reopening, vaccine rollouts, and how safe travelers felt visiting each location. For example, some Asian countries kept strict travel restrictions longer than other regions, which slowed their recovery. On the other hand, places like Dubai in the Middle East reopened quickly and aggressively marketed themselves as safe and open for tourism.
Latin America and the Caribbean: Some Countries Shine
Within Latin America and the Caribbean—regions that rely heavily on tourism—the recovery has been mixed. But some countries have done surprisingly well.
Here are a few standout examples from Inter-American Development Bank (IDB) member countries:
- El Salvador leads the pack with a 32% increase in international visitors between January and July 2023 compared to the same period in 2019.
- Colombia is also doing well, with 23% more visitors.
- The Dominican Republic and Honduras both saw increases of 17%.
These countries didn’t just reopen—they reimagined how they attract tourists. Many emphasized outdoor adventures, eco-tourism, and cultural heritage, which appealed to travelers looking for safer, less crowded vacation experiences.
Economic Recovery: Still a Work in Progress
While visitor numbers are promising, the economic side of things—how much money tourism is actually bringing in—is harder to measure and still catching up. In 2022, about one-third of IDB member countries had their tourism sectors contributing as much to their GDP as before the pandemic. That’s 9 out of 26 countries.
Looking at projections for 2023, it’s estimated that fewer than half (just 12 of 26) will fully recover in terms of tourism’s economic contribution to their GDP.
This tells us something important: just because more people are traveling again doesn’t mean businesses are making the same profits they were in 2019. Inflation, higher costs, and reduced staffing levels are some of the reasons that full financial recovery is lagging behind visitor numbers.
What Have We Learned?
The pandemic taught us many hard lessons, but it also created opportunities for growth and innovation in tourism. Here are a few key takeaways:
- Diversification is key
Countries that relied too heavily on tourism were the most vulnerable. Going forward, many nations are trying to build more diverse economies that don’t depend on just one industry. - Digital transformation matters
The crisis forced many tourism businesses to go digital. Online bookings, virtual tours, mobile check-ins, and contactless services became the norm—and they’re here to stay. - Tourism needs to be more resilient
Future crises—whether due to pandemics, natural disasters, or political unrest—are likely. The industry must build in stronger safety nets and more flexible systems to handle future shocks. - Sustainable travel is growing
Many travelers are now more interested in sustainable and responsible tourism. They want to support local communities, protect the environment, and have authentic experiences.
Final Thoughts
As we mark International Tourism Day, it’s important to reflect on how far we’ve come. The global tourism sector was knocked down hard—but it’s getting back up. The road to full recovery is not over, and for many places, there’s still a long way to go. But if there’s one thing this journey has shown us, it’s the strength, creativity, and resilience of people working in tourism all over the world.
From tour guides to hotel staff, airline workers to small business owners, millions of people have worked tirelessly to bring travel back. And while the pandemic reshaped tourism, it also gave us a chance to build a better, more sustainable industry for the future.
