What the Pandemic Did to Tourism

How COVID-19 caused the worst crisis in tourism's history, which places were hit hardest, and how the industry recovered.

In 2020 the COVID-19 pandemic brought international travel to a near halt. Borders closed, flights were grounded and hotels emptied. It was the worst crisis in the history of modern tourism.

The scale of the collapse

UN Tourism reported that international tourist arrivals fell by about 72 percent in 2020 compared with 2019, returning to levels last seen decades earlier. Export revenues from international tourism fell by over a trillion dollars. Millions of tourism jobs were lost or put on hold.

Who was hit hardest

Tourism-dependent economies, such as small islands in the Caribbean and Pacific, the Maldives and Thailand, suffered deep recessions.
Workers in hotels, restaurants, airlines and tour companies, many in informal or low-paid jobs.
Cities reliant on international visitors, like Venice and Bangkok.

Governments responded with wage support schemes, loans and grants for businesses, and in some cases campaigns to encourage domestic travel.

The role of domestic tourism

When international travel stopped, domestic tourism recovered first. Many people who could not go abroad holidayed at home instead. Countries with large domestic markets, such as China, India and the United States, cushioned some of the blow. Rural and nature destinations often recovered faster than big cities, as travellers sought open spaces.

Thailand's tourism shock

Before the pandemic, Thailand received close to 40 million foreign visitors a year, and tourism was a major share of its economy. In 2021, arrivals fell to a tiny fraction of that. Hotels closed, workers returned to their home villages, and the economy contracted. Recovery began as borders reopened, with arrivals rising strongly again from 2022.

Recovery

International tourism recovered gradually as vaccines spread and restrictions lifted. By 2024, UN Tourism reported that arrivals had returned close to their 2019 level. The pace varied by region, with some parts of Asia and the Pacific recovering later because of longer border closures.

Lessons

The pandemic showed the risks of depending heavily on tourism and led some countries to consider diversifying their economies. It also accelerated trends such as contactless services, flexible booking and remote work combined with travel.

Thinking tourism simply bounced back unchanged

Although visitor numbers recovered, the pandemic left lasting marks: business closures, workers who moved to other industries, heavy debts for tourism firms and changes in how people book and travel. Recovery in numbers did not mean everything returned to how it was.

Key takeaways

International tourist arrivals fell about 72 percent in 2020.
Tourism-dependent economies and low-paid tourism workers were hit hardest.
Domestic tourism recovered first and cushioned countries with large home markets.
By 2024, international arrivals had returned close to 2019 levels.