GENEVA (ILO News) - Nearly 9 million workers in the global hotel and tourism economy, already suffering from an economic downturn, may lose their jobs in the wake of the September 11 terror attacks on the United States, according to a new report * prepared for the International Labour Office (ILO).
The report said an estimated 10 per cent reduction in tourism would mean 8.8 million jobs lost, of which 1.1 million would be in the United States and 1.2 million in the European Union. The survey suggested US job losses could reach up to 3.8 million, depending on how travellers reacted in the coming months.
The report will form the basis for discussions at an ILO crisis meeting on the hotel and tourism sectors to be held here on 25-26 October. Government, employer and worker representatives will meet to assess the tourism crisis and address means for easing its impact.
The report noted that some 207 million people worldwide work in the travel and tourism sector, equivalent to about 8 per cent of global employment. Before September 11, the sector was already facing a slowdown in demand due to weak world economic trends, the report said, adding that since that date, the impact has worsened because travel and tourism is "by common consent, the most vulnerable of all sectors to the threat of insecurity."
Jobs affected immediately, in both developed and poorer countries, include marginal, part-time or shift labour in hotels, ground tour and excursion companies, the catering trade, travel agents, tour operators, cruise ship operators and service industries such as specialized retailing, ancillary airport employment and taxi services. While the short-impact will be severe, the report said the long-impact would depend on further events and whether the industry can recover quickly from the unprecedented fallout and worldwide impact of September 11.
"Many companies in the sector are highly dependent on strong and regular cash flows to meet their fixed commitments," the report said. "Some are now faced with a struggle for their very survival."
Prior to September 11, economic recession was weakening travel demand, the report said. After growth of 7.4 per cent in 2000, the World Tourism Organization had predicted growth of 2.5 - 3 per cent in 2001, but had since reduced this estimate to 1.5 - 2 per cent.
"To this economic environment has been added uncertainty; travellers' instinct is now to stay close to home," the report said.
The list of participants in the meeting include representatives of Governments, and workers' and employers' organizations. Governments invited include Barbados, Egypt, France, Kenya, Sri Lanka, the United Kingdom, the US and other observers (Australia, Brazil, Chile, Dominican Republic, Germany, Spain, Mexico, Morocco, the Philippines, the Russian Federation, Thailand and Turkey).
Employers' representatives are expected from Argentina, France, the Netherlands, New Zealand, Barbados, Cyprus, Malaysia, the Philippines and the International Organization of Employers. Worker participants will include representatives of the National Union of Workers in Hotel, Restaurant and Allied Industries (NUWHRAIN) in the Philippines, International Confederation of Free Trade Unions (ICFTU), World Confederation of Labour (WCL), World Federation of Trade Unions (WFTU), Union Network International (UNI), International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Association (IUF/UITA/IUL) and the International Transport Workers' Federation (ITWF) of London, United Kingdom.
* "The Social Impact on the Hotels and Tourism Sector of Events Subsequent to 11 September 2001," Briefing paper for an Informal meeting at the ILO, 25-26 October, 2001.