The global tourism industry is expected to contract rapidly during 2009 and the recession could result in millions of job cuts.

The World Travel & Tourism Council (WTTC), reporting its annual outlook on the industry, predicts that the global GDP generated by tourism will fall by 3.5 per cent during 2009.

It also expects 1.9 per cent of all jobs directly in the tourism and travel industry to be cut during 2009 – which translates to more than 1 million jobs.

The expected drop in tourism revenue, however, could have a devastating effect on industries reliable on tourism. WTTC predicts that more than 10 million jobs could be lost overall, when the sectors that rely on tourism are added to the figure.

In the WTTC's annual report, Jean-Claude Baumgarten, president and CEO, said that the industry had suffered a significant deterioration during the second half of 2008, and faced a bleak macroeconomic forecast.

"The present downturn has been sudden and deep, with little hope of an early recovery," he said.

"Real investment spending in the sector contracted globally for the first time since 2002 and real corporate travel spending growth halved."

Baumgarten, however, is optimistic that the recovery could begin as early as the second half of 2010 or in 2011.

WTCC predicts that real investment will further contract in 2010, but that employment should reach 2008 levels by 2014.