The World Travel & Tourism Council (WTTC) has said the travel industry may only recover by a third year-on-year while international travel spending reportedly continues to plummet.
Latest research from the organisation claims the recovery has been "severely delayed" by a lack of spending from international visitors.
The WTTC has cited the UK’s travel restrictions, such as the traffic light system, for "wreaking havoc" on the sector.
At the current rate of recovery, the new statistics claimed the sector’s contribution to the nation’s economy could rise year-on-year by just under a third (32%) in 2021.
However, the research also showed the increase has allegedly been spurred on by a recent boom in domestic travel, with domestic spending growth set to experience a 49% rise in 2021.
While this surge in domestic travel has, according to the WTTC, provided a "much-needed boost, it will not be enough to achieve a full economic recovery and save millions of jobs still under threat".
The research also predicted international spending will decrease by nearly 50% compared to 2020 figures.
Julia Simpson, WTTC president and chief executive, said even though the research showed the sector is continuing to recover, the UK will "suffer big losses due to continuing travel restrictions that are tougher than the rest of Europe".
"Despite government announcements the UK still has a red list, costly PCR tests and a requirement for day two tests which simply put people off travel," Simpson added.
"Just as the world opens up the UK has more requirements for the double-vaccinated than our neighbours."