Plenty of businesses are suffering and recovery will be slow, and lumpy. One of the hardest hit, and probably one of the most difficult industries to re-start, is the world travel business. Hotels, airlines, tour companies, travel agencies and online booking systems… and the millions of people employed to make all those work together as a working machine.
Now a UN study predicts that the global tourism business will lose up to US$3.3 trillion due to impact of Covid-19 bans and lockdowns, with Thailand to lose US$47 billion alone. According to the report, Thailand and France stand to lose around US$47 billion each. But the US and China are projected to have single largest losses in the travel industry.
“The Covid-19 pandemic has caused significant disruptions in the global economy. By the end of the first quarter of 2020, the Covid-19 pandemic had brought international travel to an abrupt halt and significantly impacted the tourism industry.”
The UN Conference on Trade and Development has released its ‘Covid-19 and Tourism’ and poses 3 scenarios for the world travel industry, assessing the impact of restrictive measures lasting 4, 8 and 12 months. Revenues are projected to fall $1.17, $2.22 and $3.3 trillion in the 3 scenarios, or 1.5-4.2% of the world’s GDP.
Speaking at a media conference, one of the authors believed that the second scenario “could be a realistic one”.
“International tourism has been almost totally suspended, and domestic tourism curtailed by lockdown conditions imposed in many countries. Although some destinations have started slowly to open up, many are afraid of international travel or cannot afford it due to the economic crisis.”
Then small tourist island states, such as Jamaica, stand to lose a much larger proportion of their economies, facing an 11% fall in GDP. Tourist islands like Bali and Phuket are also facing a bleak outlook until their tourism industries pick up again.
The UNCTAD report covers 65 individual countries and regions and is calling for governments to boost social protection for affected workers in the worst impacted nations.
Download the full report HERE.
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