World tourism loss exceeds €1 trillion
The economic damage to the global tourism sector as a result of the coronavirus pandemic restricitons is likely to exceed $1 trillion in 2020, which would set the industry back two decades, according to a new report from the United Nations.
“Depending on when travel restrictions will be fully lifted, the World Tourism Organization expects international tourism receipts (i.e. spending by international tourists) to drop between $910 billion and $1.2 trillion this year, which would set the global tourism industry back by 20 years,” UNWTO said.
The report adds that the coronavirus-related restrictions brought international travel to a crashing halt in April and May, resulting in international tourist arrivals that trailed last year’s total by almost 60% through the first five months of 2020.
The UNWTO has underlined that the tourism sector employs one in every ten people on Earth and warns that up to 120 million direct tourism jobs are at risk.
Tourism came to a standstill in mid-March. 2020. International tourist arrivals decreased by 56% in the first months of the year, with numbers in May down by 98%. This translates into a loss of nearly $320 billion in exports – over three times what was lost during the whole of the 2009 global economic crisis.
Forward-looking scenarios point to possible declines in arrivals and receipts from international tourism of 58% to 78% for the whole year depending on the speed of con- tainment of the pandemic, the duration of travel restrictions and the gradual re-opening of borders that has now begun but remains uncertain.