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Decline In Tourism Caused By COVID-19 Pandemic Will Cost Global Economy More Than $4tn

Published on Jul 2 2021 2:00 PM in General Industry tagged: tourism / COVID-19 / United Nations Conference on Trade and Development

Decline In Tourism Caused By COVID-19 Pandemic Will Cost Global Economy More Than $4tn

According to The Irish Independent, the decline in tourism caused by the COVID-19 pandemic will cost the global economy more than $4 trillion for 2020 and 2021.

A new report from the United Nations Conference on Trade and Development said losses in 2021 could amount to $1.7 trillion to $2.4 trillion.

Vaccinations

Despite positive news regarding vaccinations, the report shows that the tourism crisis is far from over, with travel restrictions and bans still in place in many regions with low vaccination rates.

The UN report highlights the impact caused by unequal access to vaccines around the world, with developing countries likely to  account for as much as 60 percent of the estimated losses to global gross domestic product.

A return to pre-pandemic arrivals of international tourists may not be seen until 2023, according to the study, which was done in collaboration with the UN World Tourism Organisation.

Countries such as Thailand and Turkey, which rely on foreign tourists to boost their economies, have suffered the most from the decline in tourism.

The drop in travelling has a knock-on effect for linked sectors such as food, beverages, retail trade, communications, and transport.

Recovery Of Jobs

Overall, the decline has led to an average rise of 5.5pc in unemployment of unskilled labor, hitting a sector that employs many women and young people.

"Tourism is a lifeline for millions, and advancing vaccination to protect communities and support tourism's safe restart is critical to the recovery of jobs and generation of much-needed resources, especially in developing countries," said UN World Tourism Organisation Secretary-General Zurab Pololikashvili.

In developed countries, the prospect of an overseas holidays is trending upwards.

In the U.S., a rising number of Americans are planning a trip to a foreign country, according to the Conference Board's June consumer confidence index.

© 2021 Hospitality Ireland – your source for the latest industry news. Article by Conor Farrelly. Click subscribe to sign up for the Hospitality Ireland print edition.

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