|Status : Published||Published On : May, 2020||Report Code : VRICT5149||Industry : ICT & Media||Available Format :||Page : 160|
Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus. The diseases The COVID-19 outbreak has the most impact on the tourism industry. Amid lockdown across the globe, the sector has been the hardest hit by the outbreak. Since January 2020, almost every destination has put travel restrictions. And it is anticipated that the industry will be hit harder than the financial meltdown of 2008-2009 or any other event in recent history.
Decline in international tourist arrivals, globally
It is estimated that international tourist arrivals will decline by 30% in 2020. Europe which represents 50% of global tourism is among the worst hit across the globe. A decline of around ~400 million tourist arrivals is anticipated across the globe. The tourism industry has sustained over 5% growth post financial meltdown of 2008 and 2009.
Globally, tourism sector accounts for approximately ~10% of the global GDP. According to the UNWTO, decline in tourist arrivals will result in a loss of 300 to 450 US$ billion in international tourism receipts (exports) – almost one-third of the USD 1.5 trillion generated globally. With this level of impact, tourism industry will lead to large number of job losses across the globe. It is anticipated the outbreak may lead to more than 50 million job losses. Post COID break down it is anticipated that it will take atleast a year for the industry to recover.
According to the Select USA, the U.S. travel and tourism industry generated over USD 1.6 trillion in economic output in 2017, supporting 7.8 million U.S. jobs. Travel and tourism exports accounted for 11% of all U.S. exports and nearly a third (32%) of all U.S. services exports. The sector represents ~ 2.5% of the country’s GDP. Immediate measures for short term, medium term and long term are required to support the industry and its stakeholders.