The outcome of the coronavirus outbreak for the biggest players in the tourism industry
Pandemic will lead to a 30% reduction in numbers of international tourism
According to the UN World Tourism Organization (UNWTO), the tourism industry will suffer the most from the outbreak of coronavirus. It is believed that the pandemic will lead to a 30% reduction in numbers of international tourism. This, in turn, will lead to a loss of 30 to 45 billion euros. Also, according to the analysis of the World Travel and Tourism Council, about 75 million jobs are currently at risk, as they are directly or indirectly involved in tourism.
As reported by Eurostat, half of the total nights spent by non-residents in the EU were spent in Spain, Italy, and France in 2018. These countries are also among the top ones with the highest number of enterprises in the field of tourism. Greece, in turn, is at risk as well since the tourism sector employs more than a third of the workforce. Cyprus and Ireland are also among the countries whose economies are at risk since the percentage of those working in tourism is quite high.
The International Monetary Fund notes that the global economy is on its way to the worst recession since the Great Depression of the 1930s. It is predicted that Eurozone countries’ economies will be among the most affected. GDP is expected to decline by 7.5% for a total of 19 countries. The three most affected EU countries will be Italy, France, and Spain. Their GDP is expected to decline by 9.1%, 7.2%, and 8.0%, respectively.