Global tourism loss due to Covid is $1.2 trillionJuly 03, 2020 15:46
The world's tourism sector could lose at least 1.2 trillion dollars or 1.5 per cent of the global gross domestic product having been placed at a standstill for nearly four months due to the coronavirus pandemic, according to a new report by UNCTAD.
The UN's trade and development body warned that the loss could rise to 2.2 trillion dollars or 2.8 per cent of the world's GDP if the break in international tourism lasts for eight months, in line with the expected decline in tourism as projected by the UN World Tourism Organisation (UNWTO).
UNCTAD estimates losses in the most pessimistic scenario, a 12-month break in international tourism, at 3.3 trillion dollars or 4.2 per cent of global GDP.Tourism is a backbone of many countries' economies and a lifeline for millions of people around the world, having more than tripled in value from 490 billion dollars to 1.6 trillion dollars in the last 20 years, according to UNWTO. But Covid-19 has brought it to a halt, causing severe economic consequences globally.
Prevailing lockdown measures in some countries, travel restrictions, reductions in consumers' disposable income and low confidence levels could significantly slow down the sector's recovery. Even as tourism slowly restarts in an increasing number of countries, it remains at a standstill in many nations. -- ANI