The Global Tourism Industry’s Losses May Exceed $1.2 Trillion
(Bloomberg) -- The global tourism industry will lose at least $1.2 trillion this year amid crippling travel restrictions and consumer wariness during the coronavirus pandemic, according to a report Wednesday from the United Nations Conference on Trade and Development.
The losses, equal to 1.5% of the world economy, could balloon to $3.3 trillion if the hit to international leisure travel persists until March 2021, with the harshest effects afflicting developing and island nations, according to the Geneva-based agency's report.
Read more: EU's Move to Keep Americans Out Signals Long Travel Slump
The collapse of tourism could cost Jamaica 11% of its gross domestic product and reduce Thailand's GDP by 9%, UNCTAD said. Other hot spots like Kenya, Egypt and Malaysia could lose more than 3% of their GDP, the report said.
The lost revenue may translate into a sharp rise in unemployment in those countries with the potential for wages to drop by 12% in Thailand, 11% in Jamaica and 9% in Croatia.
Wealthier nations with more diversified economies like France, Greece, Italy, Portugal, Spain and the U.S. also stand to lose billions of dollars in tourism revenue, the report said.
©2020 Bloomberg L.P.
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