Daily Management Review

UN: COVID-19 hit tourism industry hardest


Tourism and related businesses have been hit hardest by the pandemic.

According to the UN World Tourism Agency, the number of international tourist arrivals fell by 87% and some regions, such as Oceania, lost 98% of international tourists.

Tourism and related businesses were hit hardest by the pandemic. Foreign investment in the tourism sector fell from $48.5 billion in 2019 to $12.6 billion in 2020. As a result, according to the World Tourism Organization (UNWTO), the sector lost between $910 billion and $1.2 trillion in export revenue and 100-120 million jobs. 

According to the UNWTO, international tourist arrivals decreased by 87 per cent and some regions, such as Oceania, lost 98 per cent of their international tourists. At the same time in countries such as Spain or Jordan, tourism revenues account for 12% of GDP. Overall, tourism accounts for 4.4% of GDP in Commonwealth Economic Organisation countries. 

In the world's largest economy, the tourism industry has also been hit hard. Before the pandemic, tourist spending in the USA was $1.1 trillion annually, which generated an economic effect of $2.3 trillion. Tourist spending in the USA fell by 42% in 2020, costing the economy $500 billion. The number of people employed in the industry fell from 16.7 million to 11.1 million. And business tourism fell by 70%, spending there fell from $348 billion to $103 billion. 

The tourism industry reported 331,000 new jobs in April 2021 and unemployment fell from 13% to 10.8% for the month. However, it is still higher than 6% for the country as a whole. It is too early to talk about the industry's recovery, market players say. Now, they insist on government support as well as the opening of borders as soon as possible.

source: un.org