A one year halt in global tourism due to novel coronavirus travel restrictions could cost the industry $3.3 trillion, the UN Conference on Trade and Development (UNCTAD) said in a new report on Wednesday
UNITED NATIONS (Pakistan Point News / Sputnik - 01st July, 2020) A one year halt in global tourism due to novel coronavirus travel restrictions could cost the industry $3.3 trillion, the UN Conference on Trade and Development (UNCTAD) said in a new report on Wednesday.
"UNCTAD estimates losses in the most pessimistic scenario, a 12-month break in international tourism, at $3.3 trillion or 4.2 percent of global GDP," the report said.
UNCTAD noted that the global tourism sector's losses could amount to $1.2 trillion, or 1.5 percent of the GDP, having been at a standstill for almost four months.
UNCTAD Division on International Trade and Commodities Director Pamela Coke-Hamilton said that for many developing countries a pause in tourism means a collapse in their development prospects.
Jamaica and Thailand could suffer the steepest GDP losses - 11 percent and 9 percent, respectively, in the most optimistic scenario, the report said.
At the same time, many developed countries, including the United States, France, Italy, Spain, Portugal and Greece, could lost additional billions of Dollars because of the drop in international tourism.
According to the report, pandemic-related losses in tourism will also impact other economic sectors, whose products and services are sought by travelers, including the food, beverages and entertainment industries.
UNCTAD said it has estimated that for every $1 million lost in global tourism revenue, a country's national income could drop by up to $3 million.
To prevent the worst economic hardship for most affected countries and communities relying on tourism, UNCTAD urged strengthening social protection, providing financial relief to enterprises facing bankruptcy and supporting access to funding.
