Global economy may lose $4 trillion because of Covid impact on tourism

Thursday, July 1, 2021

The coronavirus pandemic has almost shut down international air travel with losses in excess of $2.4 trillion.

Geneva, June 30 (AN'I)- A UNCTad report released Wednesday said the collapse in global tourism caused by the pandemic could lead to the loss of global GDP of more than $four trillion in 2020 and 2021.

"Advancing vaccination to protect communities and support tourism's safe restart is critical to the recovery of jobs and generation of much-needed resources, especially in developing countries,

"The world needs a global vaccination effort that will protect workers, mitigate adverse social effects and make strategic decisions regarding tourism, taking potential structural changes into account," UNCTAD Acting Secretary-making Officer Isabelle Durant said.

While strong immunizations countries like The United Kingdom, the US, and France are expected to recover faster, experts believe that the sector will not fully recover until at least 2023.

The report said the asymmetric adoption of vaccines will further exacerbate the loss of tourism in developing countries, which accounts for up to 60 per cent of global GDP losses.

The U.N. estimated losses are far worse than a year ago when the industry predicted a twelve-month shutdown, which would cost the world $1.2 trillion and $3.3 trillion.

Last July, UNCTAD estimated that a four to twelve-month stalemate of international tourism would cost the global economy between $1.2 trillion and $3.3 trillion, including indirect costs.