"UNCTAD": 1.3 trillion dollars in global tourism losses in four months due to "Corona"

The United Nations Conference on Trade and Development (UNCTAD) said that the losses of the global tourism sector may reach a total value of $ 1.2 trillion, equivalent to about 1.5% of the global gross domestic product, due to the suspension of the sector during the past four months as a result of the closures applied by the majority of countries The world to face the pandemic of the spread of the Corona virus.

2.2 trillion dollars in losses if international tourism stops for 8 months

And warned, "Geneva-based UNCTAD, in a statement published on Wednesday on its website, that the loss may rise to 2.2 trillion dollars or 2.8% of global GDP if the interruption of international tourism continues for a period of 8 months, in line with the expected decline in tourism as Expected by the United Nations World Tourism Organization.

The most pessimistic scenario

And estimated "UNCTAD" losses in the most pessimistic scenario, which is a break in international tourism of up to 12 months, about $ 3.3 trillion, or 4.2% of global GDP.

According to the World Tourism Organization, the report said that the Koruna virus has halted the global tourism sector and has had severe economic consequences at the global level.

Tourism is the backbone of the economies of many emerging countries

He pointed out that tourism represents the backbone of the economies of many emerging countries and the lifeline of millions of people around the world, after the value of tourism has doubled from 490 billion dollars to 1.6 trillion dollars in the past twenty years.

Closures and travel restrictions hinder the recovery of tourism

He stressed that the prevailing closures in some countries, travel restrictions, cuts in disposable income for consumers and low levels of confidence can significantly slow the recovery of this sector.

He pointed out that even as tourism returns slowly in an increasing number of countries, it is still in a state of stagnation in many countries.

The report stated that for many countries, such as small island developing states, the collapse of tourism means a collapse in the prospects for development and what can not be tolerated, stressing that developing countries can suffer from the largest losses of GDP.

Countries like Kenya, Egypt and Malaysia may lose 3% of their GDP

The report of the "UNCTAD", that the GDP of some developing countries may incur huge losses, it is expected that countries like Jamaica and Thailand will lose 11% and 9%, respectively, of their GDP, according to the most optimistic scenario.

The report expected that some other tourism areas such as Kenya, Egypt and Malaysia will lose more than 3% of their GDP.

Popular destinations in Europe and America may lose billions of dollars

The report pointed out that the tourism sector in many rich countries will also feel uncomfortable, pointing out that, according to (UNCTAD) expectations, the popular European destinations and North America may lose billions of dollars due to the significant decline in international tourism.

(UNCTAD) stressed that the losses caused by the Corona virus in tourism may also have a negative impact on other economic sectors that provide goods and services and that travelers are searching for during their holidays such as food, beverages and entertainment. The organization estimated that for every million dollars lost in international tourism revenue, it could The country's national income drops by two million dollars to 3 million dollars.

The report noted that the massive decrease in the number of tourists has also left an increasing number of skilled and unskilled workers unemployed or with lower incomes.

Helping tourist institutions facing bankruptcy

The UNCTAD report urged governments to help tourist institutions facing bankruptcy such as hotels and airlines, explaining that one of the methods for financial mitigation is low-interest loans or grants.