Global economy likely to lose over $4 Trillion due to impact of coronavirus on tourism

The estimated drop in the global economy is in view of the coronavirus pandemic’s direct impact on tourism and its ripple effect on other sectors closely linked to it.

By Rajan Nath - June 30, 2021 11:06 am

The impact of the coronavirus outbreak on international tourism could cause a loss of over $4 trillion to the global economy for the years 2020-21, UNCTAD stated in a report published on June 30.

The estimated drop in the global economy is in view of the coronavirus pandemic’s direct impact on international tourism and its ripple effect on other sectors closely linked to it.

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The report was jointly presented with the UN World Tourism Organization (UNWTO). It stated that international tourism and its closely linked sectors witnessed an estimated loss of $2.4 trillion last year due to a steep drop in international tourist arrivals.

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A similar loss is likely to occur this year, the report warned, adding that the tourism sector’s recovery would largely depend on the f COVID-19 vaccination globally.

UNCTAD Acting Secretary-General Isabelle Durant said. that the world needs a global COVID-19 vaccination effort in an order to protect workers, mitigate adverse social effects, and make strategic decisions regarding tourism.

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The report further stated that the tourism losses were reduced in most developed countries, however, it has worsened in developing countries.

Meanwhile, the tourism sector is expected to recover in countries with high vaccination rates, such as France, Germany, Switzerland, the United Kingdom, and the United States, the report added.

-PTC News

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