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COVID-19 and Transforming Tourism: Policy Brief
COVID-19 and Transforming Tourism: Policy Brief
COVID-19 and
Transforming Tourism
AUGUST 2020
Executive summary
Tourism provides livelihoods for millions of decreased by 56 per cent and $320 billion in
people and allows billions more to appreciate exports from tourism were lost in the first five
their own and different cultures, as well as the months of 20201 – more than three times the
natural world. For some countries, it can repre- loss during the Global Economic Crisis of 2009.
sent over 20 per cent of their GDP and, overall, Governments are struggling to make up for the
it is the third largest export sector of the global lost revenues that are needed to fund public
economy. Tourism is one of the sectors most services, including social and environmental
affected by the COVID-19 pandemic, impacting protection, and meet debt repayment schedules.
economies, livelihoods, public services and
opportunities on all continents. While sustain- Scenarios for the sector indicate that inter-
ing the livelihoods dependent on the sector national tourist numbers could decline by
must be a priority, rebuilding tourism is also 58 per cent to 78 per cent in 2020, which
an opportunity for transformation with a focus would translate into a drop in visitor spend-
on leveraging its impact on destinations vis- ing from $1.5 trillion in 2019 to between
ited and building more resilient communities $310 and $570 billion in 2020. This places
and businesses through innovation, digital- over 100 million direct tourism jobs at risk,2
ization, sustainability, and partnerships. many of them in micro, small and medium
sized enterprises (MSMEs) which employ
a high share of women and young people.
Informal workers are the most vulnerable.
Economic impacts
No country has escaped the decimation of
According to 2019 data, tourism generated its tourism sector, from Italy where tourism
7 per cent of global trade, employed one in every accounts for 6 per cent of the country’s GDP to
ten people globally and – through a complex Palau where it generates almost 90 per cent of
value chain of interconnected industries – all exports. This crisis is a major shock for devel-
provided livelihoods to millions of people in oped economies and an emergency for the most
developed and developing countries. As bor- vulnerable people and developing countries. The
ders closed, hotels shut and air travel dropped impact on small island developing States (SIDS),
dramatically, international tourist arrivals
1 World Tourism Organization (UNWTO), World Tourism Barometer, vol. 18, No. 4, June 2020, Madrid, available at https://doi.org/10.18111/
wtobarometereng.
2 UNWTO, World Tourism Barometer, vol. 18, No. 3, June 2020, Madrid, available at https://doi.org/10.18111/wtobarometereng.
3 http://tourism4sdgs.org.
4 UNWTO, “Transport-related CO 2 emissions from the tourism sector”, available at https://www.unwto.org/sustainable-development/
tourism-emissions-climate-change.
5 United Nations, “On International Day, UN chief spotlights indigenous peoples’ resilience in face of COVID-19 pandemic”, 9 August 2020,
available at https://news.un.org/en/story/2020/08/1069822.
6 United Nations Educational, Scientific and Cultural Organization (UNESCO), “Museums around the world in the face of COVID-19”, 2020,
available at https://unesdoc.unesco.org/ark:/48223/pf0000373530.
7 UNWTO, “COVID-19 Tourism Recovery: Technical Assistance Recovery Package”, 2020, available at https://webunwto.s3.eu-west-1.
amazonaws.com/s3fs-public/2020-05/COVID-19-Tourism-Recovery-TA-Package_8%20May-2020.pdf.
8 UNWTO, “An Inclusive Response for Vulnerable Groups”, 2020, available at https://www.unwto.org/
covid-19-inclusive-response-vulnerable-groups.
2. BOOST COMPETITIVENESS AND BUILD nation for reopening and recovery plans and
RESILIENCE. To support the development of policies could consider putting people first,
tourism infrastructure and quality services involving government, development partners
across the entire tourism value chain; facili- and international finance institutions for a sig-
tate investments and build a conducive busi- nificant impact on economies and livelihoods.
ness environment for local MSMEs, diversify
products and markets, and promote domes-
tic and regional tourism where possible. WHAT IS AT STAKE?
3. ADVANCE INNOVATION AND THE DIGITAL-
IZATION OF THE TOURISM ECOSYSTEM. 100 to 120 million direct
Recovery packages and future tourism tourism jobs at risk (UNWTO)
developments could maximize the use
of technology in the tourism ecosystem, $910 billion
Loss of
promote digitalization to create innova- to $1.2 trillion in exports from
tive solutions and invest in digital skills, tourism – international visitors’
particularly for workers temporarily with- spending (UNWTO)
out an occupation and for job seekers.
In 2019, international tourist arrivals reached This immense shock could translate into a drop
1.5 billion, a 4 per cent increase over 2018, of 850 million to 1.1 billion international tour-
consolidating a ten-year record where tour- ists and a loss of $910 billion to $1.2 trillion in
ism grew faster than the world economy export revenues from tourism, putting 100 to
as a whole. Domestic tourism added a fur- 120 million direct tourism jobs at risk.13 This
ther 8.8 billion arrivals. The sector gener- is particularly critical as around 80 per cent
ated $1.5 trillion in exports and employed of all tourism businesses are MSMEs.
one in ten people directly or indirectly. 10
10 UNWTO, World Tourism Barometer, vol. 18, No. 3, June 2020, Madrid, available at https://doi.org/10.18111/wtobarometereng and UNWTO
online Data Dashboard, available at https://www.unwto.org/international-tourism-and-covid-19.
11 UNWTO, World Tourism Barometer, vol. 18, No. 3, June 2020 and UNWTO, World Tourism Barometer, vol. 18, No. 2, May 2020, Madrid,
available at https://doi.org/10.18111/wtobarometereng.
12 Ibid.
13 Ibid.
14 International Monetary Fund, World Economic Outlook, June 2020.
15 UNWTO, "Briefing Note – Tourism and COVID-19. Issue 1. How are countries supporting tourism recovery?", June 2020, available at
https://doi.org/10.18111/9789284421893.
1,600
1,457 1,478
1,347
1,400 1,281
1,220 1,250
1,223
1,200 1,0961,132
988 979
Billions of dollars
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
(estimate)
2020
(scenario-
based)
Source: UNWTO.
16 United Nations Conference on Trade and Development (UNCTAD), COVID-19 and Tourism: Assessing the Economic Consequences, 2020.
17 UNCTAD, World Investment Report, 2020, pp.6 and 82, available at https://unctad.org/en/pages/PublicationWebflyer.
aspx?publicationid=2769.
18 UNWTO Tourism Data Dashboard, Global and Regional Tourism Performance, available at https://www.unwto.org/
global-and-regional-tourism-performance.
19 Aviation Benefits Report 2019, available at https://www.icao.int/sustainability/Documents/AVIATION-BENEFITS-2019-web.pdf.
20 International Civil Aviation Organisation Air Transport Statistics as of July 2020, https://www.icao.int/sustainability/Pages/Economic-
Impacts-of-COVID-19.aspx.
21 UNWTO, 2020.
22 UNWTO et. al, 2017.
23 UNWTO, 2020.
24 UNWTO et. al., 2017.
25 UNWTO, 2020 .
26 UNWTO, " UNWTO Briefing Note – Tourism and COVID-19, Issue 2. Tourism in SIDS – the challenge of sustaining livelihoods in times of
COVID-19", June 2020, available at https://doi.org/10.18111/9789284421916.
Saint Lucia 90
Palau 88
Bahamas 86
Maldives 84
Barbados 72
Antigua and Barbuda 69
Cabo Verde 67
Sao Tome and Principe 65
Vanuatu 63
Samoa 58
Jamaica 54
Fiji 52
Comoros 51
Tonga 47
Belize 46
Haiti 38
Seychelles 38
Dominican Republic 36
St. Vincent and Grenadines 35
Mauritius 34
Dominica 31
Grenada 30
St. Kitts and Nevis 30
Timor-Leste 29
Marshall Islands 24
Cuba 22
Kiribati 18
Bahrain 13
Solomon Islands 12
Guinea-Bissau 5
Trinidad and Tobago 5
Singapore 3
Suriname 3
Guyana 2
Papua New Guinea 0.03
0 10 20 30 40 50 60 70 80 90 100
600 60
54%
500 482 50
463
Millions of people
400 44% 40
Percentage
38% 39%
300 30
200 20
144 157
4% 5%
0 0
Accommodation Real estate; business Manufacturing Wholesale and retail trade;
and food services and administrative repair of motor vehicles
activities and motorcycles
32 ILO, "ILO Monitor: COVID-19 and the world of work. Fifth edition", 30 June 2020, available at https://www.ilo.org/wcmsp5/groups/
public/@dgreports/@dcomm/documents/briefingnote/wcms_749399.pdf, and UNWTO, Global Report on Women in Tourism – Second
Edition, 2019, available at https://doi.org/10.18111/9789284420384.
33 United Nations, “Policy Brief: The Impact of COVID-19 on Women”, available at https://www.un.org/sites/un2.un.org/files/policy_brief_
on_covid_impact_on_women_9_apr_2020_updated.pdf.
34 ILO, "Guidelines on decent work and socially responsible tourism", 2017.
35 Organization of Economic Cooperation and Development (OECD), "Supporting Quality Jobs in Tourism,
OECD Tourism Papers", 2015, available at https://www.oecd-ilibrary.org/docserver/5js4rv0g7szr-en.
pdf?expires=1596390375&id=id&accname=guest&checksum=D9EE6E516CBEE70A8F318161203F909C.
36 ILO, "ILO Monitor: COVID 19 and the world of work. Fourth Edition", May 2020, available at https://www.ilo.org/wcmsp5/groups/public/---
dgreports/---dcomm/documents/briefingnote/wcms_745963.pdf.
37 ILO, “ILO Monitor, COVID-19 and the world of work. Third Edition”, 29 April 2020, available at https://www.ilo.org/wcmsp5/groups/pub-
lic/---dgreports/---dcomm/documents/briefingnote/wcms_743146.pdf, and ILO, “COVID-19 crisis and the informal economy: Immediate
responses and policy challenges”, 5 May 2020.
38 UNWTO, “Policy Brief: COVID and Vulnerable Groups”.
39 UNWTO, “Transport-related CO 2 emissions from the tourism sector”, available at https://www.unwto.org/sustainable-development/
tourism-emissions-climate-change.
40 United Nations Environment Programme, Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication,
2011, available at https://sustainabledevelopment.un.org/content/documents/126GER_synthesis_en.pdf.
41 UNWTO, Towards Measuring the Economic Value of Wildlife Watching Tourism in Africa, 2015.
42 International Union for Conservation of Nature (IUCN), “Conserving Nature in a time of crisis: Protected Areas and
COVID-19”, 25 May 2020, available at https://www.iucn.org/news/world-commission-protected-areas/202005/
conserving-nature-a-time-crisis-protected-areas-and-covid-19.
43 Conservation International, “Impact of Coronavirus on Nature”, available at https://www.conservation.org/stories/
impact-of-covid-19-on-nature.
44 Patrick Greenfield and Peter Muiruri, “Conservation in crisis: ecotourism collapse threatens communities and
wildlife”, The Guardian, 5 May 2020, available at https://www.theguardian.com/environment/2020/may/05/
conservation-in-crisis-covid-19-coronavirus-ecotourism-collapse-threatens-communities-and-wildlife-aoe.
45 IUCN, “Conserving Nature in a time of crisis”, 25 May 2020.
46 United Nations, “On International Day, UN chief spotlights indigenous peoples’ resilience in face of COVID-19 pandemic”, 9 August 2020,
available at https://news.un.org/en/story/2020/08/1069822.
47 UNESCO, “COVID-19: UNESCO and ICOM concerned about the situation faced by the world’s museums”, 18 May 2020, https://en.unesco.
org/news/covid-19-unesco-and-icom-concerned-about-situation-faced-worlds-museums.
48 Network of European Museum Organizations, “Survey on the impact of the COVID-19 situation on museums in Europe: Final Report”, 202,
available at https://www.ne-mo.org/advocacy/our-advocacy-work/museums-during-covid-19.html.
49 UNESCO, “Investing in Creativity”, available at https://en.unesco.org/creativity/sites/creativity/files/info-kit_brochure-final-en-web.pdf.
50 Geir Moulson and Elaine Kurtenbach, “European tourism faces turbulence only weeks after restart”, AP News, 27 July 2020, available at
https://apnews.com/e6509475a558831774f3697faf7396bc.
2.1.1 Protect jobs, Within this process, social dialogue will be key
income and enterprises to developing creative solutions.53 International
labour standards contain specific guidance
The magnitude of the impact of COVID-19 on for safeguarding decent work and are a useful
tourism requires solid measures that guarantee “decent work compass” in the context of the
the survival of enterprises and sustain jobs. crisis response.54 The health of the workers
This is especially important for MSMEs and the in the air and sea travel sectors must be pro-
self-employed. For example, temporary waivers tected and guarantees put in place to allow
or rescheduling of taxes and other payments, for the unprecedented challenges associated
special employment support schemes, and with repatriating remaining crewmembers and
thereafter to comply with decent work stand-
ards regarding the duration of their shifts.
51 United Nations, “Policy Brief: The Impact of COVID-19 on Women”, available at https://www.un.org/sites/un2.un.org/files/policy_brief_
on_covid_impact_on_women_9_apr_2020_updated.pdf.
52 The Lion’s Share, “Call for Proposals: COVID-19 Response Resilience in Wildlife Community Small Grants”, 16 April 2020, available at
https://www.thelionssharefund.com/content/thelionssharefund/en/home/news/COVID-19-response-call-for-proposals.
53 ILO, “A policy framework for tackling the economic and social impact of the COVID-19 crisis”, 20 May 2020, available at https://reliefweb.
int/report/world/policy-framework-tackling-economic-and-social-impact-covid-19-crisis.
54 See ILO, Key provisions of international labour standards relevant to the evolving COVID-19 outbreak”, 29 May 2020, and ILO, “Safe return
to work: Guide for Employers on COVID-19 prevention”, 7 May 2020.
Egypt postponed the payment of all dues on tourism Lebanon allowed economic institutions to lend money
and hotel establishments and declared all bazars and without interest for five years to help them pay sala-
cafeterias located in archeological sites exempted ries and Montenegro announced that grants for sal-
from paying rent until tourism safely resumes. aries for April and May will be given to entrepreneurs
and tourism SMEs (upon request, tourism companies
In Bulgaria the government assisted businesses
will receive subsidies for the payment of salaries).55
(hospitality, travel agencies and tour operators,
restaurants and fast food establishments among Support to workers
other) by covering the insurance payments owed by
the employers. In Greece workers whose labour contracts are tem-
porarily suspended will receive compensation while
Italy has also approved the suspension of tax pay- the state will cover their social insurance and health
ments, social security and welfare contributions contributions.
for the tourism sector and extended the measure to
cultural businesses. Similar flexibility in terms of social security con-
tributions was implemented by, among others,
In Mauritius the training levy will be temporarily Argentina, Kuwait, Morocco, Mongolia, Samoa
reduced from 1 per cent to 0.5 per cent for opera- and in Hungary, where the contribution of payment
tors in the tourism sector. liabilities of employers in their entirety has been
cancelled and where the state would take over
Direct aid to companies
70 per cent of lost wages for three months in sup-
Serbia, Slovenia and Slovakia have announced port of part-time workers.
direct payments to companies (or a percentage of
In Gabon employees placed on technical unemploy-
salaries) forced to close due to the pandemic.
ment will receive an allowance representing between
Jamaica announced funding from multilateral 50 per cent and 70 per cent of their gross salary.
partners and international institutions to be made A similar initiative was adopted by Botswana and
available for small and medium tourism enterprises Republic of Korea.
for COVID-19 response and recovery. It includes
Cambodia provided retraining and upskilling pro-
loans, initiatives to get small tourism enterprises
grammes for laid-off workers and announced plans
formalized, licensed and COVID-compliant, as well
to pay 20 per cent of the minimum wages of workers
as donations of protective kits.
employed in hotels, guesthouses, restaurants and
Special conditions for loans travel agencies. Workers are required to attend a
short course delivered by the Ministry of Tourism
The Central Bank of Egypt offered tourism facilities before receiving government support. Namibia
low-interest funds, particularly for paying employee announced a wage subsidy for hardest hit sectors
salaries and launched a financing initiative support- and the government will provide a wage subsidy to
ing tourism. In addition to reducing the interest rate, aid businesses in retaining jobs in the tourism, hos-
banks can grant credit facilities with a maximum pitality, travel and aviation and construction sectors.
Leading on its role as the UN specialised The ICAO Council established the Council
agency for tourism, the UNWTO Global Aviation Recovery Task Force (CART) to
Tourism Crisis Committee62 has united the harmonize guidance on how to best help
tourism sector to formulate a sector-wide unify and align the numerous health and
response to the unprecedented challenge of safety response and recovery approaches
the COVID-19 pandemic. The Committee com- being implemented around the world. In an
prises representatives of Member States and inclusive process, strategic priorities and
private sector, alongside with WHO, ICAO, ILO, policies to support states and aviation indus-
IMO, WBG, OECD, ACI, CLIA, IATA and WTTC. try for a safe, secure and sustainable restart
and recovery of the aviation sector were
The Committee, created in March, released identified.
the first set of global recommendations to
support jobs and economies through tour- The “Take Off” guidelines outline 10 key
ism. 63
In May 2020, the Committee endorsed principles for a harmonized approach to the
UNWTO’s Global Guidelines to Restart restart and recovery of the aviation indus-
Tourism, 64 an action plan focused on the try.66 The guidelines also include a set of
Priorities for Tourism Recovery, 65 supporting globally-harmonized and mutually-accepted
both public and private sectors to: risk mitigation measures related to aviation
safety, aviation public health, facilitation and
1. Provide liquidity and protect jobs. aviation security, as well as economic and
financial measures.
2. Recover confidence through safety
and security.
The CART Report and “Take Off” guidelines
3. Public-private collaboration for an are being operationalised through an imple-
efficient reopening. mentation package, including guidance
material, training (including standardized and
4. Open borders with responsibility.
competency-based trainings, in classroom,
5. Harmonize and coordinate protocols online or virtual formats), tools (including
and procedures. data-driven applications, online reporting
systems, electronic management systems
6. Added value jobs through new or questionnaire/surveys), expert support
technologies.
(including the provision of experts to support
7. Innovation and Sustainability as the states in their activities;) and, when applica-
new normal. ble, procurement guidance.
71 International Trade Centre, “Action Plan: Supporting small businesses through the COVID-19 crisis and towards the future”, available at
http://www.intracen.org/covid19/15-Points-Action-Plan.
72 http://tourism4sdgs.org.
79 UNWTO and UNEP, Tourism and the Sustainable Development Goals – Journey to 2030, 2017.
80 Ibid.
Tourism, one of the most dynamic and most The crisis is also an opportunity to rethink the
job intensive sectors of our times, has been tourism sector and its contribution to the SDGs,
one of the hardest hit by the current crisis. nature, and the Paris Agreement on climate
change; an opportunity to work towards a more
Millions of livelihoods are at stake sustainable, inclusive and resilient tourism.
and need to be supported.
Only through collective action and interna-
As countries gradually lift travel restrictions tional cooperation will we be able to transform
and tourism slowly restarts in many parts of the tourism, advance its contribution to the 2030
world, health must continue to be a priority and Agenda and its shift towards an inclusive and
coordinated heath protocols that protect work- carbon neutral sector that harnesses innova-
ers, communities and travelers while supporting tion and digitalization, embraces local values
companies and workers must be firmly in place. and communities and creates decent job
opportunities for all, leaving no one behind.
81 UNWTO General Assembly 2019, “Implementation of the General Programme of Work”, available at https://webunwto.s3.eu-west-1.
amazonaws.com/s3fs-public/2019-10/a23_5_a_implementation_general_programme_of_work_final_rev.2_en.pdf.
82 Olga Aristeidou, “EBRD and UNWTO boost tourism recovery”, European Bank for Reconstruction and Development, 26 June 2020, availa-
ble at https://www.ebrd.com/news/2020/ebrd-and-unwto-boost-tourism-recovery.html.
83 UNWTO, “UNWTO releases a COVID-19 technical assistance package for tourism recovery”, 12 May 2020, available at https://www.
unwto.org/news/unwto-releases-a-covid-19-technical-assistance-package-for-tourism-recovery.
CLIA: Cruise Lines International Association SCP: Sustainable consumption and production
IUCN: International Union for WTTC: World Travel and Tourism Council
Conservation of Nature