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School of Tourism and International Hospitality Management

Article
Global TOURISM AND COVID-19 – UNPRECEDENTED ECONOMIC IMPACTS on the
industry

Tourism is one of the main economic fields of the planet. It is the third biggest export group
(after fuels and chemicals) and accounted for 7% of global trade in 2019.

Some countries may account for more than 20% of their GDP, and, overall, it is the world's
third-largest export market.

Tourism is one of the industries most impacted by the Covid-19 pandemic, influencing markets,
livelihoods, public facilities and opportunities on all continents. All aspects of the large supply
chain have been affected.

Export sales from tourism could decline from $910 billion to $1.2 trillion in 2020. It would have
a greater effect than could cut global GDP by 1.5 per cent to 2.8 per cent.

Tourism creates one in ten workers and offers millions of livelihoods in industrialized and
emerging economies.

In some Small Island Developing States (SIDS), tourism accounted for 80% of exports, although
it also forms a major share of national economies in developed and developing countries.

100 to 120 million

Direct employment in tourism at danger (UNWTO)

Huge Influence On LIVELIHOODS

As many as 100 million direct tourism jobs are at risk, in addition to tourism-related sectors such
as labour-intensive housing and food services industries, which offer employment to 144 million
people worldwide. Small companies (which account for 80% of global tourism) are especially
fragile.

Youth and informal sector staff, women who mark up 54% of the tourism population, are the
most at-risk groups.

There will be no country untouched. Destinations focused on tourism for employment and
economic development is expected to be the hardest hit: SIDS, least developed countries (LDCs)
and African countries. In Africa, the industry accounted for 10% of all exports in 2019.

Loss of 910 billion US$ 910 billion to US$ 1.2 billion

Export from tourism-International tourist investment (UNWTO)

PRESERVING THE PLANET—-MITIGATING Pressures ON Ecology AND Society

The unexpected decline in tourism limits supports the restoration of habitats. Any 7% of world
tourism concerns animals, a segment that rises by 3% annually.

This puts employees at risk and has contributed to an uptick in smuggling, looting, and bushmeat
eating, partially attributable to visitors and workers' diminished presence.

In particular, the effect on biodiversity and habitats in SIDS and LDCs is important. In many
African destinations, biodiversity accounts for up to 80 per cent of visits, and in many SIDS,
tourism income enables aquatic protection initiatives.

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Several instances of group participation in nature tourism demonstrate how societies, especially
aboriginal cultures, have preserved their cultural and natural resources whilst generating
prosperity and enhancing well-being. The effect of COVID-19 on tourism puts more strain on
the survival of heritage and societies' cultural and social structure, particularly indigenous
peoples and ethnic groups.

For example, many intangible cultural heritage activities, such as traditional celebrations and
meetings, have been stopped or delayed. With the closing of handicrafts, cosmetics and other
commodities, indigenous women's income has been especially affected.

Ninety per cent of countries have closed World Heritage Sites, with huge socioeconomic
implications for tourism-dependent societies. Moreover, 90 per cent of museums are completed,
and 13 per cent will never be reopened.

1.5% to 2.8% of global GDP (UNCTAD)

FIVE Goals FOR RE-START TOURISM

The COVID-19 crisis is a watershed moment to combine the initiative to maintain tourism-
dependent livelihoods with the SDGs and ensure a more resilient, equitable, carbon-neutral and
resource-efficient future.

The Tourism Transition Plan requires to discuss five focus areas:

Mitigate socioeconomic impacts on livelihoods, particularly women's jobs and economic

stability.

Improve productivity and create resilience, including economic diversification, supporting

domestic and regional tourism where appropriate, and facilitating a business-friendly climate for
micro, small and medium-sized enterprises (MSMEs).

Advance innovation and digital transformation of tourism, including promoting innovation and
investment in digital skills, especially for temporary unemployed workers and job seekers.

Encourage sustainability and green development to drive towards a resilient, successful,

resource-efficient and carbon-neutral tourism market. Green investment in recovery could
address, among other opportunities, protected areas, sustainable energies, smart buildings and the
circular economy.

Coordination and collaborations to re-start and turn the industry towards reaching the SDGs,
ensuring the re-start and recovery of tourism places citizens first and works together to ease and
remove travel constraints in a responsible and organized way. Tourism accounts for more than
30% of exports for the bulk of SIDS and 80% for some.

MOVING AHEAD Along

As countries increasingly remove travel bans and tourism steadily re-starts in many areas of the
world, health must remain a priority and organized health protocols that safeguard employees,
cities and tourists, although at the same time helping businesses and workers, must be securely in
place.

It is only through concerted action and international collaboration that we will be able to change
tourism, advance its commitment to the 2030 Agenda and drive towards an equitable and carbon-
neutral industry that fosters creativity and digitalization, supports local traditions and societies
and provides good work prospects for everyone, leaves no one behind. We're better together.

COVID-19 has been able to push the global tourism market back 20 years.

COVID-19 has ravaged the tourism industry.

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One hundred twenty million workers are estimated to be at risk, with economic damage
projected to reach $1 trillion.

UN Secretary-General Antonio Guterres issued a recent study focused on UNWTO data to

measure the coronavirus pandemic's destructive effect on global tourism. It reports that up to 120
million tourism workers are at risk, with economic harm expected to reach $1 trillion in 2020.

We must restore the tourism industry," said Mr Guterres, "intending to restore its status as a
provider of decent employment, steady wages and the preservation of our cultural and natural
resources."

The UN Secretary-General stressed the importance of tourism as one of the most significant
economic sectors, providing livelihoods to hundreds of millions of citizens while "enhancing
economies and so on."

Thanks to the restrictions placed in March, as the coronavirus began to propagate quickly across
the globe, foreign travel fell to a screeching halt in April and May, culminating in international
tourist arrivals that had crossed almost 60 per cent in the first five months of 2020. Depending on
whether travel sanctions are completely removed, the World Tourism Agency predicts foreign
tourism revenues (i.e. spending by overseas tourists) to dip between $910 billion and $1.2 trillion
this year, putting the global tourism sector back 20 years.

The tourism economy has been seriously impacted by the coronavirus (COVID-19) pandemic,
and steps have been placed to curb its spread. Depending on the crisis's length, the updated
scenarios suggest that the possible shock may vary from a 60-80 per cent downturn in the foreign
tourism market in 2020. Beyond urgent steps to boost the tourism industry, countries are still
implementing recovery measures. This involves considerations on relaxing travel bans,
rebuilding travellers' trust, and rethinking the tourism industry for the future.

The coronavirus (COVID-19) pandemic caused an unprecedented crisis in the tourism economy,
given the sector's immediate and overwhelming shock. Revised OECD forecasts of the effects of
COVID-19 indicate a 60% fall in foreign tourism in 2020. This could grow to 80% if the
rebound were postponed until December. International tourism in particular regional areas (e.g.,
the European Union) is projected to recover first.

Domestic tourism, accounting for about 75% of the tourism industry in OECD nations, is
projected to rebound more rapidly. It offers a significant opportunity for recovery, especially in
countries, regions and cities where the sector provides many employees and companies.

The crisis's effect is felt in the tourism ecosystem, and reopening and restoring attractions would
take a united strategy. Tourism companies and staff are gaining from economic stimulus
programmes, and several policymakers are now adopting tourism-related initiatives.
Governments and businesses are focused on:

• Remove travel constraints, partner with companies to obtain liquidity funding, apply modern
health protocols for healthy travel, and diversify their markets.

• Restoring travellers' trust and boosting demand with fresh, healthy and clean brands for the
industry, knowledge applications for tourists and initiatives to encourage domestic tourism.

• Developing detailed recovery strategies for visitors, restoring destinations, promoting creativity
and expenditure, and rethinking the tourism industry.

These steps are important, but much needs to be achieved in a structured fashion since tourism
programmes are interdependent, effectively reopening the tourism economy and getting
companies up and running. The travel and tourism industry and policymakers should continue to
improve their cooperation structures to assist companies, especially the smallest ones, and staff.
Particular consideration can also be paid to the most sensitive/vulnerable destinations in the
recovery process.

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Looking ahead, the steps placed in effect today will shape tomorrow's tourism. Governments
ought to understand the longer-term consequences of the situation while keeping ahead of the
digital curve.

According to the coronavirus pandemic, foreign visitor arrivals worldwide decreased by 65 per
cent or 440 million in the first half of the year, according to the United Nations World Tourism
Organisation (UNWTO).

As countries closed their doors and imposed travel restrictions to curb the spread of the virus,
receipts from foreign tourism decreased by $460 billion in January-June, the UN Tourism
Agency said on Tuesday.

The number is around five times the loss of foreign tourism sales reported in 2009 in the middle
of the global economic and financial crisis, it stated.

The study found that Asia and the Pacific, the first area to feel the effect of COVID-19 on
tourism, was the hardest affected, with 72% of tourists dropping over the six months.

Europe led by a 66% fall in visitor arrivals, the Americas (-55%), Africa, and the Middle East
(both -57 per cent).

UNWTO also announced that 53 per cent of destinations had relaxed travel restrictions as of
early September.

UNWTO Secretary-General Zarrab Palliative emphasized the need for cooperation between
governments and the private sector to get global tourism going again, emphasizing that healthy
and responsible foreign travel is feasible in several world areas.

According to the Turkish Ministry of Culture and Tourism, the number of international tourists
in Turkey declined by 75% year-on-year in the first half of 2020.

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Name: ___________________________________ Section: ____________________________

Essay: Answer the questions below based on the article and defend your answer: (100
Points)

1. Based on the article: Global TOURISM AND COVID-19 – UNPRECEDENTED

ECONOMIC IMPACTS on the industry. What are the economic impact of tourism
during the pandemic? (50 points)

2. State examples of socio-cultural effect based on the article and explain why? (25
points)

3. Based on your own experience what is the social-cultural impact (negative/positive)

in our country, Philippines during Covid 19 pandemic? (25 points)

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Tel. Nos. (046) 416-4339/41 www.eac.edu.ph

School of Tourism and International Hospitality Management

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