Coronavirus (Covid-19) Executive Briefing
Understanding the economic impact of the Covid-19 pandemic and the implications for the travel and tourism sector
- ECONOMIC IMPACT -
Economists and institutions have cut their forecasts and experts are predicting the potential onset of recessionary environments.
In the short-term, unemployment rates will rise in all major economies. The International Labour Organization estimates there will be around 25 million job losses worldwide.
$2tn-$3tn
UNCTAD forecasts a $2tn-$3tn reduction in investments in commodity-rich exporting nations.
3%
IMF forecasts the global economy to contract by 3% in 2020 as ‘Great Lockdown’ causes a dramatic drop in economic activity.
Impact of Covid-19 on asset prices
- SECTOR IMPACT: TRAVEL AND TOURISM -
As of 14 May 2020
Airlines industry impact
$315bn
IATA forecasts that the airline industry will see revenues fall by $315bn this year, a number that is subject to regular re-assessment. This number assumes a good level of government intervention. In some markets, such as the US, such support has been forthcoming. In others, most notably the UK, it has not.
Travel and tourism job losses
100.8m
The World Travel and Tourism Council (WTTC) estimates job losses of 100.8 million in the travel and tourism industry due to the economic damage caused by the Covid-19 outbreak.
impact on transport infrastructure
2.2%
GlobalData predicts that global construction output will contract by 2.2% in 2020. Governments and public authorities will advance spending on infrastructure projects as soon as normality returns to reinvigorate the industry.
Cruise industry developments
Share this article