Coronanomics (10) - Impact on the Travel and Tourism Sector

Tuesday, June 16, 2020 / 06:00 AM / by Proshare Content/ Header Image Credit:  EcoGraphics

Travel and tourism are among the most affected sectors of the pandemic, with flights grounded, hotels closed, workers have either lost their jobs or on furlough, and travel restrictions put in place in virtually all countries around the world.  Just as projected by the International Air Transport Associations (IATA) in March 2020, coronavirus has seriously disrupted the industry which has caused major losses.

Chart 29: Aviation Revenues ($'bn) in the World

Source: UNWTO,  Proshare Research

The aviation industry recorded $830bn in revenues in 2019, globally commercial airlines are expected to generate combined revenues of about $872bn the full year 2020. With the increase in the infections, flights grounded, the IATA projects that the virus will cause a loss of about $113 bn (see chart 28)

International Tourist Arrivals

Chart 30: International Tourist Arrivals

COVID-19 pandemic has also cut international tourist arrivals in Africa, the year-to-date performance of the African region shows a decline of -12%, while in March alone it fell by -44%.

Source: UNWTO,  Proshare Research 

Table 14: Impact Estimates, Selected African and Middle East Countries

Source: IATA, Proshare Research, Ecographics

Some of the impacts of the virus include:

• Concerning Nigeria, 3.5m fewer passengers resulting in a revenue loss of $0.76 bn and risking the loss of 91,380 jobs and $ 0.65bn contribution to Nigeria's GDP.
• UAE appears to have been hit the hardest in terms of the sector's contribution to GDP, 523.8m fewer passengers resulting in $5.36bn revenue loss, risking 287,863 jobs and $17.7bn contribution to GDP.
• Morocco stands the risk to be impacted the hardest in terms of possible job loss. 8.1m fewer passengers resulting in $1.3bn revenue loss, risking 372,081 jobs and $3.4bn contribution to GDP. 

Illustration 7: SWOT Analysis: Challenges and Opportunity in Travels and Tourism

Related Reports (PDF)

1.     Download the Full PDF Report - Coronanomics and the Nigerian Economy, June 06, 2020

2.     Executive Summary PDF - Proshare, June 06, 2020

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Related Links and References

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