The estimate was based on losses caused by the COVID-19 pandemic’s direct impact on tourism and the ripple effect on related sectors in the global economy.
According to report by the UN Conference on Trade and Development (UNCTAD),the global economy may lose nothing less than four trillion dollars as a result of the negative impact of the Coronavirus (COVID-19) on international tourism.
UNCTAD in the report revealed that the estimated loss was based on losses caused by the pandemic’s direct impact on tourism and the ripple effect on related sectors.
It said the outlook ”is worse than previously expected.”
In July 2020, UNCTAD estimated that the standstill in international tourism would cost the global economy between 1.2 trillion dollars and 3.3 trillion dollars.
The steep drop in tourist arrivals worldwide in 2020 resulted in a 2.4 trillion dollars economic hit, the report said, and a similar figure is expected this year depending on the uptake in COVID-19 vaccines.
“The world needs a global vaccination effort that will protect workers, mitigate adverse social effects and make strategic decisions regarding tourism, taking potential structural changes into account,” said Isabelle Durant, the UNCTAD acting Secretary-General.
“Tourism is a lifeline for millions, and advancing vaccination to protect communities and support tourism’s safe restart is critical to the recovery of jobs and generation of much-needed resources.
“Recovery of jobs and generation of much-needed resources, especially in developing countries, many of which are highly dependent on international tourism,” the UNWTO Secretary-Genera, Zurab Pololikashvili said.
It is also stated that the international tourist arrivals declined by about one billion (or 73%) in 2020 while in the first quarter of 2021 the drop hovered around 88 per cent.
The report also indicated that developing countries had borne the brunt of the pandemic’s impact on tourism, with estimated reductions in arrivals of between 60% and 80%.
They have also been gravely impacted by vaccine inequity.
The agencies said the “asymmetric roll-out” of COVID-19 vaccines had magnified the economic blow to the tourism sector in the countries mentioned as they could account for up to 60% of global GDP losses.