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.
According to the International Labor Organization (ILO), more than one in six young people worldwide have stopped working since the COVID-19 outbreak (May 29).
$8.5tn
Global economic output will fall by $8.5 tn over next two years, according to the UN’s World Economic Situation and Prospects report (May 13).
69%
According to the UK’s Office for National Statistics, 856,500 people claimed unemployment benefits in April, up 69% in a single month (May 20).
Impact of Covid-19 on asset prices
- SECTOR IMPACT: TRAVEL AND TOURISM -
As of 26 June 2020
airline losses in 2020
$84.3bn
The International Air Transport Association (IATA) has estimated that the airlines could lose $84.3bn this year. IATA also expects the revenues to drop by 50% to $419bn in 2020 compared with $838bn last year.
international travel cancellations
57%
GlobalData’s latest survey found that 57% of global travelers have had to cancel or change upcoming international travel plans – 44% however remain extremely concerned about the global outbreak of COVID-19
impact on transport infrastructure
$19.4bn
GlobalData predicts that global construction output will contract by 1.4% in 2020. Governments and public authorities will advance spending on infrastructure projects as soon as normality returns to reinvigorate the industry.
Cruise industry developments
