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 -
GlobalData polls show oncern over the spread of Covid-19 remains volatile while business optimism remains high.
The World Economic Forum estimates advanced economies will shrink by 7% and emerging and developing economies will contract by 2.5% in 2020. (3 August)
7.1% + 7.8%
In June, unemployment in the EU27 and Euro Area rose to 7.1% and 7.8% respectively, compared to 6.6% and 7.5% in June 2019. (3 August)
1.8 million
1.8 million jobs were restored in the US with unemployment rate declining to 10.2% in July against its peak of 15% in April. (7 August)
Impact of Covid-19 on Employment
- SECTOR IMPACT: TRAVEL AND TOURISM -
As of 18 August 2020
International Arrivals
-34.5%
GlobalData forecasts that international arrivals into the 62 largest tourism markets globally will fall by 34.5% in 2020.
Inbound tourist spending
-37.9%
Spending will fall broadly in line with the decline in tourism flows. GlobalData forecasts that inbound expenditure globally will fall by 37.9% in 2020. Domestic tourist expenditure is expected to fare better, with a projected decline of 27.3%.
impact on transport infrastructure
$2.03bn
Royal Caribbean's results show just how hard hit the cruise industry has been. Compared to Q1 2019, revenues fell 16.7% to $2.03bn. The company's operating loss was $1.3bn, compared to a profit of $1.3bn in 2019. Q2 will likely be far worse due to the suspension of sailings.
Travel industry developments
