World economy would lose US $ 4 billion due to the fall in tourism

(Bloomberg) – The drop in tourism caused by covid-19 will cost the global economy more than US $ 4 billion in 2020 and 2021, much worse than expected, as uneven implementation of vaccination hurts developing countries They rely heavily on international visitors.

Losses this year alone could amount to between $ 1.7 billion and $ 2.4 billion, even as international tourism recovers in the second half of the year in countries like the United States, United Kingdom and France, which have higher vaccination rates, said the Conference of the United Nations on Trade and Development (UNCTAD) in a report.

The study highlights the costly impact of unequal access to vaccines around the world. According to UNCTAD, developing countries can account for up to 60% of the estimated losses in world gross domestic product.

The report also shows that the tourism crisis is far from over, with travel restrictions and bans still in place in many regions with low vaccination rates. According to the study, which was conducted in collaboration with the UN’s World Tourism Organization, the world likely won’t return to pre-pandemic levels of international tourist arrivals until 2023.

Countries like Thailand and Turkey, which depend on foreign tourists to boost their economies, were hit the hardest. The drop in tourism also threatens closely related sectors such as food, beverages, retail, communications and transportation.

Overall, the tourism slump has led to an average 5.5% increase in unskilled labor unemployment, affecting a sector that employs many women and young people.

“Tourism is a lifeline for millions of people, and advancing vaccination to protect communities and support the safe restart of tourism is essential for the recovery of jobs and the generation of much-needed resources, especially in countries where development ”, said the Secretary General of the United Nations World Tourism Organization, Zurab Pololikashvili.

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In developed countries, the chances of holidays abroad are increasing. A growing number of Americans plan to take a trip to a foreign country, according to the Conference Board’s June Consumer Confidence Index.

Original Note: Global Tourism Crash May Cause $ 4 Trillion Loss to World Economy

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