Global tourism loses $320 billion in 5 months due to virus

Pandemic problems

With the coronavirus spreading across the globe and bringing most countries to a standstill, the global tourism industry has taken a massive hit, unable to function nor plan ahead.

Third largest

Tourism accounts for close to 7% of global trade and is the third largest export sector in the global economy, with the shutdown causing a $320 billion loss, while affecting 120 million jobs - one in every 10 people.

Three fold

The $320 billion loss is an alarming figure by itself, but more so when stacked beside the numbers from the last financial crisis - 2009 - they are thrice as worse.

Hit to global GDP

If the third largest export business is shut, the global GDP is bound to take a hit, with experts predicting a 1.5% to 2.8% dip and losses of $1.2 trillion by the end of the year.

Collateral damage

Tourism’s dip is also expected to drag down associated sectors, taking with it 144 million jobs in sectors like food service and hospitality.

Source : The Economic Times