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 -
The unemployment rate in the Euro Zone stood at 7.4%, with 12.15 million unemployed in May. (2 July)
100 million workers in 35 advanced and emerging nations were unable to work remotely, according to the International Monetary Fund (9 July).
-4%
Many economists have cut their GDP forecasts; 2020 consensus forecast for world GDP growth is -4%.
-4.9%
IMF predictions: global growth will decline by 4.9% in 2020. Chinese and Indian economies will grow by 1% and contract by 4.5%, respectively. (24 June)
Impact of Covid-19 on employment
- SECTOR IMPACT: TRAVEL & TOURISM -
As of 28 July 2020
decrease in inbound expenditure
37.9%
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%
Airlines industry impact
$314bn
IATA’s estimate of lost airline revenue for 2020 now stands at $314bn, a 55% reduction compared to last year.
International air travel impact
-34.5%
GlobalData forecasts that international arrivals into the 62 largest tourism markets globally will fall by 34.5% in 2020.
Key aviation market developments
