Tuesday, June 16,2020 / 06:00 AM / by Proshare Content/ Header ImageCredit: EcoGraphics
Travel and tourism are among the mostaffected sectors of the pandemic, with flights grounded, hotels closed, workershave either lost their jobs or on furlough, and travel restrictions put inplace in virtually all countries around the world. Just as projected by the International AirTransport Associations (IATA) in March 2020, coronavirus has seriouslydisrupted the industry which has caused major losses.
Chart 29: AviationRevenues ($'bn) in the World
Source: UNWTO, Proshare Research
Theaviation industry recorded $830bn in revenues in 2019, globally commercialairlines are expected to generate combined revenues of about $872bn the fullyear 2020. With the increase in the infections, flights grounded, the IATAprojects that the virus will cause a loss of about $113 bn (see chart 28)
International Tourist Arrivals
Chart 30: InternationalTourist Arrivals
COVID-19 pandemic has also cut international tourist arrivals in Africa,the year-to-date performance of the African region shows a decline of -12%,while in March alone it fell by -44%.
Source: UNWTO, Proshare Research
Table 14: Impact Estimates,Selected African and Middle East Countries
Source: IATA, Proshare Research,Ecographics
Some of the impacts ofthe virus include:
- Concerning Nigeria, 3.5m fewer passengers resulting ina revenue loss of $0.76 bn and risking the loss of 91,380 jobs and $ 0.65bncontribution to Nigeria's GDP.
- UAE appears to have been hit the hardest in terms ofthe sector's contribution to GDP, 523.8m fewer passengers resulting in $5.36bnrevenue loss, risking 287,863 jobs and $17.7bn contribution to GDP.
- Morocco standsthe risk to be impacted the hardest in terms of possible job loss. 8.1m fewerpassengers resulting in $1.3bn revenue loss, risking 372,081 jobs and $3.4bncontribution to GDP.
Illustration7: SWOT Analysis: Challenges and Opportunity in Travelsand Tourism
Related Reports (PDF)
1. Download the Full PDF Report - Coronanomics and the Nigerian Economy, June 06, 2020
2. Executive Summary PDF - Proshare, June 06, 2020
Related News
1. Coronanomics (9) - China, US-Africa Bilateral Trade Data -Changing Partners
2. Coronanomics (8) - African Economies - An Emerging Market Fight Back
3. Coronanomics (7) - Global Policy Responses Against theNegative Impact of COVID-19
4. Coronanomics (6) - Global Stock Market - Top 3 DeclinersDipped By 0ver 26% YTD
5. Coronanomics (5) - Global Oil Market - Spinning Around AVortex
6. Coronanomics (4) - Chinese Economy and The Rest of theWorld
7. Coronanomics (3) - The Global Economy Spinning on aWishing Wheel
8. Coronanomics (2) - Easing Out of a Crisis
9. Coronanomics (1) - Understanding the Realities of anImpending Recession
Related Links and References
Related News - Opinions & Analysis
- An African Perspective on the impact of COVID-19 and the Response to it - FBNQuest
- Corporate, Financial Institution Downgrades On Pace for Record
- The Case Against High Interest Rates in Time of Contagion - Bola Tinubu
- The Coming Greater Depression of the 2020s
- Why the Global South Should Temper Expectations Over The Basel Convention Ban Amendment
- Of Q1'20 Economic Output and GDP Forecasts - Lessons from China
- Of Q1'20 Economic Output and GDP Forecasts - Lessons from China
- It's Time to Build - OpEd
- What Would the World Look Like after Coronavirus: Economically, Politically and Socially?
- Risk-Weight Variation Among Emerging Markets Banks Impedes Capital Comparisons
Related News - Reviews and Outlooks
- Coronavirus Crisis Impact on Jobs Could Outweigh GDP Impact
- Moody's Affirms Nigeria's B2 Ratings, Maintains Negative Outlook
- Fitch Revises Outlook on Kaduna State to Negative on Sovereign Rating Action; Affirms at 'B'
- Fitch Downgrades Lagos State to 'B' on Sovereign Rating Action; Outlook Negative
- Further Multi-Notch Sovereign Downgrades Are Probable in 2020
- Various Rating Actions On Nigerian Banks By S and P Following Sovereign Downgrade; Outlooks Stable
- Three Ratings Agencies, Now One Message
- Fitch Downgrades Nigeria to 'B'; Outlook Negative
- Nigerian Banks at Severe Risk from Oil Price Slump, Coronavirus
- Moody's Assigns Ratings to Dangote Cement Plc's DMTN Program and Proposed Series 1 Notes
- Macroeconomic Review Q1 2020: Steering a Fragile Economy in the Face of Uncertainties
- Fitch Downgrades 3 Nigerian Banks to 'B', Places All 10 Banks on Negative Watch
- Nigeria Long-Term Rating Lowered To ''B-'' On Weakening External Position
- Coronavirus to Weaken Sovereign Fiscal Positions; Track Record Matters
- Fiscal Space Limited for Many Sovereigns
- Rating Actions Taken On Several Corporate Issuers With Exposure To Nigeria
- Outlooks On Six Nigerian Banks Revised To Negative After Same Action On Sovereign
- Nigeria's Outlook Revised To Negative On Falling Foreign Exchange Reserves
Related News - Nigeria Economy
1. COVID-19 and the Construction Sector
2. The Lockdown - Food Scarcity and Social Unrest Looming
3. April 2020 Headline Inflation Will Cross 13.0% - FDC
4. Nigerian Economic Update: A Throw of the Dice
5. Guidelines and Recommendations: Reopening the Nigerian Economy
6. GDP By Income and Expenditure Approach Q4 2019 - Household Final Consumption Declined by -2.40%
7. Ahead of Tomorrow on WebTV: Discussions on COVID-19; Reinventing Nigeria's Economy
8. Nigeria Weekly Update: Short and Long Currency Cycles
9. Nigeria Needs A National Strategy To Integrate Factor Endowment Into A Plan - Prof. Utomi
10. A Surprising Boost to the FAAC Payout; April Payment Amount to N781bn
11. Ahead of Tomorrow on WebTV: Discussions on Repositioning Nigeria's Economy Beyond COVID-19
12. Impact of Privatization on Nigeria's Economy
13. Can Africa Afford COVID-19 Lockdowns? - Chukwuma Soludo
14. COVID-19; Nigeria Needs To Relax Foreign Exchange Management To Boost Industrialization - Dr. Yusuf
15. Nigeria's Economy After Oil: How Should We Prepare?
16. The Disruptive Impact of COVID-19
17. Nigeria's Impending Recession
18. Roadmap to Rebooting Nigeria's Economy from COVID-19
19. Coronation Weekly: Interest Rate Conundrum
20. Headline Inflation Increases By 12.26% YoY In March 2020; 0.06% Higher Than February 2020 Rate
21. Ahead of Tomorrow On WebTV: COVID-19 and The Strategic Implications to Business Planning
22. #Coronanomics: The Changing Scale of Edtech, Healthtech, and Virtual Work Space In Nigeria
Related Reports/Articles
1. COVID-19 and AGM by Proxy: Lessons from GTBank Approach
2. #Coronanomics: How Tech Businesses Can Sustain Productivity
3. The End of an Epoch: A New Beginning for Capital Markets in the 21st Century - Bruce Fenton
4. Nigeria's Post COVID-19 Economic Outlook - Economics Associates
5. Which Emerging Markets Are in Most Financial Peril?
6. Global Monthly - World Bank Group
7. World Economic Outlook 2020 - The Great Lockdown
8. COVID-19: Economic, Tax and Other Fiscal Stimulus Measures in Nigeria
9. COVID-19: Crisis And Opportunity
10. COVID-19: Nigeria Economic Impact and Implications for CPG - McKinsey and Company
11. The Economics of a Pandemic: The Case of COVID-19 - London Business School
12. The Impact of The COVID-19 Pandemic in Nigeria - UNDP Nigeria
Coronanomics Discourse-WebTV Videos
2. COVID-19: Time For Nigeria To Diversify Its Revenue Base Through Agro, ICT - Ayuli Jemide
3. Post COVID-19: Nigeria Must Prioritize Agro and Manufacturing, To Drive Productivity - Ray Echebiri
4. Post COVID-19: States Should Rethink Their Economic Models To Drive Productivity - Teslim Shitta-Bey
5. Economy & Politics: Nigeria Needs a Post COVID 19 Long-Term Plan - Boason Omofaye
7. Economy and Politics: How Nigeria Can Address Its External Illiquidity - Ayo Teriba
8. Economy and Politics: Nigeria Must Deregulate Its Petroleum Sector Post COVID 19 - Boniface Chizea
14. Market Review: States Need Integrated Economic Policies Post COVID 19 - Teslim Shittabey
17. Market Review: Nigeria Needs a Robust Regulatory Framework for Virtual AGMs - Bayo Olugbemi
18. Market Review: Nigeria Must Deploy Data to Effectively Mitigate COVID 19 Risks - Babajide Ogunsanwo
20. Market Review: Deregulation of Downstream Sector, Way Forward for Nigeria - Olugbenga Odusanya
21. Economy and Politics: CBN Should Reduce the CRR and MPR - Marcel Okeke
23. Market Review: COVID 19, An Opportunity for Companies to be Empathetic to Consumers - Lampe Omoyele
24. Economy and Politics: Nigeria must Drive a Harmonized Tax Plan Post COVID 19 - Taiwo Oyedele
28. Economy and Politics: Why Nigeria Should Explore a N20trn Development Bond - Tope Fasua
29. Market Review: Nigeria Needs More Project Based Funds to Attract Investments - Ebo Ayodeji
32. Nigeria Needs to Align its National Database to Deepen Social Investments - Laoye Jaiyeola
33. Post COVID 19: Time for Nigeria to Restructure its Fiscal Framework - Zeal Akaraiwe