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Coronanomics (10) - Impact on the Travel and Tourism Sector

Jun 16, 2020   •   by   •   Source: Proshare   •   eye-icon 3614 views

Tuesday, June 16,2020 / 06:00 AM / by Proshare Content/ Header ImageCredit:  EcoGraphics


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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

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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%.

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Source: UNWTO,  Proshare Research 

 

Table 14: Impact Estimates,Selected African and Middle East Countries

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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

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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

 

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18.  Market Review: Nigeria Must Deploy Data to Effectively Mitigate COVID 19 Risks - Babajide Ogunsanwo

19.  Market Review: Investments in Storage Facilities and Packaging Key for Nigeria's Agro Sector - Ade Adefeko

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

22. Economy and Politics: Insurance Should be Integrated into Nigeria's COVID 19 Fiscal Measures - Ekerette Ola Gam-Ikon

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24. Economy and Politics: Nigeria must Drive a Harmonized Tax Plan Post COVID 19 - Taiwo Oyedele

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