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 -
Economists and institutions have cut their forecasts and experts are predicting the potential onset of recessionary environments.
In the short-term, unemployment rates will rise in all major economies. The International Labour Organization estimates 6.7% of worldwide working hours will be wiped out in Q2 2020.
100.8m
The World Travel and Tourism Council (WTTC) estimates job losses of 100.8 million in the travel and tourism industry.
3%
IMF forecasts the global economy will contract by 3% in 2020. Economic growth in US and Europe forecasted to plunge by 9.1% and 5.8% respectively.
Impact of Covid-19 on asset prices
- SECTOR IMPACT: TRAVEL & TOURISM -
As of 2 June 2020
decrease in passenger traffic
55.9%
Airports Council International (ACI) World announced that worldwide passenger traffic decreased by 55.9% in March 2020, compared to last year.
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
41%
GlobalData predicts international travel to France, the most-visited country in the world, will fall by 41% and the US will see arrivals fall by 47%. Similar falls in visitation are forecast in many countries.
Key aviation market developments
