17 JAN,2021 | MEDC
Tourism-dependent economies have been badly hit by the pandemic. Before Covid, travel and tourism was one of the most important economic activities internationally, accounting for 10% of global GDP and 320 million jobs worldwide. The pandemic, the first of its scale in a highly interconnected world, has threatened employment in diverse industries, much of it in the tourism sector. Tourism receipts worldwide are not expected to recover to 2019 levels until 2023, which will adversely impact global economic growth. It is too early to say whether the pandemic poses a permanent shock to global tourism, and how it will shape the industry in the coming years. What is certain is that a broad range of financial policy measures will soon need to be implemented to soften the impact of plummeting tourism revenues on businesses. The longer the pandemic lasts, the harder it will be for the industry to bounce back. With the travel and tourism industry having grown to almost too-big-to-fail proportions for many developing economies (including India), the picture looks grim and calls for urgent policy intervention.
*Photo Credit: Google