"New Coronavirus Takes Away Up to 78,000 Jobs Generated by the Tourism Industry"

[Asia Economy Reporter Dongwoo Lee] An analysis has emerged that the spread of the novel coronavirus infection (Wuhan pneumonia) could severely impact the domestic tourism industry due to a contraction in foreign travel demand. As international infectious diseases have become a constant factor affecting our economy, there is a call for the establishment of a robust quarantine system.

On the 12th, the Korea Economic Research Institute under the Federation of Korean Industries analyzed that if the current novel coronavirus spreads to the level of SARS (Severe Acute Respiratory Syndrome) in 2002-2003 or MERS (Middle East Respiratory Syndrome) in 2015, the number of foreign tourists visiting Korea would decrease by 1.25 million and 1.65 million respectively. It also estimated that tourism revenue would decrease by 3.2 trillion KRW and 4.6 trillion KRW respectively.

The Korea Economic Research Institute analyzed the ripple effects of the decline in tourism revenue on domestic industries and predicted that if the novel coronavirus reaches the SARS level, the production inducement amount in the domestic tourism industry would decrease by 6.1 trillion KRW, the value-added inducement amount would decrease by 2.8 trillion KRW, and the employment inducement number would decrease by 55,600 people.

The decrease in production and value-added inducement amounts by major industries are ▲ wholesale and retail trade and commodity brokerage services: 2.9 trillion KRW and 1.4 trillion KRW ▲ accommodation services: 1.5 trillion KRW and 700 billion KRW ▲ restaurants and bars: 1.1 trillion KRW and 400 billion KRW.

The decrease in employment inducement numbers by major industries are ▲ wholesale and retail trade and commodity brokerage services: 28,800 people ▲ accommodation services: 11,200 people ▲ restaurants and bars: 10,700 people.

If the novel coronavirus reaches the MERS level, the production inducement amount in the tourism industry would decrease by 8.6 trillion KRW, the value-added inducement amount would decrease by 4 trillion KRW, and the employment inducement number would decrease by 78,100 people.

The decrease in production and value-added inducement amounts by major industries are ▲ wholesale and retail trade and commodity brokerage services: 4.1 trillion KRW and 2 trillion KRW ▲ accommodation services: 2 trillion KRW and 1 trillion KRW ▲ restaurants and bars: 1.6 trillion KRW and 600 billion KRW.

The decrease in employment inducement numbers by major industries are ▲ wholesale and retail trade and commodity brokerage services: 40,500 people ▲ accommodation services: 15,800 people ▲ restaurants and bars: 15,000 people.

The Korea Economic Research Institute stated, "SARS, MERS, and the novel coronavirus have now become constants that impact our economy. In particular, since the tourism industry is one of the industries most affected in the short term by the decrease in foreign tourists, it is crucial to establish a robust quarantine system to make Korea a ‘virus-free country.’"

This content was produced with the assistance of AI translation services.