UN: "Global Tourism Industry Estimated to Suffer 4500 Trillion Loss... Recovery Depends on Vaccination Order"

Publication of UN Conference on Trade and Development Report

Data = United Nations Conference on Trade and Development (UNCTAD) report

[Asia Economy Reporter Cha Min-young] The tourism industry, which is an important source of jobs for women and young workers, is estimated to have suffered losses exceeding $4 trillion (approximately 4,500 trillion KRW) due to COVID-19 last year and this year. This is because the sector inevitably faces widespread impacts, ranging from food and beverage, retail, telecommunications, to transportation.

The United Nations Conference on Trade and Development (UNCTAD) reported on the 30th (local time) that losses incurred by related industries due to the sharp decline in international tourists in 2020 are estimated at about $2.4 trillion (approximately 2,704 trillion KRW).

For 2021, although international tourism is expected to partially resume in the second half of the year, losses are projected to range from at least $1.7 trillion (approximately 1,915 trillion KRW) to as much as $2.4 trillion (approximately 2,704 trillion KRW) compared to the pre-pandemic year of 2019.

By country, Turkey, Ecuador, South Africa, Ireland, and Switzerland are expected to suffer significant impacts. In particular, UNCTAD analyzed that South Korea’s gross domestic product (GDP) could decrease by 2.7 to 3.8% this year due to the decline in tourists.

UNCTAD foresees that the recovery of the tourism industry will largely depend on COVID-19 vaccination rates. Countries with high vaccination rates such as France, Germany, the United States, and the United Kingdom are expected to see a rapid recovery in tourism, while losses will increase in countries that lag behind.

Notably, the tourism industry holds socio-economic importance for vulnerable groups. The United Nations pointed out, “Tourism is a major economic sector that employs many women and young people and provides livelihoods for many informal workers in developing countries.”

Furthermore, UNCTAD diagnosed that due to the slow pace of COVID-19 containment and travel restrictions, the number of international tourists is unlikely to fully recover to pre-pandemic levels by 2023. Isabelle Durant, Acting Secretary-General of UNCTAD, stated, “The world must make global vaccination efforts to protect workers and mitigate social side effects.”

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