Countries Suffer Financial Loss due to COVID-19

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The world was shook to its core with the dawn of Corona Virus Pandemic. Every industry has faced some major loss during the past 5 months. But the biggest fall occurred in the Tourism industry. Tourism has completely declined in this pandemic because of the following reasons:

  • People feel insecure in going to the grocery store, let alone a whole different country. This fear has caused many people to cancel their trips and stay at home.
  • Every country’s government has introduced its own laws and regulations for tourists. The hassle is too much for most travelers.
  • Travel costs such as flight tickets, hotel stays, and etc. have increased.
  • Individual budgets have completely transformed as well. Even people with stable jobs have faced major setbacks.

Even though tourism may not seem like a big deal to most people but there are many countries whose economy greatly on the number of tourists that visit their countries. Such countries have suffered a great deal of loss during this pandemic.

Asian Region

There are many exotic places in Asia where most people love to go during the summers. Vietnam and Indonesia are at the top of that list. A double digit decrease in the number of tourists was observed in this region.

9.82% of Thailand’s GDP comes through the tourism industry. Similarly, Philippines and Cambodia receive 8.7% and 13.72% in their GDP from the tourism industry. All these countries are already battling poverty and poor finances. This pandemic will only worsen the financial situation.

*Chinese people are the largest number of tourists in Asia. They have been hit the hardest due to Corona Virus. This has led to a major decrease in their tourist groups around the country. This has created a ripple effect for financial loss in all those industries which are linked to tourism.

European Region

Spain and Italy are considered as one of the prime tourist regions around the world. Sadly, both of these have suffered greatly in the hands of COVID-19. Due to the lockdown situation, there has been a great loss in the tourism industry of this region as well.

An estimate of around €8 billion loss will happen in Italy alone during this pandemic. Due to lack of tourists, the transport industry in these countries will see a major financial decline as well.

American Region

Like every other region, the United States also has a great impact on its economy due to lack of tourism. It is estimated that 4.6 million tourism related jobs are lost throughout the States. This figure is only to increase over the next couple of days. Moreover, the loss of US Airlines both for domestic and International flights is immense as well.

Australian Region

Australia has had to face many difficulties during the year 2020. From bush fires to the spread of Corona Virus throughout the country, they have suffered a lot. Tourism is a big part of Australia and due to the pandemic has been greatly affected by it. Even though, the situation is improving in that region, the tourism industry is still not fully operational or functional.

There hotels, airlines, and resorts face great financial losses which in turns poses a threat to the GDP. Even though Australians are travelling within the country, it is not enough to sustain the travel economy because it relies heavily on International tourists.

African Region

Countries like Morocco, Cape Town and Seychelles have a huge tourism industry as well. At the start of the year, this country had the second fastest growing tourism industry. But amidst this situation, they also bear losses in their tourist numbers. Ghana, an African country, alone lost around $1.9 Billion due to lack of international tourists. This makes up around 5.5% of the region’s GDP.

Spring and summer is the peak time for all international and national travelers to explore new places and travel around the globe. But due to this pandemic, things have completely shut down. Even though the situation may seem bleak, the tourism industry is hopeful.

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