Tourism is still taking its first steps toward recovery after the major impact of the pandemic, but a study reveals that the global economy could lose up to $2.4 trillion this year due to the uneven distribution of vaccines in developing countries, “CNN” reveals.
The economy of developing countries relies heavily on international tourism, as the cost of living for foreigners is cheaper.
The report of the United Nations Conference on Trade and Development pointed out that the economic impact of the pandemic on tourism is proving more severe than predicted twelve months ago, even as the vaccination rate is increasing considerably around the world.
The same study highlights how the uneven distribution of vaccines will affect the world economy, with extensive tourism losses that could range from $1.7 billion to $2.4 billion, although recovery is estimated in countries such as France, Germany, the United Kingdom, and the United States.
Developing economies account for 60% of global GDP losses, or $1.4 trillion this year. The report, produced jointly with the United Nations World Tourism Organization, also says that the decline in tourism could cost the world economy up to $4.8 trillion in 2020 and 2021, which means a $2.9 trillion hit to the poorest countries.
“Developing countries have suffered the most from the pandemic’s impact on tourism,” CNN quoted the report as saying, adding that these countries “suffered the greatest reductions in tourist arrivals in 2020, estimated to be between 60% and 80%.
Still, and despite the extensive reduction in tourism, the report did not take into account the economic stimulus packages launched to mitigate the impact of Covid-19, even though it analyzed the losses for the food supply, beverage, hospitality, and transportation industries.
The study says that countries such as Turkey, Ecuador, South Africa, and islands such as the Maldives and St. Lucia will be among the destinations most affected by the uneven vaccination, along with parts of Asia and Oceania. In turn, North America, Western Europe, and the Caribbean region will be among the least affected.
