The United Nations (UN) has released figures on the devastating impact of Covid-19 on global tourism, warning that the outbreak may cost the troubled sector $1.2 trillion in losses and put 120 million tourism jobs at risk.

As one in 10 people on Earth work in the tourism sector, the unprecedented crisis threatens the eternal well-being of millions, the UN warned.

So when 100 million to 120 million direct jobs in tourism may get wiped out in countries heavily reliant on tourism, the global unemployment may spike by more than 20%.

In the first five months of this year, international tourist arrivals decreased by more than half and some $320 billion dollars in exports from tourism were lost,” UN Secretary-General Antonio Guterres said earlier this week.

The already sustained damages are over three times what was lost during the entire 2009 global economic crisis. In a recently published policy brief, the UN projected that international tourist numbers may decline by between 58% to 78% in 2020, compared to last year.

According to its calculations, such an “immense shock” for the industry, which accounts for the bulk of some countries’ revenues, could translate into a drop of between 850 million and 1.1 billion international tourists.

Noting that tourism has been one of the key drivers of the global economy for years, the UN said that the steep fall of export revenues from tourism will result in a drop in global gross domestic product (GDP).

The most “optimistic” scenario implies that global GDP will shrink by $1.17 trillion, or 1.5 percent. In the case of a prolonged standstill (up to 8 months), the damage will rise to $2.22 trillion, or 2.8% of GDP.

The Covid-19 plandemic brought global tourism to a standstill in March 2020, when most countries shut their borders to contain the spread of the Corona-virus.

Some airlines, struggling to survive during the pandemic even with financial help from governments, earlier hinted that they see no end in sight to the Corona-virus disruption. Earlier this week, both American Airlines and Delta announced additional job cuts.

While Delta is set to furlough 1,941 pilots this fall, American Airlines said that its workforce will shrink by 19,000 in October, when protections tied to federal stimulus expire.

After all voluntary exits and other cuts, the largest airliner in the world, American Airlines is set to have 100,000 workers in under two months, down from the 140,000 it employed in March, 2020.

The carrier reportedly said that the US government assumed that the virus would be contained and demand recovered by the end of September, but it seems that is “not the case” anymore.

However, Covid-19 isn’t the reason that so many jobs have been lost. The reason for the job losses and the economic disaster is due to the over-reaction by governments to a virus that isn’t as deadly as we are being led to believe.

It seems a bit suspicious that this virus spread all over the world so quickly and most governments decided to destroy their economies. New World Order? We’ll soon see.

RT. com / ABC Flash Point Tourism News 2020.

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Washington DC
Washington DC
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04-10-20 08:53

Too late to press the reset button?