Estimates released Wednesday in Geneva by the United Nations Conference on Trade and Development (UNCTAD) paint a very bleak picture for Swiss tourism in the event of restrictions over a year.
–The director of Switzerland Tourism Martin Nydegger will have to face a decline in activity whose losses could reach more than 31 billion francs according to the UN (archives).
KEYSTONE/PATRICK HUERLIMANN
The pandemic could cost up to more than 34 billion dollars (more than 31 billion francs) and 5% of the GDP to Swiss tourism in the event of restrictions over a year, according to the UN. The global decline could reach 3,120 billion francs and more than 4% of GDP.
Estimates released Wednesday in Geneva by the United Nations Conference on Trade and Development (UNCTAD) indicate that the decline observed in all countries will depend on three possible scenarios if the restrictions do not exceed four months or if they are established at 8 or 12 months.
In Switzerland, it ranges from $ 11.8 billion to $ 34 billion. The most pessimistic scenario would be observed in the case of a second wave only, a UNCTAD official said to the press. The earnings of skilled workers in the industry are expected to fall by 2 to 6% and the employment of unskilled workers could drop by up to 8%.
Developing countries severely affected
For the world figure, the losses could amount to 1,135 to 3,120 billion francs. And the drop in Gross Domestic Product (GDP) would reach 1.5 to more than 4%. The recovery has been slowed down by confinements in certain countries, travel restrictions and reductions in consumer incomes.
This branch has “economic importance” for “millions of people,” notes the director of international trade at UNCTAD. For states like small island countries, it contributes to their development, she adds.
Developing countries are expected to be the most affected in terms of GDP. The impact will also be disproportionate for women, who are more exposed to the informal economy. In total, more broadly, due to the indirect effects, for every million dollars lost in tourism, a country’s GDP is expected to fall by two to three million.
Help requested
For UNCTAD, the pandemic can also constitute the possibility of redevelopment towards more sustainable tourism, a scenario it wishes. But it will be more difficult to apply for some poor and middle-income countries, also said an official of the UN agency.
UNCTAD calls on countries to provide more social protection for workers in this sector. She wants governments to subsidize those who will be forced to change economic activity and to help companies facing possible bankruptcies. It also calls on the international community to support access to finance for certain countries.
(ATS / NXP)
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Switzerland – Covid could cost tourism over $ 30 billion
Estimates released Wednesday in Geneva by the United Nations Conference on Trade and Development (UNCTAD) paint a very bleak picture for Swiss tourism in the event of restrictions over a year.
–The director of Switzerland Tourism Martin Nydegger will have to face a decline in activity whose losses could reach more than 31 billion francs according to the UN (archives).
KEYSTONE/PATRICK HUERLIMANN
The pandemic could cost up to more than 34 billion dollars (more than 31 billion francs) and 5% of the GDP to Swiss tourism in the event of restrictions over a year, according to the UN. The global decline could reach 3,120 billion francs and more than 4% of GDP.
Estimates released Wednesday in Geneva by the United Nations Conference on Trade and Development (UNCTAD) indicate that the decline observed in all countries will depend on three possible scenarios if the restrictions do not exceed four months or if they are established at 8 or 12 months.
In Switzerland, it ranges from $ 11.8 billion to $ 34 billion. The most pessimistic scenario would be observed in the case of a second wave only, a UNCTAD official said to the press. The earnings of skilled workers in the industry are expected to fall by 2 to 6% and the employment of unskilled workers could drop by up to 8%.
Developing countries severely affected
For the world figure, the losses could amount to 1,135 to 3,120 billion francs. And the drop in Gross Domestic Product (GDP) would reach 1.5 to more than 4%. The recovery has been slowed down by confinements in certain countries, travel restrictions and reductions in consumer incomes.
This branch has “economic importance” for “millions of people,” notes the director of international trade at UNCTAD. For states like small island countries, it contributes to their development, she adds.
Developing countries are expected to be the most affected in terms of GDP. The impact will also be disproportionate for women, who are more exposed to the informal economy. In total, more broadly, due to the indirect effects, for every million dollars lost in tourism, a country’s GDP is expected to fall by two to three million.
Help requested
For UNCTAD, the pandemic can also constitute the possibility of redevelopment towards more sustainable tourism, a scenario it wishes. But it will be more difficult to apply for some poor and middle-income countries, also said an official of the UN agency.
UNCTAD calls on countries to provide more social protection for workers in this sector. She wants governments to subsidize those who will be forced to change economic activity and to help companies facing possible bankruptcies. It also calls on the international community to support access to finance for certain countries.
(ATS / NXP)
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