Global tourism lost $320 billion in 5 months from virus: UN chief

The tourism global industry has been devastated by the coronavirus pandemic, with $320 billion lost in exports in the first five months of the year and more than 120 million jobs at risk, the UN chief said on Tuesday.

Secretary-General Antonio Guterres said in a policy briefing and video address that tourism is the third-largest export sector of the global economy, behind fuels and chemicals, and in 2019 it accounted for 7% of global trade.

“It employs one in every 10 people on Earth and provides livelihoods to hundreds of millions more,” he said.

In addition to boosting economies, “it allows people to experience some of the world’s cultural and natural riches and brings people closer to each other, highlighting our common humanity,” he said.

But the UN chief said that in the first five months of 2020, because of the pandemic, international tourist arrivals decreased by more than half and earnings plummeted.

Guterres said this has been a “major shock” for richer developed nations “but for developing countries, it is an emergency, particularly for many small island developing states and African countries.”

Tourism for some of those countries represents more than 20% of their GDP, he explained.

Sandra Carvao, the UN World Tourism Organization’s chief of market intelligence and competitiveness, said the $320 billion in lost exports from January through May is three times what was lost during the year 2009 at the height of the last global financial crisis.

And according to the policy briefing, “export revenues from tourism could fall by $910 billion to $1.2 trillion in 2020” and that “could reduce global GDP by 1.5% to 2.8%.”

In addition to tourism jobs that are at risk, the policy paper said jobs in associated sectors, including food service, that provide employment for 144 million workers worldwide are also at risk.

It stressed that small businesses, “are particularly vulnerable.”

Guterres said tourism “is also a key pillar for the conservation of natural and cultural heritage.”

According to the briefing, some 7% of world tourism relates to wildlife, “a segment growing by 3% annually.”

“The fall in revenues has led to increased poaching and habitat destruction in and around protected areas,” the secretary-general said, “and the closure of many World Heritage sites has deprived communities of vital livelihoods.”

Guterres called for the tourism sector to be rebuilt in a way that is safe for host communities, workers and travelers, and is also “equitable and climate friendly.”

Noting that travel restrictions and border closures still remain though some have been lifted, Carvao said “the recovery will be very much dependent on the evolution of the pandemic and the economic situation.” “No country has escaped the impact of COVID on tourism,” she said.

Antonio Guterres released on Tuesday a thematic brief on the impact the pandemic has had on tourism. Drawing on the latest data from the World Tourism Organisation, the lead author of the publication, it warns that as many as 100 million direct tourism jobs are at risk.

The brief stressed that tourism is an essential pillar of the Sustainable Development Goals, SDGs, and the most vulnerable workers and nations at greatest risk.

Tourism has been among the hardest hit of all sectors by COVID-19 and no country has been unaffected, with restrictions on travel and a sudden drop in consumer demand leading to an unprecedented fall in international tourist numbers.

The “Tourism and COVID-19” Policy Brief from the UN Secretary-General, makes clear the impact that the pandemic has had on global tourism and how this affects everything from jobs and economies to wildlife conservation and the protection of cultural heritage. Global stock markets: The S&P 500 was little changed on Tuesday following a three-day rally as a drop in Apple shares overshadowed optimism from remarks made by US and China officials in pledging firm commitment to a Phase One trade deal.

The benchmark S&P 500 opened at a record high as the news eased some concerns the deal could be on shaky ground. Investors also anticipate the centerpiece event of the week - an annual conference of US central bankers where Federal Reserve Chairman Jerome Powell is scheduled to speak.

The S&P 500 and Nasdaq logged new closing highs on Monday, boosted by signs of progress in developing treatments and vaccines for COVID-19.

The benchmark index surpassed its pre-pandemic high last week even as recent economic indicators signaled a bumpy recovery from the virus-led downturn.

European shares opened higher on Tuesday, with market sentiment propped up by the United States and China saying they are still committed to their Phase One trade deal, and some increased optimism around COVID-19 vaccine development.

After the STOXX 600 saw its biggest daily gain in almost two weeks on Monday, the bullish mood continued throughout the New York and Asian sessions overnight.

Agencies