The coronavirus pandemic (COVID-19) has dealt a major blow to almost all industries, but perhaps none has been as affected as the travel industry. According to a study by the United States Travel Association, se expects that country to lose $ 519 billion in revenue from this item this year, resulting in a total economic loss of $ 1.2 billion in production across the country. This is, of course, due to the restrictions that were imposed worldwide on travel between nations and even within the territories of each country, to prevent the spread of the virus.
The massive losses due to practically no tourism activity represent more than nine times the impact that September 11, 2001 had on the income of the travel sector in the United States. The data shows that of the $ 519 billion in travel expenses that did not come in: $ 128 billion will be lost in food services; $ 112 billion in accommodation; $ 97 billion in air transportation; $ 78 billion correspond to other types of transportation; about $ 54 billion in recreation and fun; and $ 49 billion in retail sales.
Travel sector revenue will be hit hardest during April and May, where it is expected to be 81% lower than usual, according to the study. And gradual reductions are anticipated for the summer that will begin in July in the northern hemisphere, as travel restrictions will be eased regionally. However, losses will continue for the rest of the year“States the study.
The reduction in travel spending will also result in a loss of tax revenue of $ 80 billion during 2020. Added to all this is a decrease in the economic value of the industry by 45% during 2019. According to the study, the fall hasty in travel spending will result 8 million of the country’s 24 million total anticipated job losses by the end of April, which means that the lack of jobs related to this industry will represent a third of all the jobs that are estimated to be lost due to the pandemic. Of those 8 million unemployed, 6.9 are directly related to the travel industry.
Source: American Military News