The tourism sector, a brave wounded soldier


Our industry has proven to be a heroic fighter in the war against Covid-19, but in order not to die it needs urgent assistance from governments and financial organizations

The travel and tourism industry has been the first to feel the devastating effects of a historical pandemic, even so, the samples of solidarity have multiplied to assist governments and communities. With self-love and a lot of creativity, we have seen hotels, cruises and the convention center have been transformed into field hospitals, commercial airlines that have set up loads and all kinds of corporate social responsibility initiatives. Still, its resources have become increasingly limited and assistance is required so that its powerful, powerful engine is not damaged.

Tourism must be recognized as a key pillar to build a better future in all regions of the world. Past recoveries demonstrate that the importance of our sector cannot be overstated. The latest WTTC research reveals that up to 75 million jobs in the travel and tourism sector are at risk globally.
According to the WTTC 2020 Economic Impact Report, during 2019, the Travel and Tourism sector supported one in 10 jobs (330 million), making a contribution of 10.3% to global GDP and generating one in four of all new jobs .

In this context, IATA has been one of the first organizations that has raised its voice asking for concrete help. Its CEO Alexandre de Juniac said: “We have never seen such a deep recession before. In our latest scenario, year-over-year passenger revenue falls 55% compared to 2019, while traffic drops 48%. In other words, half of our business disappears. That’s catastrophic. ”
“That impact is amplified across the economy. If airlines lose a job, another 24 disappear somewhere in the value chain. That was behind our analysis last week when we said that some 25 million jobs are at risk.” .
“That is why we also continue to ask governments to prioritize airline viability. In the past week we have seen governments in Belgium and Sweden respond with relief measures. We know that many others are considering such steps. I encourage them to move quickly. This industry will run out of cash soon, so support of any kind will be a lifesaver. ”

The official stressed that loans, loan guarantees and support for the corporate bond market by governments or central banks are required. He also asks for a tax reduction.

Most vulnerable regions
There are regions more vulnerable than others, according to a new report by the World Bank, Latin America and the Caribbean will demand multiple responses regarding public policies. Even different governments are likely to have to support financial sector institutions and major sources of employment.
The World Bank Group is taking comprehensive and firm steps to help developing countries strengthen their response to the pandemic, improve health surveillance and public health interventions, and help the private sector maintain its operations and leadership positions. job. It will provide up to $ 160 billion in financial support over the next 15 months to help countries protect the poor and vulnerable, support businesses, and fuel economic recovery.
Due to the Covid-19 pandemic, the economic circumstances within each country or region are variable and change from day to day. The IMF has announced that they are responding to an unprecedented number of requests for emergency financing – from more than 90 countries so far. The Executive Board has just agreed to double access to our emergency services, which will allow us to meet a demand for financing that is expected to be approximately USD 100 billion.