Tourism, Covid-19’s sick golden egg hen

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The industry as a whole and through different organizations, chambers and associations ask governments for urgent help

The tourism industry has been the first victim of the Covid-19 pandemic and today is passing critical days, so much so that there is a desperate demand in all countries for governments to receive urgent help to remain standing during this tragedy.
The International Air Transport Association (IATA) has published a new report that warns of the potential loss of 25 million jobs as a result of the collapse in demand for air travel due to the COVID-19 crisis.
The livelihood of 65.5 million people worldwide depends on the aviation industry and related sectors, such as tourism. Only 2.7 million jobs are directly dependent on the airline industry.
If travel restrictions are extended for three months, IATA estimates that 25 million jobs in aviation and related sectors could be destroyed worldwide:
• 11.2 million jobs in Asia-Pacific
• 5.6 million jobs in Europe
• 2.9 million jobs in Latin America
• 2.0 million jobs in North America
• 2.0 million jobs in Africa
• 0.9 million jobs in the Middle East

In this scenario, the loss of airline revenue is expected to amount to USD 252 billion (-44%) in 2020, compared to 2019. The second quarter is the most critical, with demand falling by 70% and a cash loss of $ 61 billion.
Airlines are calling on governments to provide urgent financial aid aimed at sustaining the industry and being prepared for the recovery phase.

The World Travel and Tourism Council (WTTC, for its acronym in English), considered that urgent government support to companies dedicated to the tourism sector is urgent, in order to avoid economic collapse and job losses in this industry, which It is a strategic pillar of the economy of nations.
The agency, which represents the global private sector in this sector, noted that it is concerned about the lack of urgency in some governments to address the current problem, which will have a devastating impact, especially on small and medium-sized companies, as well as among workers. of the sector.
The World Council estimates that 75 million jobs globally are at risk from the health emergency.
Gloria Guevara Manzo, President and CEO of the WTTC, stated that “more than one hundred countries in the world have implemented specific measures to protect the industry, such as interest-free loans, elimination of certain taxes, as well as quotas and protections aimed at workers ”
“For a sector that contributes one in ten jobs in the world, it is urgent to make adequate decisions, it is a matter of survival. Travel and tourism workers are being affected daily by hotel closings, flight cancellations, stopped cruises or simply because no one travels due to the restrictions of the Covid-19 health crisis, so it is essential to act urgently ”, he explained.

The World Tourism Organization has issued a series of recommendations that require urgent and strong support to help the global tourism sector not only recover from the unprecedented challenge of COVID-19 but “grow back better.”
Recognizing that tourism and transportation have been among the most affected of all sectors, the Recommendations are designed to support governments, the private sector and the international community in navigating the incomparable social and economic emergency that is COVID-19 .
“These specific recommendations provide countries with a checklist of possible measures to help our sector maintain jobs and support businesses at risk right now. Mitigating the impact on jobs and liquidity, protecting the most vulnerable and preparing for recovery must be our key priorities, ”said UNWTO Secretary-General Zurab Pololikashvili.
Recognizing the diverse realities in each country, as well as the evolutionary nature of this crisis, the document will continue to be updated.