The rapid spread of coronavirus has had a massive impact on many sectors of the global economy, with tourism being among the hardest hit. The European Bank for Reconstruction and Development (EBRD) and the United Nations World Tourism Organisation (UNWTO) are joining forces to boost the recovery of the tourism sector across the 38 economies where the Bank invests.

According to analysis by UNWTO, all worldwide destinations introduced restrictions on travel in response to Covid-19 ? an unprecedented act. While some destinations are starting to ease restrictions, the crisis is far from over and this lockdown has led to a massive fall in international tourist arrivals.

In light of such unprecedented events, the EBRD and UNWTO have agreed to take immediate action to facilitate the recovery of tourism. The support is currently envisaged for a number of countries, including Albania, Armenia, Croatia, Egypt, Georgia, Greece, Jordan, Lebanon, Montenegro, Morocco, Tunisia, Turkey and Uzbekistan.

The immediate response was designed along the three pillars of the UNWTO’s Tourism Recovery Technical Assistance Package. It includes measurement of the impact of Covid-19, recovery plans with incentives to revive the tourism sector, protocols to ensure the enhanced safety, hygiene and security of tourists and employees, marketing of measures that can boost tourism demand, capacity-building for tourism officials and training for tourism sector enterprises in adopting the new protocols. A key element is to preserve human capital as well as to adapt and strengthen inclusion.

The two organisations are longstanding partners and signed a first Memorandum of Understanding for cooperation in 2015, which they renewed in 2019.

This cooperation expands the existing partnership and builds on the UNWTO’s recently adopted Covid-19 Tourism Recovery Technical Assistance Package, which includes three pillars through which the organisation plans to assist the sector: 1) economic recovery, 2) marketing and promotion and 3) institutional strengthening and the building of resilience.

The EBRD is committing all of its activity in 2020-21 to helping its regions counter the economic impact of the coronavirus pandemic, with investment expected to reach up to €21 billion. The Bank will target all sectors of the economy, including tourism and hospitality which were particularly affected by the Covid-19 crisis.

In 2019, SIDS welcomed some 44 million international tourist arrivals and the sector earned US$55 billion in export revenues. International tourist arrivals were down 47% in the first four months of this year.

Without strong support, the sudden and unexpected fall in tourism could devastate the economies of Small Island Developing States (SIDS), the World Tourism Organization (UNWTO) has warned. Since tourism is a strong socio-economic pillar of many SIDS, the impact that COVID-19 is having on the sector places millions of jobs and businesses at risk, with women and informal workers the most vulnerable.

In the second of its Briefing Note series on Tourism and COVID-19, UNWTO has highlighted the severe impact the pandemic could have on livelihoods in these destinations. According to the latest data from the United Nations specialized agency, tourism accounts for more than 30% of total exports in the majority of the 38 SIDS. In some countries, this proportion is as high as 90%, making them especially vulnerable to falling tourist numbers.

Such a major shock translates into a massive loss of jobs and a sharp decline in foreign exchange and tax revenues, which curbs public spending capacity and the ability to deploy necessary measures to support livelihoods through the crisis, UNWTO further warns.

International Tourists dropped 47% in the first four months  
In 2019, SIDS welcomed some 44 million international tourist arrivals and the sector earned US$55 billion in export revenues. International tourist arrivals were down 47% in the first four months of this year. 

UNWTO Secretary-General Zurab Pololikashvili said: “The COVID-19 pandemic has caused an unprecedented disruption. International tourist arrivals have fallen dramatically, and destinations that rely on the sector for jobs and economic wellbeing such as small islands will be hit the hardest. As such, measures to mitigate the impact of COVID-19 on these states and to stimulate the recovery of tourism are now more critical than ever.”

Informal workers and women at greatest risk
The United Nations estimates that SIDS economies could shrink by 4.7% in 2020 as compared to 3% for the world economy.

The UNWTO Briefing Note also highlights the risk posed to those working in the informal economy by the sudden fall in tourist arrivals in SIDS. As a sector, tourism is a leading global employer and, according to the International Labour Organization (ILO), more than half of all workers in the accommodation and food services sector in most SIDS reporting data are women. In many, this proportion is even higher, including in Haiti and Trinidad and Tobago (70%+).

At the same time, workers in the informal economy are at risk of falling into poverty as the impact of COVID-19 is felt in SIDS and other low- and middle-income countries worldwide, UNWTO also warns.