Article – Covid-19: EU support for the tourism industry

Travel restrictions related to the coronavirus pandemic have decimated the tourism industry, a major player in the EU economy. Revenue is expected to drop 50% for hotels and restaurants, 70% for tour operators and travel agencies and 90% for cruises and airlines. Europe accounts for half of the world’s tourist arrivals and the situation is particularly hard for European countries that are dependent on tourism, such as Spain, Italy, France and Greece.

According to the United Nations World Tourism Organization, as of 20 April, 100% of world tourist destinations had introduced temporary travel restrictions in response to the outbreak, 83% of which had already been in place for four or more weeks. No country has so far loosened those restrictions.

Many travellers have struggled to return home, while tourism businesses are facing severe liquidity issues, as there are very few new bookings and a large number of claims for refunds following cancellations. Air carriers particularly are under unprecedented pressure.