THE TRAVEL AND TOURISM INDUSTRY PRIOR AND DURING COVID-19 PANDEMIC– FROM A MAIN GLOBAL ECONOMIC ENGINE TO ITS DECLINE

Abstract

The COVID-19 pandemic and the restrictions on travel established as a response to it, have a serious impact on Travel and Tourism industry. The global health crisis shut down hotels, restaurants and cafes, and many other additional businesses; it has grounded airplanes and greatly affected the Travel and Tourism industry. The aim of this paper is threefold. Firstly, it analyzes and underlines the development, size and dynamics of the Travel and Tourism industry compared to other industries which have a comparable presence worldwide. Secondly, it concisely examines this industry’s direct, indirect and induced contribution to GDP and to employment worldwide, during 2010-2019. Finally, it highlights the prospects for the development of tourism in the future, taking into account the pandemic that we face globally. Moreover, this paper highlights the positive impact this industry had upon the economic growth worldwide in the last years, and the fact that we should not disregard its relevance, as it represents an important global economic engine. JEL classification: Z32, O18, L83

Keywords

• Travel and Tourism Industry, GDP, employment, COVID-19 pandemic.