The outbreak of COVID-19 pandemic has left a devastating impact on economies across the world. Notably, the Travel and Tourism industry which contributes over â¬150.0bn (change to the dollar) to Africaâs economy, according to the World Travel & Tourism Council, has been one of the hardest-hit industries by the pandemic, as governments implemented travel restrictions to curb the spread of the virus.
According to the African Union (AU), African countries lost up to $55.0bn in travel and tourism revenues in three months amid the lockdown measures implemented across the globe. This was as the International Air Transport Association (IATA) estimated that the international tourist arrivals in Africa could decline by 1.0% to 3.0% in 2020.
However, as the world economies begin to re-open for business the big question of how soon the Travel and Tourism industry can recover becomes valid. Although most foreign economies are starting to ease travel restrictions, the majority of African countries remain blacklisted amid concerns over the rising case of COVID-19 within the region.
Accordingly, we believe that the recovery of the African travel and tourism industry will vary from country to country, depending largely on the international visitorâs confidence in the measures put in place by the various governments within the continent.
United Capital Research