DBRS Morningstar has released a report on the economic vulnerabilities faced by the southern European countries most exposed to tourism and COVID-19. Greece is among the most vulnerable economies, and will be impacted significantly by the slowdown in tourism.
Spain: 14 September 2020
According to the United Nations World Travel Organisation (UNWTO), Europe is the world’s most visited region. Greece has increased tourism arrivals significantly in recent years, accounting for nearly 35 million arrivals in 2019.
Due to the COVID Pandemic, Greece is facing a recession given the cancellation of tourism arrivals in the country. Navigator Consulting has reported extensively on the unfolding situation in the country.
According to DBRS Morningstar, the longer the epidemiological situation continues, the greater the risk that the travel and tourism industries in this country will suffer lasting damage. This will result in permanent job losses and closures of some businesses. Even after the travel restrictions are largely lifted across geographies, the fear of travel might linger for longer.
DBRS Morningstar reports that Greece’s tourism sector accounts for 20.8% of GDP and 21.7% of employment.
We note that the World Travel and Tourism Council definitions of tourism revenue, which include a broader classification of related revenue, establish a higher share of GDP in the country.
According to DBRS, the least vulnerable countries are Germany, Belgium, Finland and Slovakia, given the lower importance of tourism in these economies.
Navigator Consulting has been reporting extensively on the risks and impacts of COVID-19 on the tourism sector in Greece. We support clients restructure their operations to prepare for COVID-19 and wider unfolding risks and opportunities in the region.
For further information, please contact:
Philip Ammerman
Managing Director
Sources:
Greek Travel Pages. 15 September 2020.
DBRS Morningstar. 14 September 2020.
Related articles:
Navigator Consulting. 14 September 2020
Navigator Consulting. 14 September 2020
Navigator Consulting. 3 September 2020
Navigator Consulting. 27 August 2020
Navigator Consulting. 3 August 2020
Navigator Consulting. 21 July 2020