Developments in the tourism sector during the COVID-19 pandemic

Vanessa Gunnella (), Georgi Krustev and Tobias Schuler

Economic Bulletin Boxes, 2021, vol. 8

Abstract: This box assesses the implications of the coronavirus (COVID-19) pandemic for the euro area tourism sector, trade in travel services and consumption of non-residents. Declining mobility during the pandemic has led to a slump in trade in services and tourism. As a result, the drop in non-resident consumption has acted as a shock amplification mechanism in countries exporting tourism services, i.e. countries which receive a lot of tourists, and as a shock absorption mechanism in countries importing tourism services. The partial recovery of tourism services observed during the summer months was mostly generated by domestic tourism substituting foreign tourism. The reintroduction of travel restrictions in October will likely imply that this substitution will continue to affect the dynamics of tourism services. High-frequency data on tourism, travel and services production point to a renewed overall deterioration of tourism services in the final quarter of 2020. JEL Classification: E01, E21, F14, Z3

Keywords: Consumption of non-resident households; COVID-19; trade in services; travel and tourism (search for similar items in EconPapers)
Date: 2021-01
Note: 2700331
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