Several countries throughout the European Union could be prompted into a national recession after the Covid-19 Pandemic. This is because the tourism industry has drastically been impacted, prompting thousands of bookings to be closed in nations like Italy or Spain. The continuous stream of tourists into Europe from America, Canada and Asia have been axed. It’s estimated that more than €1 billion will be lost monthly throughout the European Union. This followed after the European Commissioner for Internal Markets announced the substantial losses coming to the tourism industry.
The European Tourism Manifesto Alliance has become concerned with the significant economic impact. This Non-for-Profit organization announced that the Union should implement a relief fund for these effected nations. It’d allow for millions of jobs to be saved, while also ensuring that European enterprises don’t shut down. The overwhelming concern of a recession in France, Italy or Spain would be the primary purpose behind a relief fund.
Advocacy Groups have supported the ETMAs demanded, with the European Commission not providing an immediate response. They’re currently overwhelmed with handling the sociological-economic impact for Covid-19, which is also destroying countless industries. Since tourism won’t be re-opened for months to come, it appears the Commission isn’t immediately concerned. It should be noted that the European Commission has provided €37 billion in relief funds for health systems and various affected sectors. There’s been a considerable backlash that some of those funds were diverted towards tourism.
The European Tourism Manifesto Alliance provided details regarding the measures that should be implemented by the Commission. This included Medium to High Loans for prolonged periods with minimal interest rates. Specific demands also requested that the European Union’s “Corona Response Investment Initiative” provide a substantial figure for financial relief. Considering that the ETMA doesn’t hold any legal power as an advocacy group, it’s expected that these demands will be ignored.
Italy’s Losses
The most affected country with Covid-19 for tourism in Italy. It’s expected that upwards of €4.5 billion can be lost throughout the 2020 fiscal year. Minimal travellers will arrive during Easter, Summer or Christmas. Italy will become more famous for their recent deaths than the ancient architecture, with concerns for public safety prompting an expected decline of revenue throughout Rome and Milan. Similar adverse effects will follow for France and Spain.