Covid 19 caused unemployment in tourism

Helen Natalia Guzman Leon

1 Episode

The measures applied by various mayors and governors as of March 20 and the quarantine decreed by Duque especially affect inland tourism.

According to DANE, in the first quarter of 2019, 12.4 percent of the national population traveled for internal tourism and each person spent an average of 72,517 pesos per day; in the second quarter, 10 percent did so and each person spent 79,352 pesos a day on average.

The country may lose about 2 percent of GDP in 2020 if the aforementioned measures go until the end of May.
With these figures, losses of 6.6 billion pesos could be expected in the tourism sector, due to the significant reduction in people who travel and spend within the country on the holiday from March 21 to 23, at Easter (from 6 to 12 April), and on the two May holidays. This loss would represent 0.5 percent of GDP in 2020.

In sum, the entire tourism sector is going to be greatly affected by the measures taken against COVID-19. The country may lose about 2 percent of GDP in 2020 if the aforementioned measures go until the end of May. Some of the tourism industries that will be most affected are:

Accommodation —which contributes about 65 percent of the added value of the tourism sector—,
Travel agencies, and
The aviation industry with operations in the country.
The tourism sector contributes about 8 percent of employment nationwide, so the drop in sales of all tourism companies will seriously affect the direct, indirect and induced employment generated by the sector.

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