As the Coronavirus (COVID-19) spread across the world, the global economy is taking a massive hit. The tourism industry specifically is bearing the brunt of the virus’ effect on the economy. With most people on a stay-at-home order no one is traveling at the moment and airports have become deserted. To try and combat this a lot of airlines drastically lowered prices in the beginning stages of the virus in order to try to maintain some stream of revenue. Once countries began closing their boarders airlines had to begin cancelling flights all together.
As reported by Business Insider, one of the countries’ whose tourism industry will be greatly effected by the pandemic, is Mexico. Mexico is the 7th most visited place in the world and is a very popular destination in the springtime. The article detailed a report from Mexico City’s Anáhuac University. The report states that coronavirus “poses the biggest challenge to tourism since World War II” (Business Insider). The report also states that it will cost Mexico about 1%-5% of their tourism GDP. For context, Mexico accounts for about 8.7% of total GDP.
The report suggested that the Mexican government should funnel the money from the DNR tax (a tourist tax that is usually worked into the price of airline tickets) into tourist companies so that they can have funds to market after the virus ends.
Though there are only 26 confirmed cases of COVID-19 in Mexico at the moment the government is preparing for a surge in cases in the near future. Mexico is just one example of what is happening to countries all over the world and to the tourism industry as a whole during the Coronavirus pandemic.