Thailand to Lose Up to $47bn after Covid-19 Places Tourism Sector at a Standstill

Thailand is estimated to lose 9% of GDP as the country relies on tourism sector about fifth of its GDP, one of the most vulnerable economies to the Covid-19 impact, according to UN report on Covid-19 and Tourism published on Wednesday (July 1, 2020).

 

The novel coronavirus could cause world’s tourism industry to lose at least $1.2 trillion, or 1.5% of global GDP, after this sector having been placed at a standstill for nearly four months since lockdown measures were imposed worldwide. 

 

The UN’s trade and development also warned that the loss could rise to $2.2 trillion or 2.8% of global GDP if the break in international tourism lasts for eight months. In case of the worst scenario, if the pandemic breaks in international tourism for a year, the world could lose as much as $3.3 trillion, which accounts to 4.2% of GDP.

 

Thailand, along with Jamaica, could suffer the steepest GDP losses among developing countries, expecting to lose 9% of its GDP or up to $47.7 billion, is the most optimistic scenario of UNCTAD’s estimates.

 

Moreover, UNCTAD studies show that in Thailand, the employment for unskilled workers could decrease 17%, the world’s worst-affected, even in the most moderate scenario. While the wages for skilled workers, the steepest drops could be seen in Thailand (-12%) as well.