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Date Published: 19/06/2020
ARCHIVED - ECB warns that Covid Pandemic will have lasting impact on tourism in Spain
The European Central Bank (ECB) warned this week that "the COVID-19 pandemic will have a severe and lasting impact on the general economy of countries that depend on travel and tourism", such as that of Spain.
The air transport industry faces "a strong headwind" it said, due to confinement measures and travel restrictions, global flight capacity having decreased 65% since the COVID-19 outbreak.
In Italy, Spain, France and Germany, flight capacity has decreased by more than 90%. This collapse in flight capacity in all regions is unprecedented in aviation history. Air passenger revenue fell 15% after the terrorist attacks of September 2001, and it took two to three years to fully recover in the US and Europe.
Following the SARS outbreak in 2002-03, passenger revenue fell two-thirds and did not recover until a year later. "The drop in international air activity as a result of COVID-19 is, however, much broader and deeper and is likely to have more severe consequences for the industry than these other other episodes," warns the ECB.
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