The coronavirus outbreak is expected to have serious repercussions on Greece’s tourism industry, leading a dwindling revenue and threatening thousands of jobs, said the Center of Planning & Economic Research (KEPE) this week.
Last week, KEPE forecast a slowdown in growth by 0.9 percent this year in the aftermath of Covid-19.
According to KEPE analysts, 1 billion euros in international travel revenue losses is estimated at leading to an overall (direct and indirect) decline in the GDP of the economy by approximately 1.076 billion euros; a reduction in employment by about 26,403 people; a drop in the goods and services balance by 675.52 million euros, of which over 2/3 are due to losses posted in accommodation and catering services.
Based on current economic data for Greece, KEPE estimates that for every 1 billion euros in international travel revenue losses, the country’s GDP is set to suffer a total (direct and indirect) decline by about 0.57 percent, a decrease in employment by about 0.61 percent, an increased deficit in the goods and services balance by about 38.9 percent.
KEPE underlines, however, that it is still too early to assess the full repercussions of the coronavirus outbreak on travel receipts. However, based on the 2003 SARS experience and a projected 8 percent decline in international travel revenue, the economy is set to see a slowdown in growth by 0.83 percent, the loss of some 38,284 jobs, and a 56.4 percent increase in the deficit in the goods and services balance.