A recently released study by SETE Intelligence (INSETE) reveals the impact of the coronavirus (Covid-19) pandemic on Greece’s source markets and the rollover effect on tourism.
More specifically, according to INSETE, the research department of the Greek Tourism Confederation (SETE), the economies of all source markets have been hit by Covid-19 and are now faced with recession and unemployment as well as with the need to dish out support from budgets.
INSETE analysts add that the divergent evolution of the pandemic in various territories as well as its recurrence and unpredictability make it very difficult for the world economy to recover.
The study takes a closer look at Greece’s main source markets: Germany, France, Italy, Holland, Cyprus, the US, and UK.
In short, eurozone economies are expected to slow down in Q3 due to strict measures and fears of a second Covid-19 wave.
According to INSETE, incoming tourism from eurozone countries generated some 7.7 billion euros in 2019 or 44 percent of the total. The eurozone economy is estimated to have operated at an average of 55 percent of its capacity in the second quarter of 2020, is expected to reach 75 percent of its capacity in the third quarter and 90 percent in Q4.
This said, INSETE estimates that eurozone GDP will drop by 7.5 percent in 2020, and is expected to recover by 5.3 percent in 2021.
Incoming tourism from Germany generated 3 billion euros in 2019 or 16.7 percent of the total. The German economy is set to operate at a 75 percent capacity in Q3 and at 90 percent in Q4 with its GDP dropping by 6.7 percent in 2020 and recovering by 5.1 percent in 2021.
French travelers generated 1.1 billion euros in 2019 or 6.2 percent of the total. France’s economy is expected to operate at 70 percent of its capacity in Q3 and 85 percent in Q4 with a drop in GDP by 8.8 percent and an estimated recovery by 4.9 percent in 2021.
Italian vacationers generated approximately 1 billion euros in 2019 or 5.7 percent of the total; the Dutch 534 million euros in 2019 or 3 percent of the total; Cypriots 465 million euros or 2.6 percent of the total; UK tourists generated 2.6 billion euros in 2019 or 14.5 percent of the total, and US travelers approximately 1.2 billion euros in 2019 or 6.7 percent of the total.