The American travel and tourism sector is seeing the most devastating impact from the COVID-19 outbreak. According to a new report by the U.S. Travel Association and Oxford Economics, the U.S. airlines are estimated to suffer a $519 billion decline in direct travel expenditure, translating into a $1.2 trillion loss in economic output.
Analysts say that the financial scenario of the travel industry is 9 times worse than the impact it faced after 9/11.
Travel industry revenue is expected to decrease 81% over the next couple of months while the annual decline will be approximately 45%.
With flights grounded all over the world, employment in the travel industry is also suffering and forecasted to result in 8 million job losses by the end of April.
The report also highlighted the different sectors related to the travel industry and their share of financial loss due to the global health pandemic.
For instance, food services will see the highest fall of $128 billion. Lodging will be impacted as well and is forecasted to see a loss of $112 billion. Moreover, the grounded airline fleets will equate to a loss of $97 billion in direct spending.
Infographic by: www.statista.com