Publication: How the Tourism Sector in Emerging Markets is Recovering from COVID-19

Thumbnail Image
Files in English
English PDF (659.88 KB)

English Text (60.81 KB)
Mekharat, Nisachol
Traore, Nouhoum
Summary of Note 95, how the Tourism Sector in Emerging Markets is Recovering from COVID-19 Tourism is an important sector that accounts for 10 percent of global gross domestic product and one in every 10 jobs. As a result of COVID-19-related travel restrictions, the United Nations World Tourism Organization (UNWTO) has estimated that international tourist arrivals in 2020 will drop between 58 and 78 percent, which puts 100 to 120 million direct tourism jobs at risk. The effects of COVID-19 are felt throughout the extensive tourism value chain, including airlines, hotels, restaurants, tour operators, food suppliers, farmers, retailers, and a wide range of other small and medium enterprises. Although all tourist destinations strongly feel the impact from the pandemic-related crisis, not all have the same vulnerabilities or capacity to recover. This note explores the factors in specific tourism destinations that contribute to pandemic-related vulnerability, as well as the factors that support the resilience of the tourism sector. Examining all these factors together provides a snapshot of the countries as well as the subsectors that are most likely to recover first, as well as those that will require greater support to weather and recover from the crisis.
Mekharat, Nisachol; Traore, Nouhoum. 2020. How the Tourism Sector in Emerging Markets is Recovering from COVID-19. EMCompass;No. 95. © International Finance Corporation, Washington, DC. License: CC BY-NG-ND 3.0 IGO.
Report Series
Report Series
Other publications in this report series
  • Publication
    Blended Concessional Finance: The Benefits of Transparency and Access
    (International Finance Corporation, Washington, DC, 2021-07) Karlin, Arthur ; Sierra-Escalante, Kruskaia
    Blended concessional finance, the combination of commercial finance from the private sector and development finance institutions (DFIs) with concessional finance from public and other sources, is increasingly being used by DFIs to support developmentally important projects where normal DFI or commercial finance is not available because of the high risks involved. This can be especially significant in lower-income and fragile and conflict-affected situations (FCS), where risks are high and innovative and pioneering projects can be critical to economic growth, market creation, and poverty reduction. Blended concessional finance is also being used during the COVID-19 pandemic to help sustain struggling businesses hurt by demand and supply shocks, and to rebuild economies toward green, resilient, and inclusive growth. As blended concessional finance involves the use of concessional public or philanthropic1 funds to enhance the viability of private sector projects, strong processes, particularly in the areas of transparency, access, and governance, are necessary to ensure that these resources are used effectively and without distorting markets.
  • Publication
    How Technology Creates Markets: Trends and Examples for Private Investors in Emerging Markets
    (International Finance Corporation, Washington, DC, 2018-04-01) International Finance Corporation ; Aisenberg, Igal ; Alexander, Alex J. ; Haile, Abenet Bekele ; Del Carpio Ponce, Paola ; Hammah, Nana Esi ; Hommes, Martin ; Mills, Anthony ; Molders, Florian ; Ong, Sean ; Rehermann, Thomas ; Saal, Matthew ; Saleem, Qamar ; Sepulveda, Edgardo ; Shi, Lin ; Solomon, Bensam ; Sorokina, Aksinya ; Starnes, Susan ; Strusani, Davide ; Volk, Ariane
    Technological progress is often associated with the creation of novel and useful products through innovation and ingenuity. Yet in several emerging markets, including low-income economies, it is often more common to adopt, adapt, and scale technologies created elsewhere.By doing so, private enterprises in these countries could use technology to create markets and expand their product and service offerings to unserved and underserved residents, a process that produces new customers, buyers, sellers, and employees. This transforms the pursuit of profits into a driver of economic growth, as well as higher productivity and living standards, and gives technology a central role in emerging market development.
  • Publication
    How to Scale Solar Power Generation in Emerging Markets
    (International Finance Corporation, Washington, DC, 2016-09) Pace, Jordan
    Solar power is an increasingly affordable, quick-to-build solution for countries in need of additional electricity generation. Yet many emerging markets face challenges to developing photovoltaic projects, as small project sizes and lengthy negotiations increase costs and timelines. Scaling Solar, launched by the World Bank Group in 2015, addresses these issues by providing an easy-to-follow process to plan, procure, and launch grid-connected solar projects using private sector financing within two years of engagement. It offers governments the tools to quickly increase energy generation at stable low tariffs and allows developers to bid on well-structured, standardized projects through a competitive, transparent process that reduces risk and costs, making new markets easier to navigate.
  • Publication
    Case Study - Bayport Financial Services: How Can Businesses Tap Local Capital Markets to Expand?
    (International Finance Corporation, Washington, DC, 2016-04) Shi, Lin
    Bond markets, though still underdeveloped in Africa, are beginning to emerge as a realistic financing option for private companies looking to invest or expand their operations on the continent. Multilateral development banks can play a critical role in that process by issuing bonds in local currencies and providing risk guarantees and anchor investments to companies looking to issue their own bonds.
  • Publication
    Blockchain Governance and Regulation as an Enabler for Market Creation in Emerging Markets
    (International Finance Corporation, Washington, DC, 2018-09) Niforos, Marina
    Developing a proper governance and regulatory framework for blockchain-based applications will be essential to providing market participants the stability they need to fully engage with the technology and allowing innovation to flourish. Given the global, multi-sectoral reach of blockchain, regulators, and industry will have to work in a collaborative manner to ensure they can both experiment and learn, and so shape the future of the technology in a way that benefits all parties and society as a whole.
Journal Volume
Journal Issue
Associated URLs
Associated content