Tourism is 10% of GDP in France, 13% in Italy, 15% in Spain. And Now it’s in Free Fall
“If the situation of generalized panic continues, thousands of businesses, especially small ones, will first enter a liquidity crisis, then close their doors.”

This is all happening just weeks before high season is about to get under way. But with millions and millions of tourists voting with their feet by staying at home, one of Europe’s most important and (until four weeks ago) fastest growing industries is taking a hammering.

The world right now is full of places that should be teeming with people but are not, including many iconic tourist landmarks and attractions. In Italy, home to Europe’s third biggest tourism industry, large parts of the country are on lock down after being hit by the biggest outbreak of the COVID-19 outside of Asia. Many of the most famous tourist attractions have been closed and big international events, including the Venice Carnival, have been cancelled.

The impact on the country’s tourism industry has been brutal, prompting panicked representatives to warn that a “generalized panic” over coronavirus could “sink” the sector. “There is a risk that Italy will drop off the international tourism map altogether,” said Carlo Sangalli, president of Milan’s Chamber of Commerce. “The wave of contagions over the past week is causing huge financial losses that will be difficult to recoup.”……

In the three most affected regions — Lombardy, Veneto and Emilia-Romagna (in descending order) — cancellation rates on bookings of hotels, flights and apartments have reached as high as 90%. These three regions also happen to be the main motor of Italy’s economy, accounting for 40% of Italy’s GDP. ……

“In recent history Italian tourism has never experienced a crisis like this,” Vittorio Messina, National President of Assoturismo, stated in a press release. “It is the darkest moment. Not even 9/11 affected it so heavily.”…….

In Spain, tourism is even more important to the national economy, generating approximately €180 billion a year — close to 15% of GDP. In 2019, Spain was the second most visited country in the world, attracting 83.7 million foreign tourists……………

France, with 89 million tourists in 2018 (last year’s figures are yet to be released), the most visited country in the world, is also feeling the fallout from of COVID-19. Tourism contributes about 10% to GDP. France’s Finance Minister, Bruno Le Maire, said two weeks ago that the outbreak had triggered a 30%-40% plunge in the number of overseas visitors. At that point, the virus was barely present in the country. Now, it’s in all 13 of France’s metropolitan regions, as well as French Guiana.

This is all happening just weeks before high season is about to get under way. But with millions and millions of tourists voting with their feet by staying at home, one of Europe’s most important and (until four weeks ago) fastest growing industries is taking a hammering.