The COVID-19 pandemic ravaged much of the world in 2020, impacting people, places and businesses. In particular, tourism has been one of the hardest-hit sectors as travel (both domestic and international) was brought to a grinding halt worldwide.
Naturally, this had an impact on how travel insurance worked, as insurers had to adapt to ensure they provided varied types of cover for different travellers.
Some of the changes travel insurance saw as a result of the pandemic include:
Whatever you look for when purchasing a travel insurance policy, an important consideration is the Product Disclosure Statement (PDS), which you should read prior to purchasing any sort of cover. It will outline any restrictions, limits or exclusions, so that you know exactly what you may or may not be covered for in the event you’d like to make a claim.
To see just how else the tourism industry changed, the travel experts at Compare the Market analysed figures from the World Travel & Tourism Council (WTTC) to assess the worth of tourism from pre- to post-COVID. By comparing the contribution of tourism towards each country’s GDP in 2019 and 2020, we can see just how much the pandemic has impacted each nation’s tourism and economic sector.
Hong Kong’s tourism and travel GDP took the biggest hit between 2019 and 2020, out of a selection of 45 countries. According to the WTTC’s data, the contribution of tourism and travel to the city’s GDP dropped by a dramatic 75% from 12% in 2019 to just three per cent in 2020.
Unfortunately, there were losses seen across the board. Of the 45 countries included in our research, every single one presented a loss in the worth of their tourism industry year-on-year. It pains a morbid picture of the global travel industry that many nations hope to see improve as we emerge from the pandemic – particularly countries with a heavy reliance on tourism to stimulate the local economy.
Click through the tabs below to see the other countries most and least affected.