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Covid-19 Economy Paragraph & Sources For NINOVA

The document discusses the economic effects of the coronavirus pandemic. It summarizes that the global lockdown is causing a recession as travel and entertainment industries decline. Airlines have reduced flights by 70-80% internationally, costing $63-113 billion in lost revenue. The tourism industry expects a 1-3% decline in international arrivals, equivalent to $30-50 billion in lost spending. Restaurants have seen revenue drop 25% as dining rooms closed and worker hours declined 40-45%. The film industry expects over $5 billion in lost box office sales.

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0% found this document useful (0 votes)
55 views5 pages

Covid-19 Economy Paragraph & Sources For NINOVA

The document discusses the economic effects of the coronavirus pandemic. It summarizes that the global lockdown is causing a recession as travel and entertainment industries decline. Airlines have reduced flights by 70-80% internationally, costing $63-113 billion in lost revenue. The tourism industry expects a 1-3% decline in international arrivals, equivalent to $30-50 billion in lost spending. Restaurants have seen revenue drop 25% as dining rooms closed and worker hours declined 40-45%. The film industry expects over $5 billion in lost box office sales.

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okyayisil0735
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© © All Rights Reserved
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ITU SFL ADVANCED ENGLISH PROGRAM

ENGLISH 112
PARAGRAPH WRITING

The Economic Effects of Coronavirus

As governments all around the world enforce strict social distancing in an attempt to disrupt
the pace of the extremely infectious coronavirus, the global lockdown is producing economic
repercussions and an imminent global recession. Covid-19 can be defined as a pandemic that
can easily spread as a result of a person’s coughing or sneezing and affect old people or those
with chronic illnesses more seriously (Sauer, 2020). Two of the economic effects can be seen
in travel and entertainment industry. To start with, the measures taken by the travel industry to
maintain social distance among people in several countries resulted in a decline in the number
of flights, which in turn decreased the profit of many companies. As an
example,------------------------------------------------------------------------------------------------------
-------------------------------------------------------. As it is also seen in the graph
—--------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------. Moreover, the
entertainment sector is also adversely affected by the closure of movie theatres and theme
parks as well as the postponement of sportive activities. For
instance,------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
--------- To conclude, a reduction in the revenues of the travel industry and entertainment
sector can be stated as the two economic outcomes that have arisen due to the current
outbreak.
Imam Ghosh, “How Airlines Are Being Grounded by COVID-19”, March 21, 2020,
pages 1-6
COVID-19 has seriously disrupted the airline industry. The potent combination of trip
cancellations and country-specific restrictions on international flights has had a staggering
impact on the $880 billion global airline industry. The International Air Transport
Association warns that COVID-19 could cost global air carriers between $63 billion and $113
billion in revenue in 2020. In China, the country’s sharpest year-over-year drop was recorded
on February 17, 2020, with a 71% drop in flights compared to the same date in 2019. In
Europe, Italy saw a 22% drop in flights coinciding with the announcement of a national
lockdown on March 9, 2020. Now that the situation has intensified, flights to and from Italy
have plummeted 74% from their normal rates.

CAPA Centre for Aviation, “COVID-19 Aviation Impact: CAPA Daily Update”, 2020
Egyptian airlines is expected to lose USD142.9m due to suspension of international air traffic.
Egypt's Prime Minister Mostafa Madbouly stated Egyptian airlines will lose more
than EGP2.25 billion following the Government's decision to suspend air traffic between 19-
31 Mar-2020, as a precautionary measure against the spread of coronavirus. Delta Air Lines
CEO Ed Bastian stated the airline plans to reduce system wide capacity by 70% until demand
sufficiently recovers, including an 80% reduction in international services during the next two
to three months. These capacity reductions come as revenue for Mar-2020 "is now expected
to decline by almost USD2 billion" year-on-year.

World Tourism Organization, “Tourism and Coronavirus Disease”, March 17, 2020

The tourism sector is currently one of the hardest-hit by the outbreak of COVID-19, with
impacts on both travel supply and demand. This represents an added downside risk in the
context of a weaker world economy, geopolitical, social and trade tensions, as well as uneven
performance among major outbound travel markets. As of today, WTO estimates that in 2020
global international tourist arrivals could decline between 1% to 3%, down from an estimated
growth of 3% to 4% forecast in early January 2020. This could translate into a loss of US$ 30
to 50 billion in spending by international visitors (international tourism receipts). So far, the
Asia and the Pacific region is expected to be the most affected (a decrease of 9% to 12% in
international tourist arrivals, down from growth of 5% to 6% forecast in early January 2020).
Estimates for other world regions are currently premature in view of the rapidly evolving
situation. In related to tourism, the total economic losses might go as high as $5 trillion.

Joan Faus, “Coronavirus Could Affect Industry”, March 17, 2020, pages 1-3

The World Travel and Tourism Council has warned the COVID-19 pandemic could cut 50
million jobs worldwide in the travel and tourism industry. Of the 50 million jobs that could be
lost, around 30 million would be in Asia, seven million in Europe, five million in the
Americas and the rest in other continents. The equivalent to a loss of three months of global
travel in 2020 could lead to a corresponding reduction in jobs of between 12% and 14%, the
WTTC said. Asia is expected to be the worst affected. Once the outbreak is over, it could take
up to 10 months for the industry to recover. The tourism industry currently accounts for 10%
of global GDP.

Vince Dixon, “COVID-19’s Devastating Effect on the Restaurant Industry”, March 24,
2020, page 10
The forced closure of dining rooms means that restaurant businesses and their staffs will take
a hard hit in the months to come. The effects can be seen immediately, however: As many
restaurants closed, if temporarily, workers lost hours or were laid off altogether. According to
Homebase, a free scheduling and time tracking tool for small businesses, the total number of
hours worked for local businesses in the food and drink sector had dropped 40 percent by
March 17, while the number of hourly workers overall declined 45 percent. Revenue data
from customer management software company Womply, which tracks revenue from 48,000
restaurants, shows restaurant revenue significantly lower than last year’s numbers. As early as
March 15, the day that Mayor Bill De Blasio and Governor Andrew Cuomo announced a
capacity reduction for New York City restaurants, revenue was already down 25 percent.

Alissa Wilkinson, “How the Coronavirus Outbreak Is Roiling the Film and
Entertainment Industries”, March 24, 2020, page 6

On February 29, the hugely popular K-pop group BTS cancelled a series of planned
concerts in Seoul. The shows were scheduled for April 11 and 12 and April 18 and 19 at
Seoul’s Olympic Stadium. Two hundred thousand fans were expected to attend. On January
25, Disney shut down its Shanghai Disneyland park over fears of the coronavirus. The park
is a major revenue generator, with 11.8 million guests in 2018, 50 percent from outside the
Shanghai region, and an estimated $1 billion in annual revenue and $50 million in operating
profit. A day after Shanghai Disneyland’s closure, Hong Kong Disneyland shut down. Both
Disney parks in Japan closed on February 29 and Disney announced on March 11 that they
will remain closed through at least the end of April. On March 24, following pressure from
athletes and multiple nations’ Olympic committees, the International Olympic Committee
and Japanese prime minister Shinzo Abe announced that the 2020 Summer Olympics would
be postponed, possibly until 2021.

Statista, “Estimated Loss in The Entertainment Industry Due to Coronavirus”, 2020

The international film market could lose over $5 billion in lower box office sales. From
February 23 to March 1, 2020, it was estimated that the entertainment industry in Italy
registered a drop in the box office expenditure of roughly 23 million euros, compared to the
figures registered in the same period of the previous year. Especially, the estimated loss of the
film industry amounted to about 7.3 million euros. This significant decrease in the
expenditure was related to the impact of the new coronavirus (COVID-19) in Italy.

Keith Nunes, “Coronavirus Effects Will Ripple Widely Through Food Sector”, Food
Business News, March 17, 2020, page 2
Reaction to the virus by public and private entities will have a significant impact on some
sectors of the food and beverage industry. In China, Starbucks Corp. closed half of its stores
in response to the virus. Most of the stores have reopened, but same-store sales were down 78
percent in February when compared to the same period of the prior year. Producers and food
manufacturers also may be impacted by China’s inability to fully honour its commodity
purchasing obligations. China agreed to purchase at least $36.5 billion in US food,
agricultural and seafood products in calendar year 2020, but those purchases may be delayed
as the Chinese economy and the global supply chain recover from the effects of the virus.

GRAPHS/CHARTS

Tanya Powel, Peggy Hollinger, “Coronavirus Pushes Aviation Sector into ‘Crisis
Zone’”, Financial Times, 2020

Statista, “Estimated Loss in the Entertainment Industry Due to Coronavirus (COVID-


19) in Italy from February 23 to March 1, 2020, by Sector”, March 25 2020
Valentina Romei, “Coronavirus Sends Ripples Through Global Economy”, Financial
Times, 2020

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