The Central Bank of Tunisia revealed that the tourism sector revenues fell 65 percent to about two billion dinars (746 million dollars), while the number of tourists fell 78 percent during 2020, because of the Corona virus.
Central data showed a decline in tourism revenues to 2 billion dinars, compared to 5.68 billion dinars in the previous year. While the number of tourists decreased by 78%; Western tourists abandoned hotels and resorts after Tunisia welcomed a record 9.5 million tourists in 2019.
Tourism is a vital sector and contributes 8 percent of the gross domestic product. It is a major source of foreign currency and the second largest operator after the agricultural sector. And due to the collapse of the tourism industry during the past year, the Tunisian economy contracted by 7 percent during 2020.
Last month, the World Bank expected that the economic contraction in Tunisia will reach 9.2 percent in 2020, expecting a slight increase in the growth rate during the current year 2021, at 5.8 percent. However, the existing structural weaknesses that the Tunisian economy suffers from will lead to a decline in growth that may reach about two percent during the year 2022.
The restrictions on travel and the spread of Corona around the world have led to most hotels in Tunisia closing their doors and tens of thousands in the sector losing their jobs. In this context, the Tourism Syndicate revealed that the tourism sector recorded the highest unemployment rate during the period of the Corona virus, and it was one of the activities most affected by this pandemic.
In its report, the World Bank made a number of recommendations to save the Tunisian economy, such as containing the size of the wage block; Which will enable the restructuring of public finances, and the provision of public investment by converting social assistance provided in the form of subsidies into direct transfers aimed at those who deserve it, and addressing tax risks from public companies.
Source (Asharq Al-Awsat Newspaper, Edited)
