The Covid-19 pandemic has led to unprecedented disruption for the tourism industry. The economic consequences of changes in tourism spending will propagate through the whole economy, however the scale of these system-wide consequences can be hard to quantify. In this paper, we calculate the direct reductions in spending across different tourism categories including domestic, and international tourism and then use a computable general equilibrium (CGE) model to quantify their economic impacts. The results – illustrated using a model for Scotland and focusing on 2021 - demonstrate the scale of the losses in the tourism industry and the economy as a whole and the challenge for economic and tourism policy to mitigate the consequences of the Covid-19 pandemic in the future.
Allan, G., Connolly, K., Figus, G. & Maurya, A. 2022, 'Economic impacts of Covid-19 related changes in tourism', Annals of Tourism Research Empirical Insights. https://strathprints.strath.ac.uk/82512/