Impact of COVID-19 on the European tourism sector

Subject: Impact of COVID-19 on the European tourism sector

One of the sectors most affected by the COVID-19 crisis is the tourism sector, which, according to estimates by the United Nations World Tourism Organisation, is suffering loses of around EUR 1 billion per month in the EU alone. This is taking a very serious toll, affecting 13 million workers in the sector. The economic meltdown of the entire sector could have a domino effect on other sectors, which would be difficult to manage over the long term.

In addition, according to an OECD study on the economies of more tourism-dependent countries, there are five European countries at greatest risk (Greece, Portugal, Austria, Spain and Italy); these countries will, at various levels, lose a substantial portion of their GDP, which will have damaging economic and social consequences. Many countries are planning to introduce a special allowance for workers in tourism and to use vouchers to provide liquidity for companies in the sector. Nevertheless, there is a need for coordinated, more wide-ranging European action to protect and revitalise the entire sector.

In the light of the above, can the Commission say:

whether it is aware of this situation and, if so, what measures it has taken;

whether it thinks it might be appropriate to propose to the Council and Parliament an extraordinary recovery plan to protect and support companies in the sector?

Answer given by Mr Breton on behalf of the European Commission

(23 July 2020)

The Commission is aware of the substantial impact of the COVID-19 outbreak on the European tourism ecosystem. In order to monitor this impact, it maintains a regular dialogue with European tourism associations and Member States.

The Commission has adopted several measures to help companies and workers affected by COVID-19, including in the tourism ecosystem. The Coronavirus Response Investment Initiative (CRII) and the CRII+ increased the flexibility in the use of European Structural and Investment Funds (ESIF) so that Member States could re-orient their funds towards measures to preserve jobs. The new instrument for Support to mitigate Unemployment Risks in an Emergency (SURE) will allow for up to EUR 100 billion loans, in support of Member States’ short-time work schemes and similar measures, including for the self-employed (for more details, see the answer given to written question E-001196/2020).

The communication ‘Tourism and transport in 2020 and beyond’ (1) adopted by the Commission on 13 May 2020 includes emergency measures to support the tourism ecosystem during the lockdown and to progressively lift restrictions affecting it. It also provides strategic orientations for a sustainable recovery of the tourism ecosystem and for developing a more sustainable and innovative tourism over the longer-term (2). Furthermore, on 27 May 2020, the Commission proposed the creation of a recovery instrument of EUR 750 billion, ‘Next Generation EU’, as well as targeted reinforcements to the 2021-2027 EU budget. (3) The Commission proposal recognises tourism among the most affected sectors. While Member States will ultimately decide on recovery priorities and investment needs, tourism should be supported under this ambitious recovery instrument, and also remaining eligible for financial aid under several EU programmes.

⋅1∙ Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions,

Tourism and transport in 2020 and beyond, COM(2020) 550.

⋅2∙ https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus-response/recovery-plan-for-europe_en

⋅3∙ https://ec.europa.eu/commission/presscorner/detail/en/ip_20_940