Ukraine war harms EU tourism
Date
9/23/2024 8:10:45 AM
(MENAFN) The ongoing conflict between Russia and Ukraine has significantly disrupted the tourism sector in the European Union, which was just beginning to rebound from the impacts of the COVID-19 pandemic. A recent report from the European travel Commission (ETC), published in September, highlights the adverse effects that the war has had on various tourist destinations across the bloc.
Before the conflict erupted in February 2022, Russian and Ukrainian tourists represented approximately 3% of global tourism spending, amounting to around USD14 billion. In several Eastern European countries, such as Latvia, Lithuania, Estonia, Finland, and Moldova, Russian tourists comprised a substantial 10-20% of incoming tourism. Popular coastal destinations like Turkey, Montenegro, and Cyprus also relied heavily on this influx of visitors.
Among these, Cyprus has been particularly hard-hit, having lost a staggering 90 percent of its Russian tourist market, its second largest source of visitors, while also completely losing its Ukrainian clientele. Similarly, Finland has faced severe challenges as it lost its primary source of tourists—Russian visitors—leading to significant difficulties for businesses, particularly in the eastern regions of the country. Bulgaria has also felt the pinch, having lost both Russian and Ukrainian tourists, which were key markets for its tourism sector.
The ramifications of the conflict extend beyond just the loss of visitors. The report notes a broader economic impact characterized by sluggish growth, rising inflation, increased interest rates, and surging oil prices, which have collectively driven up transportation costs. Moreover, the perception of Europe as an unsafe travel destination has contributed to a decline in demand from travelers, especially from the United States and Canada.
As the situation in Ukraine continues to evolve, the consequences for the European Union tourism industry remain profound, underlining the interconnectedness of global conflicts and their impact on local economies. The industry faces a challenging path ahead as it navigates the complexities brought about by the ongoing war.
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