The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

2 arrivals declined by 4%, while the SARS outbreak of 2003 led to a decline of just 0.4% that year. However, the UNWTO points out that these numbers are based on the latest developments as the global community faces up to an unprecedented social and economic challenge and should be interpreted with caution, given the extreme uncertain nature of the current crisis 4 . The Organisation of Economic Co-operation and Development estimates a 45% decline in international tourism in 2020, which could rise to 70% if recovery is delayed until September 5 . Domestic tourism is also heavily affected by containment measures. Νevertheless, a quicker recovery is expected with a critical role to play during the recovery phase. The World Travel and Tourism Council predicts that, in 2020, the travel and tourism market could lose 75 million jobs worldwide and 10 million jobs in Europe 6 . One of the economic sectors most affected by the COVID-19 crisis is the aviation and tourism industry. The unavoidable measures to contain the COVID-19 pandemic are severely restricting public life and bringing the aviation and tourism sectors to an almost complete standstill. As far as the aviation industry is concerned, not only the airlines but also the MROs (maintenance, repair and operations), aircraft leasing companies and aircraft manufacturers are affected. The International Air Transport Association published an analysis showing that airlines may burn through 61 billion dollars of their cash reserves during the second quarter of 2020, ending 30 June, while posting a quarterly net loss of 39 billion dollars. This means a 61 billion dollar deterioration in the industry’s cash position in the second quarter of 2020, in a scenario in which severe travel restrictions last for three months and financial relief is not provided. Airlines are faced with refunding the sold but unused tickets, as a result of massive cancellations resulting from government-imposed restrictions on travel. The second quarter liability for these is a colossal 35 billion dollars 7 . 4 World Tourism Organization, International tourist arrivals could fall by 20-30% in 2020, 26 March 2020. Available at : https://www.unwto.org/news/international-tourism-arrivals-could-fall-in-2020 ( accessed on 10/04/2020). 5 Organisation of Economic Co-operation and Development, Tackling coronavirus (COVID ‑ 19) - Contributing to a global effort, Covid-19 Tourism Policy Responses , 17 April 2020. Available at: https://www.oecd.org/coronavirus/en/ (accessed on 25/04/2020). 6 World Travel & Tourism Council, Coronavirus Brief, 8 April 2020. Available at: https://www.wttc.org/- /media/files/wttc-coronavirus-brief-external-0804.pdf?la=en (accessed on 15/04/2020). 7 International Air Transport Association, Airlines Facing Rapid Cash Burn, IATA Press Release No: 23 , 31 March 2020. Available at : https://www.iata.org/en/pressroom/pr/2020-03-31-01/?fbclid=IwAR0nm1VaPZ9PimCwXgcA JcSbYbtB-CfuxOg63mheby5ErsnLxCsMHL1LTjw (accessed on 26/04/2020).