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

330 LEGAL IMPACTS OF COVID-19 IN THE TOURISM INDUSTRY 3.2. In the Tourism and Hospitality Sector According to the statement of the Minister of Tourism, on April 8, the coronavirus pandemic is already having a tremendous impact on tourism in Cape Verde. Having in mind that the tourism industry represents around 25% of Cape Verde’s GDP, the impact on the market and Government budgets is enormous and will conduct the country to an inevitable recession. The air space is closed; the tourism operation stopped; and hotels and resorts are closed, especially the biggest resorts in Sal and Boa Vista Islands. The ones that are open are only doing so to support and accommodate those who are kept in mandatory quarantine or the medical staff. More, the Minister said that from the 20,000 jobs related to the tourism industry, around 17,000 will be lost, about 85% of the total of jobs, affecting negatively thousands of families who depend on it to live. Globally, unemployment in Cape Verde is expected to climb from around 12% to approximately 25%. Depending on when the markets will open, the Government is expecting that the Tourism and the Economy sectors shall start recovering on the fourth quarter 2020. Considering that the tourism represents around 25% of Cape Verde’s GDP, the impact on the market and on Government budgets is enormous and will conduct the country to an inevitable recession.

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