Covid-19 is likely to result in profound changes to the attitudes, concerns and travel preferences of tourists. This column argues that for countries in the Middle East and North Africa that are heavily dependent on the tourism sector, addressing the concerns of consumers and trying to offer customised services will be key to recovery.
Following the big fall in international tourist arrivals in the Middle East and North Africa early in the pandemic, some countries restarted activities during the summer with an emphasis on health and hygiene measures. But as this column explains, a second wave of Covid-19 could paralyse the sector and lead to bankruptcy for many businesses.
The Covid-19 pandemic poses formidable challenges to policy-makers and to the empirical analysis of its effects within the interconnected global economy. This column quantifies the impact along several dimensions, showing that the global recession will be long lasting, with no countries escaping regardless of their mitigation strategies. The findings call for a coordinated multi-country policy response.
Covid-19 is threatening emerging markets and developing economies in multiple ways. As this column explains, these countries are even more vulnerable now than they were at the onset of the global financial crisis in 2008, raising fears that the impact of the current crisis might be more devastating and economic recovery more distant.
The relationship between first-movers and late-movers in export markets has important policy implications. First-movers need to be productive enough to pay market entry costs; in turn, they generate ‘information externalities’ for late-movers. This column uses a unique disaggregated export-level customs dataset – including from Egypt and Jordan – to test whether first-movers outperform late-movers in export markets.