Open AccessGOVERNMENT ASSISTANCE FOR BUSINESS UNDER CONDITIONS OF THE CHALLENGES OF THE 21ST CENTURY
Author(s) -
Оleksandra Viter,
Oksana Kylyn,
Natalia Sveleba
Publication year - 2021
Publication title -
bìznes-navìgator
Language(s) - English
Resource type - Journals
eISSN - 2707-6172
pISSN - 2522-4751
DOI - 10.32847/business-navigator.63-6
Subject(s) - tourism , government (linguistics) , business , debt , world economy , business sector , economic policy , economic recovery , financial crisis , economy , economics , finance , political science , philosophy , linguistics , keynesian economics , law , macroeconomics
The article analyzes the current state of the tourism business market. Crisis phenomena in tourism caused by COVID-19 are considered. It is noted that the outbreak of coronavirus has caused a significant blow to the world economy and as a result it affects key sectors of the economy. According to experts, the current crisis has a much greater sudden financial impact than on September 11 and the crisis of 2009 combined. It was found that according to UN WTO forecasts in 2020 the number of international tourists due to the coronavirus pandemic decreased by 20-30% compared to 2019. According to the updated IMF forecast, in 2020 world GDP will shrink by 4.9%, the world economy will lose $ 12.5 trillion.The United Nations World Tourism Organization (UNWTO) is calling for more funds to rehabilitate and support the tourism industry so that it can become a leader in economic recovery.The purpose of the measures implemented by governments during this difficult period can be divided into the following categories: to ensure a balance between the protection of tourists and the interests of tourism workers; provide conditions for business survival and targeted support and recovery of the tourism sector.Most countries focus on both approaches. Countries with more developed economies rely mainly on affordable credit lines which will restore the competitiveness of the national economy in a short period of time.Other countries are focusing on delaying tax and debt obligations, which could negatively affect the economy in the long run and lead to long-term budget deficits and general solvency problems.In order to stabilize the economic situation, governments adopt a range of both monetary and fiscal measures that can partially provide the conditions for business survival, as the tourism industry can become one of the drivers that helps the economy emerge from the crisis and can quickly create new jobs after crisis situations.Therefore, it is important that the measures taken by states to support the tourism business, the implementation of which will reduce the level of negative impact of the pandemic on the economy of the tourism industry.