Answer to Question #240480 in Macroeconomics for Komali

Question

Impacts of COVID-19 pandemic on tourism industry in the pacific island countries and what are the three recommended policy response

Answer 1

The COVID 19 epidemic in a new era of interconnection has threatened millions of jobs, many of which are in micro, small, and medium-sized businesses. These companies employ many women, who account for more than half of the tourist workforce in Pacific island countries. Tourism-dependent Pacific island countries are likely to bear the brunt of the crisis's consequences for far longer than other economies. Contact-intensive services, critical to the tourist and travel industries, have been disproportionately impacted by the epidemic and will continue to struggle until people feel secure enough to travel in large numbers again.The first proposed policy response is for authorities to strive to vaccinate 60% of the population. Second, DAB should work with money-service providers, who have a systemic role in financial intermediation, to ensure that services are not disrupted. Third, the government should create an employment promotion program with the goal of covering a portion of the reemployment costs for people who were laid off during the lockdown.