The heavy sanctions that Europe imposed on Russia for the war in Ukraine automatically hit the European economy itself, especially in tourism and air transport, not only in the locomotive of the European economy – Germany, but even in the United States. And there is a high probability that tourism will be among the most affected industries: as the European press notes, “The worst has not yet happened.” Although complaints are made by representatives of much heavier industry.
In Europe, it was estimated that in March the price of a barrel of oil rose to 140 dollars, and natural gas – to 260 dollars. Raw material prices are growing at the same rate. The price of wheat rose to 450 euros per ton on the Chicago Stock Market. “France, like all of Europe, wanted to punish Russia for invading it. The introduction of economic sanctions of unprecedented proportions has caused an unpredictable shock in the markets. And the worst is yet to come, “said Catherine McGregor, president of the French energy company Engie. It is backed by German counterparts, who say the West imports $ 700 million a day from Russia, and that cutting Russian gas is a financial shock to Germany’s entire economic model.
As for tourism, the sanctions were “passed” in this way. First, the European aviation industry is facing difficult times due to sanctions, closed skies and kerosene prices that have skyrocketed. The number of air traffic in Europe decreased by 23% in a week, and transatlantic flights – by 13%. Including “arrived” and tourism – the losses are already reported. Thus, the number of bookings in the Spanish Balearic Islands decreased by 40%. The resorts were hoping for a successful Easter vacation and summer season – but it probably does not shine.
European analysts, by the way, have made a detailed forecast – which of the countries suffered the most and what are the prospects. Thus, according to research by analytical company ForwardKeys, only in the period from February 24 to March 2, booking tickets in European countries fell by 30-50%. There was also a 33% increase in prices. The most serious decline, of course, was achieved in Ukraine, where flights were suspended. In Russia, according to analysts, ticket sales – including as part of tour packages – fell by 59%. High losses in other countries. According to ForwardKeys, the number of bookings in Bulgaria, Croatia, Estonia, Georgia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia also fell by 30-50% in a week. In other European countries, the rate of decline is lower, but they also range from 10 to 30%. Overall, air travel in Europe fell by 23% this week and transatlantic flights from the EU by 13%.
I would like to add that almost all countries and the world community are in solidarity and ready to go to the economic consequences for their countries in order to stop Russia and end the war in Ukraine.
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