Millions of jobs at risk if governments do not provide flexibility around consumer refunds

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Italy
Florence, Italy. Italy is one of the worst hit by the coronavirus pandemic.

(TAN): The World Travel & Tourism Council (WTTC) said at least 6.4 million travel-related jobs are at risk in the European Union (EU) and one million in the United Kingdom because of the coronavirus pandemic if administrations do not offer extraordinary flexibility.

President and Chief Executive Officer of the WTTC, Gloria Guevara urged EU authorities and the government of United Kingdom to provide “flexibility around consumer refunds” to ease the extreme pressure on the sector.

According to data from research conducted by the WTTC, 75 million tourism-related jobs are at risk across the world, with a minimum 6.4 million jobs across the EU and one million in the United Kingdom, triggered by the virus outbreak.

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The organisation, which represents the global travel and tourism private sector, had said it could lead to a global Gross Domestic Product loss of up to USD 2.1 trillion in 2020. The estimate showed a 50% increase in jobs at risk, which came shortly after the body said the pandemic could cost 50 million tourism jobs worldwide, which translates to a loss of three months of travel.

The WTTC advised in favour of “exceptional flexibility” around the current Package Travel Requirements, that it said are not suitable in the present situation and should therefore be deferred at least until August.

The body said the existing 14-day rule for refunds is putting a lot of pressure on the sector, which could result in bankruptcies and in turn lead to more claims by customers on credit card companies. If flexibility is ensured, customer protection will be upheld, while travel agents and tour operators will have extra time to refund customers that cancel bookings.

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The WTTC said the move could relieve tour operators and travel agents, both online and offline, from the grave economic impact of the pandemic.

“This measure should be implemented immediately and help lift the already crushing financial pressure on Travel & Tourism organisations and save the millions of livelihoods that depend on them,” Guevara said.

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