Indonesia Tourism Anticipate Mass Layoff, and so The World | The Government of Indonesia will issue rupiah bonds for recovery. It is expected that the act will reduce layoffs and maintain business cash flows in the new coronavirus disease or pandemic of Covid-19.
“We are reviewing this,” said Susiwijono, Secretary to Economic Coordinating Minister, at an online press conference with the National Disaster Mitigation Agency in Jakarta, March 26.
The scheme is being prepared as a bailout in several industries amid job terminations as an impact of the spread of coronavirus.
Pauline Suharno, secretary-general of the Association of Indonesian Travel Agents representing Indonesia Tourism community said people are getting fired in the tourism sector. She hoped the government could provide additional incentives straight away.
Susiwijono said private companies or the Bank of Indonesia (BI) could buy the Recovery Bond. The proceeds are to be distributed through a low-interest special loan, “to revive the business world,” he said.
Terms and requirements apply. Companies seeking special loans should not fire their employees and keep the current wages for at least 90% of the workers.
Before launching the Recovery Bond, Susiwijono said in place of the Law, also known as Perpu, there will be some regulatory changes in the form of government regulation. This is necessary since existing legislation only allows BI to purchase bonds from secondary markets.
The Recovery Bond is one of two strategies Indonesia has adopted to minimize job termination due to the coronavirus pandemic. The government will provide Rp5mn cash assistance to formal workers via Jamsostek and the Pre-work Card to informal workers as well as to the MSME sector.
Increase of 50 percent in travel and tourism jobs at risk
According to the World Travel & Tourism Council (WTTC), up to 75 million jobs are at immediate risk in global travel and tourism, due to the coronavirus pandemic.
The alarming figure, based on WTTC research, shows a loss of up to $2.1 trillion in travel and tourism GDP to the world economy by 2020.
The latest projection of a 50 percent increase in at-risk jobs in less than two weeks is a significant and worrying trend, with one million jobs being lost daily in the travel and tourism sector due to the coronavirus pandemic effect.
WTTC’s analysis, which represents the private sector of world travel and tourism, also exposes the depth of the crisis for individual regions. With up to 49 million jobs at risk across the region, Asia-Pacific is expected to be hit hardest, representing a loss of nearly $800 billion to travel and tourism GDP. The latest figures also suggest that up to 10 million travel and tourism jobs are at risk in Europe, totaling a loss of almost $552 billion.
This crisis is also expected to hit the Americas hard, with the U.S., Canada, and Mexico expected to lose up to $570 billion combined, with nearly seven million jobs at risk in travel and tourism. Other countries that this crisis is expected to hit hard include Brazil, the UK, Italy, Germany, France, Japan, India, and Indonesia tourism.
“The number of jobs that are now at risk in the global travel and tourism sector is a staggering 75 million, bringing the real and deep concern to millions of families around the world,” said WTTC president / CEO Gloria Guevara. “This chilling new figure also represents the collective delay in reacting quickly enough by many governments around the world to help a sector that is the backbone of the global economy.”
She continued, “If urgent action is not taken within the next few days, the travel and tourism sector will face an economic meltdown from which millions of people dependent on it will be struggling to recover and plunge into debt for their livelihoods. Not only will this have a huge negative impact on major businesses around the world in the travel and tourism sector, the domino effect will also result in massive job losses across the entire supply chain, hitting employees and self-employed people.
Germany is set to become Europe’s most affected country, with nearly 1.6 million jobs at risk, followed by Russia with an estimated 1.1 million potential job losses. Italy, and Great Britain. Follow as the third most affected country, with both countries projected to lose up to one million jobs in the tourism and travel sector.
Meanwhile, the Middle East is the region that has suffered the least damaging impact on the COVID-19 outbreak. It still faces employment losses of 1.8 million, however, and a GDP loss to the regional economy of up to $65 billion.
“We call on all those in positions of power to help the powerless and implement policies to support and sustain a sector that is the global economy’s driving force and responsible for creating one in five of all new jobs,” Guevara said.
Travel and tourism contributed 10.4 percent of global GDP, is directly responsible for generating one in ten of the world’s jobs and has outperformed global economic growth for eight successive years.
Source: Tempo.co ; WTTC rewrite by Lintang Buana Tours