Explainer: Europe’s tourism rescue plan

The lockdowns and travel
restrictions brought about by
the COVID-19 pandemic have
ravaged the global holiday
sector.
For Europe – the world’s top
tourism destination – the health
crisis has been especially tough.
23 million EU jobs – around
12% of the region’s workforce –
depend on tourism in one way
or another.
Estimates of the drop in revenue
for 2020 are 60% for hotels &
restaurants; 60% for airlines and
airports; 90% for travel agencies
& tour operators; 90% for cruise
industry; 70% for museums and
cultural sites.
Supporting the holiday and
travel industry has therefore
become a top priority for the EU.
The European Commission has
allocated over 150 billion euros
to ensure the stability of the
industry, especially small and
medium-sized businesses, while
also making the rules to access

this fund more flexible.
Financing has been distributed
through three main channels.
        – The European
Investment Bank Group,
including the European
Investment Fund, focusing on
supporting SMEs.
        – The Coronavirus
Response Investment Initiative
to help the Member States
fund their coronavirus crisis
response.
       – The SURE programme,
to help the EU Member States
pay for national short-time work
schemes and other similar
measures.
        – The EIB Group has
also established a short-term
pan-European Guarantee Fund
aimed at supporting SMEs,
which plans to mobilise up to
200 billion euros. The fund
is supposed to automatically
dissolve by the end of 2021
unless member states decide to
prolong it.