Bolivia: economic impact of COVID-19 on tourism by sector 2020

The worldwide travel restrictions imposed due to the coronavirus pandemic could cause the Bolivian tourism sector to lose around 890 million U.S. dollars in revenue in 2020. Losses related to domestic travel alone could amount to 530 million U.S. dollars. Meanwhile, inbound tourism was forecasted to face losses for 360 million U.S. dollars. In 2018, the revenue generated by the tourism sector accounted for 2.41 percent of the country's GDP.

Tourism contribution to employment

In 2018, Bolivia was among the most tourism-dependent Latin American countries in terms of employment. That year, the ratio between the number of jobs and the number of inbound visitors in the country was one to ten, just the same as in Peru. The travel and tourism sector accounts for more than 110 thousand direct jobs in Bolivia, many of which could be at risk due to the COVID-19 pandemic.

Is Bolivia a competitive tourism market?

Over the past years, Bolivia has received a medium qualification in the Travel and Tourism Competitiveness Index (TTCI), as the country still works to improve the standards required by the growing tourism demand. Infrastructure, passenger transportation, cultural resources and business travel are some of the areas presenting the most urgent challenges for the Bolivian tourism sector. But the Andean country excels in price competitiveness as well as in safety and security. For many tourists, these can be of the most important aspects to consider when choosing the next travel destination.