Question

The current covid-19 pandemic has brought many economies to a complete halt. While saving lives is critical, sustaining livelihoods is also important. Discuss the impact of this pandemic on tourism industry in Fiji. (Note: a country need not necessarily have positive covid cases in order to suffer the economic impacts. Due to globalization, economies without any positive cases are feeling the impact as well). Discuss possible options (policies) to deal with the impacts that you have highlighted i.e. what are the policy options (ensure these policy options are feasible; do not suggest policies that would not be possible! Think about financial resources and other limitations such as technology or domestic capacity).

Answer 1

Ans

Impact of this pandemic on tourism industry in Fiji.

Due to corona there is huge loss in every county economy the virus had a great impact on overall growth of economy and had effected the trade bussiness commerse also as a example Fiji's colossal tourism sector devastated by coronavirus beause tourism sector employs over 150,000 people in various industries. 46 per cent of Fiji’s total Gross Domestic Product in 2019 was from the tourism industry and this speaks to how heavily the country is involve in tourism And due to huge worst-case health scenario a devastating economic impact looks unavoidable . effect of these job cuts will be enormous and rapid many other employed in the tourism sector support dependents in a country where the wages are low, cost of living is high, and government support is minimal.The pandemic has affected the estimation of tourism hitting the F$2.2 billion mark by 2021. Weather in this pandemic time there is is a threat overall word because it can be spread by the globalisation which is the transfer of goods services and the men power and men to two different economy internationally and it is the basic reason for not allowing the trade which is done internationally or globally it is the main fear of every country that the proper precaution must have to be taken to fight against this virus.

# Policies and instruments to fight against covid in in bussiness and economy are

1 Health and social protection.

In today's situation the health issue for economic laws due to health the the precaution is taken against covid the only precaution is to isolate and social distancing because there is no invention of vaccine till date and the health is the priority government policies, ranging from testing and treatment, to hiring new medical staff, to expanding social assistance and implementing cash transfers to households.

2 Fiscal policy

In the current situation the money of thr government must be used for health and direct benifit to the people this meeasures include efforts on the revenue side deferring filing and payment, reducing social contributions spending low-interest loans to firms, reprioritizing spending and financing of the larger fiscal deficit.

3 Monetary policy.

In the current situation many of the people don't have job and money so the government has to provide the money .on on the basis of loan for new start up and for earning money many countries may have cut policy rates. Providing liquidity to solvent banks is also important.

4 Financial, industrial and trade policies.

For fighting against these virus the financial stability is very necessary for each and every person for financial stability the government has to provide some sort of loan for health and other issues and industrialisation will help to to provide job opportunities to the unemployed people so the government has to put some trade policies and the intervention of government is usefull Intervention include bank forbearance on domestic private loans with certain strict preconditions so as not to create financial instability down the road, reductions in collateral requirements, canceling all but the most necessary procedures for firm registration, and reducing import restrictions and tariffs.

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