Montenegro will suffer the most from the decline in international tourism
Albania and Montenegro's tourism sector is expected to suffer significant losses due to the coronavirus (COVID-19) pandemic, according to S&P Global Rating's stress scenario.
Intellinews writes about this, as reported by a PolitNavigator correspondent.
“The impact is expected to be large for...smaller tourism economies such as Barbados, Aruba, Belize, Cape Verde, Montenegro and Albania,” an analysis published in March found.
The study was conducted on the basis of three scenarios – “limited”, “extensive” and “extreme”. In the “limited” scenario, only Montenegro would increase its fiscal deficit by 1% of GDP or higher. In an extreme scenario, Croatia will also experience problems.
After small island states, the second most vulnerable region in the world in terms of tourism losses is Central and Eastern Europe, in particular the Balkans.
Montenegro appears to be the most vulnerable within this group, mainly because it relies on tourism, which accounts for two-fifths of total government revenue. The authors predict that Montenegro's external debt will increase by 30%.
Montenegro will suffer the most from the decline in international tourism.