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The worldwide COVID-19 pandemic has affected the tourism sector by closing borders, reducing both the transportation of tourists and tourist demand. Developing countries, such as Tanzania, where the tourism sector contributes a high share to gross domestic product, are facing considerable economic consequences. Tourism interlinks domestic sectors such as transport, accommodation, beverages and food, and retail trade and thus plays an important role in household income. Our study assesses the macroeconomic impacts of COVID-19 on the tourism sector and the Tanzanian economy as a case study of an impacted developing economy. We use a computable general equilibrium model framework to simulate the economic impacts resulting from the COVID-19 pandemic and quantitatively analysed the economic impacts.
Henseler et al. (Sun,) studied this question.