Covid-19 Crisis and impact on EC economy and tourism of Kosovo, February - May 2020

• Pages: 191-197

Vol. 7 No. 2

July, 2021

ISSN 2410-3918

Acces online at www.iipccl.org

191

Academic Journal of Business, Administration, Law and Social Sciences

IIPCCL Publishing, Graz-Austria

Covid-19 Crisis and impact on EC economy and tourism of Kosovo, February

- May 2020

Prof. Ass. Dr. Sherif Sejdiu

College “Business” Pristina/ Kosovo

Prof. ass. dr. Fadil Osmani

University “Kadri Zeka” Gjilan/Kosovo

PhD (C.) Bahri Rexha

College “Business” Pristina/Kosovo

Abstract

AsCOVID-19reaches everywhere,low-and middle-incomecountriesare racingtorespond

tothismassiveandfast-movingchallenge.Householdincome,especiallyforthepoor,willbe

hard-hit,linkedtodisruptionsintourismanddecliningremiances.Theeconomicimpactsof

theCOVID-19crisisareincreasinglyhiinglow-andmiddle-incomecountriesandthepoor.

International travel restrictions and the full or partial closure of businesses and industries in

Asia, Europe, and North America have led to a collapse in global travel and are expected to

reducetheowsofremiances.Tourismandremiancesareimportantsourcesofemployment

and incomes for the poor, respectively. This post assesses the potential impacts of the expected

reductionsintheseincome owsbyusingKosovoas acasestudy.The pandemicislikelyto

haveasignicanteconomictoll.

Keywords: Crisis, Covid-19, Kosovo, Tourism, Economy.

Introduction

Fromthesurveyweconductedwithabout100businesses(CBK),themostcommon

formofownershipinKosovarbusinessesisIndividualBusiness(B.I)withashareof

70.3%,Ltdwith29.7%andpartnerships,etc.wedidnothaveanythatansweredthe

questionnaire.

For each month that the COVID-19 crisis persists, our simulations using Ministry

ofnancemultipliermodelforKosovosuggestnationalGDPcouldfallbybetween

1.5% and 4.0%. Kosovoisa rising staramongemerging economies. Eventhough

several reforms remain to be completed, the reform program launched in 2016 has

startedtobear fruit:Kosovahas achievedeconomicgrowth ofover4.2% inthelast

two years. The tourism sector recorded its highest revenues in 2018-19, another

signof increased stability.Continued eorts aimedat improving Kosovobusiness

climatewereexpectedtoleadtoevenstrongerprivatesector growthandeconomic

diversicationin2020andbeyond.

ThisprogresswillalmostcertainlybeinterruptedbytheCOVID-19pandemic.While

the government is taking actions to contain the spread of the virus—including the

suspensionofcommercialinternationalpassenger ights, school and sports clubs