The COVID-19 pandemic has been the most discussed factor globally over the past two years. From the first hundred cases in Wuhan to the race to expand vaccines against multiple variants, the media has been effective in documenting the primary effects of COVID-19 in the world. However, the mainstream media has rarely covered the effects of the pandemic in small countries.
Small Island Developing States (SIDS) are a subset of 58 dependent countries and territories around the world that have been affected by the pandemic. Although heterogeneous, SIDS are grouped together because they face demanding social, environmental and economic situations. These demanding situations come with the highest degrees of poverty and inequality, as well as emerging sea levels and the increased frequency of natural disasters, the latter two caused by climate change. A specific economic vulnerability challenge is one of specific fear for most SIDS.
The fragility of SIDS economies has been blatantly exposed during the COVID-19 pandemic. Indeed, those states have been deeply affected by the macroeconomic shock of the pandemic due to their over-reliance on a limited commodity export base and a few service sectors, revealing a crippling lack of economic diversification.
Merchandise exports
When costs and exports of agricultural, electrical and commercial steel raw fabrics fell sharply at the beginning of the pandemic, the economies of SIDS, most of which already had a negative industrial balance, were seriously affected.
Small island developing States have been greatly affected by this decline in costs and exports, with 57 per cent dependent on export products. This figure contrasts sharply with the thirteen percent of developed countries that download the same title. many SIDS have commodity-dependent economies, meaning that their commodity exports are heavily dependent on commodity exports, however, many SIDS are also exclusive commodity exporters.
For example, in Cape Verde, Kiribati, Maldives, Micronesia and Tuvalu, “seafood accounts for 70% of all product exports. “In the Caribbean, minerals, metals, valuable stones and non-monetary gold account for more than a portion of Jamaica’s products. exports, while petroleum oils and bituminous minerals account for more than 75% of Saint Lucia’s exports.
Tourism
The great slowdown in foreign tourism due to the pandemic has spared no island states. While some SIDS banned the entry of foreign tourists into their territory, others welcomed tourists, but struggled with the fact that foreign governments were very discouraging and, in some cases, banned the entry of foreign tourists. for non-essential purposes. However, one thing was certain in all areas: the SIDS’s tourism industries, which account for only about 30% of their GDP, suffered crippling economic crises.
While official analyses and figures have not yet been released, the United Nations Conference on Trade and Development has estimated that a 25% drop in tourism revenues of SIDS as an organization could reduce their GDP by $7. 4 billion, or 7. 3% in tourism revenues. one hundred on average. For SIDS such as the Maldives and Seychelles, which rely on tourism for more than 50% of their GDP, the pandemic may have led to a contraction of up to 16% of GDP. These sharp drops in economic output are basically due to the fact that in the past bustling spas have ghost towns and the loss of tourist spending on local businesses.
Overall, the relief in commodity exports and the sharp decline in tourism have profoundly affected the SIDS group. The GDP of these island countries is expected to contract by up to 6. 9% in 2020. This figure is significant in itself, but increases even more when compared to the global average of only 6 consistent with penny and 1. 7 consistent with cent for less evolved countries.
While COVID-19 has had disastrous consequences for SIDS as a group, it has also revealed some opportunities. Indeed, the pandemic has specifically drawn attention to the precarious state of SIDS economies and provided them with the opportunity to initiate or boost economic diversification. . Specifically, many have taken steps towards a “blue economy,” which is explained through the World Bank as “the sustainable use of ocean resources for economic growth, livelihoods and employment, while preserving the fitness of ocean ecosystems. “For example, the Blue Economy includes sectors such as fisheries and aquaculture, shipping, coastal tourism and renewable energy.
Economic diversification
The macroeconomic surprise of the COVID-19 pandemic, and the realization that a similar surprise may happen again, has been a wake-up call for SIDS that basically rely on tourism to, despite everything, seriously diversify the economy, a key detail of a blue economy. To foster economic diversification and resilience, the Organisation for Economic Co-operation and Development (OECD) suggests that SIDS look to their oceans for new economic opportunities. One such tactic to do this is to fund studies and progress efforts in the fisheries and aquaculture industries. The United Nations Conference on Trade and Development (UNCTAD) also recommends investing in underwater mining, water desalination, renewable energy and bioprospecting of marine genetic resources for pharmaceutical or chemical purposes.
sustainable tourism industry
Another vital step towards a blue economy is the progression of the sustainable tourism industry, an industry whose goal is to improve the socio-economic prestige of a country’s population and a country’s national characteristics while preserving its natural ecosystems. The desire to invest in sustainable tourism has been identified through stakeholders in this industry, who have taken advantage of pandemic-induced downtime to collaborate and expand concepts for new and more effective business practices.
The Strategic Framework for Sustainable Tourism in the Pacific, for example, provides a roadmap to help Pacific countries expand their sustainable tourism industries. The framework, published in April 2021 and endorsed through the Pacific SIDS, provides concrete advice to support sustainable tourism. The tips come with reducing carbon emissions by switching to renewable energy and powering resources by implementing greater water and waste control processes. Another precedent of this framework is to position the exclusive destinations and quality reports of this region in the tourist advertising media as environmentally conscious.
Not only will countries have to invest in their respective sustainable tourism industries, but the demand for sustainable tourism will also need to accelerate. One way to achieve this would be to use multi-channel marketing and focus on promotion through social media to highlight the positive benefits of sustainable tourism. The United Nations also emphasizes the importance of building and maintaining strong partnerships with organizations that place conservation at the center of their mission. These partnerships are favorable for the sustainable tourism industry as they popularize culprits and raise awareness. of the importance of this industry. For example, National Geographic Expeditions supports sustainable tourism by organizing trips that conform to the principles of this industry.
In summary, while the COVID-19 pandemic has had disastrous consequences for SIDS, it has also given them the opportunity to be economically resilient and thus decrease their vulnerability to long-term macroeconomic shocks.