Estimation of Economic Impact of Covid-19 on Tourism Industry due to the Evaporation of Final Demand

Abstract

Since the first case of COVID-19 was confirmed in the end of 2019 in Japan, its impact has been expanding to date (as of May, 2021). In Japan, it also affects economic aspect. In this article, we focus on tourism industry, one of the most severely damaged sectors and influencing other industries. We estimated the economic impact of COVID-19 on tourism industry due to the evaporation of final demand in this sector in four Japanese prefectures, namely Hokkaido, Kanagawa, Kyoto and Kagawa prefectures for the period from April to June in 2020 by using input-output analysis. Based on the findings, relationship between tourism industry and other industries were clarified with the consideration to the socio-economic settings in the four prefectures.