Saving the tourism industry with staycation vouchers

Abstract

The coronavirus disease (COVID-19) pandemic has caused a humanitarian crisis that will be followed by an economic crisis. Tourism is one of the most affected sectors of the economy. Forecasts are devastating. Many local communities lost an important source of income and employees lost their jobs. In Slovenia, where tourism represents approximately 10% of GDP, the Government, consulting with experts and scientists, introduced staycation vouchers. Each resident received a voucher worth €200, while children up to 18 years old received one worth €50. Through this scheme, the Government was subsidising residents to go on vacation with €350 million. The initial results are positive - in the first seven weeks, approximately 15% of staycation vouchers were used. Industry representatives are optimistic and the tourism industry may end up with a 40% drop in total revenue instead of the forecasted 70% for the year 2020. The pandemic has had some positive outcomes, since holidays in Slovenia this year were available to all.