Developments in the balance of travel services: December 2020

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Developments in the balance of travel services: December 2020 23/02/2021 - Press Releases

Balance of travel services

Based on provisional data, the balance of travel services showed a surplus of €1 million in December 2020, compared with a surplus of €29 million in December 2019. More specifically, travel receipts in December 2020 fell by 88.6% to €34 million, from €294 million in December 2019, while travel payments also decreased by 87.7% (December 2020: €33 million, December 2019: €266 million). The fall in travel receipts resulted from an 86.0% decline in inbound traveller flows and a 16.1% decrease in average expenditure per trip. Net receipts from travel services offset 0.1% of the goods deficit and accounted for 0.4% of total net receipts from services.

In 2020,^[1] the balance of travel services showed a surplus of €3,514 million, compared with a surplus of €15,435 million in 2019. Travel receipts fell by €13,898 million or 76.5% to €4,280 million, while travel payments also decreased by €1,978 million or 72.1% to €766 million. The fall in travel receipts resulted from a 76.5% decline in inbound traveller flows, as average expenditure per trip rose by 2.8%. Net receipts from travel services offset 19.0% of the goods deficit and accounted for 48.4% of total net receipts from services.

Travel receipts

In December 2020, as mentioned previously, travel receipts declined by 88.6% year-on-year. In more detail, receipts from residents of EU27 countries fell by 86.2% to €17 million, while receipts from outside the EU27 decreased by 89.9% (December 2020: €17 million, December 2019: €163 million). The lower receipts from within the EU27 were due to decreases in receipts from euro area residents by 87.8% to €13 million (December 2019: €106 million) and in receipts from residents of non-euro area EU27 countries by 77.0% to €4 million. Among major countries of origin, receipts from Germany fell by 86.6% to €4 million and receipts from France decreased by 74.5% to €1 million. Turning to non-EU27 countries, receipts from the United Kingdom fell by 84.3% to €4 million, while receipts from the United States decreased by 95.7% to €1 million. Receipts from Russia also decreased, by 96.6% to almost zero.

In 2020, travel receipts totalled €4,280 million, down by 76.5% relative to the previous year. This development was driven by a 70.8% decline in receipts from residents of EU27 countries, which came to €2,840 million and by an 82.0% drop in receipts from residents of non-EU27 countries to €1,434 million. In particular, receipts from euro area residents decreased by 69.1% to €2,390 million, while receipts from residents of non-euro area EU27 countries fell by 77.5% to €451 million. Specifically, receipts from Germany dropped by 61.6% to €1,135 million and receipts from France fell by 66.3% to €367 million. Turning to non-EU27 countries, receipts from the United Kingdom dropped by 70.8% to €749 million and receipts from the United States decreased by 93.0% to €83 million. Receipts from Russia also decreased, by 96.9% to €14 million.

Inbound traveller flows[2]

The number of inbound visitors in December 2020 fell by 86.0% year-on-year to 97 thousand. Specifically, visitor flows through airports declined by 88.4% and visitor flows through road border-crossing points fell by 86.6%. This overall decrease was due to lower visitor flows from both within the EU27 (down by 83.8%) and outside the EU27 (down 87.8%). In greater detail, the number of visitors from within the euro area fell by 82.7% to 34 thousand, while visitors from non-euro area EU27 countries fell by 85.8% (December 2020: 16 thousand, December 2019: 113 thousand). Specifically, the number of visitors from Germany decreased by 76.8% to 11 thousand, while visitors from France also fell by 80.2% to 3 thousand. Turning to non-EU27 countries, the number of visitors from the United Kingdom fell by 71.8% to 7 thousand, while visitors from the United States dropped by 92.1% to 2 thousand and visitors from Russia decreased by 92.6% to 1 thousand.

In 2020, the number of inbound visitors fell by 76.5% to 7,375 thousand (2019: 31,348 thousand). Specifically, visitor flows through airports declined by 73.2% and visitor flows through road border-crossing points fell by 83.8%. In the period under review, visitors from within the EU27 dropped by 73.6% year-on-year to 4,889 thousand, while visitors from outside the EU27 decreased by 80.6% to 2,485 thousand. The number of visitors from within the euro area fell by 68.9%, while visitors from non-euro area EU27 countries dropped by 80.7%. Specifically, the number of visitors from Germany fell by 62.1% to 1,526 thousand, while visitors from France decreased by 69.6% to 469 thousand. Turning to non-EU27 countries, the number of visitors from the United Kingdom fell by 69.5% to 1,069 thousand, while visitors from the United States dropped by 91.0% to 107 thousand and visitors from Russia decreased by 95.6% to 26 thousand.

Note: The next Press Release on 'Developments in the balance of travel services' for January 2021 will be published on 24 March 2021.

Methodological Note

Special travel conditions and behaviours induced by the global impact of the coronavirus (COVID-19) pandemic and the associated movement restrictions caused the Border Survey to be suspended from 15 March to 1 July.

In order to ensure data comparability over time, the Bank of Greece has adopted the following approach:

1. For each border-crossing point, inbound and outbound flows were broken down, percentagewise, into periods 1-15 March and 16 March-30 June.

2. Data collected for the period 1-15 March were checked, processed and analysed using the standardised methodology.

3. For the period 16 March-30 June, extrapolation factors were estimated for main traveller flows per type of border-crossing point, using detailed data on official flows at border-crossing points and historical data on traveller flow distribution by month and border-crossing point.

As of July 2020, conduct of the Border Survey has fully resumed.

[1] See the Methodological Note at the end of this Press Release.

[2]Inbound traveller flows exclude cruise passengers (other than those recorded in the Border Survey).