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Developments in the balance of travel services: October 2020 22/12/2020 - Press Releases

Balance of travel services

Based on provisional data, the balance of travel services in October 2020 showed a surplus of €472 million, compared with a surplus of €1,203 million in October 2019. More specifically, travel receipts in October 2020 fell by 64.0% to €526 million, from €1,462 million in October 2019, while travel payments also decreased by 79.2% (October 2020: €54 million, October 2019: €259 million). The fall in travel receipts resulted from a 65.6% decline in inbound traveller flows, as average expenditure per trip rose by 10.3%. Net receipts from travel services offset 32.8% of the goods deficit and accounted for 55.5% of total net receipts from services.

In January-October 2020,[1]the balance of travel services showed a surplus of €3,340 million, down from a surplus of €15,298 million in the same period of 2019. Travel receipts fell by €13,534 million or 77.0% to €4,036 million, while travel payments also decreased by €1,576 million or 69.4% to €695 million. The drop in travel receipts stemmed from a 1.4% fall in average expenditure per trip and a 76.1% decrease in inbound traveller flows. Net receipts from travel services offset 21.5% of the goods deficit and accounted for 51.5% of total net receipts from services.

Travel receipts

In October 2020, as mentioned previously, travel receipts declined by 64.0% year-on-year. In more detail, receipts from residents of EU27 countries fell by 48.5% to €378 million, while receipts from outside the EU27 decreased by 77.3% (October 2020: €147 million, October 2019: €648 million). The lower receipts from within the EU27 were due to decreases in receipts from euro area residents by 44.9% to €347 million (October 2019: €630 million) and in receipts from residents of non-euro area EU27 countries by 70.3% to €31 million. Among major countries of origin, receipts from Germany fell by 26.4% to €246 million and receipts from France decreased by 36.0% to €51 million. Turning to non-EU27 countries, receipts from the United Kingdom fell by 37.3% to €95 million, while receipts from the United States decreased by 98.7% to €2 million. Receipts from Russia also decreased, by 97.6% to €1 million.

In January-October 2020, travel receipts totalled €4,036 million, down by 77.0% relative to the same period of 2019. This development was driven by a 71.5% decline in receipts from residents of EU27 countries, which came to €2,699 million, and by an 82.6% drop in receipts from residents of non-EU27 countries to €1,333 million. In particular, receipts from euro area residents decreased by 70.1% to €2,249 million, while receipts from residents of non-euro area EU27 countries fell by 77.0% to €449 million. Specifically, receipts from Germany dropped by 64.4% to €1,031 million and receipts from France fell by 66.5% to €361 million. Turning to non-EU27 countries, receipts from the United Kingdom dropped by 71.7% to €714 million and receipts from the United States decreased by 93.5% to €74 million. Receipts from Russia also decreased, by 96.9% to €13 million.

Inbound traveller flows[2]

The number of inbound visitors in October 2020 fell by 65.6% year-on-year to 955 thousand. Specifically, visitor flows through airports declined by 59.3% and visitor flows through road border-crossing points fell by 91.4%. This overall decrease was due to lower visitor flows from both within the EU27 (down 60.2%) and outside the EU27 (down 73.6%). In greater detail, the number of visitors from within the euro area fell by 50.7% to 568 thousand, while visitors from non-euro area EU27 countries fell by 81.7% (October 2020: 94 thousand, October 2019: 512 thousand). Specifically, the number of visitors from Germany decreased by 34.2% to 391 thousand, while visitors from France also fell by 39.6% to 78 thousand. Turning to non-EU27 countries, the number of visitors from the United Kingdom fell by 29.3% to 200 thousand, while visitors from the United States dropped by 97.5% to 3 thousand and visitors from Russia decreased by 98.4% to 1 thousand.

In January-October 2020, the number of inbound visitors fell by 76.1% to 7,102 thousand (January-October 2019: 29,727 thousand). Specifically, visitor flows through airports declined by 72.8% and visitor flows through road border-crossing points fell by 83.4%. In the period under review, visitors from within the EU27 dropped by 73.2% year-on-year to 4,750 thousand, while visitors from outside the EU27 decreased by 80.4% to 2,352 thousand. The number of visitors from within the euro area fell by 68.5%, while visitors from non-euro area EU27 countries dropped by 80.3%. Specifically, the number of visitors from Germany fell by 61.8% to 1,495 thousand, while visitors from France decreased by 69.4% to 463 thousand. Turning to non-EU27 countries, the number of visitors from the United Kingdom fell by 70.0% to 1,028 thousand, while visitors from the United States dropped by 91.0% to 100 thousand and visitors from Russia decreased by 95.6% to 24 thousand.

Note: The next Press Release on 'Developments in the balance of travel services' for November 2020 will be published on 21 January 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).

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Bank of Greece published this content on 22 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 December 2020 12:16:08 UTC