Developments in the balance of travel services: July 2020

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Developments in the balance of travel services: July 2020 22/09/2020 - Press Releases

Balance of travel services

Based on provisional data, the balance of travel services in July 2020 showed an estimated^[1] surplus of €516 million, compared with a surplus of €3,472 million in July 2019. More specifically, travel receipts in July 2020 fell by 84.4% to €577 million, from €3,703 million in July 2019, while travel payments also decreased by 73.7% (July 2020: €61 million, July 2019: €230 million). The fall in travel receipts resulted from an 85.4% decline in inbound traveller flows, as average expenditure per trip rose by 8.8%. Net receipts from travel services offset 32.4% of the goods deficit and accounted for 64.7% of total net receipts from services.

In January-July 2020, the balance of travel services showed a surplus of €759 million, down from a surplus of €7,549 million in the same period of 2019. Travel receipts fell by €7,862 million or 86.2% to €1,255 million, while travel payments also decreased, by €1,071 million or 68.3% to €496 million. The drop in travel receipts stemmed from a 29.2% fall in average expenditure per trip and an 80.1% decrease in inbound traveller flows. Net receipts from travel services offset 6.9% of the goods deficit and accounted for 25.7% of total net receipts from services.

Travel receipts

In July 2020, as mentioned previously, travel receipts declined by 84.4% year-on-year. In more detail, receipts from residents of EU27 countries fell by 76.6% to €467 million, while receipts from outside the EU27 decreased by 93.3% (July 2020: €110 million, July 2019: €1,641 million). The lower receipts from within the EU27 were due to decreases in receipts from euro area residents by 77.4% to €346 million (July 2019: €1,528 million) and in receipts from residents of non-euro area EU27 countries by 74.0% to €121 million. Among major countries of origin, receipts from Germany fell by 71.8% to €154 million and receipts from France decreased by 78.8% to €45 million. Turning to non-EU27 countries, receipts from the United Kingdom fell by 90.6% to €51 million, while receipts from the United States decreased by 98.7% to €3 million. Receipts from Russia also decreased, by 99.6% to €0.4 million.

In January-July 2020, travel receipts totalled €1,255 million, down by 86.2% relative to the same period of 2019. This development was driven by an 84.6% decline in receipts from residents of EU27 countries, which came to €737 million, and by an 87.4% drop in receipts from residents of non-EU27 countries to €515 million. In particular, receipts from euro area residents decreased by 85.6% to €556 million, while receipts from residents of non-euro area EU27 countries fell by 80.9% to €181 million. Specifically, receipts from Germany dropped by 85.4% to €212 million and receipts from France fell by 89.1% to €61 million. Turning to non-EU27 countries, receipts from the United Kingdom dropped by 92.1% to €103 million and receipts from the United States decreased by 89.7% to €63 million. Receipts from Russia also decreased, by 94.7% to €11 million.

Inbound traveller flows[2]

The number of inbound visitors in July 2020 fell by 85.4% year-on-year to 828 thousand. Specifically, visitor flows through airports declined by 83.2% and visitor flows through road border-crossing points fell by 89.9%. This overall decrease was due to lower visitor flows from both within the EU27 (down 80.4%) and outside the EU27 (down 92.7%). In greater detail, the number of visitors from within the euro area fell by 78.6% to 416 thousand, while visitors from non-euro area EU27 countries fell by 82.9% (July 2020: 246 thousand, July 2019: 1,434 thousand). Specifically, the number of visitors from Germany decreased by 72.0% to 165 thousand, while visitors from France also fell by 81.5% to 53 thousand. Turning to non-EU27 countries, the number of visitors from the United Kingdom fell by 90.4% to 62 thousand, while visitors from the United States dropped by 98.7% to 2 thousand and visitors from Russia decreased by 99.6% to 0.4 thousand.

In January-July 2020, the number of inbound visitors fell by 80.1% to 3,006 thousand (January-July 2019: 15,080 thousand). Specifically, visitor flows through airports declined by 84.1% and visitor flows through road border-crossing points fell by 70.6%. In the period under review, visitors from within the EU27 dropped by 79.3% year-on-year to 1,793 thousand, while visitors from outside the EU27 decreased by 81.1% to 1,213 thousand. The number of visitors from within the euro area fell by 83.1%, while visitors from non-euro area EU27 countries dropped by 72.8%. Specifically, the number of visitors from Germany fell by 83.9% to 313 thousand, while visitors from France decreased by 89.2% to 88 thousand. Turning to non-EU27 countries, the number of visitors from the United Kingdom fell by 89.8% to 179 thousand, while visitors from the United States dropped by 85.2% to 88 thousand and visitors from Russia decreased by 91.5% to 22 thousand.

Note: The next Press Release on 'Developments in the balance of travel services' for August 2020 will be published on 22 October 2020.

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).