There was a time when the novel coronavirus was not a threat to humanity, and here we are struggling with the havoc caused by it. As the virus spread, we witnessed unemployment, poverty, exodus and global economic losses. We managed to survive so far but what’s next? How will the economy manage to sustain itself? Well, all we could do is analyze the situation and predict what will be the “new normal” for us.
Benjamin Gordon Palm Beach analyzes ‘The price which the economy has to pay with every other cancellation.’
What is really surprising is that no one is talking about or even considering the coronavirus’s impact on event cancellations. Universities and schools around the globe have switched to online modes of education, and sports leagues throughout the world have decided to schedule their leagues for next year. One of the major tourist attractions, Coachella, had to be postponed. Campaign rallies that were earlier organized to force people out of their houses for a noble cause are now due. But what about our economy?
This, however, is not limited to just the event being canceled. What’s concerning is the socio-economic effect of it. With nowhere else to go and 24*7 surrounded by house walls, irritation and depression have paved their way into our life. As of economic loss, major technical events and campaigns, including SOUTH organized by Texas, Austin in the southwest, Spain’s famous Barcelona Mobile World Conferences, have been canceled without further notice. All these cancellations didn’t come without a price.
About Benjamin Gordon Palm Beach
According to an independent study by Benjamin Gordon Palm Beach global economy has to take a hit of 1.1 billion dollars as of March 2020. This is just a rough estimate because the root cause is still left untreated, and with every passing day, more and more campaigns and events are abandoned.
Nevertheless, though no one is sure how long this will stretch, social distancing continues to be the best bargain for public safety. It is just the fact that global economists canceling these major fundraiser campaigns and events is causing a serious financial toll.
The recent economic losses include the loss incurred from the cancellation and postponing of some of the major tech events from Google I/O, Mobile World Conference and Facebook F8 event, and the E3, a massive conference for the video gaming community Electronic Entertainment Expo the economic loss so far has surpassed 1.13 billion dollars and still counting.
How do they Affect the Economy?
Right after understanding what is the total loss, it’s equally important to know how? Sponsorship and TV coverage rights were the major sources of fundraisers. And the motivation behind hosting an event comes second from the tourism and airline sectors.
How does much economic loss postponing an event bring in?
The reports by PredictHQ suggest that there was an increase of 500 percent requests made for postponement of an event. The International Airport Association was forced to remain grounded which recorded a loss of more than 213 billion dollars.
Though the loss we have to suffer is huge, we must not forget all this is temporary. We have grounded ourselves, and once the situation stabilizes, the global economy is sure to bounce back.