Using a multisectoral model and data from the Supply and Use Tables, this article estimates the COVID-19 multiplier effects of tourism on gross domestic product (GDP), total employment, and trade balance of the Greek economy. The results indicate that a—not-unexpected—decrease of international travel receipts in the range of 3.5 to 10.5 billion euros would lead to a decrease in GDP of about 2.0% to 6.0%, a decrease in the levels of employment of about 2.1% to 6.4% and an increase in the trade balance deficit of about 2.4 to 7.1 billion euros, respectively.

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According to the World Tourism Organization, during the last decades, tourism has become one of the largest and most dynamic economic industries in the world. In this work, we employ a Network General Equilibrium GVAR model to analyze the impact of tourism expenditures on GDP and our approach allows for the existence of dominant economies in the system. The model is estimated simultaneously as a system of equations for a large panel of world economies and the results show that the less developed economies are quite vulnerable to changes in the tourism expenditures of the dominant economies. Meanwhile, USA is found to be largely unaffected by shocks in the tourism expenditures of the less developed economies.

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The recession of the years 2008-2009 revealed the fiscal and external imbalances of the so-called Southern Eurozone economies and resulted in incapability of debt refinancing and increasing instability of the banking system. The reform agendas adopted since 2010, basically a mix of contractionary fiscal policy and internal devaluation, seem to have deepened the impact of recession on GDP and unemployment. Regarding the Eurozone (EZ) as a whole, it has been estimated that, between 2011 and 2104, the followed fiscal consolidation actions "came at a considerable cost with an output loss of 7.7% and only a small gain to the primary balance of 0.2% of GDP" (Gechert et al. 2016). These facts and figures probably suggest that the magnitudes of the demand multipliers should be carefully taken into consideration before the implementation of any policy measures. As is now well known, the multiplier for an actual economy does not constitute a scalar but a vector quantity and, therefore, relevant empirical estimations have to zero in on the existing interindustry linkages. Pouring "(some) water into the wine of traditional macroeconomics", Kurz (1985) introduced and explored the concept of matrix multiplier of autonomous demand in Sraffa's (1960, Part I) closed-economy framework. Thus, he demonstrated that: "[T]here is no such thing as 'the' multiplier. Rather the multiplier effects depend on the technical conditions of production, income distribution,