Rebuilding Travel and Tourism After COVID-19

The COVID-19 pandemic is the biggest global challenge in generations, affecting every aspect of our lives and how we do business. With airplanes grounded, cruise ships stuck in ports, travel restrictions in most countries in the world and a slump in demand, travel and tourism has been one of the hardest-hit sectors. The statistics speak for themselves. According to the Mobility Marketing Outlook on COVID, the global revenue for travel and tourism in 2020 will be around $396.37 billion, that's 42.1% lower than last year's total of $712 billion.

While the picture may look bleak, there is good news on the horizon. Hopes are rising for an end to the crisis as some vaccine trials are exceeding expectations. Joe Biden, the President-elect of the United States, is wasting no time trying to tame the pandemic by forming a coronavirus task force of leading scientists and experts. And a recent G20 meeting between tourism ministers and CEOs discussed plans to breathe new life into the sector.

Travel, Tourism and Pandemics

Travelling is one of the best ways to relax, learn, meet strangers, explore new places and experience different cultures. Travel makes the world a smaller and more exciting place but being so easy and affordable facilitates the rapid spread of infectious diseases. Greater human mobility, principally through air travel, can introduce infections into different regions in quick time frames. Plane travel quickly connects two points on the globe, which has the potential to cause the rapid spread of a virus.

As coronavirus cases continued to rise during early 2020, the tourism industry came to a screeching halt. For the first five months of the year, international tourist arrivals were down 56% globally on the same period in 2019, according to the World Tourism Organization. For businesses that depend on tourist spending, such as cafés, museums and restaurants, the pandemic's impact is unprecedented. The potential loss in international tourism receipts in 2020 is estimated at US$0.9–1.2 trillion.

Following a significant drop in tourism-related economic activity, things picked up in the summer months, although it wasn't a complete recovery. However, the second wave of the pandemic is threatening to paralyze the industry once more. If barriers to international travel remain, such as quarantine measures, more than 197 million jobs could be lost globally, predicts the World Travel and Tourism Council.

Gradual Recovery

While countries are actively battling the highly infectious virus, industries are looking at how to rebuild and emerge from the crisis. Travel and tourism is no different. The path will be complicated, lengthy and not without its challenges.

A return to business as usual is unlikely in the short-term, but there are encouraging signs that tourism will be back on the map sooner than expected. Many governments have taken action to cushion the blow to tourism and are working on plans to rehabilitate the industry.

At the beginning of October, more than 45 CEOs and members of the World Travel and Tourism Council presented a recovery plan to G20 tourism ministers. It aims to save more than 100 million jobs through strong international collaboration, the elimination of travel barriers and testing protocols at departure points, among other measures.

In the United States, which has more confirmed coronavirus cases than anywhere else in the world, President-elect Joe Biden has already started working on loosening COVID's grip. His advisory board is packed with infectious disease experts and former public health advisors who are helping him to craft a new pandemic plan that will include a robust COVID testing and contact-tracing strategy. It will be put into effect as soon as he assumes office on January 20.

We might also be close to an effective vaccine. Preliminary analysis by the pharmaceutical company Pfizer and its partner BioNTech suggests their vaccine is more than 90% effective at preventing COVID-19 symptoms. Results from other trials are expected soon. Currently, more than 170 candidate vaccines are being tracked by the World Health Organization, and 11 are in the final trial phase.

Bouncing Back

Tourism is known for its ability to bounce back from difficulties and downturns. We saw this after 9/11, the global financial crisis, SARS and the Asian tsunami. With the right strategies in place, the industry can do so again.