Opinion: What’s next for Travel and Tourism
We are in unprecedented, uncertain times, challenged by a pandemic & facing an economical crisis. Covid-19 pandemic has triggered an immense amount of shock in the travel & tourism industry which is extensively affected and on a standstill due to the strict measures introduced to flatten the curve and contain its spread. According to UN World Tourism Organization (UNWTO), it’s regions have experienced more than 65% of their destinations completely closed to tourism: Africa (74%), Americas (86%), Asia and the Pacific (67%), Europe (74%) and the Middle East (69%). The organization predicts a 20-30% decline in global international tourist arrivals this year. Revised OECD (Organisation for Economic Co-operation and Development) estimates on the COVID-19 impact point to 60% decline in international tourism in 2020. This could rise to 80% if recovery is delayed until December. Like much of the world, the COVID-19 pandemic is having a devastating impact on its thriving tourism and travel sectors in Africa. The African continent offers a variety of cultural contentments for foreign travelers. From safaris to idyllic coasts.
Travel and tourism contribute over €150 billion to Africa's economy combined, representing 7.1% of GDP and benefiting millions of jobs, according to the World Travel & Tourism Council (WTTC). Last year, African tourism exhibited a 6% growth between January and May 2019, but this year tourism for international arrivals declined to minus 47% as per WTTC. Travel and tourism comprise 80% of small and medium enterprises (SMEs). This places millions of Jobs at stake. The African Union said in July African nations have lost almost $55 billion in travel and tourism dividends in the last three months due to the outbreak. On the brighter side, a few countries in Africa are utilizing innovation to renewing tourism while still pursuing government bailout. For instance, Kenay is diversifying their marketing strategies by going digital. They launched virtual safari tours, a live stream campaign to showcase their safaris as part of their on ongoing #MagicAwaits campaign.  Aviation & global Travel The Global travel industry demand is in unparalleled lows, the majority of airlines are striving to fill their planes and convince customers to book travel. Covid-19 surely will change the structure of future global travel. Numerous airlines are suspending operation, as well as laying off staff. Airlines like Emirates & Virgin Atlantic are rolling out extraordinary COVID-19 insurance packages at no excess payable to increase passenger volumes, build reassurance towards their passengers. African carriers are also struggling to make ends meet. South African and Kenyan airways are seeking bailouts to avoid collapse. Even Ethiopian Airlines, one of the biggest International carriers, and Africa's largest & profitable airline have been hit hard by the COVID pandemic. However, Despite travel bans, Ethiopian airline remain profitable and did not sick or receive any form of bailout. Their monthly fixed expenditures are covered by the revenue generated from the transportation of goods with cargo, with repatriation flights and with gradually reopening of the passenger getaways to few destinations. With the surge of PPE demand around the world, they revamped 25 aircraft of the 777s passenger fleets to a cargo Capacity. With the 12 existing cargo aircraft, Altogether 37 of them are now operating.
Throughout the years’ Ethiopian airline has varied their business model. Aside from the passenger service, the group unit comprises ground handling, catering, repair, MRO, aviation academy, and of course cargo.
Business Jet In the current era of COVID, concerned travelers are becoming afraid of traveling by commercial plane with hundreds of strangers and now turning to private jets for the first time. This surge of business jets demands are rebounding quickly. Now more than ever, the preference to charter or even purchase one’s own plane is in high demand. And a number of companies in private aviation have been reporting an inflow of new clients. According to Amstat, while business jet sales were down 25% year on year in Q2 2020, the month of June 2020 was up 15% year on year, indicating positive impetus to come.
Domestic Tourism Long haul travel won't open instantly but the domestic travel that had been disregarded in the past will have the potential to restart. Many people will opt not to move around at all, and discover new locations in their home countries. If marketed well, this will improve domestic tourism.
Restarting Travel & Tourism and the recovery plan Countries with strong pandemic management will have a chance to attract tourism and use their record as tourism marketing strategies. Governments and industry leaders should jointly work in a coordinated way to develop a health and safety communication plan. Respective ministries of health should draft global health & security protocols and guidelines to businesses to restore traveler confidence and provide adequate information for visitors through both digital and print platform. Encourage existing businesses to re-strategize with digitally backed innovation into their sector and introduce improved cleaning and sanitation methods in all premises. Train employee’s with up to date current health guidelines and make personal protective equipment available. businesses should equipped with an adequate supply of personal protection equipment (e.g., masks, gloves, face shields, etc.) for employees as well as visitors, to ensure that they remain protected.
- Airports | Airlines - should facilitate more vigorous health screening and contact tracing in their respective countries
- Airlines | Airport services should be screening questionnaires for travelers arriving from ‘at-risk’ areas.
- Airlines | Airport services should introduce technology and other policies to lessen person-to-person interactions is an important reflection in curtailing the risk of Covid-19.
- Launch domestic tourism campaign
- Lifting travel restrictions.
We have to keep in mind, people will now look at where and how they’ll actually travel once they are willing to hit the road again. Much of the same will be for business & investment and, it all depends on how each country's management and response to the pandemic will restructure the future of investment into every country.
