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UNWTO reveals huge cost of Covid-19 on global tourism
The enormous toll of Covid-19 on international tourism has now become clear, with United Nations World Tourism Organisation (UNWTO) data showing the cost up to May was already three times that of the 2009 global economic crisis.
As the situation continues to evolve, the United Nations agency has provided the first comprehensive insight into the impact of the pandemic, both in tourist numbers and lost revenues, ahead of the upcoming release of up-to-date information on travel restrictions worldwide.
The latest edition of the UNWTO World Tourism Barometer shows that the near-complete lockdown imposed in response to the pandemic led to a 98 per cent fall in international tourist numbers in May when compared to 2019.
The barometer also shows a 56 per cent year-on-year drop in tourist arrivals between January and May.
This translates into a fall of 300 million tourists and US$320 billion lost in international tourism receipts – more than three times the loss during the crisis 2009.ADVERTISEMENT
UNWTO secretary general, Zurab Pololikashvili, said: “This latest data makes clear the importance of restarting tourism as soon as it is safe to do so.
“The dramatic fall in international tourism places many millions of livelihoods at risk, including in developing countries.
“Governments in every world region have a dual responsibility: to prioritize public health while also protecting jobs and businesses.
“They also need to maintain the spirit of cooperation and solidarity that has defined our response to this shared challenge and refrain from making unilateral decisions that may undermine the trust and confidence we have been working so hard to build.”
At the same time, UNWTO also notes signs of a gradual and cautious change in trend, most notably in the northern hemisphere and particularly following the opening of borders across the Schengen Zone of the European Union on July 1st.
While tourism is slowly returning in some destinations, the UNWTO Confidence Index has dropped to record lows, both for the evaluation of the period January-April 2020, and the prospects for May-August.
Most members of the UNWTO panel of tourism experts expect international tourism to recover by the second half of 2021, followed by those who expect a rebound in the first part of next year.
The group of global experts points to a series of downside risks such as travel restrictions and border shutdowns still in place in most destinations, major outbound markets such as the United States and China being at standstill, safety concerns associated with travel, the resurgence of the virus and risks of new lockdowns or curfews.
Furthermore, concerns over a lack of reliable information and a deteriorating economic environment are indicated as factors weighing on consumer confidence.
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Rwanda reopens to tourism as flights return MoreTUI cancels Spain holidays from UK following quarantine decision
TUI has cancelled all British holidays to mainland Spain until August 9th in response to government decision to reintroduce quarantine procedures.
However, the firm said all those going to the Balearic and Canary Islands could still travel as planned from Monday – as both are excluded from the new rules.
The airline industry has reacted with dismay to the decision, which was unexpectedly announced over the weekend.
The Foreign & Commonwealth Office (FCO) is advising against all but essential travel to mainland Spain.
Quarantine measures apply to those returning from mainland Spain, the Canary Islands and the Balearic Islands, such as Majorca and Ibiza.
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Ryanair reports sharp losses for first quarter MoreTUI adds flexible booking options for British travellers
TUI UK has introduced a new, free holiday amends policy to provide added flexibility to customers.
The new policy allows holidaymakers to make one fee-free change to their booking – including the hotel and destination – regardless of whether they are affected by Covid-19.
This applies to new bookings made between today and September 30th, for travel between August 20th this year and the end of April next year.
The offer applies to trips using TUI Airways flights for TUI, First Choice and Marella Cruise holidays.ADVERTISEMENT
The booking amendment must be made at least 28 days before departure.
Richard Sofer, commercial director, TUI UK & Ireland, said: “We are in extraordinary times with circumstances that are constantly evolving, and we know we need to be adaptable.
“We have listened to our customers and understand some are feeling apprehensive about travelling at the moment, but still want to book in a holiday to have something to look forward to.
“I am confident our new flexible amends policy will give customers the peace of mind they need to book a holiday knowing that they can change it if, for whatever reason, they decide they want to go somewhere different or delay their trip.”
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TUI UK has introduced a new, free holiday amends policy to provide added flexibility to customers.
The new policy allows holidaymakers to make one fee-free change to their booking – including the hotel and destination – regardless of whether they are affected by Covid-19.
This applies to new bookings made between today and September 30th, for travel between August 20th this year and the end of April next year.
The offer applies to trips using TUI Airways flights for TUI, First Choice and Marella Cruise holidays.ADVERTISEMENT
The booking amendment must be made at least 28 days before departure.
Richard Sofer, commercial director, TUI UK & Ireland, said: “We are in extraordinary times with circumstances that are constantly evolving, and we know we need to be adaptable.
“We have listened to our customers and understand some are feeling apprehensive about travelling at the moment, but still want to book in a holiday to have something to look forward to.
“I am confident our new flexible amends policy will give customers the peace of mind they need to book a holiday knowing that they can change it if, for whatever reason, they decide they want to go somewhere different or delay their trip.”
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P&O Cruises extends Australasia cruise suspension MoreBalpa strikes deal with British Airways over pilot job losses
Pilots represented by the British Airline Pilots Association (Balpa) at British Airways are to be balloted on a new restructuring and redundancy agreement.
The deal has been reached after three months of negotiations.
British Airways had proposed to make up to 1,255 pilots redundant, while changing the terms and conditions of those that remain in response to a travel downturn following the Covid-19 pandemic.
The new Balpa package involves pilots taking up some part-time working, severance and external secondments.
There will also be a pool of 300 pilots employed on reduced pay ready to return to flying if demand picks up.
The measures are funded by pilot pay cuts starting at 20 per cent, reducing to eight per cent over the next two years, then further reducing toward zero over the longer term.ADVERTISEMENT
Under the terms of the deal, some 270 pilots will still be made redundant.
Balpa is recommending its 4,300 pilot members at British Airways accept these proposals as the “best that can be achieved” in the circumstances.
Brian Strutton, Balpa general secretary, said: “It is hugely disappointing that during our extensive negotiations British Airways would not accept the full package of mitigations we put forward which would have avoided any job losses at all, and at no cost to the airline.
“As a result there will be some compulsory redundancies among the pilot community and that is a matter of huge regret.”
The ballot of BA pilots will close next Thursday.
Stephen Gunning, chief financial officer with British Airways-owner International Airlines Group, said: “International Airlines Group welcomed an announcement by British Airways’ pilots’ union Balpa that it intends to hold a consultative ballot of its members in relation to the proposed restructuring and redundancy agreement reached between the union and the airline.
“This is in response to the Covid-19 crisis affecting the aviation industry.”
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RwandAir to return to operations in August MoreWTTC urges governments to maintain open borders
The World Travel & Tourism Council (WTTC) has warned governments around the world that further country-wide border closures could seriously jeopardise global economic recovery.
WTTC is urging authorities to take a more carefully calibrated approach and introduce localised measures, and only when necessary.
This would avoid blanket restrictions, prevent stalling the fragile economic recovery and not cripple the already bruised and battered tourism sector.
WTTC would support the opening of city to city ‘air corridors’ between global financial centres, such as London and Frankfurt and New York.
This would help restart business travel which is crucial to kickstarting the economic recovery.ADVERTISEMENT
Unfortunately, a number of countries around the world are experiencing local coronavirus spikes.
This is forcing a re-think by a number of governments which are now having to consider reintroducing tough and unwelcome new ‘anti-travel’ measures.
According to the latest statistics from Johns Hopkins University in the US, the worldwide Covid-19 death toll has passed 606,000 while the number of confirmed coronavirus cases has now surpassed more than 14.5 million.
Gloria Guevara, WTTC president, said: “Governments should not close off access to other countries in their entirety.
“Only regional border measures should be imposed if essential, so that the recovery of a country’s whole economy is not jeopardised in future.
“The establishment of ‘air corridors’ between financial centres where infection levels are low, such as between London and New York, would provide a vital boost to business travel and aid the economic recovery.
“Enforcing country-wide restrictions is a blunt instrument which benefits no one; neither travellers, the local population, the economy or the tourism sector which has been left reeling from the impact of worldwide travel restrictions.
“Such measures could undo the significant efforts to revive tourism, which has recently shown encouraging signs of emerging from the worst of the pandemic, and which in turn has brought hope to millions of people around the world who depend upon the sector for their livelihoods.”
She added: “It is perfectly possible to fight Covid-19 and support the economic recovery through the tourism sector at the same time.
“We urge governments to consider only local lockdowns as the key to opening the door to a successful way forward.”
Image: Valery Sharifulin/Tass/PA Images
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Abercrombie & Kent has launched a consultation with staff on a possible restructuring following the impact of Covid-19.
The move, which will also involve Cox & Kings, was launched in an attempt to ensure both businesses maintain their positions as leaders in the UK luxury market.
Managing director, Kerry Golds, stated: “While we have taken action to reduce costs wherever possible, including the utilisation of the government retention scheme, unfortunately these actions have not been sufficient due to the reduction in consumer demand.
“As a result, we have made the difficult decision to make reductions across both businesses. “
She added: “I have been incredibly proud of the way that all our staff, both those working and those on furlough, have approached the last few months with support and commitment to the business.ADVERTISEMENT
“As we move into the recovery phase of this crisis, our aim is to redefine the structure of the business for the future, preserving as many roles as we can, and supporting everyone, both professionally and personally, during these challenging times.”
Abercrombie & Kent currently offers trips to more than one hundred countries on all seven continents.
The company claims to have more people in more places than any other travel company, with more than 55 on-site offices in over 30 countries.
Golds continued: “Our vision for both brands remains unchanged, and we will continue to deliver the excellent service and outstanding travel experiences across our tailor-made, escorted small group tours, beaches and villas portfolios across both the Abercrombie & Kent and Cox & Kings brands.
“The global Abercrombie & Kent group is better placed than many to deal with the impact of Covid-19, but we must adapt to ensure its future and I have every confidence that when the tourism industry recovers the Abercrombie & Kent and Cox & Kings brands will continue to lead the way.”
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