Tourism, Organisations & Operators,

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.

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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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The UK travel industry has welcomed announcements from the department for transport and the CAA that ATOL protection will be extended to cover refund credit notes.
The notes have been issued in place of cash refunds in recent weeks, as the hospitality industry battles a huge backlog of cancellations in the wake of the Covid-19 shutdown.
But there have been questions over their legitimacy.
Package travel regulations require refunds for cancelled holidays to be paid in 14-days.
However, travel companies have argued that, if they adhered to requirements amid wholesale cancellations, most would be put out of business.
Refund credit notes were seen as a compromise, allowing travellers to rebook at a later date.
In a long-awaited decision, the CAA said: “This news will provide clarity to consumers concerned as to whether their money would be secure if they chose to accept a refund credit note from their travel company following a cancellation of their ATOL-protected booking.
“To ensure consumers that hold ATOL-protected bookings retain financial protection, refund credit notes issued in respect of these bookings will benefit from ATOL protection up until September 30th.
“If the consumer chooses a refund credit note, they should have the option to convert it to a cash refund at any point and must do so before September 30th, 2021.”
However, the CAA added consumers are entitled to a cash refund and must be offered this option at the same time as a refund credit note or booking amendment.

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In response to the announcement, an ABTA spokesperson said: “ABTA welcomes the government’s action to back refund credit notes through the ATOL scheme; this gives reassurance to consumers and supports the travel industry at an especially difficult time.
“This development verifies that the ATOL scheme provides protection for cancelled holidays when a refund remains outstanding in the event of a travel organiser’s failure.
“This is the same for non-flight-based package travel with ABTA bonding under the package travel regulations.
“This assurance enables consumers to hold and rely on Refund Credit Notes with confidence, before rebooking a much-needed holiday.”
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