How Post COVID-19 impacts the tourism industry worldwide?

The future of travel and tourism industry Post COVID-19 and how it affects future travel behavior?

 Abstract:

The tourism has badly affected due to this COVID-19. It is expected decrease approximately 80% in this year 2020. This is a great shock for the developing country as well as under developing country. The countries should have focus on this sectors and providing facilities to the investors to invest and generate revenue for country. This will decrease inflation and generate jobs.

Key messages: responding to the impact of coronavirus (COVID-19) on the tourism economy:

The coronavirus (COVID-19) pandemic has triggered an unprecedented crisis in the tourism economy, given the immediate and immense shock to the sector. Revised OECD 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. International tourism within specific geographic-regions (e.g. in the European Union) is expected to rebound first.

Domestic tourism, which accounts for around 75% of the tourism economy in OECD countries, is expected to recover more quickly. It offers the main chance for driving recovery, particularly in countries, regions and cities where the sector supports many jobs and businesses.

The impact of the crisis is being felt throughout the entire tourism ecosystem, and reopening and rebuilding destinations will require a joined up approach. Tourism businesses and workers are benefiting from economy-wide stimulus packages, with many governments also introducing tourism specific measures. Governments and industry are focusing their efforts on:

1. Lifting travel restrictions and working with businesses to access liquidity supports, apply new health protocols for safe travel, and help to diversify their markets.

2. Restoring traveller confidence and stimulating demand with new safe and clean labels for the sector, information apps for visitors and domestic tourism promotion campaigns.

3. Preparing comprehensive tourism recovery plans, to rebuild destinations, encourage innovation and investment, and rethink the tourism sector.

These actions are essential, but to reopen the tourism economy successfully and get businesses up and running, more needs to be done in a coordinated way as tourism services are very interdependent. The travel and tourism industry and governments should continue to reinforce their coordination mechanisms to accompany the businesses, notably the smallest ones, and the workers. Particular attention should be given also to the most sensitive/vulnerable destinations in the recovery phase.

Looking ahead, the measures put in place today will shape tourism of tomorrow. Governments need to already consider the longer term implications of the crisis, while staying ahead of the digital curve, supporting the low carbon transition, and promoting the structural transformation needed to build a stronger, more sustainable and resilient tourism economy. The crisis is an opportunity to rethink tourism for the future.

Tourism:

Tourism is a significant part of many national economies, and the immediate and immense shock to the tourism sector resulting from the coronavirus pandemic is affecting the wider economy. As governments around the world have introduced unprecedented measures to contain the virus, restrictions on travel, business operations and people-to-people interactions have brought the tourism economy to a standstill. Many countries are now entering a new phase in fighting the virus while at the same time managing the re-opening of the tourism economy. This is a complex and challenging task, and quantifying the impact on the tourism economy is difficult.

Five months into the crisis, the situation continues to evolve and the outlook remains uncertain. Recovery is now expected to start later and be slower than previously foreseen. Travel restrictions and containment measures are likely to be in place for longer, and are expected to be lifted only gradually, with the possibility of reversal should new waves occur. Even when tourism supply chains start to function again, new health protocols mean businesses will be operating at restricted capacity. Demand-side recovery will also take some time, given the interlinked consequences of the economic and health crises, and the progressive lifting of travel restrictions, while consumer confidence and travel behavior will be more deeply impacted the longer the pandemic goes on. This will have knock-on implications for many national economies.

Revised scenarios indicate that the implied shock could amount to a 60-80% decline in the international tourism economy in 2020:

Depending on the duration of the crisis and the speed with which travel and tourism rebounds. Maintaining the baseline that tourism flows have remained severely restricted up to June, these estimates are based on the revision of two earlier scenarios for international tourism arrivals for the OECD area, supplemented by a third scenario which would see any meaningful recovery essentially delayed until 2021:

Scenario 1 (revised): International tourist arrivals start to recover in July, and strengthen progressively in the second half of the year, but at a slower rate than previously foreseen (-60%).

Scenario 2 (revised): International tourist arrivals start to recover in September, and then strengthen progressively in the final quarter of the year, but at a slower rate than previously foreseen (-75%).

Scenario 3 (new): International tourist arrivals start to recover in December, based on limited recovery in international tourism before the end of the year (-80%).