Which countries should have bigger tourism industries
International crises cause a lot of damage in the world, not only financial but also psychological damage and also human loss. That is why crisis management is of particular importance and also requires special attention in the growing tourism industry.
In a contribution we want to discuss the current crisis in the international tourism industry and the possibilities of successfully overcoming this crisis.
Man is a sociable being. Because of this property, communications have emerged, and communications enable growth and a better quality of life. Tourism is an example of man's sociable character and communications. People need to travel. By traveling he gets to know himself and the truths of the world better. Travel helps governments and peoples not only to increase their incomes but also to expand their relationships with other governments and other peoples. It is only necessary to determine a country's capacities for tourism and the best ways to use it ideally.
Unfortunately, due to the corona pandemic, all travel plans have been suspended and due to the quarantine regulations, many even had to look after the house. For the time being, the end of the corona pandemic is not in sight either, which is why the UN World Tourism Organization recently carried out an investigation into the economic damage caused by the corona crisis to determine how much damage each region has in this sector as a result of Covid -19 have to accept. According to this report, the crisis has particularly damaged Asia and Oceania. During the pandemic, travel to this region fell to half its previous size. After Asia and Oceania, the Europeans have suffered the most losses in tourism. They are followed by the Middle East, America and Africa.
The restrictions put in place to contain the novel coronavirus have reduced the number of tourists around the world by 300 million and international tourism has lost $ 320 billion. That is three times what it lost during the economic crisis in 2009. The calculations of the United Nations show that because of the radical travel stop due to Corona, the world tourism industry has had over 300 billion dollars less income.
The World Tourism Organization UNWTO announced in a report: “The Asia-Pacific region has suffered the most from the pandemic and lost 60 percent of its tourists in the first 5 months of this year. This region is followed by Europe with 58 percent fewer visitors. The number of tourists fell by 51 percent in the Middle East and by 47 percent in the Americas and Africa. "
Zurab Pololikashvili, Secretary General of the UN World Tourism Organization, says: “The decline in the number of tourists seriously threatens the livelihood of millions of people, especially in developing countries. The latest statistics show that tourism must start again as soon as possible after global security has been restored. The UN World Tourism Organization has three possible scenarios in mind if the number of tourists entering the world during the travel stop falls by 58, 70 and 78 percent respectively this year. "
At the UN Conference on International Trade and Development, it was also warned that the corona pandemic would inflict a total of 1.2 to 3.3 trillion dollars in damage to the tourism industry.
The downward trend in world tourism was halted in June after some countries reopened their borders. According to the latest research by the UN World Tourism Organization, 40 percent of travel destinations have currently reduced the restrictions due to Covid 19. But 53 percent of the countries that were previously tourist destinations still keep their borders closed to tourist travel.
Due to the worldwide closure of the border and the introduction of quarantine to prevent the spread of the corona virus, many companies in the tourism industry have gone bankrupt. The Foreign Policy website points out that the income of many countries depends on the arrival of foreign tourists, and that even the income of countries with strong economies will decrease significantly due to fewer visitors.
According to the data from the Forum for the Travel and Tourism Industry (WTTC), which is considered to be the international representative of the tourism industry, travel and tourism brought the world economy 8 trillion and 800 billion dollars in 2018, which alone represents 10.4 percent of the represented total income from economic activities. In addition, the tourism industry had created more than 319 million jobs around the world. According to the latest reports from the UN World Tourism Organization and the WTTC, this year, which is expected to see an upturn in businesses and jobs in the tourism and hotel industries around the world, 50 million jobs in this industry are threatened due to the Corona outbreak and could be omitted. The income from this industry has also fallen by two thirds. According to these reports, international tourism will face restrictions for a long time and countries will continue to close their borders to tourists. Countries' domestic tourism is also expected to gradually return to previous levels, depending on how well the pandemic has been tackled.
Because of the protective measures taken by governments in the form of closing borders and canceling flights and house quarantines everywhere, many large companies in the tourism industry have taken measures to save them. At least three major regional aircraft companies in the US and England have filed for bankruptcy. The US administration has provided a $ 58 billion aid package to prevent many transportation companies from going bankrupt. The giant company TUI, which owns 6 European airlines, 1,600 travel agencies and more than 300 hotels and 14 passenger ships, needs serious financial support due to the situation. The German government has provided an aid package of 1.8 billion euros for this company.
In view of the current situation, the question arises as to which individual countries have suffered the most damage due to the cessation of tourism activities.
According to statistics from international tourism bodies, one fifth of the gross domestic product of Thailand and the Philippines depends on the tourism industry. Spain and Italy, which were badly affected by the corona tsunamis, are just as dependent on income from tourism. Estimates show that the tourism industry in the USA suffered the greatest economic damage from Corona.
Six of the 10 economic powers in the world that attract tourists were more exposed than other countries to the outbreak of the novel corona virus and have to fight against corona. Given the close correlation between the growing spread of the pandemic and the decline in travel, the damage that these countries' economies are suffering is clear to see. Nevertheless, the economy in the small island countries, for which tourism has represented a considerable share of their income, has been particularly hard hit. A country like Iceland, for example, which showed a significant negative growth rate during the financial crisis of 2008, is likely to encounter new problems, as more than a third of the country's gross domestic product comes from travel and tourism.
In view of this situation, UN Secretary General António Guterres said of the effects of the corona pandemic on international tourism: “It will be necessary for us to rebuild part of tourism.” At the same time, he warned: “This reconstruction must be safe, fair and take place in a climate-friendly way. "
Guterres continues: Tourism is one of the most important components of the world economy. This sector creates a job for every 10th person and covers the income of several hundred million other people. It is therefore very painful to see tourism being destroyed by the Covid 19 pandemic. Guterres identified five priority conditions for restarting tourism, namely: reducing the social and economic impact of the crisis, flexibility across the tourism value chain, making maximum use of technology, improving stability and growth, and increasing cooperation in support of tourism increased promotion of the goals of sustainable development.
In the second part of this post we will talk about ways to overcome this crisis in the tourism industry.
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