International Tourism to Bounce Back

 “Restrictions on travel introduced in response to the COVID-19 pandemic continue to hit global tourism hard”

According to the newest UNWTO World Tourism Barometer, international arrivals plunged 81% in July and 79% in August, traditionally the two busiest months of the year and the peak of the Northern Hemisphere summer season. The drop until August represents 700 million fewer arrivals compared to the same period in 2019 and translates into a loss of US$ 730 billion in export revenues from international tourism. This is more than eight times the loss experienced on the back of the 2009 global economic and financial crisis.

All world regions recorded large declines in arrivals in the first eight months of the year. Asia and the Pacific, the first region to suffer from the impact of COVID-19, saw a 79% decrease in arrivals, followed by Africa and the Middle East (both - 69%), Europe (-68%) and the Americas (-65%).

Following its gradual reopening of international borders, Europe recorded comparatively smaller declines in July and August (-72% and -69%, respectively). The recovery was short-lived however, as travel restrictions and advisories were reintroduced amid an increase in contagions. On the other side of the spectrum, Asia and the Pacific recorded the largest declines with -96% in both months, reflecting the closure of borders in China and other major destinations in the region.

Demand for travel remains largely subdued due to the ongoing uncertainty about the pandemic and low confidence. Based on the latest trends, UNWTO expects an overall drop close to 70% for the whole of 2020.

UNWTO’s Panel of Experts foresees a rebound in international tourism in 2021, mostly in the third quarter of 2021. However, around 20% of experts suggest the rebound could occur only in 2022. Travel restrictions are seen as the main barrier standing in the way of the recovery of international tourism, along with slow virus containment and low consumer confidence. The lack of coordinated response among countries to ensure harmonized protocols and coordinated restrictions, as well as the deteriorating economic environment were also identified by experts as important obstacles for recovery.

The outbreak of the pandemic has certainly caused a slowdown in the global economy and subsequently in the travel and tourism industry. However, as we emerge into the ‘new normal’ the tourism industry is expected to bounce back strongly. This is because, following months of muted travel activity, we are expecting a stronger comeback from those travellers looking to seize the opportunity to travel.

In light of the introduction of travel bubbles and arrangements between countries, international travel is expected to see a slow but steady resurgence and this will gradually affect tourism once we transition from emergency and necessary travel to leisure travel. Initially, travellers will naturally show a preference for domestic alternatives and destinations within a local radius. This is due to the changing nature of air travel and the robust safety protocols adopted by various countries.

Even though the lifting of international travel remains restricted in parts of the world, it is vital for us to remain optimistic and realize that the industry will rapidly recovery as soon as travel resumes.

Assuring people that safety will not be compromised will help to re-establish confidence in outbound travel. While travel is on the path to gradual normalcy and recovery, health and safety will be the most vital aspect that will greatly impact and inform all future travel plans. In order to re-stabilize the tourism industry, traditional tourism experiences will need to be redesigned such that hygiene, social distancing and sanitization are prioritized.

The revival of domestic tourism, with the gradual and cautious opening of the state borders in Australia, will prove to our international travellers, our ability to recuperate and recover.

In the ‘new normal’, travellers will likely seek out opportunities to spend time away from busy and crowded cities by opting for wildlife or outdoor adventure-based experiences. To cater to this growing trend, Australia already has a plethora of unique experiences that are away from the hustle and bustle of the city, thereby adhering to social distancing protocols.

Slow tourism is also another travel trend that is expected to pick up, as it will allow travellers to explore a variety of experiences in a destination over a period of several weeks.

For cautious travellers, self-drive and road trips are expected to gain popularity, especially in expansive countries like Australia and can offer a wide array of secluded, sparsely populated and scenic journeys that are largely reachable via private automobiles.

The wide portfolio of the Signature Experiences of Australia collective, including the Luxury Lodges of Australia, offers travellers the opportunity to stay at exclusive properties across the country while enjoying restricted access to incredible nature escapes including, the Outback, Great Barrier Reef as well as the Daintree Rainforest.

While it is something I don’t wish to agree with, but I have to, given the circumstances. However, I also believe every crisis gives rise to opportunity, therefore looking forward to taking maximum advantage of the situation.

All challenges are related to COVID 19 pandemic and its uncertainty. Economic recession, travel restrictions, inadequate air connectivity, health safety protocols, and decreased confidence of travellers are some specific challenges.   

 Interestingly, the so-called “the new normal tourism” post-COVID 19 is actually, something that Bhutan under the tourism policy of “High-Value Low Volume” has been practicing for the last 50 years.

The extraordinary fact about this policy is that – this policy was envisioned and adopted by our Fourth King in the early 1970s amidst the immense pressure to embrace mass tourism for quick economic fortunes. Today after 50 years, when this policy is being appreciated by many even globally, we bow with deep gratitude to His Majesty The Fourth King of Bhutan for the timeless gift to the tourism world. 

This policy basically avoids mass tourism, over-tourism, ensure a balance between economic returns and non-material gains such as preservation of our environment, culture, history, arrivals guided by the carrying capacities of the various services and resources to ensure wellness and wellbeing of our guests. These are the elements of future trends in tourism.

I believe the restart of tourism for Bhutan would be much easier and faster, as we would not have to change much to keep abreast with the new or the future trend. 

 

Even as airlines and authorities put safety measures in place, people will have to feel safe before demand picks up. Safety is not the only factor. As the economy sours, people are also nervous about splurging on air travel to luxury destinations. It could be 18 to 24 months before travel picks back up. Air travel in particular will be slow to recover. Travel will resume in a slow, careful and highly phased manner. It will kick off with local outings as the economy reopens. From there, some people will increasingly feel confident driving for a night or two away from home. It could take much longer before most people are comfortable getting on a plane for a long-haul trip. 

Nearly every country exposed to the virus is facing a similar conundrum, however, I would  like to mention certain updates on the current situation from the desk of Mrs. Petra Hedorfer, CEO of the German National Tourist Board.

-          Reports on how the coronavirus pandemic is developing seem to change by the hour at the moment. The German government’s intention to extend financial support for tourism companies and provide further sector-specific aid is therefore a welcome signal in times like these.

-          Many companies in the industry are heavily reliant on these measures, as the recovery scenarios we had so far envisaged have already been overtaken by events.

-          The analyses of the current situation are sobering, but ultimately they are the starting point for all strategic and operational approaches to finding ways out of the crisis.

-          The latest Anholt Ipsos Nation Brands Index has once again confirmed Germany’s excellent image with a no. 1 ranking. It should be noted that the survey of 20 countries was conducted between 7 July and 31 August, i.e. in the midst of the pandemic.

-          In view of the shift in global economic growth that has become apparent in the last two to three years, and of the geostrategic and geopolitical changes in the world order, many market players are asking themselves how they can regain the growth from high-potential overseas markets in the medium term.

-          To achieve this, we have to research the markets in detail. We can then formulate marketing strategies that are sustainable in the long term and use the expertise gained to support our partners in Germany’s inbound tourism industry.

-          Previous crises have highlighted that Asian countries overall are much more wary of crises than other source markets for global tourism. Little surprise then that coronavirus had the biggest impact on travel intentions in Asia, according to the initial round of interviews conducted by IPK International in May 2020. Only 29 percent of respondents still intended to travel abroad in the next twelve months. By October, this had increased by around a third to 38 percent. We can see that the direct influence of the virus on travel intentions is diminishing, but scepticism is still much more pronounced than among Americans and Europeans.

-          Many German towns and cities are also facing rising numbers of cases. The tightening of rules in a number of federal states, such as the current ban on providing accommodation to guests from coronavirus hotspots, is significantly dampening people’s appetite for travel.

Clearly, the coronavirus pandemic will influence our work for a long time to come. But it is also clear that Destination Germany has a good chance of emerging from the crisis even stronger than before. We are optimistic this will happen as long as we continue our efforts to position our strong brand in the markets.

Businesses will probably cut back on travel and look to do more virtual meetings. That means airlines and hotels will find themselves catering to travellers and may offer major discounts as they desperately look for business.

In the meantime, “staycations” will become increasingly common, particularly those involving outdoor activities. Rather than the standard excursions, which might involve booking a tour bus for a large group, instead a hotel would have opted as a luxurious place to spend the night after a hike in a nearby national park. Trips with an emphasis on the outdoors might be particularly appealing after people have been cooped up in their homes for months. 

India was becoming an increasingly large group travel market for first-timers and middle-class families. Both for reasons of affordability, and safety fears, this segment are likely to shrink.

Our ongoing mission is to maintain the strong image our customers have of Germany as a travel destination and to provide the expertise, up-to-date market analysis and effective marketing activities that will enable our partners in Germany’s tourism industry to make a fresh start. In terms of our strategy jointly with our Headquarters, German National Tourist Board, we are currently working hard to put our marketing on the right track both in response to the crisis and looking further ahead. In light of the current trends, we are also strengthening our collaborations with tour operators/travel agents.  The experiences gathered during the virtual GTM are helping us here.

Future-focused marketing in a crisis or even a lockdown is targeted not only at sales and revenue figures but also on securing customer loyalty over the long term and on making the strengths of the brand more visible among Indians. The brand values of Destination Germany including credibility, responsibility and safety are now more important than ever in what has become a much more competitive travel market.

The content of our campaigns for 2021 ‘German.Local.Culture’ are geared towards the new challenges.

 

It is expected that international tourism will not recover without the release of a vaccine however, countries have already established "air bubbles".  This has ensured businesses and trade can begin again, as well as encourage tourism, both of which will assist the nation's economy.  

 The onset of Covid-19 earlier this year presented us with multiple challenges, including changing our plans for the year.  Not counting the current situation, which is filled with the uncertainty of when life, and tourism, will resume to normal, emphasised by the limited information available about the virus.  With the team making changes to the goals for 2020, we adjusted our strategy to adapt to the evolving changes in both India and Israel, in order to achieve our goals.  My strategy is to keep the notion of Israel as a holiday destination in the mind of every Indian traveller.  To successfully do that, we are constantly in touch with our partners in the industry, including travel agents and tour operators, airline partners, media partners, corporate and consumers using tools like emailers, virtual meetings and social media, amongst a few.  

 Israel is a dynamic destination which provides all the needs for travellers such as pilgrims, leisure, MICE, Culinary and niche trips.      

 

 

 Singapore: Passion Made Possible

We are reopening our borders in a safe and calibrated manner, allowing foreigners to enter Singapore in limited numbers, with the necessary safeguards in place to ensure public health considerations are addressed. Singapore has announced reciprocal green lane arrangements such as those with China, Japan, Malaysia, and South Korea to facilitate official and essential business travel. Singapore will also continue to facilitate passenger transfers at Changi Airport.

Most of our tourism industry has safely and gradually re-opened for business, in tandem with the rest of the Singapore economy. However, the recovery for tourism will take time and mass international travel is not likely to return in a significant way any time soon – even if a vaccine is found. In the meantime, we remain committed to our recovery efforts, as well as building capabilities for the future. This is to ensure that Singapore can emerge stronger from the crisis as a top destination when international travel resumes.

Globally, slow pickup in positive travel sentiment along with travelers’ concern about safety will be among the challenges going into 2021. Tourism remains an important contributor to the Singapore economy and we remain confident in its long-term prospects. To overcome our current challenges and to chart a new path forward for our industry, we are focusing on three areas: Safety, Recovery and Transformation. The majority of the economy has re-opened since Singapore entered the second phase of “A Safe Singapore” in mid-June 2020. 

As more and more of our economy re-opens, we will continue to engage and guide our industry in implementing safety management measures to ensure that businesses can re-open safely. We have been working closely with the National Environment Agency (NEA) and other government agencies on the "SG Clean" campaign, our national mark of excellence for safety and hygiene. This quality mark aims to reassure the public that our local businesses maintain high standards of cleanliness and sanitization. As of November 2020, more than 27,000 individual premises in Singapore have been certified.

On 25 and 26 November, ITB Asia and the Singapore Tourism Board hosted TravelRevive -is the first international travel tradeshow to take place physically in the Asia Pacific during COVID-19, with both local and foreign attendees and exhibitors. Through events such as TravelRevive, we look forward to seeing the revival of Singapore’s MICE industry, such pilot events allow us to study the findings and data to refine the safe management measures and best practices for MICE events progressively and to solidify our position as a global and regional business hub. 

Singapore is well-positioned to emerge from this crisis. According to STB’s Brand Health Survey, overall sentiments remain positive towards Singapore. We are seen as among the most favourable city destinations for leisure and business travel even at this time, compared to other major city destinations in the region.

We remain confident in the long-term prospects of Singapore’s tourism sectors – both for leisure and MICE & business travel – as the fundamentals that make Singapore an attractive place for unique, high quality travel and MICE experiences, and a key business hub remains unchanged. Singapore has secured the rights to host the Worldchefs Congress and Expo in 2024 and the 110th Lions Clubs International Convention in 2028. The Lions Clubs International Convention is expected to attract around 20,000 foreign delegates. These successes build upon Singapore’s track record as Asia Pacific’s top meeting city for 18 consecutive years and the confidence in Singapore’s robust and transparent handling of the Covid-19 situation.

This is why we will continue to forge ahead with major tourism infrastructure and redevelopment projects, tapping on new consumer trends coming out of the pandemic such as wellness, nature and sustainable tourism. For instance:

The impact of COVID-19 has further underlined the need to diversify Orchard Road’s offerings beyond retail. Increased interest and focus on health and well-being has sharpened the need to provide a variety of delightful public spaces and walkable streets that promote social interactions and healthy and active lifestyles in a safe and conducive environment. With plans to introduce more greenery and enhanced public spaces, there will be more opportunities for visitors to enjoy the outdoors.

We are currently looking at reimagining Singapore Racecourse as a future leisure destination that celebrates both its equestrian heritage and lush green spaces, and to complement it with the nature-based Wildlife Reserves attractions in the adjoining Mandai area with Edu-adventure and wellness offerings. 

In early November, STB and Airbnb Experiences jointly developed an exclusive co-branded destination portal on the Airbnb platform; Singapore is the first and only international destination to have such a portal on the platform. Titled Singapore Virtual Trips, this portal provides destination content and highlights a curated lineup of Online Experiences, developed by our tourism industry partners.

While the overall tourism recovery takes time, here in India, we continue our trade and consumer engagement initiatives to keep Singapore in the mind space of the Indian travellers and be ready to welcome them when international travel resumes. We are working alongside partners in India to share relevant destination content and updates in travel experiences. A most recent collaboration is with ‘BookMyShow’ to give users a glimpse of the iconic culture and beauty of Singapore. Themed ‘My Singapore Connect – Where passions meet’, this initiative brings together acclaimed talents from India and Singapore, through a four-part web series, released exclusively on the streaming platform BookMyShow Online, on November 28th & 29th and December 5th & 6th.

We will continue to embark on initiatives to ensure Singapore remains top-of-mind and the destination of choice among our future visitors, when the time is right for them to visit.

 

 

 There is a pent-up demand for international travel. Our travel trade partners tell us that Indians are raring to travel. We are already seeing plenty of interest and queries for destination South Africa, especially from Indian business and leisure travellers. At South African Tourism, we expect to see Indian traffic to the destination early in 2021, subject to border restrictions and connectivity.

 

 

 

 News about the second Covid-19 wave is creating a certain amount of uncertainty. However, there is also hope of a vaccine being rolled out soon.

We are aware of the effect the pandemic has on the global economy, and have been repackaging accordingly, with the intent to offer consumers’ excellent deals and discounts. Safety measures are transparent and well-communicated and have been factored into overall packages so that there is no surprise or extra-cost to travellers. We are also in conversation with several airlines to figure out how we can best optimize and reduce travel costs.

In addition, attractive currency exchange rates make South Africa a lucrative, value for money long-haul destination. There are alluring experience options for both – the high-end planner and those on a budget.

Prior to the pandemic, we announced the rolling out of e-visas for the Indian market. While pilot runs were ongoing, the pandemic hit us, thus delaying the process. We want to assure Indian travellers that we are focused on issuing e-visas as soon as possible, as we want to make it as easy as possible for Indians to come to South Africa.

We want travellers to come back enriched after an easy, fluid journey.

 

 

 

 Experience-seeking millennials, HNIs and the family-oriented middle-class segments are anticipated to be the driving force behind leisure travel recovery, while MICE travel can be expected to recover early next year albeit with smaller group sizes. These travellers are now actively seeking safety assurance and good deals – and the competitive pricing edge that South Africa has over most other long-haul international destinations will go a long way in aiding travel conversions.

 

We are looking at introducing newer, customized experiences, products and itineraries for the rising FIT traveller segment. Given that travellers are predicted to seek offbeat destinations, with good connectivity and a large number of activities within confined areas – we anticipate that South Africa’s new regions and geographies will be a hit with Indian travellers post-Covid.

 

Ms. Elisa Robles Fraga, Director – Tourism Office of Spain in India

We are living in the most unprecedented times and no one really can predict the future. Travel industry players have started finding innovative ways to survive the impact of Covid-19. It is important to stay ahead of the game by taking experiences virtual, follow all hygiene and safety protocols, build and regain traveler confidence. Recovery of international tourism largely depends on the time taken to contain the pandemic at a global level. If the pandemic is contained sooner than later, then travel demand will immediately begin to rebound and we can be optimistic about looking at international tourism recovery.  

Tourism remains in survival mode due to the pandemic, and continued government support for the sector is needed. Spain has declared a sustainable economic package to support and reboot tourism sector in Spain. Some of the major challenges faced due to the pandemic are: maintaining a balanced image of the destination, restoring traveler confidence, providing clear information backed by figures to limit any uncertainty, build a more resilient, sustainable tourist destination. Another challenge has been staying ahead of the digital curve and using digital methods and mediums to clearly communicate and connect with travel partners, stakeholders and end consumers.

We also expect self-drives to be popular with Indian travellers given that South Africa has some of the most beautiful self-drive routes in the world. The fact that Indian licenses are valid in South Africa is a huge bonus!

We anticipate that the immersive travel trend will continue in a post-Covid world, with a greater focus on sustainability. This means that travellers will be more conscious of where they spend their money, what kind of accommodation they choose, where they dine, and how they travel locally. Towards this, we intend to educate consumers regarding our sustainable product offerings and ecotourism experiences, like cycling tours, nature safaris, conservation projects and rural experiences.

 

 

Elliott L. Ferguson II, President & CEO, Washington DC

UN panel predicts “International Tourism won’t come back until late 2021”. Comment.

According to Tourism Economics, international visitation to the United States is not expected to reach its prior peak until 2025.

International tourism continues to be extremely important for Washington, DC. Though overseas visitors only represent 7 percent of the total number of visitors to DC, international visitors [overseas visitors plus visitors from Canada and Mexico] represented 27 percent of visitor spending for 2019.

Prior to COVID-19, India was Washington, DC’s third overseas market, according to visitation data from 2019, and India remains an important market for us.

 

We continue to engage with media and tour operators. We have in-market representation through Indiva Marketing. Earlier this year, we launched an online-based global travel agent training program designed to train and engage with travel agents around the world who are interested in becoming Washington, DC experts.

While Washington, DC remains in phase two of reopening, we continue to see modifications for restaurants and attractions as well as new testing requirements for travelers. We encourage those considering travel to Washington, DC to visit our website,washington.org, where we have the latest information.

There will continue to be an increased focus on cleanliness, health and safety, even post-pandemic. As an industry, we will need to focus on building consumer confidence with travel.

Travelers will expect enhanced communication about these processes and the procedures in place throughout their travel experience.

 

We are hoping the recent positive news of the rapid vaccine development will also help the travel and tourism industry.

Travelers will be looking for family-friendly destinations as well as budget-conscious experiences, two things that Washington, DC is especially known for.

Visitors to the District will be able to experience the city’s monuments and memorials as well as our collection of Smithsonian museums, which are all free of charge.

We have also seen several new attractions open the past few months including the Planet Word Museum, the world’s first voice-activated museum, as well as the new National Native American Veterans Memorial.