International tourist arrivals plunged 93% in June when compared to 2019, with the latest data from the World Tourism Organization showing the severe impact COVID-19 has had on the sector. According to the new issue of the World Tourism Barometer from the United Nations specialized agency, international tourist arrivals dropped by 65% during the first half of the year. This represents an unprecedented decrease, as countries around the world closed their borders and introduced travel restrictions in response to the pandemic.
Over recent weeks, a growing number of destinations have started to open up again to international tourists. UNWTO reports that, as of early September, 53% of destinations had eased travel restrictions. Nevertheless, many governments remain cautious, and this latest report shows that the lockdowns introduced during the first half of the year have had a massive impact on international tourism. The sharp and sudden fall in arrivals has placed millions of jobs and businesses at risk.
Counting the economic cost
According to UNWTO, the massive drop in international travel demand over the period January-June 2020 translates into a loss of 440 million international arrivals and about US$ 460 billion in export revenues from international tourism. This is around five times the loss in international tourism receipts recorded in 2009 amid the global economic and financial crisis.
Safe and responsible international travel is now possible in many parts of the world, and it is imperative that governments work closely with the private sector to get global tourism moving again
UNWTO Secretary-General Zurab Pololikashvili said: “The latest World Tourism Barometer shows the deep impact this pandemic is having on tourism, a sector upon which millions of people depend for their livelihoods. However, safe and responsible international travel is now possible in many parts of the world, and it is imperative that governments work closely with the private sector to get global tourism moving again. Coordinated action is key.”
All global regions hit hard
Despite the gradual reopening of many destinations since the second half of May, the anticipated improvement in international tourism numbers during the peak summer season in the Northern Hemisphere did not materialize. Europe was the second-hardest hit of all global regions, with a 66% decline in tourist arrivals in the first half of 2020. The Americas (-55%), Africa and the Middle East (both -57%) also suffered. However, Asia and the Pacific, the first region to feel the impact of COVID-19 on tourism, was the hardest hit, with a 72% fall in tourists for the six-month period.
At the sub-regional level, North-East Asia (-83%) and Southern Mediterranean Europe (-72%) suffered the largest declines. All world regions and sub-regions recorded declines of more than 50% in arrivals in January-June 2020. The contraction of international demand is also reflected in double-digit declines in international tourism expenditure among large markets. Major outbound markets such as the United States and China continue to be at a standstill, though some markets such as France and Germany have shown some improvement in June.
Looking ahead, it seems likely that reduced travel demand and consumer confidence will continue to impact results for the rest of the year. In May, UNWTO outlined three possible scenarios, pointing to declines of 58% to 78% in international tourist arrivals in 2020. Current trends through August point to a drop in demand closer to 70% (Scenario 2), especially now as some destinations re-introduce restrictions on travel.
The extension of the scenarios to 2021 point to a change in trend next year, based on the assumptions of a gradual and linear lifting of travel restrictions, the availability of a vaccine or treatment and a return of traveller confidence. Nonetheless, despite this, the return to 2019 levels in terms of tourist arrivals would take between 2½ to 4 years.
As restrictions on travel begin to ease globally, destinations around the world are focusing on growing domestic tourism, with many offering incentives to encourage people to explore their own countries. According to the World Tourism Organization (UNWTO), with domestic tourism set to return faster than international travel, this represents an opportunity for both developed and developing countries to recover from the social and economic impacts of the COVID-19 pandemic.
Recognizing the importance of domestic tourism, the United Nations specialized agency has released the third of its Tourism and COVID-19 Briefing Notes, -Understanding Domestic Tourism and Seizing its Opportunities.- UNWTO data shows that in 2018, around 9 billion domestic tourism trips were made worldwide – six times the number of international tourist arrivals (1.4 billion in 2018). The publication identifies ways in which destinations around the world are taking proactive steps to grow domestic tourism, from offering bonus holidays for workers to providing vouchers and other incentives to people travelling in their own countries.
Domestic tourism to drive recovery
UNWTO Secretary-General Zurab Pololikashvili said: “UNWTO expects domestic tourism to return faster and stronger than international travel. Given the size of domestic tourism, this will help many destinations recover from the economic impacts of the pandemic, while at the same time safeguarding jobs, protecting livelihoods and allowing the social benefits tourism offers to also return.”
UNWTO expects domestic tourism to return faster and stronger than international travel
The briefing note also shows that, in most destinations, domestic tourism generates higher revenues than international tourism. In OECD nations, domestic tourism accounts for 75% of total tourism expenditure, while in the European Union, domestic tourism expenditure is 1.8 times higher than inbound tourism expenditure. Globally, the largest domestic tourism markets in terms of expenditure are the United States with nearly US$ 1 trillion, Germany with US$ 249 billion, Japan US$ 201 billion, the United Kingdom with US$ 154 billion and Mexico with US$ 139 billion.
Initiatives to boost domestic tourism
Given the value of domestic tourism and current trends, increasing numbers of countries are taking steps to grow their markets, UNWTO reports. This new Briefing Note provides case studies of initiatives designed to stimulate domestic demand. These include initiatives focused on marketing and promotion as well as financial incentives. Examples of countries taking targeted steps to boost domestic tourist numbers include:
In Italy, the Bonus Vacanze initiative offers families with incomes of up to EUR 40,000 contributions of up to EUR 500 to spend in domestic tourism accommodation.
Malaysia allocated US$113 million worth of travel discount vouchers as well as personal tax relief of up to US$227 for expenditure related to domestic tourism.
Costa Rica moved all holidays of 2020 and 2021 to Mondays for Costa Ricans to enjoy long weekends to travel domestically and to extend their stays.
France launched the campaign #CetÉtéJeVisiteLaFrance (‘This Summer, I visit France’) highlighting the diversity of destinations across the country.
Argentina announced the creation of an Observatory for Domestic Tourism to provide a better profile of Argentine tourists.
Thailand will subsidize 5 million nights of hotel accommodation at 40% of normal room rates for up to five nights.
A majority of destinations around the world (53%) have now started easing travel restrictions introduced in response to the COVID-19 pandemic. Though many remain cautious in view of the development of the pandemic, the seventh edition of the UNWTO “COVID-19 Related Travel Restrictions: A Global Review for Tourism” confirms the ongoing trend towards the gradual restart of tourism.
Analysing restrictions up to 1 September, the research carried out by the United Nations specialized agency for tourism found that a total of 115 destinations (53% of all destinations worldwide) have eased travel restrictions, an increase of 28 since 19 July. Of these, two have lifted all restrictions, while the remaining 113 continue to have certain restrictive measures in place.
UNWTO Secretary-General Zurab Pololikashvili said: “Coordinated leadership and enhanced cooperation between governments means tourism is slowly but steadily restarting in many parts of the world. Starting to ease restrictions on travel opens also the doors for tourism’s social and economic benefits to return. While we must remain vigilant and cautious, we are concerned about those destinations with ongoing full travel restrictions, especially where tourism is a lifeline and economic and social development are under threat.”
Deepening tourism intelligence
Coordinated leadership and enhanced cooperation between governments means tourism is slowly but steadily restarting in many parts of the world
For the first time, the COVID-19 Related Travel Restrictions report includes key data on the health and hygiene infrastructure in place at destinations, while also analysing rate of notifications of new COVID-19 cases. This allows UNWTO to determine the factors that are influencing destinations’ decisions to ease restrictions. Notably, the report shows:
Destinations which have eased travel restrictions generally have high or very high levels of health and hygiene infrastructure. They also tend to have comparatively low COVID-19 infection rates.
Within advanced economies, 79% of tourism destinations have already eased restrictions. In emerging economies, just 47% of destinations have done so.
64% of those destinations which have eased have a high or medium dependence on air as a mode of transport for international tourism arrivals.
At the same time, the report shows that many destinations around the world are extremely cautious about easing travel restrictions they introduced in response to the pandemic and some have passed severe measures in an attempt to keep their citizens safe. 93 destinations (43% of all worldwide destinations) continue to have their borders completely closed to tourism, of which 27 have had their borders completely closed for at least 30 weeks.
Furthermore, more than half of all destinations with borders completely closed to tourism are classified as being among the World’s Most Vulnerable Countries. They include 10 SIDS (Small Island Developing States), one Least Developed Country (LDC) and three Land-Locked Developing Countries (LLDCs). More than half of destinations with full restrictions still in place are also highly dependent on aviation, with at least 70% of their tourist arrivals coming by air, causing significant connectivity impacts for their citizens and economies.
UNWTO continues to monitor the impact of COVID-19 on the tourism. From the start, the UN specialized agency has advised that the situation is fluid and that, even as tourism restarts in some regions, in others, restrictions may be tightened and borders re-closed. Similarly, UNWTO has observed a rise in travel advisories being issued by governments for their own citizens, alongside more and varied restrictions and other measures directed at passengers arriving from specific countries or regions.
If tourism brings us together, then travel restrictions keep us apart.
More importantly, restrictions on travel also prevent tourism from delivering on its potential to build a better future for all.
This week the United Nations Secretary-General launched the Policy Brief “COVID-19 and Transforming Tourism”, which UNWTO assumed the lead role in producing.
This landmark report makes clear what is at stake – the threat of losing tens of millions of direct tourism jobs, the loss of opportunities for those vulnerable populations and communities who stand to benefit most from tourism, and the real risk of losing vital resources for safeguarding natural and cultural heritage across the world.
Tourism needs to thrive, and this means that travel restrictions must be eased or lifted in a timely and responsible manner. It also means that policy decisions need to be coordinated across borders to face up to a challenge which does not care about borders! “COVID-19 and Transforming Tourism” is a further element in the roadmap for the sector to regain its unique status as a source of hope and opportunity for all.
This is true for both developing and developed nations, and all governments and international organizations have a stake in supporting tourism.
But we can only call on governments to back up strong words with equally strong actions if we move first and take the lead. As destinations open up again, we are resuming in-person visits, to show support, to learn, and to build confidence in international travel.
On the back of our successful visits to destinations in Europe, UNWTO delegations are now seeing first-hand how the Middle East is ready to restart tourism safely and responsibly. In Egypt President Abdel Fattah el-Sisi and his government made clear how strong, targeted support, has saved jobs and allowed tourism to weather this unprecedented storm. Now iconic sites such as the Pyramids are ready to welcome back tourists, with the safety of both tourism workers and tourists themselves a priority. Similarly, the government of Saudi Arabia has warmly welcomed UNWTO and expressed a firm commitment to continue building the Kingdom’s tourism sector, first for domestic visitors and then international visitors.
The pandemic is far from over. As cases across the world make clear, we must be ready to act fast to save lives. But it also now also clear that we can also take decisive action to protect jobs and safeguard the many benefits tourism delivers, both for people and planet.
A high-level delegation from the World Tourism Organization (UNWTO) has concluded an official visit to Egypt to offer firm support for the government’s work to restart tourism and direct its benefits towards supporting livelihoods and preserving cultural heritage.
As the United Nations released its landmark Policy Brief on COVID-19 and Transforming Tourism, with Secretary-General Antonio Guterres outlining his Five Priorities for rebuilding the sector, UNWTO visited Egypt to help guide the implementation of these key recommendations. Led by the UNWTO Secretary-General Zurab Pololikashvili, the delegation met with President Abdel Fattah El Sisi and the Minister of Tourism and Antiquities Dr. Khaled Al-Anani to learn of the steps taken to support tourism, including through the merging of the ministries of antiquities and tourism and the provision of grants and incentives to the sector. Mr Pololikashvili also met with Prime Minister Moustafa Madbouly to learn more of work being undertaken to boost consumer confidence and guarantee the safety of both tourism workers and tourists.
Tourism adapting to new reality
The United Nations has made clear the importance of tourism for everything from employment to equality, making it an integral part of sustainable development
The high-level talks, which also featured an update on large-scale tourism projects currently underway, including the new Grand Egyptian Museum and the National Museum of Egyptian Civilization, were complemented by visits to several of Egypt’s most popular tourist sites. This allowed the UNWTO delegation to see first-hand the enhanced safety and hygiene protocols put in place in response as the sector adjusts a new reality within the context of the COVID-19 pandemic.
UNWTO Secretary-General Zurab Pololikashvili said: “The safe restart of tourism is not only possible, it is essential. The United Nations has made clear the importance of tourism for everything from employment to equality, making it an integral part of sustainable development. Egypt, as one of the world’s leading tourist destinations, has supported the sector with firm actions, including effective fiscal and economic policies. It is now ready to welcome tourists back to its many sites of interest, all the while putting people and their wellbeing first.”
Private sector and institutional partnerships
Alongside meeting with the Egyptian government, the UNWTO Secretary-General also met with the Egyptian Tourism Federation and the Federation of Tourist Chambers. Both outlined the measures being taken to adapt safety protocols in tourist accommodation and other key services to the new reality. Visits to the world-famous Pyramids, the National Museum for Egyptian Civilization and to one of the country’s top marine tourism destinations likewise provided a broad overview of the joined-up approach to the safe and responsible restart of tourism.
The visit to Egypt came as UNWTO and the European Bank for Reconstruction and Development (EBRD) work together to provide help guide and accelerate the recovery of tourism in the country. Egypt is one of a first group of 13 countries that will benefit from expert technical support as the two organizations build on their existing partnership to support tourism as it recovers from the devastating impacts of the COVID-19 pandemic.
The joint initiative will see the tourism sectors of all 38 economies where the Bank invests benefit from expert technical support, allowing them to introduce new safety and hygiene protocols and so boost confidence and revive demand.
As part of the wider UN response to COVID-19, the UN Secretary-General Antonio Guterres released today a thematic brief on the impact the pandemic has had on tourism. Drawing on the latest data from the World Tourism Organization (UNWTO), the lead author of the publication, it warns that as many as 100 million direct tourism jobs are at risk, and the massive drop in export revenues from tourism could reduce global GDP by as much as 2.8%. The brief stresses that tourism is an essential pillar of the SDGs and the most vulnerable workers and nations are at greatest risk.
Tourism has been among the hardest hit of all sectors by COVID-19 and no country has been unaffected, with restrictions on travel and a sudden drop in consumer demand leading to an unprecedented fall in international tourist numbers.
The “COVID-19 and Transforming Tourism” Policy Brief from the Secretary-General of the United Nations, Antonio Guterres, makes clear the impact that the pandemic has had on global tourism and how this affects everything from jobs and economies to wildlife conservation and the protection of cultural heritage.
Mr Guterres said: that “It is imperative that we rebuild the tourism sector” in a “safe, equitable and climate friendly” manner and so “ensure tourism regains its position as a provider of decent jobs, stable incomes and the protection of our cultural and natural heritage”. The UN Secretary-General further underscored that tourism is one of the world’s most important economic sectors, providing “livelihoods to hundreds of millions more”, while it “boosts economies and enables countries to thrive”, and at the same time allowing “people to experience some of the world’s cultural and natural riches and brings people closer to each other, highlighting our common humanity”.
It is imperative that we rebuild the tourism sector ensure tourism regains its position as a provider of decent jobs, stable incomes and the protection of our cultural and natural heritage
The Brief warns that the impacts of the pandemic on tourism are already placing conservation efforts in jeopardy. Citing case studies from around the world, it warns that the sudden fall in tourism revenues has cut off funding for biodiversity conservation and, with livelihoods at risk in and around protected areas, cases of poaching and looting are expected to rise. Again, the impact on biodiversity and ecosystems will be particularly critical in SIDS and LDCs. Furthermore, with 90% of World Heritages Sites having closed as a result of the pandemic, both tangible and intangible heritage is at risk in all parts of the world.
Five points priorities moving forward
UNWTO Secretary-General Zurab Pololikashvili said: “Tourism touches on nearly every part of our societies and is a cornerstone of growth and employment, both in developed and developing economies. The United Nations Secretary-General echoes the five key priority areas that UNWTO has identified for tourism to return and drive wider recovery, and both governments and the private sector now have a duty to put this plan into action.”
The Policy Brief notes that women, youth and workers in the informal economy are most at risk from job losses and business closures across the tourism sector. At the same time, destinations most reliant on tourism for jobs and economic growth, including SIDS) and Least Developed Countries (LDCs) are likely to be hardest hit, including through an anticipated fall in foreign direct investment (FDI).
In addition to calling for strong support for the sector in mitigating these massive impacts, the Brief stresses that this crisis represents an opportunity to rethink tourism, including how it contributes to the SDGs. To this end, the Policy Brief provides Five Priorities for the restart of tourism, all aimed at ensuring a more resilient, inclusive and carbon neutral sector. These priorities are:
Mitigate socio-economic impacts on livelihoods, particularly women’s employment and economic security.
Boost competitiveness and build resilience, including through economic diversification and encouragement of MSMEs.
Advance innovation and digital transformation of tourism
Foster sustainability and green growth
Enhanced focus on coordination, and responsible leadership
Alongside penholder UNWTO, a further 11 United Nations agencies contributed to the Policy Brief, highlighting the sector’s unique importance and outreach.
The cost of the restrictions on travel introduced in response to the COVID-19 pandemic is there for all to see.
Between January and May, the sudden and rapid fall in tourist arrivals cost an estimated $320 billion. That’s three times greater than the impact of the Great Recession of 2007-2009 on our sector – and this is just for the first five months of the year.
The re-opening of borders to tourism is a welcome relief to millions who depend on our sector. But this alone is not enough, especially in view of recent announcements and measures which seem further and further away from the international coordination that UNWTO has been calling for since the pandemic erupted.
In these uncertain times, people around the world need strong, clear and consistent messages. What they don’t need are policy moves which ignore the fact that only together are we stronger and able to overcome the challenges we face.
Those in positions of leadership and influence have recognized the importance of tourism for jobs, economies and rebuilding trust. This is only the first step. Now, they must do everything they can to get people travelling again, following and implementing all the protocols which are part of the new reality.
As UNWTO has said from the start of this crisis, governments have a duty to put the health of their citizens first. However, they also have a responsibility to protect businesses and livelihoods. For too long, and in too many places, the emphasis has overly focused on the former. And we are now paying the price.
It doesn’t have to be this way. As a sector, tourism has a long history of adapting and responding to challenges head-on.
In recent weeks, global tourism has led the way in finding and implementing solutions that will help us adapt to the new reality as we wait for a vaccine that could be many months away. Rapid but rigorous testing at ports and airports, and tracing and tracking apps have the potential to drive the safe restart of tourism, all of which builds on the learning curve of the behaviour of individuals and societies during these difficult past months.
These solutions need to be fully embraced, not just cautiously explored. To delay will be a catastrophe and risk undoing all the progress we have made to establish tourism as a true pillar of sustainable and inclusive development.
Moreover, it will be the most vulnerable members of our societies who will be hit the hardest as those most shielded from the economic and social consequences of tourism’s standstill urge continued caution.
Short-sighted unilateral actions will have devastating consequences in the long run. By and large, people have learned how to behave in a responsible way. Businesses and services have put protocols in place and adapted their operations. Now it's time for those making the political decisions to close the gaps, so that we all can advance together.
