The world has and continues to suffer sizeable losses and setbacks due to COVID-19. Not least among those setbacks is the shock to the Travel & Tourism sector. As 90% of the global population adjusted to life under travel restrictions and others stayed home in fear of the virus itself, the sector came to a near-total standstill. Communities reliant on tourism, large and small, are bearing the burden of zero revenues, and millions have been furloughed or laid off in a matter of months. Indeed, more than 121 million global Travel & Tourism jobs and an estimated US$3.4 trillion in global GDP could be lost as a result of COVID-19 according to WTTC’s baseline scenario; a figure which could reach 197 million jobs before the end of the year according to our downside scenario due to lack of international coordination and international leadership.
Despite this, leaders in the Travel & Tourism private sector have remained strong and steadfast in the face of adversity. In recent months, the industry has worked to improve traveller safety, provide for their workforce, and support local communities. In effect, industry leaders see the crisis as an opportunity to further enable the sector's inclusive and sustainable growth. While governments have extended some support, more is needed, both in terms of coordination and the implementation of enabling policies to support the sector’s recovery. To ultimately rebuild traveller confidence, it will be critical to have a global coordinated approach, improve the current seamless travel experience, embrace the integration of new technologies, and enact global health and hygiene protocols.
As we re-imagine the future of Travel & Tourism, and explore policy recommendations, four trends are expected to lead the way through recovery and beyond:
The preferences and behaviours of travellers have shifted toward the familiar, predictable, and trusted. Domestic vacations, extensive planning, and outdoor activities will reign supreme in the short term, with tourism businesses and destinations already adjusting.
Health, safety and trust are paramount in this new era. Personal experiences, the fear of being stuck in another country, and concerns for distancing will guide consumer behaviour in the short- to mid-term. Businesses will have to collaborate even more closely with their extended value chains to ensure readiness.
COVID-19 is proving to be an unexpected catalyst in the Travel & Tourism sector’s quest for innovation and the integration of new technologies. Amid stay-at-home orders, digital adoption and consumption are on the rise, with consumers now expecting contactless technologies, among others, as a basic prerequisite for a safe and seamless travel experience.
From widespread unemployment and anti-racism movements to natural habitat restoration, the world has been reenergized to address social, environmental, and institutional sustainability. Increased public awareness of wildlife markets and poaching, in particular, has boosted wildlife protection advocacy.
As the sector moves through the stages of recovery, it will be critical to consider and implement a variety of policies to help it. Policies ranging from international coordination of border openings to the development of common standards and the support of workers to the significant expansion of testing availability will be critical in the initial phase. As the sector adapts to the next normal, it should consider policies incentivising travel, facilitating seamless coordination, and enhancing upskilling while rethinking the workplace, among others. As the sector strengthens its resilience, governments can strengthen environmental protections, engage more closely with local communities, and collaborate with the private sector to create and implement a new workforce vision. Finally, improved coordination within and between governments, as well as alignment between the public and private sectors, will be critical to achieving recovery.