Travel and tourism industry still facing hurdles to fully recover from COVID-19 crisis
The global travel and tourism industry is recovering but still facing hurdles including uneven vaccine distribution, capacity constraints, labour shortages, and supply chain disruption
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Global travel
and tourism industry was hit hard by the COVID-19 pandemic. The travel
restrictions imposed to contain COVID-19 spread severely affected the growth of
travel and tourism sector. The industry is slowly recovering despite facing
hurdles.
The global
travel and tourism sectors are projected to return to pre-pandemic levels in
2023 and grow at a rate that will outpace global gross domestic product (GDP)
growth, the World Travel and Tourism Council (WTTC) said on Thursday.
Most countries
have already lifted the travel restrictions as COVID-19 cases decreased
globally. The health restrictions are lifted, and growing demand for domestic
and nature-based tourism increases. However, overall international tourism and
business travel remain below pre-pandemic levels.
As the
sector recovers, it will be important to take steps that embed long-term
inclusivity, sustainability, and resilience as it continues to face evolving
challenges and risks. “Covid shutdowns have re-emphasised the important
contribution that the travel and tourism industry makes to many economies
around the world,” said Lauren Uppink, the head of aviation, travel, and
tourism at the World Economic Forum.
“As the world emerges from the pandemic,
economies must invest in building a strong and resilient environment to deliver
the travel and tourism experience and services for many decades to come.”
Despite
positive trends, the travel and tourism sector is still facing many hurdles
with its recovery. This includes uneven vaccine distribution, capacity
constraints, labour shortages, supply chain disruptions, and more.
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According to
the UNWTO, the difference in international tourist arrivals between just
January 2021 and January 2022 is greater than arrivals growth in all of 2021.
“Government,
business and civil society leaders can address barriers to recovery by looking
at the different factors that can support the long-term development and
resiliency of their respective travel and tourism economies,” added Uppink.
“This will
require decision-makers to restore consumer confidence and international
openness by prioritising such things as enhanced health and security measures,
encouraging inclusive labour practices, improving environmental sustainability,
and investing in digital technology.”
The industry
is expected to post an annual average growth rate of 5.8% from 2022 to 2032
versus the 2.7% increase in global GDP, and create 126 million new jobs, WTTC
said in a report released during the industry group's conference in Manila.
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"The
recovery is going to be so stellar that it's going to recover really
powerfully. This does depend of course on China reopening," said WTTC
President Julia Simpson, calling on all governments to reopen borders.
China's
"zero COVID" policy and persistent lockdowns have disrupted global
trade and domestic and international travel. The travel and tourism industry's
GDP is seen hitting $8.35 trillion this year and $9.6 trillion in 2023, a
return to its pre-pandemic level.
Tourism jobs
are projected to recover to 300 million this year and 324 million in 2023,
close to the 333 million seen in 2019, WTTC said. In Asia-Pacific alone, the
hospitality industry's GDP will likely hit $3.4 trillion in 2023, already above
the $3.3 trillion it saw in 2019, it said.
Rukhsana Manzoor Deputy Editor
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