Tourism Will Not Be the Same, Warns European Travel Commission
The travel industry has stopped to exist as it was, job losses could be monumental and the industry’s recuperation will rely on domestic and short-haul travel, the head of the European Travel Commission (ETC) has warned about tourism.
Eduardo Santander, ETC executive director, gave the warning as the commission published a quarterly report noting travel to Europe would fall by more than half this year than 2019.
The report, European Tourism: Trends & Prospects, states: “Consumer activity is starting to pick up, with increased flight bookings for destinations such as Greece, Portugal and Spain for July and August.”
But it warns of “monumental” job losses in Europe’s tourism sector, ranging from 14 million to about 30 million, and suggests: “Tourism as we knew it has ceased to exist.”
The report concludes recovery from the Covid-19 crisis is probably going to be quicker and progressively stable in destinations that depend most on domestic and short-haul travellers.
It notes, “Uncertainty dominates and the duration of pandemic restrictions will be key to determine the losses in the sector.
“The pace of recovery will vary and depend on the extent to which [destinations] rely on international source markets and the revival of consumer confidence.”
It also argues, “A sector traditionally characterised by human interactions will now have to provide the same intangible aspects through more touchless methods.”
The report notes about the first half of the year, “Croatia (-86%) and Cyprus (-78%) saw the biggest declines [in visitors], reflecting the significant losses of key source markets such as Italy and the UK.
The report suggests mentioning a recent rise in bookings to Greece, Portugal and Spain, “Leisure visitors account for the bulk of new tickets, but recovery has been stronger among travellers aiming to visit friends and relatives.”
It concludes: “The likelihood of a stable and quick recovery of demand is greater for destinations that rely more heavily on domestic and short-haul travellers [as] remaining international travel restrictions, uncertainty around transport availability [and] heightened risk aversion increase consumer preference for travelling closer to home.”
The ETC recommends Germany, Norway and Romania will prove the strongest markets and warns Croatia, Montenegro and Iceland are at greater risk given much higher dependence on international demand.
Almost 45% of travellers across Europe are domestic visitors, while short-haul arrivals count for three in four (77%) visitors.
Santander said: “We have been talking for so long about sustainable growth, climate change, digitalisation and innovation, this is an opportunity to press the reset button.”