Page 39 - August 2020
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SPECIAL FEATURE:  TOURISM & RETAIL INVESTMENT




                                                                                                                                 By  regions, Asia  Pacific,  the  first  region  to  suffer  the
                                                                                                                               impact of the pandemic, saw a 60 per cent decrease in
                                                                                                                               arrivals in January-May 2020. Europe recorded the second
                                                                                                                               strongest decline with 58 per cent fewer arrivals, followed
                                                                                                                               by the Middle East with a 51 per cent decline, then the
                                                                                                                               Americas and Africa both 47 per cent decline.
                                                                                                                                 At  the  sub-regional  level,  Southern-Mediterranean
                                                                                                                               Europe  with  a  66  per  cent  drop  and  North-East Asia
                                                                                                                               region  with  a  65  per  cent  decline  suffered  the  largest
                                                                                                                               drop. Arrivals in South-East Asia, Oceania, the Caribbean,
                                                                                                                               Northern Europe, Western Europe, Central and Eastern
                                                                                                                               Europe were down 50 per cent or more.
                                                                                                                                 The UNWTO update continues, saying that Tourism
                                                                                                                               is  showing  signs  of  a  gradual  but  still  cautious  change
                                                                                                                               in  trend  in  the  Northern  Hemisphere  peak  summer
                                                                                                                               season,  particularly  in  Europe. As  of  15  June  2020,  22
                                                                                                                               per cent of all destinations worldwide (48 destinations
                                                                                                                               including  seven  Small  Island  Developing  States)  had
                                                                                                                               started  to  ease  restrictions,  with  Europe  leading  the
                                                                                                                               way. However, most destinations worldwide continued
                         THE EFFECTS OF COVID-19 ON THE INDUSTRY      of  the  Covid-19  on  international  tourism.  For  its  initial   to have their borders completely closed to international
                           For  The  effect  of  the  Covid-19  outbreak  has  had   assessment, UNWTO takes the SARS scenario of 2003 as   tourism.  The  Canada-US-Mexico  border,  one  of  the
                         a  massive  impact  on  the  travel  industry.  Globally,  the   a benchmark, factoring in the size and dynamics of global   busiest  borders  in  the  world,  has  remained  closed  to
                         pandemic  has  grounded  major  airline  services  and  as   travel  and  current  disruptions,  the  geographic  spread  of   non-essential travel since March. The closure has been
                         people were advised to stay home to prevent the spread of   Covid-19 and its potential economic impact.  extended at least until 21 August.
                         the virus, the lack of passengers’ demand of air travel also   In  its ‘World Tourism  Barometer: Volume  18  –  Issue   However, the outlook is still highly uncertain as new
                         hit the industry. According to a report, nearly 90 per cent   4  –  July  2020  Update,  the  UNWTO  revealed  that  the   cases of Covid-19 continue to be reported worldwide.
                         of the world’s population now lives in countries with travel   pandemic has caused an unprecedented level of disruption   Some countries have returned to partial lockdowns and
                         restrictions.  However,  the  outbreak  also  caused  several   to travel and tourism, which is reflected in the collapse of   curfews, and borders remain closed in the majority of
                         jobs at risk as airlines, travel companies and the tourism   global travel since mid-March. International tourist arrivals   countries, all in a context of deep economic recession
                         sector as a whole are among the most affected businesses.  (overnight visitors) saw a decrease of 56 per cent in the   in 2020.
                           For now, the effects of the coronavirus on the tourism   first five months of 2020 over the same period of last year,
                         industry  have  been  monumental.  Global  passenger   according to data reported so far by destinations.  SO WHERE DO WE GO FROM HERE?
                         traffic  is  expected  to  see  a  decrease  of  4.6  billion   In the month of May international arrivals were down   According to a World Travel and Tourism Council report,
                         travellers in 2020. While the loss in total global airport   an unprecedented 98 per cent, reflecting widespread travel   figures emerge that the Covid-19 pandemic could affect 50
                         revenue is a quite staggering amount, set to come in at   restrictions  in  nearly  all  destinations  worldwide,  amid   million jobs worldwide in the travel and tourism industry,
                         $97bn, according to trade association Airports Council   measures to contain the spread of the Covid-19 pandemic.   but it is not all doom and gloom for the sector.
                         International (ACI) world.                   This  followed  an  already  massive  97  per  cent  drop  in   Industry  experts  now  believe  that  the  use  of  digital
                           Research from the ‘Tourism and Covid-19’ report from   international tourist arrivals in the month of April.  technologies  such  as  digital  identity  and  biometrics
                         the World Tourism  Organisation  (UNWTO)  shows  that   All  world  regions  and  sub-regions  saw  a  decrease  in   technologies could ensure a seamless journey during and
                         the  tourism  sector  has  been  one  of  the  hardest-hit  by   international  arrivals  in  May  for  the  second  consecutive   post-pandemic  scenario.  However,  these  tools  will  only
                         the  outbreak  of  Covid-19,  with  impacts  on  both  travel   month, in the range of 90 per cent to 100 per cent. The   be  effective  if  users’  data  is  protected,  privacy,  consent
                         supply  and  demand.  Considering  the  evolving  nature  of   decline amounts to 120 million fewer international arrivals   and transparent data governance must be in place while
                         the  situation,  it  is  too  early  to  estimate  the  full  impact   in May, after a drop of 113 million in April.  leveraging any technical solution.
                                                                                                                                 There  are  several  travel  tech  companies  and  start-
        #ONLY YOU                                                                                                              ups providing effective solutions to assist travellers amid
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                                                                                                                               the  crisis.  For  instance, WishTrip,  a  SaaS-based  tourism
                                                                                                                               experience  management  platform,  is  helping  its  clients
                                                                                                                               through this difficult time. The company’s customer success
                                                                                                                               team went to work thinking of new and revolutionary ways
                                                                                                                               to support destinations stay connected with their visitors
                                                                                                                               and potential visitors, create income during shutdown and
                                                                                                                               plan for the future.
                                                                                                                                 Because of Covid-19, new innovations in travel technology
                                                                                                                               are appearing as the clamour for people wanting to travel
                                                                                                                               again  only  increases. To  this  end,  PriestmanGoode  have
                                                                                                                               designed  a  new  concept  for  aircraft  cabin  interiors  that
                                                                                                                               features dirt trap-free surfaces and “colour psychology” to
                                                                                                                               alleviate passenger anxiety. The project, called Pure Skies,
                                                                                                                               saw  the  London  studio  redesign  business-and  economy-
                                                                                                                               class  cabins  to  be “future-proof”  against  potential  new
                                                                                                                               pandemics. Colour-changing ink on the seat fabric could
                                                                                                                               inform passengers that the cabin has just been cleaned, and
                                                                                                                               unhygienic elements such as pockets would be removed
                                                                                                                               from seatbacks.

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