This is the moment to rethink tourism models
Dimitra Voziki
France Office Director
Greek National Tourism Organisation
Unprecedented times. Unprecedented crisis. A global sanitaire crisis which is evolving into a socioeconomic crisis that our generation has neither seen before nor imagined. With 2.6 billion of earth’s population into some kind of lockdown for the past two months, the World Economic Forum talks about the largest psychological experiment ever. The world was not ready for this.
Most experts, underline that the economic downturn on the 2020 global GDP may reach a negative of -6% and a comeback to prior crisis growth is not to be expected before 2023. If these estimations prove themselves correct, we will be talking about the worst economic downturn since the Great Depression.
Our industry was the hardest hit and will be the last to recover. The World Tourism Organization expects international tourism arrivals in 2020 to fall up to 20%-30%. OECD estimates that the implied shock could amount up to a 45%-70% decline in the international tourism economy, while WTTC underlines that around 75 million jobs globally are being at stake due to the current crisis.
Governments across the globe are taking public bullock measures that cost trillions of dollars in order to support the economy and the tourism sector in particular. France, the most visited country in the world, has already announced public bullock measures of billions of euros in order to support tourism businesses and employment.
Taking all the above into account, it is most probable that recovery will be of U shape, this meaning that positive evolutions are not to be expected before the end of 2020. Moreover, security and health safety will be the top priorities for the vast majority of travellers, while it is crystal clear that domestic tourism will be the first type of tourism to start moving. This is why, at the moment, all countries are designing promotional campaigns in order to boost demand for domestic markets.
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Millennials, FIT travellers and travellers who seek adventure will probably be the ones to start planning seamless holidays abroad as soon as travel restrictions are lifted. Mass tourism as we know it is not expected to start recovering before the end of 2020 and this
is only if there is no second Covid -19 wave. MICE tourism would be the last to recover.
On the other hand, everybody will need to be closer to nature and reconnect with oneself, while popular tourism sites will be avoided for some time. Green and responsible tourism that respects local environment and culture is the answer to this type of demand. This is the moment to rethink tourism models, invest and promote green and responsible tourism as the main trend for the years to come.
Digital transformation has to become a top priority for all business, while the governments should support them in order to adapt successfully to this new environment. The right use of technology can be a valuable asset that can absolutely transform once’s business in terms of management, sales and o course customer experience.
Our industry is facing an immense challenge indeed. In order to set the basis for future growth on solid grounds we should all reconsider tourism as we know it. This is the time to react, rethink and thus recover. The path will not be an easy one, but if we stick together, if we set the right priorities for people and businesses, we shall recover stronger than before.
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