Euromonitor: Global Tourism will Take 3-5 years to Recover from Covid-19

Global tourism will take at least three-five years to recover from Covid-19, but players are finding innovative ways to survive the impact of the coronavirus pandemic, says Euromonitor International in its latest report.

The “Accelerating Travel Innovations after Coronavirus” report by Euromonitor will be launched on the first day of WTM Virtual, on November 9.

According to Euromonitor, provided the pandemic is contained within a year and demand begins to rebound in 2021, it is expected for airlines to take a minimum of four years to recover, whilst lodging and intermediaries will take even longer.

Drawing on Euromonitor International’s bank of innovation concepts across 100 countries, it will reveal how the travel industry is innovating in order to survive the seismic impact of coronavirus that brought global travel and tourism to an abrupt halt in 2020.

Travel sector falling behind

Meanwhile, travel is lagging behind other sectors when it comes to recovery, according to Euromonitor’s Voice of Industry Survey, which says travel is falling behind other industries, such as consumer goods, retail and packaging, when it comes to overall engagement with the 17 Sustainable Development Goals (SDGs) that make up the United Nation’s 2030 agenda.

There are also bigger challenges for the UK, which is also feeling the pressure from the possibility of a no deal Brexit on top of Covid-19.

“The economy is forecast to contract by 11 percent in 2020 in the baseline scenario, with a potential rebound in 2021 of 5 percent, providing that there is not a prolonged period of social distancing measures,” said Caroline Bremner, head of travel research at Euromonitor International.

“Unemployment is expected to double to around 8 percent, which could triple in a worst-case scenario of extended business and consumer restrictions for another year. Inbound tourism receipts are expected to fall by 49 percent in 2020 in a best-case scenario,” Bremner added.

Nature-based activities significant for tourism

The Euromonitor International report further refers to the post-lockdown rise in demand for nature-based activities such as wild camping, trekking and wild swimming, also noting  that Covid-19 has taken an enormous toll on mental wellbeing as a result of regular routines replaced by confinement and social isolation.

For example, Scotland’s Glentress in the Tweed Valley is working with Developing Biking in Scotland (DMBinS), Napier University and Scottish Borders on a therapeutic recovery program to measure the psychological benefits of biking.

With unemployment levels expected to rise, it will be important than ever to ensure sustainable, nature-based experiences are accessible to all, including the most vulnerable groups.

Sixty five percent of travel businesses in the Nordics are implementing a sustainability strategy, 10 percent higher than the global average, and 46 percent said that they were purpose driven, noticeably higher than the average.

Sustainability is also a key feature in half of the new products and services being developed in the region, infusing the triple pillars into new product development (npd) and innovation, while 80 percent see the value of sustainability for developing resilience.

To find out more on travel innovations alongside the latest case studies in Europe, Asia, The Americas and Middle East & Africa, you can pre-register here to receive the full report.

WTM Virtual will take place during November 9-11, offering delegates the chance to arrange one-to-one virtual meetings to do business, attend conference sessions and roundtables, take part in speed networking and more.

The Greek Travel Pages (GTP) is an official media partner of WTM Virtual.