Canada Association of Tourism Employees

Submit-pandemic Tourism: What Does the Future Maintain?

The Covid-19 pandemic is having a drastic impact on the tourism industry worldwide. Countries are suffering economically, business people are going bankrupt and the entire sector is being decimated after these tough 14 months.

Evidence of this is the UN report from October 2020 that up to 120 million jobs in the tourism sector were at risk and the industry could lose $ 1 trillion in sales in 2020. UN Secretary General Antonio Guterres stated in a statement that it is necessary to rebuild the tourism industry after the pandemic as it is one of the most important sectors of the world economy.

The importance of tourism

The importance of tourism cannot be overestimated. The sector accounts for 10% of world GDP and provides work for millions of people around the world.

Tourism is an important part of the consumption model of modern man, which meets the needs for leisure, contact with the environment, recreation and recreation.

For providers of tourism services, tourism is an idea for running a business, an opportunity to make money, a job. At the same time, however, tourism also poses certain threats to the environment and must therefore be regulated to a certain extent.

What will tourism look like after the pandemic?

Given the obvious importance of tourism to the economy, a number of questions need to be answered for the future. Will it be possible to rebuild the global tourism industry and when? Will the industry be exposed to structural and qualitative changes? What changes can be expected?

The future of tourism is also related to the problems that were known before the pandemic and that are sure to make themselves felt. For example, the environmental impact of long-distance travel, especially by air.

Another pre-pandemic problem that may wake up is overtourism. That is, overly frequent and numerous visits to some attractive destinations in terms of their capacity. The most notable examples of this phenomenon are the cities of Venice and Barcelona.

In addition, other trends such as the search for transformation experiences or the increasing popularity of bleisure (the combination of the English words “business” and “leisure”) are likely to play an important role in the post-pandemic tourism context.

Growing demand for wellness tourism

What could tourism look like after the pandemic? In the UK, during the height of the pandemic, it was found that over 33% of UK consumers believe that health and wellbeing are an integral part of their lives, compared to 23% before the pandemic.

Almost half of those surveyed would like breaks to cope with the psychological stress of the pandemic. For many of them (42%), “recharging batteries” is the priority for Covid-19 vacations.

Another study by the Wellness Tourism Association found that nearly 78% of people in 48 countries will have wellness trips on their itinerary if restrictions are lifted. Most respondents said escaping the stress of everyday life during a pandemic, connecting with nature and feeling rejuvenated were the top reasons for booking a wellness trip.

In general, it must be said that the pandemic has made many people aware that they must act preventively and invest in their health and well-being. Because of this, wellness will definitely be an important part of post-pandemic tourism.


Warming demand with empirical travel segments

In its August 2020 study of its tourism recovery plan, TRALAC points out that the increasing demand for hotel services requires a robust marketing strategy and the flexibility to respond to changes in consumer preferences that require a focus on empirical travel segments.

After the crisis, the appetite for recreational travel will shift towards the VFR (visiting friends and family) and FIT (Free Independent Travel) segments, where lower density venues will be popular.

Experienced travelers with a wealthy budget and fearless travelers will represent the segment with the highest potential, according to TRALAC specialists. Consumers will be more focused on their health and wellbeing, getting value for money, and avoiding crowded places while carefully planning their trip.

In the context of tourism after the pandemic, it is very likely that the trend towards independent digital distribution and booking will accelerate. Domestic business travel is expected to recover relatively early, while conventions and exhibitions are among the last to recover.

Domestic tourism will initially focus on local experiences, particularly day trips and weekend programs, as well as business trips to key customers and suppliers. Visitor attractions and experiences will play a key role in this early phase and will help build trust.

Customers who have previously opted for a vacation abroad opt for a vacation at home instead. This is an opportunity to attract new domestic demand in the tourism sector after the pandemic.

Increase in the popularity of domestic travel

With regard to domestic travel, the current preference for this sector raises the question of whether this is a long-term trend and in which countries there is potential for growth in this regard.

Skift Research analyzed tourism flows in important markets in autumn 2020. The analysis assumes this Outbound travel expenses are diverted to domestic travel while income from inbound tourism is withheld.

In practice, the situation is likely to be less extreme, as international travel costs are typically two to five times higher than domestic travel, domestic travel tends to be shorter, and not all international travel is rerouted internally.

And which countries have the latent potential for an early return to “normal” tourism and which are facing the greatest challenges? In this new situation, China wins the most alongside Germany, Great Britain and Russia, while the US could lose the most in real money, followed by Spain and Thailand.

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