Despite being one of the most hit sector as a result of the covid-19 pandemic, the travel and tourism industry is one of the biggest industries in the world. The World Tourism and Travel Council (WTTC) offer a figure of US$8.9 trillion as its total value added, representing 10.3% of global GDP. This includes both domestic and international tourism, for business and leisure. They further suggest that 71% of spending is for domestic tourism, leaving 29% for international. Looked at another way, they estimate that 79% is for leisure tourism and only 21% for business. Presumably visiting family and friends is included under leisure, while conferences and meetings are under business. This means that, by WTTC calculations, international tourism contributes about US$2.6 trillion to the global economy. This is different from the estimate provided by the UN World Tourism Organization (UNWTO) which is only US$1.5 trillion in receipts, and consequently rather less in value-added. Part of the discrepancy probably lies in the inclusion of multiplier effects by the WTTC.
The WTTC and the UNWTO are in broad agreement over the devastating effect of COVID-19 on the tourism sector. In June, the WTTC was forecasting a fall in international tourist arrivals between 41% and 73% for 2020. By August, it appeared to be leaning towards the worst-case scenario, after observing the return of some travel restrictions in the European market. In November, they estimated a drop of 73% in international tourist arrivals for Africa for 2020. According to the UNWTO, international tourist arrivals fell by 81% in July and 79% in August, 2020 compared to 2019. In late October, they estimated a fall in international arrivals of roughly 70% for 2020, with the rebound only starting in the third quarter of 2021. They estimate it will take between 3 and 4 years to return to 2019 levels.
The above trend only point to a difficult time for most players in the hotel and tourism sector! It will only be a matter of survival for the fittest. Organizations will need robust skills and excellent people systems that ensures resilience in the workforce to be able to weather through to the good times. Mentor HRS team of Tourism experts will work with you to craft the best people strategies to help you not only maintain your team, but also allow them perform to their best during these uncertain times. Remember, your most important asset as a company during difficult time remain your people and you will need serious strategic investment in this area to keep heads up.