Travel, Tourism Faced Unprecedented Losses due to COVID-19 Lockdown

Travel, Tourism & Hospitality has faced unprecedented losses and damages over the last four months, President of the Tourism and Aviation Committee of the Egyptian Junior Business Association (EJB) and Egyliere Travel CEO Mohamed Kaoud says.

The United Nations World Tourism Organization (UNWTO) recently announced that the COVID-19 pandemic and countrywide lockdowns across the globe have cost a shocking $320 billion loss in just four months from January to May as the number of tourists dropped by almost a half compared to 2019 accounting for 300 million missing visitors.

This decline in travel is more than three times as much as the slump counted in the 2009 global economic crisis took place. For the entire 2020, the UN trade and development arm said earlier this month that tourism could lose as much as $2.2 trillion.

However, it is expected that more people will be traveling in the coming days as countries have started reopening their borders to visitors from a few countries from late July and early August.

UNWTO recently published an analysis that shows nearly 40% of all destinations across the world have now eased the restrictions. About 87 destinations have eased travel restrictions only four have lifted all restrictions completely.

Meanwhile, the remaining 83 have eased certain restrictions while keeping some measures such as the partial closure of borders in place. Also, the latest edition of the UNWTO Travel Restrictions Report shows that nearly 115 destinations (53% of all destinations worldwide) continue to keep their borders completely closed for tourism.

Governments have a dual responsibility: to prioritize public health while also protecting jobs and businesses. In order for the Ministry of Tourism and Antiquities of Egypt with the government to achieve this formula, the government needs to act smartly and differently on micro and macro levels.

All stakeholders from the private sector and government should have a strong belief that the resumption of tourism can be undertaken responsibly and in a way that safeguards public health alongside supporting businesses and livelihoods.

As destinations continue to ease travel restrictions, international cooperation is highly important to gain the trust of the governments and travelers. Most EU countries are still having concerns about Egypt that need to be tackled efficiently and promptly.

Germany has listed UAE, Uganda & Rwanda as safe destinations while douting Egypt’s transparency and efficiency on COVID19 Cases handling.

Egypt needs to compromise on the Russian case and sort this prolonged case before it is too late. Russia started perting travel to Turkey sea destinations, a matter which would create stronger competition.

Egypt should explore Portugal's insurance approach. The Portuguese national tourism body recently launched new travel insurance for foreign tourists traveling to the country in the wake of the COVID-19 pandemic as a part of the ‘new normal.

The insurance has been introduced to showcase that the country is safe for travelers and covers a range of different expenses, including medical, surgical, pharmaceutical, and hospital charges associated with coronavirus with other expenses that may occur from cancellation, interruption, or the extension of trips.

Some governments are considering reviving its tourism industry with a revised strategy of “high value, low volume”. Egypt could aim to attract niche tourists and high-end tourists even though the budget tourists comprise the bulk of Egypt tourists.

Saudi Arabia has joined hands with Europe’s biggest hotel group Accor for expanding and operating a resort at the $20 billion Al-Ula tourism project in the kingdom’s northwestern region, said the Royal Commission for the project.

Besides, major investments are taking place in Neom and the Red Sea. Malaysia managed to attract strategic investors Tayrona Capital from Singapore to invest $350 million in tourism, hospitality, and entertainment projects at the second most popular destination in Malaysia, Melaka.

Egypt needs to work on such major investment projects and provide opportunities for foreign direct investment in its beautiful destinations.

Last but not least, a strong emphasis on local travel and setting the regulations that safeguard public health while flourishing domestic tourism.