How is the world changing for the travel and tourism Industry?
Team Veye | 05 May 2020
All over the world, airline industry turmoil has been deepening with the spread of coronavirus. With each passing day, it is now becoming apparent that the airline industry will wear the scars of the coronavirus pandemic for a very long time.
The Federal government had announced a relief package, waiving a range of fees to help support the sector as Australia’s aviation and tourism sectors have suffered from a massive drop-off in international visits to Australia. Coupled with the new requirements that all international arrivals self-isolate for 14 days, the impact had been further devastating.
The tourism industry currently accounts for 10% of global GDP. With travel likely to face a huge slump, the coronavirus epidemic can put millions of jobs in the global travel and tourism sector at risk.
The World Travel and Tourism Council has warned that once the outbreak is over, it could take up to 10 months for the industry to recover. The net impact would depend on how long the epidemic lasts and could still be exacerbated by recent restrictive measures. By sector, airlines and cruise ships were currently being more impacted than hotels.
Such demand shocks aren't new to the airline industry. In this century alone, it has weathered the storms caused by the September 11 attacks and the 2002-04 severe acute respiratory syndrome (SARS) pandemic. But people in the industry affirmed that never before they had seen a shock of this magnitude affecting the entire world for what looks as if it will be a very long time.
This time around, Governments will have to take some tough decisions to weather the storm. It will have to choose some measures very prudently as to whether to infuse liquidity, nationalize, or let the airlines fall.
It will be noteworthy to watch whether fewer flights and fewer airlines drive the fare up or lower fuel prices give it a fillip.
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