International travel levels tipped to soar again in 2022
A sense of optimism has returned to the tourism sector. Image: Unsplash/Blake Guidry
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Stay up to date:, travel and tourism.
- Until the COVID-19 pandemic, the global tourism sector had seen almost uninterrupted growth for decades.
- Now there are signs the travel sector is bouncing back after 'the worst year in tourism history'.
- The UNWTO's latest World Tourism Barometer shows an increase of 182% for international tourism in the first three months of 2022 compared to the previous year.
- While optimism builds, the tourism industry is still vulnerable to new variants of COVID-19, the war in Ukraine and global economic conditions.
While few industries have been spared by the impact of the Covid-19 pandemic over the past two years, even fewer have been hit as hard as the tourism sector . After " the worst year in tourism history ", international tourist arrivals increased by just 5 percent in 2021, as travel restrictions remained in place for protracted periods in many parts of the world. International tourist arrivals once again fell more than one billion short of pre-pandemic levels, keeping the industry at levels last seen in the late 1980s.
Prior to the coronavirus outbreak, the global tourism sector had seen almost uninterrupted growth for decades. Since 1980, the number of international arrivals skyrocketed from 277 million to nearly 1.5 billion in 2019. As our chart shows, the two largest crises of the past decades, the SARS epidemic of 2003 and the global financial crisis of 2009, were minor bumps in the road compared to the Covid-19 pandemic.
A sense of optimism for the tourism industry
Almost six months into 2022, a sense of optimism has returned to the tourism sector, as travel demand finally shows signs of a significant uptick. According to the UNWTO's latest World Tourism Barometer , international tourism increased by 182 percent in the first three months of 2022 compared to the previous year. While that's still 60 percent below 2019 levels, the uptick in international arrivals gathered pace in March, pointing towards a strong second quarter leading into the summer holiday season.
As the following chart shows, the UNWTO now expects international tourist arrivals to reach 55 to 70 percent of 2019 levels this year, which is equivalent to a 90 to 140 percent improvement over 2021. While confidence is slowly building in the industry, there are some big ifs to consider. Not only could Covid make a comeback in the fall or whenever a more lethal variant emerges, but the war in Ukraine, inflation and global economic conditions could also stifle tourism's return.
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A new report launched in March 2021 also shows that despite the COVID-19 pandemic’s unprecedented disruption, 93% of Global Lighthouse Network factories achieved an increase in product output and found new revenue streams.
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Tourism Enjoys Strong Start to 2022 while Facing New Uncertainties
- All Regions
- 25 Mar 2022
International tourism continued its recovery in January 2022, with a much better performance compared to the weak start to 2021. However, the Russian invasion of Ukraine adds pressure to existing economic uncertainties, coupled with many Covid-related travel restrictions still in place. Overall confidence could be affected and hamper the recovery of tourism.
Based on the latest available data, global international tourist arrivals more than doubled (+130%) in January 2022 compared to 2021 - the 18 million more visitors recorded worldwide in the first month of this year equals the total increase for the whole of 2021.
While these figures confirm the positive trend already underway last year , the pace of recovery in January was impacted by the emergences of the Omicron variant and the re-introduction of travel restrictions in several destinations. Following the 71% decline of 2021, international arrivals in January 2022 remained 67% below pre-pandemic levels.
Europe and Americas perform strongest
All regions enjoyed a significant rebound in January 2022 , though from low levels recorded at the start of 2021. Europe (+199%) and the Americas (+97%) continued to post the strongest results, with international arrivals still around half pre-pandemic levels (-53% and -52%, respectively).
The Middle East (+89%) and Africa (+51%) also saw growth in January 2022 over 2021, but these regions saw a drop of 63% and 69% respectively compared to 2019. While Asia and the Pacific recorded a 44% year-on-year increase, several destinations remained closed to non-essential travel resulting in the largest decrease in international arrivals over 2019 (-93%).
By subregions , the best results were recorded by Western Europe, registering four times more arrivals in January 2022 than in 2021, but 58% less than in 2019. Additionally, the Caribbean (-38%) and Southern and Mediterranean Europe (-41%) have shown the fastest rates of recovery towards 2019 levels. Indeed, several islands in the Caribbean and Asia and the Pacific, together with some small European and Central American destinations recorded the best results compared to 2019: Seychelles (-27%), Bulgaria and Curaçao (both -20%), El Salvador (-19%), Serbia and Maldives (both -13%), Dominican Republic (-11%), Albania (-7%) and Andorra (-3%). Bosnia and Herzegovina (+2%) even exceeded pre-pandemic levels. Among major destinations Turkey and Mexico saw declines of 16% and 24% respectively as compared to 2019.
Prospects for recovery
After the unprecedented drop of 2020 and 2021, international tourism is expected to continue its gradual recovery in 2022 . As of 24 March, 12 destinations had no COVID-19 related restrictions in place and an increasing number of destinations were easing or lifting travel restrictions, which contributes to unleashing pent-up demand.
The war in Ukraine poses new challenges to the global economic environment and risks hampering the return of confidence in global travel. The US and the Asian source markets, which have started to open up, could be particularly impacted especially regarding travel to Europe, as these markets are historically more risk averse.
The shutdown of Ukrainian and Russian airspace, as well as the ban on Russian carriers by many European countries is affecting intra-European travel. It is also causing detours in long-haul flights between Europe and East Asia, which translates into longer flights and higher costs. Russia and Ukraine accounted for a combined 3% of global spending on international tourism in 2020 and at least US$ 14 billion in global tourism receipts could be lost if the conflict is prolonged. The importance of both markets is significant for neighbouring countries, but also for European sun and sea destinations. The Russian market also gained significant weight during the pandemic for long haul destinations such as Maldives, Seychelles or Sri Lanka. As destinations Russia and Ukraine accounted for 4% of all international arrivals in Europe but only 1% of Europe’s international tourism receipts in 2020.
Economic uncertainty and pressures
Even though it is too early to assess the impact, air travel searches and bookings across various channels showed a slowdown the week after the invasion but started to rebound in early March.
It is certain that the offensive will add further pressure to already challenging economic conditions, undermining consumer confidence and raising investment uncertainty. The Organisation for Economic Co-operation and Development (OECD) estimates global economic growth could be more than 1% lower this year than previously projected, while inflation, already high at the start of the year, could be at least a further 2.5% higher. The recent spike in oil prices (Brent reached its highest levels in 10 years), and rising inflation are making accommodation and transport services more expensive, adding extra pressure on businesses, consumer purchasing power and savings, UNWTO notes.
This forecast is in line with the analysis on the potential consequences of the conflict on global economic recovery and growth by the United Nations Conference on Trade and Development (UNCTAD), which has also downgraded its projection for world economic growth in 2022 from 3.6% to 2.6% and warned that developing countries will be most vulnerable to the slowdown.
Related links:
- Download the news release in PDF
- World Tourism Barometer | Volume 20 • Issue 2 • March 2022 Excerpt
- UNWTO Tourism Data Dashboard
- UNWTO and WHO: Travel Measures Should be Based on Risk Assessment
- “Work Together and Make Tourism a Pillar of Peace”: UNWTO Addresses EU Ministers
- The impact of the Russian offensive on Ukraine on international Tourism
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Recommendations for the tourism sector to continue taking action on plastic pollution during COVID-19 recovery
- Published on December 15, 2021
The Recommendations are available in all official languages of the UN ( English , French , Spanish , Arabic , Chinese , Russian ).
The Recommendations are addressed to tourism stakeholders with the aim of supporting them to continue fighting plastic pollution during the COVID-19 recovery. This document illustrates how reducing the plastic footprint, increasing the engagement of suppliers, working closer with waste service providers, and ensuring transparency on the actions taken, can significantly contribute to a responsible recovery of the tourism sector.
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A Comprehensive Survey on Travel Recommender Systems
- Original Paper
- Published: 09 October 2019
- Volume 27 , pages 1545–1571, ( 2020 )
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- Kinjal Chaudhari ORCID: orcid.org/0000-0003-2085-3062 1 &
- Ankit Thakkar 1
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Travelling is a combination of journey, transportation, travel-time, accommodation, weather, events, and other aspects which are likely to be experienced by most of the people at some point in their life. To enhance such experience, we generally look for assistance in planning a tour. Today, the information available on tourism-related aspects on the Internet is boundless and exploring suitable travel package/product/service may be time-consuming. A recommender system (RS) can assist for various tour-related queries such as top destinations for summer vacation, preferable climate conditions for tracking, the fastest way to transport, or photography assistance for specific destinations. In this survey, we have presented a pervasive review on travel and associated factors such as hotels, restaurants, tourism package and planning, and attractions; we have also tailored recommendations on a tourist’s diverse requirements such as food, transportation, photography, outfits, safety, and seasonal preferences. We have classified travel-based RSs and presented selection criteria, features, and technical aspects with datasets, methods, and results. We have briefly supplemented research articles from diverse facets; various frameworks for a travel-based RS are discussed. We believe our survey would introduce a state-of-the-art travel RS; it may be utilized to solve the existing limitations and extend its applicability.
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Chaudhari, K., Thakkar, A. A Comprehensive Survey on Travel Recommender Systems. Arch Computat Methods Eng 27 , 1545–1571 (2020). https://doi.org/10.1007/s11831-019-09363-7
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Recommendations and Way Forward for Tourism Industry: FICCI
The impact of COVID-19 on such a staggering scale is completely unprecedented. The pandemic caused countries to shut down, close their borders and restrict movement only to the most essential movement of goods and services. This led to many sectors and industries suffer from huge losses on a global scale. Among the sectors, Travel and Tourism has been severely impacted due to the restriction of movement, flights being cancelled, suspension of visas and fear of travelling due to health concerns.
Before the onset of the pandemic, the Indian travel and tourism industry was expected to witness an annual growth rate of 6.9% during 2019-2028 to reach USD 460 billion, approximately 9.9 per cent of India’s GDP in 2028.
FICCI’s recommendations and suggested way forward for the survival and revival of the Travel and Hospitality Industry
1. In view of the current situation, the moratorium on all working capital, principal, interest payments, loans and overdrafts need to be extended by another 1 year.
2. RBI’s resolution framework: One-time rescheduling of principal and interest dues of borrowers in Hospitality Sector may be permitted in line with the revised estimated cash flows of each project. While the proposed capping of extension in repayment tenor is 2 years based on the assumptions on which the projections are made, if the situation does not improve as expected, a provision should be made to extend this to 3-4 years. Further, the requirement of additional provisioning should be linked to the tangible security available with lenders, viz., additional provisioning at ‘5%’ for Security Cover more than/equal to 1.5-Times.
3. Given the current situation and the future of the hospitality industry which will take long to revive, we request if banks can be mandated to reduce the interest rate of borrowing to between 7-8%.
4. In case of projects under implementation: The sudden nation-wide lock-down and subsequent migration of labour etc. has seriously hindered on-going construction work of various projects. Therefore, considering for the locked-down period & the remobilization efforts, the Banks/FIs may be permitted to extend the DCCO by 1 year, without treating it as restructuring (in addition to the time period already allowed).
5. Stimulus package to stabilize and support the sector in the near term, including a workforce support fund to ensure that there are no job losses.
Hospitality Sector being a large employment generator and worldwide, various governments are providing monetary support to the extent of 60-80% of salary expenses for the next 2-3 years as a special relief to keep retrenchments/job losses at lower side.
6. Lending to MSMEs in the Hospitality sector may be treated as ‘Priority Sector lending’, which will enable increased access to bank finance. GOI may consider supporting borrowers in the hospitality sector with payment/reimbursement of Six Month’s interest and providing 5% interest subventions for coming 2-3 years to ensure continuity in business operations/ survival of players in the Hospitality Sector.
7. Electricity and water to tourism & hospitality units should be charged at a subsidized rate and on actual consumption against fixed load.
8. The Service Exports from India Scheme (SEIS) scrips which is due to the tour operators for the financial year 2018-2019 must be paid at the earliest. This is only possible if the Government starts accepting the forms. This amount of SEIS will help all destination management companies in tiding over this crisis period with the much-needed working capital
9. Restoration of SEIS scrips for duty credit of 10% to Tourism, Travel & Hospitality Industry.
10. Create a separate Tourism fund under the aegis of Ministry of Tourism to support the Hospitality and Travel Industry in this time of crisis. The fund should be accessible to the Industry as a collateral free 10-year loan. The first 2 years should be interest free and thereafter, a very minimum rate of interest should be applicable for the remaining 8 years. This will help businesses to stabilize till Tourism gets back on track.
11. Grant infrastructure status to all hotels to allow them to avail electricity, water and land at industrial rates as well as better infrastructure lending rates with access to larger amounts of funds as external commercial borrowings. It will also make them eligible to borrow from India Infrastructure Financing Company Limited (IIFCL). This has been a long-standing request of the industry and in 2013, the Government granted infrastructure status only to new hotels with a project cost of more than Rs 200 crore each (excluding land costs). However, the status should be given across all hotels so that every hotel benefit from this status.
12. All Hotels should open – hotels have hosted Doctors, passengers returning on Vande Bharat flights and have followed all required protocols. So, they would be in a position to host the public as well. Allied services of Hotels like Restaurants, Spas, Bars should also open. Hotels should be given permission to host all kinds of banquets and conference in the hotel, with a ceiling of 50%of venue capacity and maintaining social distancing norm to allow hotels to earn some revenue when other source of business has dried up.
13. FICCI had also requested to create a separate Tourism fund under the aegis of Ministry of Tourism to help businesses to stabilize till Tourism gets back on track.
14. The Government should provide tax rebate of upto rupees 1.5 lakhs for spending on Domestic holidays in the lines of the Leave Travel Allowance (LTA).
15. A national tourism policy should be issued by the Ministry of Tourism, Government of India which covers common protocols for entry of a tourist into a state. This will act as a uniform guideline for all states to follow.
16. All the states and union territories should work in complete co-ordination with each other and the Centre under your leadership with a clear cut date to announce when they will open up the tourism activities so that this also gives time to the stakeholders to prepare themselves accordingly. The entry process and requirements for tourists to any state and union territory should be uniform and standard.
17. The states and union territories should have a targeted marketing campaign to communicate the safety measures taken by the Government at various tourist attractions and the private stakeholders to ensure the safety of the tourists when travelling to the destination This will help to educate tourists and build their confidence to travel for tourism purposes.
18. India should enter into a travel arrangement with Russia i.e. a travel bubble specifically between Russia and Goa, wherein people can fly in on a charter, stay in Goa and then fly back. Going by the number of Russians that come to Goa (almost 1.3 lakh in 2019-2020 out of the 2.1 lakh foreign arrivals) it would be a win-win situation for all as Goa has the hotel inventory as well as the flight inventory to cater to these tourists.
19. There are 11 Russian regions from where we get the maximum number of tourists and the bubble can be specifically between these regions and Goa.
The 11 regions in Russia are Moscow, Kazan, Perm, Ekaterinburg, Ufa, Rostov, Samara, St Petersburg, Novosibirsk, Krasnodar and Krasnoyarsk.
20. There should be no quarantine, travellers should be required to bring with them a Covid-negative test report, which would be good enough for them to board the aircraft. We can also incentivise it either by granting free visa to the first 1,000 tourists or anybody who arrives between October and November will be offered visas free of cost.
21. If this travel bubble succeeds, it can be replicated in other parts of the country.
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What is a tourism recommendation engine, two major recommendations made by tourism recommendation engine, 1. tour packages, 2. best destination.
It is true that the coronavirus pandemic hit the tourism industry with a storm. However, the industry bounced back once the lockdown norms started to ease. There were two major reasons for the gigantic comeback; the former was that people felt suffocated at one place, and the latter was that the tourism recommendation engine compelled people to come out of their homes and go to the places they loved the most. Some might wonder how a tool can do such a thing? Let us learn more about the tourism recommendation engine and how it helps the tourism industry in this blog.
To understand the tourism recommendation engine, we first need to know what a recommendation engine is. A recommendation engine is nothing but a tool that takes into account the past activities of users on a website and recommends products or services that they are most interested in. Here, past activities include browsing history, likes and dislikes, and demographics.
The tourism recommendation engine is when a recommendation engine starts taking into consideration the travel destinations of a country or anywhere in the world along with users’ interest to recommend tour packages, best destinations, or travel routes. To do so, they use different filtering techniques such as collaborative filtering, content-based filtering, or hybrid filtering. You can read more about different types of filtering techniques in this blog: Different Algorithms used in a Recommendation Engine .
Have you ever wondered how some recommendations of trips look like they are tailored made for only you? Well, because they are. Based on your past search history, browsing history, and your preferences of the ‘trips’ you choose to explore, the recommendation engine curates a list of all such trips and suggests it to you on your homepage. For this, the recommendation engine chooses content-based filtering. It will list down all the itineraries of the tour package you either liked or explored earlier. Based on these itineraries(also called metadata in the recommendation engine), it will curate a list of such tour packages. A basic example of this is when you search for a ‘bike trip to Las Vegas, it will suggest tour packages that will consist of the two most important entities’ bike trip’ and ‘Las Vegas.
The recommendation of ‘best destination’ can sometimes be common to all as the list will most likely include the topmost crowded tourist places. However, once you click on one of these destinations, all the rest of the recommendations will be tailored to you. For this, it uses a hybrid filtering system which means that it takes into consideration an individual’s choice as well as that of similar taste. For example, a recommendation engine will notice a place you explored, such as ‘Austria’. Now it will list down places similar to Austria and will also see what other people(the ones who have searched Austria) explore. Now the tool will accumulate both the lists and suggest the tour packages.
The tourism industry is one such industry where there is an abundance of options. A tourist can opt for the millions of websites claiming to be the best at what they do, and tourists also have the option of choosing a local guide. How to compete in such a scenario? By being up to date with the technologies that can take your organization to the next level. The recommendation engine is one such tool that helps personalize users’ browsing experience on your website, which is most likely to make them your customer. Start with exploring Alie , which offers multiple filtering techniques through which you can recommend a wide range of suggestions. Try the 14-day free trial of Alie now.
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Kritika Verma is an Associate Content Writer and works with Muvi Marketing Team. She is an inbound marketing professional and ensures high-quality traffic on the Muvi website through her blogs, articles, and more. She has an engineering background but always had a knack for writing. In her free time, she is either on Quora or on chess.com (Mostly losing).
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Recommendations to boost tourism industry
ABTO think tank group comes up with recommendations based on current tourism situation
Tourism: The Tourism Council of Bhutan Secretariat (TCBS) could be integrated as a department under the Ministry of Economic Affairs so that it can be governed within the government’s broader economic development, growth framework, and for better inter-governmental coordination.
This is among the recommendations that the think tank group that the Association of Bhutanese Tour Operators (ABTO) formed by the Association of Bhutanese Tour Operators (ABTO) highlighted in its report that was submitted to the government recently.
Titled “Bhutan Tourism Review and Recommendations 2016,” the think tank reviewed and analysed the current tourism situation and came up with several recommendations based on their findings.
It states that TCBS, as a department under the ministry, may be able to position tourism policy within the government’s broader economic development, growth framework, inter-governmental coordination and for recognising that tourism can play a significant part for a productive economy.
“The ministry could provide strategic direction and oversight of the tourism sector through establishment of appropriate institutional structure within the context of good governance,” it states.
Establishment of a tourism ministry was also proposed along with culture and environment. The move, according to the report, will not only provide the importance to the sector but also have proper institutional and management system in place.
The report states that given the gap between the Tourism Council of Bhutan (TCB) and TCBS, the secretariat functions independently without proper checks and balances in place. The report states that any gaps between TCB and TCBS result in problems not being resolved as it is left to the senior management level at TCBS with no higher empowered level to submit the numerous issues that need higher approvals.
The report also highlighted that in absence of an intermediary committee and the inability of the TCB to meet on a regular basis, the issues and concerns of tour operators and the tourism industry does not get deliberated as desired.
“This has also led to implementation of many ad hoc activities merely through note sheets approved by TCB chair or vice chair,” the report states. “This has undermined the full mandate of the Tourism Council and restricted wider and broader participation of TCB members in the decision making process.”
It has also been recommended that the government retain the existing tariff system. The report states that within the existing tariff system, if proper governance and management system, and infrastructure is put in place, the issue of seasonality and spread of tourism activities can be effectively addressed without diluting or undermining the principle of ‘high value, low impact’.
In addition, the think tank also recommended waiver of the USD 65 a day royalty for the entire duration for tourists entering through Samdrupjongkhar and Nganglam in the east. It was also proposed that there should be no charges for children under the age of five and below and no royalty for children of 6-12 years besides reduction of royalty by 50 percent for tourists after five days, among others.
Other options proposed under the tariff are doing away with the all-inclusive package tariff but retaining royalty during the lean season, tariff including royalty to be waived for tour leaders of a group with a minimum of 10 and above. It has also been proposed that Gelephu, Manas, Nganglam, Phuentsholing and Samdrupjongkhar be made royalty-free zones.
Another recommendation was the establishment of a tourism development bank to boost promotion and development. The report states that the bank is necessary to institute a separate banking service for the tourism industry.
It was suggested that the bank could be a division under Bhutan Development Bank Ltd and that such banking services would not only benefit people in the industry but also attract both local and foreign investors and streamline tourism investment requirements in the country.
With increasing number of tourist arrivals, tourism suppliers and service providers are bound to encounter numerous issues among themselves and with the clients. Hence, it was recommended that these issues be amicably resolved through proper arbitration and by having a mediation system in place.
“Arbitration can be used to settle alleged breaches of contract or negligence between consumers and service providers,” the report states. “Such schemes would allow dispute settlement without going to court. This would be speedier, less formal and would cost less than hiring lawyers.”
The think tank group also recommended setting up of criteria to become a tour operator. In this regard, the team submitted options such as setting minimum standards for tour operators based on specialisation such as adventure, nature, culture, trekking and sports, among others.
Development of guidelines for tour operations for general tourism and specialised services were also recommended.
The team also proposed the establishment of an award system in the industry to recognise individuals, companies and destinations for their contribution towards promotion and development of tourism in the country.
Besides recognising and publicly acknowledging contribution of individuals or teams, such an award system is expected to be an important tool to reinforce policy directions. Awards could be directed to encourage desired trends like recognising companies promoting or investing in less-visited areas.
Other recommendations include improvement in the existing marketing and promotion activities, tackling the increasing regional or non-tariff tourists, tax incentives, infrastructure development and waste management, among others.
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IMAGES
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