business tourism article

What is business tourism and why is it so big?

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In 2017, the world travel and tourism industry contributed more than $10 trillion dollars to the global economy. Of this amount, business tourism contributed a significant proportion, with a total of $1.23 trillion dollars.

Modern society transportation and infrastructure systems continue to revolutionise and therefore business tourism has the means to provide greater economic power than it has previously.

In this post, I will focus on the growing tourism industry of ‘business tourism’. I will explain what business tourism is, why business tourism is part of the tourism industry and provide a few examples of where business tourism takes place.

What is business tourism?

Definitions of business tourism, why is business tourism important, international exhibitors, corporate hospitality events, conferences, leisure time activities, benefits of business tourism, top business tourism destinations, business tourism in hong kong, business tourism in london, business tourism in new york, business tourism in toronto, business tourism in san francisco, business tourism: a conclusion, further reading.

Business tourism, or business travel, is essentially a form of travel which involves undertaking business activities that are based away from home.

The  United Nations World Tourism Organization  (UNWTO) defines tourists as people ‘traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes’, thus making business an important and integral sector of the tourism economy.

Business tourism activities includes attending meetings, congresses, exhibitions, incentive travel and corporate hospitality.

Academically, there isn’t a huge amount of literature on the characterisation of ‘business tourism’ or ‘business travel’. However, to quote from Davidson (1994) ‘Business tourism is concerned with people travelling for purposes which are related to their work.’

Business tourism represents one of the oldest forms of tourism, man having travelled for the purpose of travel since very early times” (cited in Bathia, 2006, p.272). To elaborate, business tourism is a means of travel that takes place for the primarily importance of a work-related activity.

Often the term ‘business tourism’ is described as ‘business traveller/travellers’.

There is a strong and correlative relation amongst a country’s economy and business tourism.

Business travellers are less cost sensitive on their expenditure as they themselves generally devote only a fraction of the cost. Research has shown that business travellers spend up to four times more during their trip than any other types of tourists . In fact, early research by Davidson and Cope , discovered that the ratio of daily expenditure by business travellers to that of leisure is generally situated somewhat between 2:1 and 3:1.

Therefore, business tourism provides significant economic contributions to the local and global economy. Business tourism also promotes the development for advanced infrastructure and transportation systems which also benefits other forms of tourism as well as the local population .

Business tourism also supports the hospitality industry, i.e. hotel bookings and restaurant bookings. This form of tourism also supports leisure tourism as business travellers tend to combine both activities together. This is referred as ‘bleisure tourism’, the combination of ‘business’ and ‘leisure’.

Business tourism activities

There are many forms of business tourism activities. Here I have demonstrated four key examples.

Business travellers may travel for the purpose of attending an exhibition. Exhibitions offer opportunities for businesses to connect with the international industry community. The exhibition industry entices two groups of people: those with something to sell and those who attend with a view to making a purchase of getting information.

Exhibitions come in all shapes and sizes depending on a person’s area of interest or work. As I have an interest in tourism I have attended a number of relevant travel exhibitions in recent years including ITB in Berlin and The World Travel Market in the UK.

Throughout many business excursions, the business traveller will have some form of meeting to attend during the course of their trip. Meetings may be appointments with clients; a board meeting at the present company or interstate of international branches; or an orientation meeting with staff at a new branch. Meetings can take place face-to-face or electronically using means such as Skype or FaceTime.

Corporate hospitality is a form of business travel that takes place when a corporation invites their guests to attend an event or an organised activity at no extra charge.

Corporate hospitality is a valuable tool used by corporations to foster relations, both internal and external to the company or to brand in influential circles. The extent to which corporate hospitality can yield tangible and intangible benefits is covered really well in the bestselling business book from award-winning restauranteur Danny Meyer, of Union Square Cafe, Gramercy Tavern, and Shake Shack entitled Setting the Table: The Transforming Power of Hospitality in Business .

A conference is a formal meeting of people with a shared interest. Conferences may last a day or they may last several days.

Conferences are common across a number of industries. Having worked in academia for a number of years, I have attended and presented at many conferences such as the ICOT conference in Thailand in 2017 and the International Conference on Sustainable Tourism in Nepal in 2018. I even won the three minute thesis competition at a PhD conference that I attended at the University of Staffordshire!

There are also many conferences and get togethers for travel bloggers that I am interested, such as TBEX , Traverse and Travel Massive .

Often in the business tourism literature you will come across the term MICE. MICE is a reference for Meetings, Incentives, Conferences and Events. The term MICE has been recognised as ‘The Meeting Industry’ according to the United Nations World Tourism Organisation .

The MICE industry contributes significantly to the wider business tourism sector. It is becoming increasingly recognised as a prominent part of the industry and is beginning to receive growing attention amongst the academic community. You can read a detailed article about MICE tourism here.

Along with the examples demonstrated above, business travellers also participate in leisure activities outside of their business commitments. These activities could range from dining out, sightseeing and other recreational activities. When I attended a conference in Nepal in 2017, for example, I took my mother in law and daughter along for the conference gala dinner where we took part in traditional Nepalese evening celebrations!

There are many benefits of business tourism. Notably, it brings economic value to the wider tourism industry as well as the local economy, for example through hotel bookings or sales of business travel backpacks . What many people forget to mention, however, are the benefits that business tourism can also have for the tourist!

I have travelled many times for business, whether this as part of my former Cabin Crew career, for an academic conference or to undertake consultancy work. Travelling frequently for work can yield many benefits for the individual, such as;

• Collecting frequent flier miles and redeeming these for personal use
• Becoming a member of hotel loyalty programmes and receiving associated benefits during both work and personal trips
• Saving money on things such as food and drink when attending corporate hospitality events
• Enhanced networking opportunities that may otherwise be inaccessible
• Taking advantage of leisure opportunities that may be otherwise inaccessible
• Enjoying the use of facilities, such as gyms or swimming pools, that may not otherwise be available to you

Business tourism destinations

There are a variety of business tourism destinations all across the world. However, this type of tourism is predominantly situated in global north countries. This is mainly because global north countries are developed countries and have the means to provide well equipped resources and infrastructure to makes business tourism easily accessible and thus desirable choices among business travellers.

According to Egencia , the corporate travel group collected data from flight booking and reservations during the years 2014 and 2018. Their collection of data led them to discover the top 20 destinations for global business tourism.

Following the list above, I have listed a set of examples of business tourism that are listed within the top ten destinations for global business tourism/travel.

Hong Kong ranks 8 th in the world for global business tourism and has been deemed one of Asia’s top choice for business travel. According to CTM , Central and Tsim Sha Tsui are the most popular commercial areas for business travel, with several hotels and business headquarters.

Hong Kong is the perfect destination for MICE (meetings, incentives, conferences and events) and in 2014, this form of tourism accounted for 1.82 million visitors.

There are around 283 hotels in Hong Kong.

There are a variety of things to do in Hong Kong during a business trip of the traveller is wanting to blend business and leisure together. A list of things to do are:

• Victoria Peak
• Tian Tan Buddha
• Victoria Harbour The Peak Tram

London ranks 2 nd in the world for global business tourism. London is the financial capital of the world and with this status comes several high-profile companies and is thought to be one of the best places to network and seek new business opportunities. This is why so many business tourists visit London for conferences, meetings and exhibitions.

London has around 1500 hotels.

There are a variety of things to do in London during a business trip of the traveller is wanting to blend business and leisure together. A list of things to do are:

• Buckingham Palace
• Coco Cola London Eye
• The British Museum
• Palace of Westminster

In 2019, New York was named the world’s top destination for business tourism for the fourth consecutive year. At no surprise when business travel flight bookings increased by more than 120% between 2014 and 2018.

New York is also a popular destination for business tourism as it offers a great deal of leisure activities and promotes the idea of blending business with leisure travel.

There are a variety of things to do in New York during a business trip of the traveller is wanting to blend business and leisure together. A list of things to do are:

• Statue of Liberty National Monument
• Central Park
• Empire State Building
• The Metropolitan Museum of Art

Toronto has been ranked the 5 th destination for global business tourism, outranking major commercial centres in the U.S.

Toronto (pronounced as “Traw-no” by the locals), is the financial capital of Canada. And according to Business Events, Toronto is the top Canadian domestic travel destination and the most popular choice for U.S sponsored association meetings outside the U.S.

In Toronto there are over 170 hotels which collectively has around 36,000 hotel rooms.

There are a variety of things to do in Toronto during a business trip of the traveller is wanting to blend business and leisure together. A list of things to do are:

• Royal Ontario Museum Art Gallery of Ontario

San Francisco has been ranked 7 th in the world for global business tourism.  According to The San Francisco Travel Association , San Francisco welcomed 18.9 million leisure visitors and 5.8 million business travellers in 2015.

According to Joe D’Alessandro, president and CEO of San Francisco Travel, San Francisco is “experiencing sustained growth in all market segments – domestic, international, leisure and business – as a result of our highly professional and sophisticated community of hotels, restaurants, cultural organizations and SFO, one of the finest airports in the world.” 

There are a variety of things to do in San Francisco during a business trip of the traveller is wanting to blend business and leisure together. A list of things to do are:

• Fisherman’s Wharf
• Golden Gate Bridge
• Golden Gate Park

Where business exists, the demand for business travel follows. Business tourism is predominantly located where good transportation systems are allocated, i.e. airports, taxis, railways. The choices of hotels and restaurants also attracts business travel.

Do you travel for business? What things do you look out for on your business trip? Are you a lover of combining business and leisure activities? Leave a comment below.

Like this post? For more on different types of tourism, I’d suggest reading my tourism glossary !

• Setting the Table: The Transforming Power of Hospitality in Business – The bestselling business book from award-winning restauranteur Danny Meyer, of Union Square Cafe, Gramercy Tavern, and Shake Shack
• Event Planning: The Ultimate Guide To Successful Meetings, Corporate Events, Fundraising Galas, Conferences, Conventions, Incentives and Other Special Events – An academic text focussing on MICE in the events industry
• The Business of Tourism – A introductory text to the tourism industry

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The future of tourism: Bridging the labor gap, enhancing customer experience

As travel resumes and builds momentum, it’s becoming clear that tourism is resilient—there is an enduring desire to travel. Against all odds, international tourism rebounded in 2022: visitor numbers to Europe and the Middle East climbed to around 80 percent of 2019 levels, and the Americas recovered about 65 percent of prepandemic visitors 1 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. —a number made more significant because it was reached without travelers from China, which had the world’s largest outbound travel market before the pandemic. 2 “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Recovery and growth are likely to continue. According to estimates from the World Tourism Organization (UNWTO) for 2023, international tourist arrivals could reach 80 to 95 percent of prepandemic levels depending on the extent of the economic slowdown, travel recovery in Asia–Pacific, and geopolitical tensions, among other factors. 3 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. Similarly, the World Travel & Tourism Council (WTTC) forecasts that by the end of 2023, nearly half of the 185 countries in which the organization conducts research will have either recovered to prepandemic levels or be within 95 percent of full recovery. 4 “Global travel and tourism catapults into 2023 says WTTC,” World Travel & Tourism Council (WTTC), April 26, 2023.

Longer-term forecasts also point to optimism for the decade ahead. Travel and tourism GDP is predicted to grow, on average, at 5.8 percent a year between 2022 and 2032, outpacing the growth of the overall economy at an expected 2.7 percent a year. 5 Travel & Tourism economic impact 2022 , WTTC, August 2022.

So, is it all systems go for travel and tourism? Not really. The industry continues to face a prolonged and widespread labor shortage. After losing 62 million travel and tourism jobs in 2020, labor supply and demand remain out of balance. 6 “WTTC research reveals Travel & Tourism’s slow recovery is hitting jobs and growth worldwide,” World Travel & Tourism Council, October 6, 2021. Today, in the European Union, 11 percent of tourism jobs are likely to go unfilled; in the United States, that figure is 7 percent. 7 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022.

There has been an exodus of tourism staff, particularly from customer-facing roles, to other sectors, and there is no sign that the industry will be able to bring all these people back. 8 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022. Hotels, restaurants, cruises, airports, and airlines face staff shortages that can translate into operational, reputational, and financial difficulties. If unaddressed, these shortages may constrain the industry’s growth trajectory.

The current labor shortage may have its roots in factors related to the nature of work in the industry. Chronic workplace challenges, coupled with the effects of COVID-19, have culminated in an industry struggling to rebuild its workforce. Generally, tourism-related jobs are largely informal, partly due to high seasonality and weak regulation. And conditions such as excessively long working hours, low wages, a high turnover rate, and a lack of social protection tend to be most pronounced in an informal economy. Additionally, shift work, night work, and temporary or part-time employment are common in tourism.

The industry may need to revisit some fundamentals to build a far more sustainable future: either make the industry more attractive to talent (and put conditions in place to retain staff for longer periods) or improve products, services, and processes so that they complement existing staffing needs or solve existing pain points.

One solution could be to build a workforce with the mix of digital and interpersonal skills needed to keep up with travelers’ fast-changing requirements. The industry could make the most of available technology to provide customers with a digitally enhanced experience, resolve staff shortages, and improve working conditions.

Would you like to learn more about our Travel, Logistics & Infrastructure Practice ?

Complementing concierges with chatbots.

The pace of technological change has redefined customer expectations. Technology-driven services are often at customers’ fingertips, with no queues or waiting times. By contrast, the airport and airline disruption widely reported in the press over the summer of 2022 points to customers not receiving this same level of digital innovation when traveling.

Imagine the following travel experience: it’s 2035 and you start your long-awaited honeymoon to a tropical island. A virtual tour operator and a destination travel specialist booked your trip for you; you connected via videoconference to make your plans. Your itinerary was chosen with the support of generative AI , which analyzed your preferences, recommended personalized travel packages, and made real-time adjustments based on your feedback.

Before leaving home, you check in online and QR code your luggage. You travel to the airport by self-driving cab. After dropping off your luggage at the self-service counter, you pass through security and the biometric check. You access the premier lounge with the QR code on the airline’s loyalty card and help yourself to a glass of wine and a sandwich. After your flight, a prebooked, self-driving cab takes you to the resort. No need to check in—that was completed online ahead of time (including picking your room and making sure that the hotel’s virtual concierge arranged for red roses and a bottle of champagne to be delivered).

While your luggage is brought to the room by a baggage robot, your personal digital concierge presents the honeymoon itinerary with all the requested bookings. For the romantic dinner on the first night, you order your food via the restaurant app on the table and settle the bill likewise. So far, you’ve had very little human interaction. But at dinner, the sommelier chats with you in person about the wine. The next day, your sightseeing is made easier by the hotel app and digital guide—and you don’t get lost! With the aid of holographic technology, the virtual tour guide brings historical figures to life and takes your sightseeing experience to a whole new level. Then, as arranged, a local citizen meets you and takes you to their home to enjoy a local family dinner. The trip is seamless, there are no holdups or snags.

This scenario features less human interaction than a traditional trip—but it flows smoothly due to the underlying technology. The human interactions that do take place are authentic, meaningful, and add a special touch to the experience. This may be a far-fetched example, but the essence of the scenario is clear: use technology to ease typical travel pain points such as queues, misunderstandings, or misinformation, and elevate the quality of human interaction.

Travel with less human interaction may be considered a disruptive idea, as many travelers rely on and enjoy the human connection, the “service with a smile.” This will always be the case, but perhaps the time is right to think about bringing a digital experience into the mix. The industry may not need to depend exclusively on human beings to serve its customers. Perhaps the future of travel is physical, but digitally enhanced (and with a smile!).

Digital solutions are on the rise and can help bridge the labor gap

Digital innovation is improving customer experience across multiple industries. Car-sharing apps have overcome service-counter waiting times and endless paperwork that travelers traditionally had to cope with when renting a car. The same applies to time-consuming hotel check-in, check-out, and payment processes that can annoy weary customers. These pain points can be removed. For instance, in China, the Huazhu Hotels Group installed self-check-in kiosks that enable guests to check in or out in under 30 seconds. 9 “Huazhu Group targets lifestyle market opportunities,” ChinaTravelNews, May 27, 2021.

Technology meets hospitality

In 2019, Alibaba opened its FlyZoo Hotel in Huangzhou, described as a “290-room ultra-modern boutique, where technology meets hospitality.” 1 “Chinese e-commerce giant Alibaba has a hotel run almost entirely by robots that can serve food and fetch toiletries—take a look inside,” Business Insider, October 21, 2019; “FlyZoo Hotel: The hotel of the future or just more technology hype?,” Hotel Technology News, March 2019. The hotel was the first of its kind that instead of relying on traditional check-in and key card processes, allowed guests to manage reservations and make payments entirely from a mobile app, to check-in using self-service kiosks, and enter their rooms using facial-recognition technology.

The hotel is run almost entirely by robots that serve food and fetch toiletries and other sundries as needed. Each guest room has a voice-activated smart assistant to help guests with a variety of tasks, from adjusting the temperature, lights, curtains, and the TV to playing music and answering simple questions about the hotel and surroundings.

The hotel was developed by the company’s online travel platform, Fliggy, in tandem with Alibaba’s AI Labs and Alibaba Cloud technology with the goal of “leveraging cutting-edge tech to help transform the hospitality industry, one that keeps the sector current with the digital era we’re living in,” according to the company.

Adoption of some digitally enhanced services was accelerated during the pandemic in the quest for safer, contactless solutions. During the Winter Olympics in Beijing, a restaurant designed to keep physical contact to a minimum used a track system on the ceiling to deliver meals directly from the kitchen to the table. 10 “This Beijing Winter Games restaurant uses ceiling-based tracks,” Trendhunter, January 26, 2022. Customers around the world have become familiar with restaurants using apps to display menus, take orders, and accept payment, as well as hotels using robots to deliver luggage and room service (see sidebar “Technology meets hospitality”). Similarly, theme parks, cinemas, stadiums, and concert halls are deploying digital solutions such as facial recognition to optimize entrance control. Shanghai Disneyland, for example, offers annual pass holders the option to choose facial recognition to facilitate park entry. 11 “Facial recognition park entry,” Shanghai Disney Resort website.

Automation and digitization can also free up staff from attending to repetitive functions that could be handled more efficiently via an app and instead reserve the human touch for roles where staff can add the most value. For instance, technology can help customer-facing staff to provide a more personalized service. By accessing data analytics, frontline staff can have guests’ details and preferences at their fingertips. A trainee can become an experienced concierge in a short time, with the help of technology.

Apps and in-room tech: Unused market potential

According to Skift Research calculations, total revenue generated by guest apps and in-room technology in 2019 was approximately $293 million, including proprietary apps by hotel brands as well as third-party vendors. 1 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. The relatively low market penetration rate of this kind of tech points to around $2.4 billion in untapped revenue potential (exhibit).

Even though guest-facing technology is available—the kind that can facilitate contactless interactions and offer travelers convenience and personalized service—the industry is only beginning to explore its potential. A report by Skift Research shows that the hotel industry, in particular, has not tapped into tech’s potential. Only 11 percent of hotels and 25 percent of hotel rooms worldwide are supported by a hotel app or use in-room technology, and only 3 percent of hotels offer keyless entry. 12 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. Of the five types of technology examined (guest apps and in-room tech; virtual concierge; guest messaging and chatbots; digital check-in and kiosks; and keyless entry), all have relatively low market-penetration rates (see sidebar “Apps and in-room tech: Unused market potential”).

While apps, digitization, and new technology may be the answer to offering better customer experience, there is also the possibility that tourism may face competition from technological advances, particularly virtual experiences. Museums, attractions, and historical sites can be made interactive and, in some cases, more lifelike, through AR/VR technology that can enhance the physical travel experience by reconstructing historical places or events.

Up until now, tourism, arguably, was one of a few sectors that could not easily be replaced by tech. It was not possible to replicate the physical experience of traveling to another place. With the emerging metaverse , this might change. Travelers could potentially enjoy an event or experience from their sofa without any logistical snags, and without the commitment to traveling to another country for any length of time. For example, Google offers virtual tours of the Pyramids of Meroë in Sudan via an immersive online experience available in a range of languages. 13 Mariam Khaled Dabboussi, “Step into the Meroë pyramids with Google,” Google, May 17, 2022. And a crypto banking group, The BCB Group, has created a metaverse city that includes representations of some of the most visited destinations in the world, such as the Great Wall of China and the Statue of Liberty. According to BCB, the total cost of flights, transfers, and entry for all these landmarks would come to $7,600—while a virtual trip would cost just over $2. 14 “What impact can the Metaverse have on the travel industry?,” Middle East Economy, July 29, 2022.

The metaverse holds potential for business travel, too—the meeting, incentives, conferences, and exhibitions (MICE) sector in particular. Participants could take part in activities in the same immersive space while connecting from anywhere, dramatically reducing travel, venue, catering, and other costs. 15 “ Tourism in the metaverse: Can travel go virtual? ,” McKinsey, May 4, 2023.

The allure and convenience of such digital experiences make offering seamless, customer-centric travel and tourism in the real world all the more pressing.

Three innovations to solve hotel staffing shortages

Is the future contactless.

Given the advances in technology, and the many digital innovations and applications that already exist, there is potential for businesses across the travel and tourism spectrum to cope with labor shortages while improving customer experience. Process automation and digitization can also add to process efficiency. Taken together, a combination of outsourcing, remote work, and digital solutions can help to retain existing staff and reduce dependency on roles that employers are struggling to fill (exhibit).

Depending on the customer service approach and direct contact need, we estimate that the travel and tourism industry would be able to cope with a structural labor shortage of around 10 to 15 percent in the long run by operating more flexibly and increasing digital and automated efficiency—while offering the remaining staff an improved total work package.

Outsourcing and remote work could also help resolve the labor shortage

While COVID-19 pushed organizations in a wide variety of sectors to embrace remote work, there are many hospitality roles that rely on direct physical services that cannot be performed remotely, such as laundry, cleaning, maintenance, and facility management. If faced with staff shortages, these roles could be outsourced to third-party professional service providers, and existing staff could be reskilled to take up new positions.

In McKinsey’s experience, the total service cost of this type of work in a typical hotel can make up 10 percent of total operating costs. Most often, these roles are not guest facing. A professional and digital-based solution might become an integrated part of a third-party service for hotels looking to outsource this type of work.

One of the lessons learned in the aftermath of COVID-19 is that many tourism employees moved to similar positions in other sectors because they were disillusioned by working conditions in the industry . Specialist multisector companies have been able to shuffle their staff away from tourism to other sectors that offer steady employment or more regular working hours compared with the long hours and seasonal nature of work in tourism.

The remaining travel and tourism staff may be looking for more flexibility or the option to work from home. This can be an effective solution for retaining employees. For example, a travel agent with specific destination expertise could work from home or be consulted on an needs basis.

In instances where remote work or outsourcing is not viable, there are other solutions that the hospitality industry can explore to improve operational effectiveness as well as employee satisfaction. A more agile staffing model  can better match available labor with peaks and troughs in daily, or even hourly, demand. This could involve combining similar roles or cross-training staff so that they can switch roles. Redesigned roles could potentially improve employee satisfaction by empowering staff to explore new career paths within the hotel’s operations. Combined roles build skills across disciplines—for example, supporting a housekeeper to train and become proficient in other maintenance areas, or a front-desk associate to build managerial skills.

Where management or ownership is shared across properties, roles could be staffed to cover a network of sites, rather than individual hotels. By applying a combination of these approaches, hotels could reduce the number of staff hours needed to keep operations running at the same standard. 16 “ Three innovations to solve hotel staffing shortages ,” McKinsey, April 3, 2023.

Taken together, operational adjustments combined with greater use of technology could provide the tourism industry with a way of overcoming staffing challenges and giving customers the seamless digitally enhanced experiences they expect in other aspects of daily life.

In an industry facing a labor shortage, there are opportunities for tech innovations that can help travel and tourism businesses do more with less, while ensuring that remaining staff are engaged and motivated to stay in the industry. For travelers, this could mean fewer friendly faces, but more meaningful experiences and interactions.

Urs Binggeli is a senior expert in McKinsey’s Zurich office, Zi Chen is a capabilities and insights specialist in the Shanghai office, Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, and Jackey Yu is a partner in the Hong Kong office.

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• Open access
• Published: 05 November 2020

COVID-19 impact and survival strategy in business tourism market: the example of the UAE MICE industry

• Asad A. Aburumman 1  

Humanities and Social Sciences Communications volume  7 , Article number:  141 ( 2020 ) Cite this article

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• Business and management

Today the industry of meetings, incentives, conferences and exhibitions, commonly known under the name of MICE, contributes to economic diversification and actively stimulates the rational use of cultural-historical and natural recreational resources. As of 2019, the total contribution of the tourism sector to the GDP of the United Arab Emirates (UAE) equalled 11.5 per cent. More than 2.3 million visitors cited business as their main purpose of travel to Dubai in 2019, marking a two per cent increase compared to 2018. Thus, the UAE MICE industry was among the global leaders before the COVID-19 pandemic occurred. As a result of severe quarantine measures, the majority of destinations all over the world introduced COVID-19-related travel restrictions that were valid until May 2020. In the UAE, like in any other country, the coronavirus pandemic affected every industry, and especially the MICE one. Even though the consequences of COVID-19 have been multiply analysed by many UAE researchers, its global and local impact on the MICE industry, as well as the strategies for MICE companies’ survival, are described insufficiently. This study aimed to investigate the COVID-19 impact on both the global and the UAE MICE markets and identify a competitive survival strategy for tourism companies on the example of those operating in the UAE. The research revealed that under the conditions of harsh travel restrictions and closed borders, the UAE MICE industry is faced with a sharp reduction of demand. Emirati Airlines, hotels, and other tourism-related businesses have experienced significant material losses. In particular, the drop in scheduled departure flights comprised 82%. The multiplicative analysis performed in the course of the study identified the 5P marketing strategy and an outsourcing method as an optimal solution for MICE companies’ survival and recovery. The study results can be used by MICE businesses or researchers using specific company and market data for developing strategies aimed at overcoming COVID-related crisis and increasing the competitiveness of MICE companies in particular and the market as a whole.

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Introduction.

The development of MICE industry (meetings, incentives, conferences and events) contributes to economic diversification, stimulates the rational use of cultural and natural-recreational resources, and enables a balanced growth of the whole tourism sector (Manzoor et al., 2019 ; Astakhova, 2019 ). For the United Arab Emirates (UAE), the tourism sector is especially important as a driver of national gross domestic product (GDP). As stated by the Dubai Annual Visitor Report 2019, at the end of 2019, tourism was responsible for contributing an impressive 11.5 per cent in GDP value. Furthermore, according to the World Travel and Tourism Council’s Cities Report, Dubai’s tourism sector was ranked one of ‘Top 10’ strongest economic share generators (Dubai’s Department of Tourism and Commerce Market, 2020 ).

More than 2.3 million visitors cited business as their main purpose of travel to Dubai in 2019, marking a two per cent increase compared to 2018 (Dubai Department of Tourism and Commerce Market, 2020 ). According to the Dubai Annual Visitor Report, in 2019, Dubai held 301 meetings, conferences and incentives organised by Dubai Business Events, thereby bidding for 595 events in 2020. In the year 2019, Dubai World Trade Center (DWTC) welcomed its record 3.57 million delegates, which declared the visitation growth of up to four per cent from the previous year. Such an increase was driven by 349 MICE and business events, 97 of which were large scale with over 2000 attendees. Since 2019, international participation in DWTC events grew by 15 per cent (equivalent to 1.2 million visitors), underlining the strong benefits the world businesses see in coming to Dubai with the aim of sharing knowledge, networking and accelerating their development (Dubai Department of Tourism and Commerce Market, 2020 ). Last year, the business tourism events accounted for 3.3% of GDP, which amounts to USD 3.57 billion (Dubai World Trade Centre, 2019 ). The business tourism was a key element in stimulating the national economic growth and in the nearest future was supposed to reach intense development, making the UAE among the central players in the global MICE industry (Rogerson, 2017 ; Dubai Tourism, 2020 ). However, the introduced quarantine ruined these plans.

The COVID-19 pandemic has led to more than 4.3 million confirmed cases and more than 290.000 deaths worldwide. It raised fears of an impending economic crisis and recession. Social distancing, self-isolation, and travel restrictions have reduced the workforce in all sectors of the economy and have led to the loss of many jobs (Nicola et al., 2020 ; Tsindeliani, 2019 ).

Due to the lack of a vaccine and very limited treatment options, non-pharmaceutical interventions occurred to be the primary strategy to contain the pandemic. Unprecedented global travel restrictions and appeals to stay at home have caused the most critical disruptions of the global economy since World War II. Given the international travel bans that affect more than 90% of the global population and widespread restrictions on public gatherings and community mobility, tourism largely ceased in March 2020 (Gössling et al., 2020 ). Since the quarantine introduction, millions of jobs in the global tourism sector were lost due to flight, event and hotel cancellations (Siddiquei and Khan, 2020 ).

Given that international arrivals exceeded 1.5 billion for the first time only in 2019, the long-term evolution of tourism is proved to be greatly dependent on a decade of growth since the global financial crisis. Though, this last period of unhindered business tourism development has suddenly come to an end with the COVID-19 (Brouder, 2020 ).

Accompanied by quarantine in most countries and closed borders worldwide, COVID-19 pandemic heavily hit the MICE industry. The majority of domestic and international airlines were forced to cancel their flights due to severe quarantine measures and a lack of passengers, as people were frightened (Hoque et al., 2020 ).

The MICE industry was undermined by government efforts to contain and combat the pandemic. Borders were closed, trips banned, social and business events cancelled, and people were ordered to stay in their homes. By taking these actions, governments around the world sought to strike a balance between maintaining their economies and preventing dangerous levels of unemployment and deprivation. They tried to respond to public health imperatives to prevent the health systems’ collapse and mass deaths (Higgins-Desbiolles, 2020 ).

After months of unprecedented disruptions, the United Nations World Tourism Organization (UNWTO) reported that the tourist sector begins to revive in some areas, especially in the Northern Hemisphere. At the same time, travel restrictions remained valid for most global destinations, and business tourism continued to be among the most affected sector of all (World Tourism Organization, 2020a ).

Although Dubai’s tourism sector announced reopening the city for international tourism on July 7, 2020, people worldwide were still afraid of travelling. Consequently, the numbers of international arrivals in Dubai were far from those before March 2020 (Dubai Tourism, 2020 ).

Today, as the COVID-19 pandemic continues and the second wave is forecasted by epidemiologists, political and business leaders are wondering if the recession in the markets and the economy truly signals a recession; how serious the COVID-19 recession will be; what will be the growth and recovery scenarios, and whether there will be any lasting structural impact from the unfolding crisis. However, all the forecasts and indices will not disclose the virus trajectory, the effectiveness of containment measures, and the reactions of consumers and companies. For now, there is no single figure that can reliably reflect or foresee COVID-19’s economic impact, especially on the MICE market dependent on international travel and public events (Carlsson-Szlezak et al., 2020 ). Even though the pandemic has been on the run for several months only, the global and market-related losses are huge. Nevertheless, now it is extremely difficult to assess them due to the lack of sufficient statistical data and unwillingness of some companies, industries and countries, especially the developing ones, to disclose the level of economic decline (Stock, 2020 ).

Despite the existence of numerous studies dedicated to COVID-19 and its estimated effect on economies and industries, poor attention was given to the global and local impact of coronavirus disease on the MICE industry and to strategies for MICE companies’ survival. The MICE industry of the UAE is chosen as a case study due to its leading position at the global MICE market before the pandemic-related crisis occurred.

The aim of the study is to investigate the global and local impact of COVID-19 on the MICE industry and identify a competitive survival strategy for MICE companies taking the UAE business sector as an example.

With the purpose of achieving the goals set, the following tasks were formulated:

Assess the effect of coronavirus pandemic on the global tourism market and MICE industry in the UAE;

Select indicators of economic efficiency to compute the profitability of MICE companies in the UAE;

Suggest a strategy for MICE business survival in the context of outsourcing in a globalised economy heavily influenced by COVID-19 (on the example of the UAE).

Literature review

Business trips and business tours are somewhat similar in terms of event tourism education (Holloway and Humphreys, 2019 ). The difference lies in the very essence of the event, but the mechanisms are generally the same. The fact that Abu Dhabi and Dubai are among the most important business centres of today increases the role of business tourism and its share in the country’s tour production (Zhamgaryan, 2017 ). Numerous conferences, business congresses, and diplomatic visits constitute the major drivers of business tourism (Sovet et al., 2016 ).

Literature on the use of tourism infrastructure and tourism management distinguishes the following principles that most countries rely upon:

Tourism and product topologies, territoriality research.

The presence of private and public travel companies and agencies.

Resources and recreational opportunities, tourist flows and service offers.

Independent choice of tourism agencies.

Communication with a client through outsourcing in business tourism creates an opportunity for world leaders in this industry to quickly grow and solve multiple problems, including the global ones caused by COVID-19 pandemic.

To survive, tourism agencies need to make efficient use of all reserves (Kuznetsov and Kizyan, 2017 ). Ensuring survival through competitiveness is a dynamic process aimed at long-term gain. The main goal of managing corporate competitiveness in the MICE industry is to create sustainable competitive advantages that can recover the position of MICE agencies and enable their financial performance in the post-pandemic environment (Nukusheva et al., 2020 ).

Existing studies on competitiveness in the tourism industry emphasise the importance of infrastructure and support services for environmental sustainability (Croes, 2010 ; Jovanović and Ilić, 2016 ; Kastenholz et al., 2012 ; Mihalicˇ, 2013 ; Reitsamer and Brunner‐Sperdin, 2017 ; Zehrer et al., 2016 ). Managing tourist behaviour also contributes to sector competitiveness (Reisinger et al., 2019 ). Previous researchers relied on a survey of tourism experts and key tourism stakeholders (Andrades and Dimanche, 2019 ). Some scholars made use of a mixed (quantitative-qualitative) method to measure competitiveness of a given industry in Iran (Boroomand et al., 2019 ). Others have developed their own industry competitiveness indices. For instance, some authors used data from the Travel and Tourism Competitiveness Index produced by the World Economic Forum in a global analysis of industry competitiveness (Gómez-Vega and Picazo-Tadeo, 2019 ; Nazmfar et al., 2019 ), while others addressed alternative sources of information (Gu et al., 2019 ; Lopes et al., 2018 ).

Using structural equation modelling to the impact of tourism industry recovery and growth on environmental sustainability proves the presence of environmental degradation (Pulido-Fernández et al., 2019 ). The results of PROMETHEE and GAIA analysis from the competitiveness study of Portuguese tourist destinations revealed local competitors with their strengths and weaknesses. Among effective indicators are a sound tourism infrastructure and the potential of tourism destinations to grow through the adoption of public policies or private initiatives (Lopes et al., 2018 ).

The competitiveness of the MICE industry is considered with regard to subjective assumptions about competitiveness and significance of single indicators for sustainable development (Safarova, 2015 ). For example, Porter developed a universal model of micro-level competition. Poon’s framework for tourism competitiveness is built on innovative processes, quality, and privatisation. The WES model is a macroeconomic framework that takes into account tourism policies. In Dwyer’s model, the price component is recognised as a major component. The Crouch-Ritchie model integrates a whole range of tourism competitiveness factors, systematising global forces that pose challenges and open opportunities for tourism (Mazurek, 2014 ). The comparative study of Slovenia and Serbia tourism sectors using a modified IPA matrix identified the areas for improvement and actions for closing the gap between importance and performance of the MICE industry (these relate to the creation and adoption of innovative products) (Dwyer et al., 2016 ).

Materials and methods

With the purpose of analysing the impact of COVID-19 on global and the UAE MICE market, quantitative and qualitative analysis methods were used to evaluate the following data (in relative and absolute values):

World GDP growth rates for 2019, 2020 and 2021;

UAE GDP growth rates for 2019, 2020 and 2021;

International tourist arrivals for 2019 and 2020 (globally and by country);

Global international tourist arrivals from 2000 to 2020;

Global international tourist receipts from 2000 to 2020;

Employment loss in the travel, tourism and aviation industries in 2020;

Losses in travel, tourism and aviation industries in 2020;

Scheduled departure flights in January–December 2019 and January–July 2020 (globally and by country).

The following sources were used to retrieve the above data:

Previous studies;

Reports of the World Bank;

Reports of the World Tourism Organization;

Reports of the World Travel and Tourism Council;

Reports of the OAG company;

Reports of Dubai Corporation of Tourism and Commerce Marketing;

Reports of Dubai Department of Tourism and Commerce Marketing;

Reports of Dubai World Trade Centre;

Statista Global Business Data Platform;

Official website of UAE-Consulting company;

Reports of the Oxford Analytica consulting firm.

The current analysis framework includes indicators that are interconnected to achieve a more accurate characterisation of the quality of decision-making. The DuPont System of Analysis is designed to compute the Return on Investment. This multiplicative model is frequently used by managers to assess the impact of quantity, price, and nomenclature on the revenue, as well as to analyse the structure of marginal profit, cost, and coefficient ratios (DuPont model, 2015 ). This study integrates the DuPont analysis model with the gross profit from the sale indicator to measure the profitability of MICE companies. The gross profit from the sale helps to assess the impact of the travel service cost on the company’s profitability, improving the overall result of economic analysis. The modified formula has the following form:

Where P MICE represents the MICE company’s profitability (in %);

NP represents the net profit from the sale, USD;

IS represents the income from the sale, USD;

GP represents the gross profit from the sale, USD;

NI represents the net income from the sale, USD.

The study applies a statistical method to collect data on the MICE industry competitiveness and behaviour of consumers (data to develop a forecast). With this method, managers can more efficiently make decisions on business recovery and competitiveness strategies. The dependence between the number of service offers and factors of the MICE industry is expressed via the production function model. This model is built around the number of people employed and the outsourcing strategy spending.

It should be noted that since no reliable data on the MICE industry recovery are available to date, some figures necessary for calculations were used from the pre-pandemic period. As soon as actual data are available, more accurate calculations can be made.

Results and discussion

Covid-19 impact on global and country tourism market.

According to the United Nations World Tourism Organization (World Tourism Organization, 2020 b), as of May 2020, 100% of destinations worldwide had travel restrictions associated with COVID-19. The pandemic has significantly impacted every sector of the travel and tourism industry: airlines, transportation, cruise lines, hotels, restaurants, attractions (such as national parks, protected areas and cultural heritage sites), travel agencies, tour operators and online travel organisations. Small and medium-sized enterprises and micro-firms, which include a large informal tourism sector, account for about 80 per cent of the tourism sector, and many of them may not survive the crisis without substantial support. This will lead to a domino effect in the entire tourism supply chain, affecting livelihoods in agriculture, fisheries, creative industries and other services. The loss of jobs in the MICE industry has a disproportionate effect on women, youth and the indigenous population. Women-owned and operated MICE companies are often smaller in size and have fewer financial resources to counter the crisis. Women hold such frontline positions in the tourism industry as housekeeping and front desk staff, which puts a particular risk to their health (Twining Ward and McComb, 2020 ).

According to the World Bank, the world GDP is expected to decline by 5.21% in 2020 (the decrease in 2019 comprised 2.38%) and grow by 4.16% in 2021. The dynamics of GDP of the United Arab Emirates will comprise −4.5% (compared to 1.7% growth in 2019), followed by the estimated increase by 1.4% in 2021 (World Bank, 2020 ).

In 2019, the direct, indirect and induced impact of travel and tourism industry accounted for 10.3% of the global GDP (USD 8.9 trillion) and 330 million jobs, or 1 in 10 jobs globally. As a result of the COVID-19 pandemic, in 2020, the global travel and tourism market is predicted to see a loss of 121 million jobs worldwide and USD 3,435 billion in global GDP (World Travel and Tourism Council, 2020 ).

According to the data of the World Tourism Organization ( 2020a ), the United Nations agency taking charge of the promotion of responsible, sustainable and universally accessible tourism, as of June 22, 2020, the global fall in international tourist arrivals comprised 44% compared to 2019 (Fig. 1 ).

Source: developed by the authors based on data adapted from the World Tourism Organization ( 2020a ).

As shown in Fig. 1 , the most significant decrease in terms of international arrivals in January–April of 2020 experienced the Asia and the Pacific region (51%) followed by Europe (44%) and the Middle East (40%). The decline in international arrivals in the Americas and Africa equalled 36 and 35%, respectively (UNWTO, June 22, 2020).

In early May 2020, the UNWTO has outlined three possible scenarios for the MICE industry which indicate a potential decrease in the total number of international tourists from 58 to 78%, depending on when travel restrictions are lifted. Since mid-May, UNWTO has identified an increase in the number of destinations announcing measures to resume tourism. These include the introduction of enhanced safety and hygiene measures and policies aimed at developing domestic tourism (World Tourism Organization, 2020b ).

Geographically, the regions with the biggest relative drop in international tourist arrivals during January–April 2020 are Europe, Australia and New Zealand, and Western, Southern and Southeastern Asia (Fig. 2 ) Footnote 1 .

Source: developed by the authors based on data adapted from the World Tourism Organization ( 2020c ).

According to Fig. 3 , the largest absolute decrease in international tourist arrivals experienced Spain (10.8 million), followed by Thailand (7.3), Turkey (4.4), Singapore, Mexico, Italy, Vietnam (3.6 million each), Austria (3.2) and the United States (3.1) Footnote 2 Footnote 3 .

Despite several countries have positive values of international tourist arrivals (the United Arab Emirates, Belgium, Ireland, Jamaica, Guyana, Cayman Islands and Vanuatu), the data available in UNWTO report for them is for February 2020, when COVID-19-related travelling restrictions were not so severe. The same goes to a number of other countries with low decrease results (Aruba, Bhutan and Martinique).

The international tourist arrivals worldwide showed stable growth in 2000–2019, except for some crisis years with a slight drop: 2003 (SARS pandemic, 3 million) and 2009 (global economic crisis, 37 million). According to the worst-case scenario of the UNWTO, the decrease in 2020 can reach 1.140 billion (Fig. 4 ).

Source: developed by the authors based on data adapted from the World Tourism Organization ( 2020b ).

The global international tourism receipts also experienced constant growth in 2000–2019, with the exception of one year, 2009, when the drop was USD 88 billion (Fig. 5 ). In 2020 the decrease may reach USD 1.170 trillion as per the worst UNWTO scenario.

According to preliminary data, in the first quarter of 2020, the impact of aviation losses can reduce global GDP from 0.02 to 0.12%. Besides, if events develop according to the worst-case scenario, before the end of 2020, these aviation losses can be as high as 1.41–1.67%, with job losses about 25–30 million (Iacus et al., 2020 ).

Now, the UAE is at the forefront in terms of reducing demand for MICE services, as well as for global air travel. Emirati Airlines, hotels, and other travel and tourism-related businesses have experienced significant oversupply and must take decisive actions (Oxford Analytica, 2020 ). The Etihad Airways based in Abu Dhabi and Emirates Airline in Dubai have asked their employees to stay at home due to reduced number of flights thereby not excluding the possibility of layoffs (Siddiquei and Khan, 2020 ).

The global reduction of the scheduled departure flights comprised 2.8 million—from 3.234 million in January 2020 to 0.429 million on July 13, 2020. The anti-leaders in terms of the scheduled departure flights occurred to be the USA (−756 thousand flights), China (−363) and India (−112). For the same period, the UAE experienced a drop in 21 thousand flights, which is a comparatively small amount (Fig. 6 ).

Source: developed by the authors based on data adapted from OAG ( 2020 ).

As shown in Fig. 6 , starting from June, the situation with flights has begun to improve slightly. As to the UAE, the number of scheduled departure flights grew from 1.03 to 1.87 thousand weekly from June 1, 2020, to July 13, 2020.

In relative numbers, the deepest global fall of scheduled departure flights (compared to the same period of 2019) occurred in May 2020 and was 69% (Table 1 ). The countries with the biggest relative decrease were Singapore (97%, May), Spain (94%, April), Hong Kong (94%, April), Germany (93%, April), the United Kingdom (94%, June) and France (92%, May). The UAE had the most notable drop of 82% on June 1, 2020.

Today, more than 50 business events are scheduled for the fall of 2020 in Dubai, but they depend on the global and local epidemiological situation (Dubai Tourism, 2020 ).

Key performance indicators of the MICE industry

The computational results based on pre-pandemic data show that the long-term profitability of the MICE industry can be potentially stable and not influenced by investments in post-pandemic conditions. The rate of return on investment will decrease with a new tourism service. Competitiveness, however, has little relation to profitability ratio and hence is likely to increase.

The present findings are expected to facilitate marketing decision making. However, managers should decide on a strategy for competitiveness that will enable the reduction of MICE services cost, the increase of competitive services, and personnel training. An integrated multiplicative model of profitability that allows the assessment of the given strategy has the following form:

Where, N —cost of services provided, USD;

S —number of those employed in the MICE industry;

P —profit spent on outsourcing strategy development, USD;

i —number of new services.

The results prove the theoretical significance of the selected model (Fisher criterion is equal to 29.01; the coefficient of multiple determination amounts to 0.97; and the relative approximation error is 0.14). The correspondence between results is expressed using the criteria of truth and authenticity.

The elasticity of service provision corresponds to t 1  = 0.287 and t 2  = 0.128, assuming low efficiency. That is, with a per cent increase of profits or employees, the number of offers for MICE services can potentially grow either by 0.287 or by 0.128%, respectively. Consequently, personnel costs and working capital may have little impact on the competitiveness of the MICE industry in the UAE in post-pandemic conditions. These data were processed to develop three theoretical forecast scenarios for the sales of MICE services in post-pandemic conditions (Table 2 ).

The above forecasts based on pre-pandemic data suggest that MICE service sales can increase by 61.6% in 2020–2023. That is, the average annual number is predicted to increase by 25%, gaining USD 35 thousand in 2021. Hence, the economic growth model can serve as an effective tool for improving the tourism development strategy of travel agencies.

The calculations confirm that in pre-pandemic conditions (average tax about 39%; the minimum return 6.9%) when tourism companies used to spend 89% of their net earnings, the volume of tourism services could not be maintained and the gross value added was likely to drop by 3%. Therefore, to ensure better performance and a broader range of tourism services, the minimum rate of return in ideal conditions should be at least 12.9% and the grow value-added tax should not exceed 38.9%.

Strategy for MICE survival and competitiveness

A queuing model was proposed to optimise MICE companies in terms of performance in the post-pandemic market. The Kotler’s extended marketing mix model may serve as a framework of choice for hoteliers, providing a competitive advantage over the existing participants in the MICE market. This model allows evaluating MICE services from various segments of the market by the in-depth profitability and demand analyses.

The five Ps of the marketing mix model are:

Product—a hotel in which a business tourist stays and rests, where a business event is organised, etc.;

Price—pricing policy, discount, price-quality (varies depending on hotels and airlines, plus insurance, travel and event organisation), etc.;

Place—distribution channels, internet platforms, etc.;

Promotion—meetings, incentives, conventions, exhibitions (product launch), state summits, public relations and advertising, etc.;

People—loyal customers and VIP customers, staff, other customers, etc.

It can be argued that meetings and events in hotels that adhere to this marketing model will bring additional income to stakeholders and corporate business travel agencies and hence improve the image of MICE companies. The consequences of this 5P marketing mix model can also be the improvement of the tourism service quality.

Normally, large hotel corporations associate themselves with the image, rather than location. Therefore, when choosing strategies for gaining competitive advantage through outsourcing, the economic and marketing models were used. The underlying sustainable competitive advantages of MICE companies are innovation; service quality control; flexible, adaptive and strong organisational culture; intangible assets (image and business reputation); and consumer behaviour management. Hence, the competitiveness strategy should more focus on these variables. In cross-border tourism, the most promising strategies for competitiveness are those aimed at ensuring consumer loyalty, innovation and adaptation to the external environment like heightened health and safety measures. The MICE industry leaders are increasingly focused on current trends in outsourcing business processes, namely: expanding the boundaries of outsourcing; use of best practices, tools and technologies to ensure better management; the ability to integrate new features with existing systems; ensuring information confidentiality; the transition from individual services to service packages; and global coverage of existing and new markets.

Where there is the opportunity to survive in the pandemic and post-pandemic world and gain competitive advantages by reducing costs while increasing the efficiency of performance, business travel companies turn to outsourcing (It Pulse, 2019 ). Key Account Managers settle issues with the business travel organisation on the key client’s behalf (Suvorova, 2012 ). The main factors of competitiveness are the image and reliability of MICE companies. Competitiveness is achieved by improving the quality of services (Tymchyshyn-Chemerys and Pasternak, 2017 ). The previous studies highlighted the following important variables: total cost of business events; expenditures on restaurants and hotels, transportation, etc.; additional costs associated with increased demand; and value-added income.

The scientific novelty of this study is that it offers an optimal competitiveness strategy for the MICE industry offering to introduce outsourcing practices and the 5P marketing model.

Conclusions

The present research examined the impact of COVID-19 on global and UAE MICE market by way of quantitative and qualitative analysis. The study revealed that in the conditions of severe travel restrictions and closed borders, travel-dependant industries like MICE or passenger air services were significantly hit by the pandemic. In 2020, the COVID-19 quarantine measures are predicted to result in a global loss of 121 million jobs and USD 3,435 billion in GDP.

Now the UAE is at the forefront in terms of reducing demand for MICE services, as well as for global air travel. Emirati Airlines, hotels, and other travel and tourism-related businesses have experienced significant oversupply. Compared to the same period of 2019, the most considerable fall of scheduled departure flights in the UAE occurred on June 1, 2020, and equalled 82%. Despite the fact that the industry has started to recover after weakening anti-epidemic measures, this process can take some time (provided severe anti-pandemic measures will not be restored along with the new wave of COVID-2019).

The choice of survival and competitive strategy for the MICE industry is justified by the study of outsourcing business processes. Outsourcing enables the reduction of operating costs. In these circumstances, a MICE company needs to ‘keep the good work’ by employing competence, establishing a modern communication system, and promoting digitalisation.

The study used multiplicative analysis to evaluate the profitability of the MICE industry and the impact of operating costs on the competitiveness of MICE companies. The 5P marketing model was identified as an optimal choice for surviving and recovering MICE business companies through outsourcing. Since the major resource of organisations under consideration is people and the product, it is advisable to use the competitive marketing strategy when developing a management approach. However, because the product in the MICE industry is a result of multi-stage cooperation, the MICE service provider should simultaneously focus on the external environment.

The study findings can be used by travel agencies, MICE-related companies, or researchers, applying specific company and market data for developing strategies to overcome COVID-related crisis and increase the competitiveness of MICE business.

Due to the lack of reliable post-pandemic data, this research was limited to pre-pandemic information. As soon as actual data are available, more accurate calculations can be made, and theoretical research can be verified. Thus, there are enough opportunities for further research aimed at introducing the results obtained to certain post-pandemic MICE market conditions.

Data availability

Data used are available on request.

The aforementioned geographic regions correspond to the Standard Country or Area Codes for Statistics Use ( 1999 ) of the United Nations (M49 standard) .

The darker the colour in Fig. 1 is, the deeper is the decrease in international tourist arrivals.

There is no data on international arrivals for the markets of countries in grey in Fig. 1 .

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Aburumman, A.A. COVID-19 impact and survival strategy in business tourism market: the example of the UAE MICE industry. Humanit Soc Sci Commun 7 , 141 (2020). https://doi.org/10.1057/s41599-020-00630-8

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In many countries, more than 80% of travel and tourism spending actually comes from the domestic market. Image:  Unsplash/Surface

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Stay up to date:.

• In 2020 alone, the travel and tourism sector lost $4.5 trillion and 62 million jobs globally.
• But as the world recovers from the impacts of the COVID-19 pandemic, travel and tourism can bounce back as an inclusive, sustainable, and resilient sector.
• Two experts highlight some of the key transformations in the sector going forward during the World Economic Forum's Our World in Transformation series.

The Travel & Tourism sector was one of the hardest hit by the COVID-19 pandemic, leaving not only companies but also tourism-driven economies severely affected by shutdowns, travel restrictions and the disappearance of international travel.

In 2020 alone, the sector lost $4.5 trillion and 62 million jobs, impacting the living standards and well-being of communities across the globe. Moreover, the halt in international travel gave both leisure and business travellers the chance to consider the impact of their choices on the climate and environment.

Amid shifting demand dynamics and future opportunities and risks, a more inclusive, sustainable and resilient travel and tourism sector can be - and needs to be - built.

The World Economic Forum's Travel & Tourism Development Index 2021 finds that embedding inclusivity, sustainability and resilience into the travel and tourism sector as it recovers, will ensure it can continue to be a driver of global connectivity, peace and economic and social progress.

We spoke to Sandra Carvao , Chief of Market Intelligence and Competitiveness at the United Nations World Tourism Organization (UNWTO), and Liz Ortiguera , CEO of the Pacific Asia Travel Association in Thailand (PATA), and asked them to highlight some of the key areas of risk and opportunity in the sector during an episode of the World Economic Forum's Our World in Transformation series.

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Travel & tourism development index 2021: rebuilding for a sustainable and resilient future, towards resilience and sustainability: travel and tourism development recovery, how can we really achieve sustainability in the travel sector, what are some of the top global trends you're witnessing currently in the travel and tourism sector.

Liz Ortiguera: Given the extended lockdown that we had on travel with the pandemic, vacation for friends and relatives (VFR) is now a high priority for people who haven’t been in touch for a long time thanks to the pandemic. So, people are reconnecting. And that kind of links to the second trend, which is multi-purpose or blended travel. Never before, particularly now that we can connect digitally through Zoom, has the ability to work from anywhere enabled travellers to cover multiple purposes, like visits with friends and multiple business trips. So, we'll find that the duration of travel and the length of stay is longer. And third is the continued high focus on safety and wellness which is top of mind for travellers due to the pandemic. All travel is wellness-related now.

Sandra Carvao: I think there is a bigger concern with sustainability, which is very welcome in our industry. Consumers, particularly the younger generation, are much more aware of the impact they have, not only on the environment but also socially and on the communities they live in. We've also seen an increase in expenditure per trip, so I think people are very eager to go outside, and they're staying longer. And on the other side, I think there are some challenges: we’re seeing a rise in late bookings because restrictions can change at short notice and that’s having an impact on the decisions of travellers. This is putting pressure on the industry in terms of planning and anticipating fluctuations in demand.

Social media surveys have shown that travellers who have immersive experiences are more likely to post about them, which is good for the industry.

What is community-based tourism and why is it important?

Sandra Carvao: One of the positive impacts of the pandemic is that people are looking for local experiences and are spending more time with communities. So, the concept of community-based tourism is obviously one that puts the community at the core of every development, ensuring that it's engaged and empowered and that it benefits. At the UNWTO, we worked with the G20 and the Saudi presidency back in 2020 and produced a framework for tourism development in communities, which states that communities need to be part of the planning and management of tourism activities. We need to go beyond traditional definitions of community to a point where the industry leans on partnerships between the public and private sectors and communities.

Liz Ortiguera: In July 2022, PATA is hosting a destination-marketing forum and one of the key themes is community-based tourism. The purpose is really to put the community and authenticity-in-culture activities at the heart of the travel experience. There are benefits for all stakeholders. One is that travellers can have an authentic experience. They're not in overcrowded, touristic locations and they experience something new and unique within the community. These experiences are designed in partnership with communities who get the benefit of financial inclusion, and if activities are designed properly, the reinforcement of their cultural heritage. Governments also engage in economic development more broadly across countries. Another interesting trend is creative tourism, which means you create an experience for tourists to participate in, like a dance lesson, or a cooking lesson. Social media surveys have shown that travellers who have these kinds of immersive experiences are more likely to post about them online and that's good for the industry.

It is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.

How is technology and innovation helping to leverage cultural resources?

Sandra Carvao: One interesting trend we’re seeing is that more and more people are booking trips directly, so communities need to be supported to digitize their systems. Education and upskilling of communities are important so that they can leverage digital platforms to market themselves. From the tourists’ perspective, it is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.

Liz Ortiguera: People have been living virtually for more than two years. Amazing innovations have emerged, such as virtual reality and augmented reality, and all kinds of applications and tools. But the important thing is the experience. The destination. Real-world experiences need to remain front and centre. Technology tools should be viewed as enablers and not the core experience. And when it comes to staff, technology can really democratize education. There’s an opportunity to mobilize a mobile-first approach for those who are on the frontlines, or out in the field, and can’t easily access computers, but need to get real-time information.

How is the sector dealing with labour shortages and re-employment of the workforce?

Liz Ortiguera: Labour shortages are much more dynamic in North America and in Europe. But it’s having a knock-on effect on Asia. If, for example, their air carriers are limited by staff and they have to cancel flights, which we're very much seeing out of Europe, seating capacity then becomes a limiting factor in the recovery of Asia Pacific. That's the main constraint right now. And compounding that is the rising price of fuel. But people in the Asia Pacific are keen to get reemployed.

Sandra Carvao: Labour shortages are a priority for the sector in countries around the world. Many workers left the sector during the pandemic and the uncertainty that surrounded the measures taken to contain it left many people unsure of whether the sector would recover. It is time to address things like conditions, scheduling, and work/life balance, all things which have been top of mind for workers during the pandemic. As the sector recovers, we need time to bring new hires on board and to train them to take over where those who switched jobs left off.

Are we seeing a growing trend towards domestic tourism?

Sandra Carvao: We’re talking about 9 billion people travelling within their own countries. And in many countries, for example in Germany, more than 80% of the tourism spending actually comes from the domestic market, similarly in countries like Spain and even smaller economies. Whenever it's possible to travel again, domestic markets tend to be more resilient. They kick off first mostly due to perceptions of safety and security issues. As the world economy recovers from the pandemic, there is a good opportunity for nations to rethink their strategy, look at the domestic market in a different way, and leverage different products for domestic tourists.

When it comes to sustainable tourism, how quickly could we mainstream eco-friendly modes of transportation?

Sandra Carvao: Transport is one of the key contributors to energy impacts and tourism. But it's also important that we look at the whole value chain. The UNWTO together with the One Planet Sustainable Tourism Programme just launched the Glasgow Declaration, which includes green commitments from destinations and companies. We’re seeing a strong movement in the airline industry to reduce emissions. But I think, obviously, technological developments will be very important. But it's also very important to look at market shifts. And we can't forget small islands and developing states that rely on long-haul air travel. It’s important to make sure that we invest in making the problem much less impactful.

Liz Ortiguera: 'Travel and tourism' is such a broad encompassing term that it’s not fair to call it an industry: it is actually a sector of many industries. The pandemic taught us how broad the impact of the sector is in terms of sustainability. There's a big movement in terms of destination resilience, which is the foundation for achieving sustainability in the journey to net-zero. We now have standards to mitigate that impact including meetings-and-events (MIE) standards and standards for tour operators. There are multiple areas within our industry where progress is being made. And I'm really encouraged by the fact that there is such a focus not just within the sector but also among consumers.

This interview was first done at the World Economic Forum's studios in Geneva as part of 'Our World in Transformation' - a live interactive event series for our digital members. To watch all the episodes and join future sessions, please subscribe here .

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Navigator Blog   >   The Top Business Travel Articles of 2021

The Top Business Travel Articles of 2021

For all its many stops and starts, 2021 brought with it rapid growth for corporate travel, continued resilience in the face of uncertainty, and robust planning for the future.

While COVID-19 and the emergence of new variants remained at the front and foremost of concerns for businesses, it shifted from the uncertain and reactive responses of the year prior to a strategic and progressive path forward for resuming travel. From resetting expectations with road warriors to tips for returning to the office safely , travel managers prioritized preparing their teams for the new norms ahead while making sure their travel programs were nimble and forward thinking.

As you reflect on the year and ready your business for 2022, review these key insights from our most popular articles of 2021:

International Borders Reopening to Travelers

When borders closed due to COVID-19 in March 2020, few could have predicted for just how long these closures would last. Companies from across the travel industry formed groups to advocate for the reopening of international borders, which finally came in June 2021 as countries across Europe reopened to vaccinated travelers . However, one of the most awaited border reopenings took more patience, with Canada welcoming back U.S. travelers in August and the U.S. following suit in November . Our articles monitoring which countries had reopened—and exploring the corresponding requirements for travelers—consistently ranked among our most widely viewed and shared, demonstrating both the demand for international travel and the importance of providing travelers with timely information.

Traveler Report: Flying Abroad with Delta and Air France

Although travelers were ready for international borders to reopen, they were still uncertain of what to expect. Would new testing and vaccine requirements be challenging to navigate? Would social distancing rules complicate the airport process? Direct Travel’s East Region President Sam DeFranco answered many of these questions for readers, providing an inside look at the new world of international travel on his trip to Paris with Delta and Air France . As part of his journey, Sam documented his experience in photos and shared insights about testing, face coverings, crowd sizes, and the response from locals. His behind-the-scenes account showed that, despite the changes, much of the world was ready to welcome travelers back for business.

What Vaccine Certificates and Health Passports Mean for Travel

One of the most important keys to travel resuming came in the form of increasingly available, highly effective vaccines. Due to the rapid speed at which they were developed and deployed, initial confusion and uncertainty was expected. For travelers, new requirements restricting travel (largely international) to vaccinated individuals meant navigating the language and expectations of health passports and vaccine certificates . Early on in the conversation, we outlined exactly what vaccinated travelers should expect and the ways in which immunization records might be displayed before traveling. The topic demonstrated the need for travelers to stay informed and have access to reliable and trustworthy sources of information.

5 Trends to Watch as Corporate Travel Takes Off

Just as travelers had to adjust to the changes reshaping corporate travel, travel managers found themselves scrambling to adapt their programs and business goals to meet the moment. Our article tackling the latest trends in the booming marketplace explored the topics shaping (and still shaping today) the business travel climate . Issues like sustainability and greener travel programs have joined more traditional topics like trip approval and improved mobile offerings to create a new list of priorities for the future. Review these trends as you go into 2022 and evaluate the areas you may need to revisit and revamp.

Signs of the Travel Rebound Now In Progress

A recurrent theme of 2021 was the search for reassurance and resilience in the face of uncertainty. Although, significant progress has been made since 2020, the surges and subsequent plateaus in both COVID-19 cases and business recovery have made it easy to lose sight of the considerable growth accomplished. Direct Travel has provided progress reports on travel recovery throughout this past year, including our article breaking down the positive indicators of the current travel rebound . Signs like increased vaccination rates, higher travel volumes, and the easing of travel restriction all point to a new road ahead.

While the business world traditionally evaluates performance in terms of sales cycles and fiscal years, the results of 2021 show that the COVID-19 pandemic and travel’s corresponding recovery must be evaluated on a strategic, long-term scale. Undoubtedly, 2022 promises more growth ahead, with a bright New Year offering opportunities to celebrate the progress made and continue building for the future. Reminder if you haven’t already, to subscribe to Direct Travel’s Corporate Travel Newsletter to stay connected to the latest business travel news.

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Business Travel News

These articles explore key aspects of the industry, including travel buyers, distribution, duty of care, and loyalty programs, providing valuable insights for stakeholders and decision-makers. Travel buyers will find relevant information on the latest procurement strategies, negotiation tactics, and supplier relations, enabling them to make informed decisions and optimize their travel programs. In the realm of distribution, the archive covers the evolving landscape of booking channels, global distribution systems (GDS), and direct connects, shedding light on the challenges and opportunities in this area. The archive also delves into the critical issue of duty of care, emphasizing the importance of traveler safety, risk management, and compliance with ever-changing regulations. Learn also how companies are leveraging loyalty programs to enhance traveler satisfaction, drive cost savings, and foster long-term relationships with suppliers.

Business Travel

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Vacationers have been Hilton's bread and butter recently, but the hotel giant predicts a full house of the briefcase brigade soon.

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Business travel still has a long way to go in terms of sustainability and accommodating employee needs. Mastercard’s latest survey shows how no company is the same.

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Planning to Combine Business and Leisure Travel? You’re Not Alone.

As employees increasingly add leisure time to their business trips, companies are trying to figure out where their duty of care obligations begin and end.

Credit... Aart-Jan Venema

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By Amy Zipkin

• April 7, 2024

On a Sunday in late January, Melinda Buchmann, who lives in Florida and supervises client relations for RevShoppe, a 30-person remote company advising organizations on sales techniques and strategies, arrived in Banff, Alberta, to help set up a four-day company meeting.

The last day of the event, her husband, Josh, a director of strategic partnerships for the delivery company DoorDash , who also works remotely, joined her. They spent two leisurely days hiking in Banff National Park and visiting Lake Louise.

“I take advantage, because I don’t know when I’m going to return,” Ms. Buchmann said of the decision to combine downtime with a business trip.

As postpandemic work life has changed, and arrangements now include full-time office attendance as well as hybrid and remote work, so, too, has business travel. The phenomenon known as bleisure, or blended business and leisure travel, was initially embraced largely by digital nomads . But such combined travel is now also popular with people outside that group . Allied Market Research, a subsidiary of Allied Analytics, based in Portland, Ore., estimated that the bleisure travel market was $315.3 billion in 2022 and would reach $731.4 billion by 2032.

As employees increasingly add leisure time to their business trips, companies are struggling to determine where their legal obligation to protect employees from harm — their so-called duty of care — begins and ends. And workers may think that because their trip started with business, they will get all the help they need if something goes wrong on the leisure end. Instead, they should generally consider the leisure part of a trip as a regular vacation where they cover all expenses and contingencies.

Companies are responsible for knowing where their employees are during a business trip, covering expenses if an accident or emergency occurs, securing new lodging if a hotel is damaged, even swapping out a broken down rental car. Still, it’s not entirely clear if that coverage ends completely after the conference or the last client meeting.

Companies recognize that threats are increasing, said Robert Cole, senior research analyst focusing on lodging and leisure travel at Phocuswright, a market research company. They are trying to figure out how to take care of a valuable company resource, the employee, without leaving themselves open to financial risk or potential litigation.

“Crafting a comprehensive policy that balances business objectives, employee well-being and legal considerations can be challenging,” Nikolaos Gkolfinopoulos, head of tourism at ICF, a consulting and technology services company in Reston, Va., wrote in an email.

Employees may be on their own without realizing it and may be surprised by out-of-pocket expenses if they require hospital care abroad or evacuation, said Suzanne Morrow, chief executive of InsureMyTrip , an online insurance travel comparison site in Warwick, R.I.

Ms. Morrow said medical coverage provided by a company “is generally only for the dates of the actual business trip abroad.” If travelers are extending the trip for personal travel, she added, “they would want to secure emergency medical coverage for that additional time abroad.”

Employers and employees are left to figure out when the business portion of the trip ends and the leisure segment begins, a significant detail if an employee has a medical emergency. “Where does the corporation liability end?” said Kathy Bedell, senior vice president at BCD Travel, a travel management company.

Companies have varying policies to deal with the new travel amalgam. The chief executive of RevShoppe, Patricia McLaren, based in Austin, Texas, said the company provided flexible travel options and allowed employees to work anywhere they choose.

Even so, there are constraints. The company requires all employees, including executives, to sign liability and insurance waivers when they are on a voluntary company-sponsored trip, such as an off-site meeting. Such waivers typically place responsibility on employees for their own well-being. And if they bring someone, they are responsible for that person’s expenses.

Employees are responsible for requesting the paid time off and notifying their managers of their whereabouts, although that part is not a requirement. Managers have to ensure adequate staffing, Ms. McLaren said.

Elsewhere, employees may not bother to mention the leisure portion of their trip. Eliot Lees, a vice president and managing director at ICF, said he had been on trips as a child with his parents when they combined business and leisure. His parents were academics, who would piggyback vacations onto conferences.

Now he does the same. “I don’t think I ever asked for approval,” he said. (ICF has no formal business-leisure travel policy. It’s allowed as part of personal time off.) After a conference in the Netherlands last year, he spent four days hiking in the northern part of the country.

“I go anywhere, and take more risks than I should,” he said. He said he didn’t carry personal travel or accident insurance.

Any nonchalance may quickly evaporate if a threat emerges. Security experts say even low-risk locations can become high-risk for a few days or weeks of the year.

“Companies are concerned about losing visibility into a traveler’s whereabouts if they booked flights and hotels outside their corporate travel management company,” Benjamin Thorne, senior intelligence manager in London for Crisis24, a subsidiary of GardaWorld, wrote in an email. “The company may think the traveler is in one city when, in reality, they could have booked a holiday package to another nearby city. This lack of visibility by the company makes it difficult to support travelers when a disaster occurs.”

He also raised the possibility that “a traveler with bleisure travel reservations and expectations may find their work trip canceled due to changes in the risk environment or company policy, disrupting their leisure plans.”

Will a company step in off hours if there’s a problem? “That depends on how you are booked,” Mr. Cole, the senior research analyst at Phocuswright, said. A rule of thumb is the further you get from corporate control, the greater the gray area gets.

Half of GoldSpring Consulting’s clients take the responsibility for the entire trip, said Will Tate, a partner at the consultancy based in Cross Roads, Texas, and a certified public accountant. They don’t want the reputational risk. The other half say: “The business trip ended Friday. That’s when we end our duty of care.”

Some companies are trying to define and narrow the gray area. “If you are clearly on personal time, there is no legal requirement for your employer to provide for you,” said Nicole Page, a lawyer whose practice includes employment law at Reavis Page Jump in New York.

Uber provides employees with advisories before a trip, travel assessments, safety tips while traveling and emergency travel assistance, including medical aid, airport travel support, urgent and emergency assistance, and lost or stolen personal property insurance whether they are on business or pleasure travel or a combination.

And at DoorDash, Chris Cherry, head of global safety and security, wrote in an email that “while personal travel is not something we track, we have received requests to extend our travel support capabilities to personal travel.” Mr. Cherry said in those cases, the company has manually added employee leisure itineraries to its travel risk management system and “provided the same level of overwatch that we do for regular business travel.”

The Buchmanns plan to travel this month to Barcelona, Spain, for the McDonald’s Worldwide Convention. DoorDash will have a booth, and Mr. Buchmann will work on the exhibit floor and also entertain clients.

Ms. Buchmann will accompany him. She plans to go sightseeing in the morning, and work in the afternoons and evenings Barcelona time. She will also take three days of paid time off and has shared her plans with Ms. McLaren, the RevShoppe chief executive.

They will stay a day after the conference and plan to visit the Dalí Theater and Museum in Figueres. “I’m sure there will be no shortage of tapas and window shopping along way,” Mr. Buchmann said. He expects to be back at work the next Monday.

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Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research

The paper aims to critically review past and emerging literature to help professionals and researchers alike to better understand, manage and valorize both the tourism impacts and transformational affordance of COVID-19. To achieve this, first, the paper discusses why and how the COVID-19 can be a transformational opportunity by discussing the circumstances and the questions raised by the pandemic. By doing this, the paper identifies the fundamental values, institutions and pre-assumptions that the tourism industry and academia should challenge and break through to advance and reset the research and practice frontiers. The paper continues by discussing the major impacts, behaviours and experiences that three major tourism stakeholders (namely tourism demand, supply and destination management organisations and policy makers) are experiencing during three COVID-19 stages (response, recovery and reset). This provides an overview of the type and scale of the COVID-19 tourism impacts and implications for tourism research.

1. Introduction: Setting the necessity and parameters for tourism COVID-19 research

The COVID-19 (declared as a pandemic by WHO, 12 March 2020) of significantly impacts the global economic, political, socio-cultural systems. Health communication strategies and measures (e.g. social distancing, travel and mobility bans, community lockdowns, stay at home campaigns, self- or mandatory-quarantine, curbs on crowding) have halted global travel, tourism and leisure. Being a highly vulnerable industry to numerous environmental, political, socio-economic risks, tourism is used to and has become resilient in bouncing back ( Novelli, Gussing Burgess, Jones, & Ritchie, 2018 ) from various crises and outbreaks (e.g. terrorism, earthquakes, Ebola, SARS, Zika). However, the nature, the unprecedented circumstances and impacts of the COVID-19, demonstrate signs that this crisis is not only different, but it can have profound and long-term structural and transformational changes to tourism as socio-economic activity and industry. Indeed, the global and huge scale, the multidimensional and interconnected impacts challenging current values and systems and leading to a worldwide recession and depression are the most distinctive characteristics of this pandemic.

COVID-19 tourism impacts will be uneven in space and time, and apart from the human tool, estimates show an enormous and international economic impact: international tourist arrivals are estimated to drop to 78% causing a loss of US$ 1.2 trillion in export revenues from tourism and 120 million direct tourism job cuts representing seven times the impact of September 11, and the largest decline in the history ( UNWTO, 2020 ). Being one of the most important global employer (1 in 10 jobs are directly related to tourism, UNWTO, 2020 ) and the major GDP contributor for several countries, tourism and COVID-19 are the epicenter of all international discussions and economies.

Within the burgeoning industry discussions and research about tourism and COVID-19, there is an unanimous call to see and use the pandemic as a transformative opportunity ( Mair, 2020 ). Industry should not only recover but also reimagine and reform the next normal and economic order ( McKinsey, 2020 ), while researchers should not solely use COVID-19 as another context to replicate existing knowledge for measuring and predicting tourism impacts ( Gössling et al., 2020 , Hall et al., 2020 ). Although such studies are important for managing the pandemic, they do not advance knowledge and/or guide the industry to a step beyond. Moreover, because of the interlinked socio-cultural, economic, psychological and political impacts of COVID-19 of this magnitude, unforeseen trajectories instead of historical trends are expected and the predictive power of ‘old’ explanatory models may not work. Moreover, there is enough evidence to claim that both the tourism industry and research have matured to a good extent providing sufficient knowledge about how to study and effectively: (1) design and implement crisis recovery and response strategies (e.g. McKercher & Chon, 2004 ); (2) build resilience to address future crises ( Hall, Prayag, & Amore, 2017 ). What is still lacking is knowledge about how crisis can foster industry change, how companies can convert this crisis disruption into transformative innovation and how to conduct research that can enable, inform and shape the rethinking and resetting of a next normal.

Crises can be a change trigger, but none crisis has been so far a significant transition event in tourism ( Hall et al., 2020 ). Crises have also been used as a political tool to stabilize existing structures and diminish the possibility of collective mobilization ( Masco, 2017 ). As change can be selective and/or optional for the tourism stakeholders (e.g. tourists, operators, destination organisations, policy makers, local communities, employees), the nature and degree of crises-led transformations depend on whether and how these stakeholders are affected by, respond to, recover and reflect on crises. Consequently, to better understand, predict but also inform and shape change, tourism COVID-19 research should provide a deeper examination and understanding of the tourism stakeholders’ (behavioural, cognitive, emotional, psychological and even ideological) drivers, actions and reactions to their COVID-19 impacts. Research should also examine and understand the stakeholders’ lived and perceived COVID-19 experiences as well as their consciousness, mindfulness, capabilities and willingness to understand and act (pro-actively and re-actively) to the pandemic, as all these can equally influence their attitudes, behaviours and change potential.

COVID-19 tourism research should also advance our knowledge for informing, fostering, shaping or even leading such crises-enabled transformations. Otherwise, we will simply experience one crisis after the other ( Lew, 2020 ). Responding to the mushrooming euphoria of COVID-19 tourism related research, Gretzel et al. (2020) also plead for transformative e-tourism research that can shape tourism futures by making value systems, institutional logics, scientific paradigms and technology notions visible and transformable. To achieve scientific paradigm shifts, e-tourism research should embrace historicity, reflexivity, transparency, equity, plurality and creativity ( Gretzel et al., 2020 ). To avoid the bubble of the COVID-19 research orgasm and advance tourism research, others have also suggested to adopt inter-disciplinary ( Wen, Wang, Kozak, Liu, & Hou, 2020 ), multi-disciplinary ( Gössling et al., 2020 , Hall et al., 2020 ) or even anti-disciplinary ( Sigala, 2018 ) research to enable out-of-the-box, creative and flexible thinking that challenges and goes beyond existing pre-assumptions and mindsets.

To address these needs and gaps, this paper aims to critically review past and emerging literature to help professionals and researchers alike to better understand, manage and valorize both the tourism impacts and transformational affordance of COVID-19. To achieve this, first, the paper discusses why and how the COVID-19 can be a transformational opportunity by discussing the circumstances and the questions raised by the pandemic. By doing this, the paper identifies the fundamental values, institutions and pre-assumptions that the tourism industry and academia should challenge and break through to advance and reset the research and practice frontiers. The paper continues by discussing the major impacts, behaviours and experiences that three major tourism stakeholders (namely tourism demand, supply and destination management organisations and policy makers) are experiencing during three COVID-19 stages (response, recovery and reset). This analysis is useful because it provides an overview and understanding of the type and scale of the COVID-19 tourism impacts, while it also demonstrates that the way in which stakeholders and researchers understand, react and behave in each stage may form and set the next (new) normal in the post COVID-19 era. Responding to the call for transformative research, discussions are developed based on the rational that tourism research should go beyond replicating and reconfirming existing knowledge within the COVID-19 context; instead tourism COVID-19 research should see new things and see them differently to inform and guide tourism futures. Hence, the paper suggests potential new research areas and theoretical lenses that can be used for advancing and resetting industry practice and research. The paper does not aim to provide a fully comprehensive and inclusive analysis of all the impacts, theories, topics and tourism stakeholders that COVID-19 tourism research can examine. Instead, it aims to provide practical and theoretical implications on how to better research, understand, manage and transformative valorize COVID-19 tourism impacts.

2. COVID-19 circumstances and tourism: Shifting the research focus to challenge, reset and contradict institutional logics, systems and assumptions

Research investigating, measuring and predicting the COVID-19 tourism impacts is important in order to eliminate ‘casualties’, draft, monitor and improve response strategies (i.e. you cannot manage what you cannot measure). However, research focusing on the features and impacts of crises instead of their structural roots tends to conceal and stabilize the conditions and corollary social structures through which crises are produced ( Barrios, 2017: 151 ). Investigating the real roots of COVID-19 may go beyond the boundaries and scope of tourism research. Yet, the latter needs to look into and challenge the tourism ‘circumstances’ and structures that have enabled and sometimes accelerated the global spread and impact of COVID-19. Unfortunately, the economists downplay the pandemic as a purely natural event originating and operating outside of the economic system ( Nowlin, 2017 ). But, treating COVID-19 as an exogenous shock and phenomenon that has nothing to do with socio-economic structures and values, can perpetuate and strengthen the pandemic roots during the post COVID-era as well as constrain change and transformational processes.

COVID-19 is a crisis of the economized societies rooted in the growth-paradigm ( Ötsch, 2020 ). COVID-19 is also a result of the intersection of broader processes of urbanisation, globalisation, environmental change, agribusiness and contemporary capitalism ( Allen et al., 2017 ). The nature of tourism (requiring traveling) and its evolution and growth paradigms are a significant contributor to such circumstances and the current socio-economic system accelerating the spread and impact of this contagious and infectious virus. Tourism is a result but also responsible for: our highly interconnected and global world; pollution, waste and climate change; global, national and regional economic development and growth; superiority of capitalism values in people’s and business decision-making but also policy and politics formulations. As climate change increases the frequency of pandemics and outbreaks, pandemics are expected to become more common in the future ( World Economic Forum (2019) (2019), 2019 ), which in turn highlights the interwoven nature and vicious circle forces between the biological, physical and socio-economic systems.

Moreover, the economic system and mindset contributing to the COVID-19 has also been guiding and shaping the COVID-19 response and recovery strategies of governments, institutions, businesses and people alike. This can significantly perpetuate and repeat crises as we are treating their symptoms and not their roots. For example, economic priorities for maintaining business continuity and jobs, resume and recovering to the old ‘economic success growth’, have been driving governments’ policies and practices such as: economic support (e.g. subsidies, tax reliefs) to tourism businesses and employees; debates for relaxation of restrictions for re-opening and re-starting economies at the expense of a second way and human lives. Similarly, people have engaged in panic buying and (over)-consumption of online experiences (e.g. virtual entertainment, dining, drinking, traveling) during lock-downs, that demonstrate their persistence, preference and fear of loosing to their ‘consumerism’ traditional lifestyles deemed essential for their success and happiness. Early COVID-19 tourism research also reinforces a similar mindset, e.g. many studies trying to measure the economic impacts of COVID-19 trading them off to socio-cultural and biological impacts, studies aiming to predict and measure when tourists will start traveling again and when we can reach the old tourism targets. As governments race to minimise economic losses, and be the first to reopen borders and (tourism) businesses, and financial markets, investors, cash liquidity and financial survival are equally pressing multinational and small tourism enterprises, they are all also looking for tourism research that can ‘feed’ and ‘reconfirm’ their mindset and help them resume operations based on the old paradigms and business models they are founded. Debates and research are based on trading between economic benefits and losses in exchange of human rights, lives, morals and ethics. There is no discussion why trade-offs are the best methodology and mindset to decide, no one has re-imagined ‘solutions’ enabling co-existence or regenerative forces between these concepts.

Overall, research, education and our socio-economic and political system (which they shape and are shaped by each other), have all framed our mindset on how we research, measure, understand, respond and aim to recover from the COVID-19. Consequently, we have converted COVID-19 from a biological virus contagion to a financial crisis contagion and recently, an economic race to re-build our old financial competitiveness. To avoid such perpetuations, tourism research should assume more responsibility in informing, driving and leading sustainable futures. To that end, COVID-19 tourism research should not be solely seen, conducted and used as a useful tool to help resume old states. Instead, COVID-19 tourism research should also challenge our growth-paradigms and assumptions that have led to the current situation and enable us to reimagine and reset tourism (e.g. Ioannides and Gyimóthy, 2020 , Gössling et al., 2020 , Hall et al., 2020 , Higgins-Desbiolles, 2020 ). To achieve this, COVID-19 tourism research should criticize ontological and epistemological foundations and assumptions that underpin the current science and growth paradigms ( Brodbeck, 2019 ). It should also deconstruct and challenge the mechanisms and systems that sustain the deleterious unsustainable tourism evolution ( Higgins-Desbiolles, 2020 ). But to regenerate and transform tourism and its socio-economic system, tourism research should not only support new ways and perspectives of researching, knowing and evolving. COVID-19 tourism research should also inspire, motivate and inform all tourism stakeholders alike to adopt new ways of being, doing and politicising. For example:

At a macro-level, COVID-19 tourism research should generate dethinking, rethinking and unthinking of pre-assumptions and mindsets including ( Higgins-Desbiolles, 2020 ): globalisation as an unstoppable force; neoliberal capitalism as the best system and decision-making tool for organizing and allocating resources; growth as the sole way for development and success. It should also challenge the ‘surveillance capitalism’, whose institutionalisation and normalisation is perceived as inevitable and unstoppable because of forces including ( Zuboff, 2015 ): institutionalised facts (e.g. data collection, analytics and mining); leading tech and disrupting companies being respected and treated as emissaries of a better future solving the “faults of capitalism” (e.g. sharing economy platforms ‘democraticing’ micro-entrepreneurship); and people seeing technologies as a necessity requirement for social and civic participation, securing employment and addressing the increasingly stressful, competitive, and stratified struggle for effective life. The COVID-19 is accelerating the institutionalisation and acceptance of this algorithmic governance, management and society, previously contested as violations of human rights, privacy and laws ( Zysman, 2006 ), but now becoming normalised in the name of health and common good.

Technology is at the core of solutions for combating the COVID-19 and re-opening tourism and the economy (e.g. mobility tracing apps, robotised-AI touchless service delivery, digital health passports and identity controls, social distancing and crowding control technologies, big data for fast and real time decision-making, humanoid robots delivering materials, disinfecting and sterilizing public spaces, detecting or measuring body temperature, providing safety or security), while technology is seen as a panacea to our COVID-19 driven-needs to normalise surveillance, to ensure health and safety, to collect and analyse personal data for fast decision-making. Although COVID-19 tourism research cannot stop these technological advances, it should fight this digital trojan horse from the inside by questioning and resetting their purposes, designs and affordances, interpretations and application ethics. Technologies are constituted by unique affordances, whose development and expression are shaped by the institutional logics in which technologies are designed, implemented, and used ( Zuboff, 2015 ). COVID-19 tourism research could simply investigate and advance our information and technological capabilities to collect, analyse and use (big) data for better knowing, predicting, controlling, and modifying human behavior (e.g. tourists and employees behaviour) as a means to produce revenue and market control ( Zuboff, 2015 ). But such research will simply further support the making of everydayness qua data imprints an intrinsic component of organizational and institutional life and a primary target of commercialization strategies ( Constantiou & Kallinikos, 2015 ). Technologies have always been an enabler, a catalyst of innovation and change, a disruptor of tourism, as well as a tool to build tourism resilience in crisis ( Hall et al., 2017 ). The COVID-19 has further enhanced the role of technologies in the recovery and reimagination of tourism, while it reinforces existing paradigms in the e-tourism evolution. Developmental trends and adoption of smart destinations and tourism services, AI, robotics and other digital advances are now accelerated to combat the COVID-19 tourism implications. COVID-19 tourism research should reimagine and re-shape the purposes, usage and means of such technological advances that significantly form how our societies and economies are being transformed, how tourism is being practiced, managed and evolves with the help and/or because of the COVID-19.

At a micro-level, COVID-19 tourism research should question and reset why tourism is viewed, practiced and managed as a way to ‘escape’, ‘relax’, ‘socialise’, ‘construct identities/status’, ‘learn’ and reward themselves from a routine, unpleasant and meaningless life. Why tourism should be researched and practiced as an escape from a boring life, instead of life being rewarding and meaningful itself? Why people have to travel thousands of miles away from home to ‘learn’ and ‘be happy’? Why companies have to commercialize and commoditize communities, people and their tangible and intangible resources as tourism attractions ‘please’ the tourists’ needs and drive economic development? Tourism paradigms and mindsets like this, have led and intensified crises like COVID-19 and this cannot be sustainable for much longer. Consumerism and tourism should not be seen as the sole way to achieve happiness, self-expression, and (economic) development. COVID-19 tourism research should inspire tourists, businesses and destinations alike to re-imagine and reset new mindsets, frontiers and behaviours such as: how to use and develop tourism to valorize and not consume tourism resources, to generate well-being, sustainability and transformational learning; how to study and practice environmental/sustainable management not as a legal necessity for lobbying and formulating policies, not as marketing tool to build brands’ and people’s identities, not as an expense to be minimized, but as a mindful business investment and personal lifestyle for a responsible future.

Overall, COVID-19 tourism research should not only be the mean to overcome the crisis and resume previously chartered economic growth trajectories. It should lead the refocusing, repurposing, reframing and re-interpretation of research questions, methodologies and outcomes, so that tourism stakeholders can in turn re-direct their actioning, conduct and evolution. To that end, COVID-19 tourism research will be benefited by embedding, adapting, reflecting and expanding the theoretical lenses and perspectives of a much greater plurality of disciplines and constructs to guide and implement research. Transformative (service) research, philosophy, criminology, ethics, law, anthropology, behavioural and religious studies, political science and diplomacy, governance, bioethics, rhetoric. Researching within unchartered waters, COVID-19 tourism research may also need to apply new methodological approaches and tools that are capable to combat roots and not symptoms of tourism crises and use the latter as transformational opportunity to reset research agendas and re-imagine and re-shape unthinkable tourism futures. Due to the newness of the field qualitative approaches such as (cyber)ethnography and the need for urgent, fast and real-time research processes and outcomes, COVID-19 tourism research may also need to intensify and advance “new” methods of (big) data collection, analysis and interpretation/visualization, such as participatory sensing (i.e. using tourists as sensors for data collection).

Paradox research, as a meta-theory and/or methodology, can also be very instrumental for informing and supporting COVID-19 tourism research. Originating in philosophy and psychology (e.g. Aristotle, Confucius, Freud), paradox research (also frequently requiring multi-disciplinarity) has helped to inform, advance and transform management science research ( Schad, Lewis, Raisch, & Smith, 2016 ) and organisations ( Cameron & Quinn, 1988 ) alike. As a meta-theory, paradox research offers a powerful lens for enriching extant theories and fostering theorizing processes in management science, because it provides deeper understanding and conceptualisation of constructs, relationships, and dynamics surrounding organizational tensions. By investigating contradictions between interdependent elements that are seemingly distinct and oppositional, one can better unravel how one element actually informs and defines the another, tied in a web of eternal mutuality. As a methodology, the paradox lens encourages researchers to approach organizational paradoxes paradoxically ( Cameron & Quinn, 1988 ). Incorporating paradox research into COVID-19 research may also be inevitable, as the COVID-19 circumstances, impacts and debates have uncovered and intensified existing paradoxes, but also generated new ones. Paradox research is also paramount to COVID-19 tourism research, if the latter is to become innovative and transformative. These are because (adapted by Schad et al., 2016 ):

• • Interruptions in socio-economic life can reveal structural contradictions and paradoxes, and by studying and understanding them, one can make the crisis positive and transformative
• • paradoxes intensify, grow and intensify, as contemporary organizations and their environments become increasingly global, fast-paced, and complex; the evolution and circumstances of tourism and COVID-19 are a strong evidence of a highly interconnected, fast paced and complex world
• • paradox is a powerful meta-theorizing tool: opposing theoretical views may enable vital insights into persistent and interdependent contradictions, fostering richer, more creative, and more relevant theorizing
• • paradox identifies and challenges our pre-assumptions: as antinomies, theoretical paradoxes remain perplexing, even paralyzing, when researchers are confined by the past and/or assumptions
• • paradox help us think creatively and out-of-the box, because contradictions provoke established certainties and tempts untapped creativity

Paradox research is limitedly used within tourism research, but its applicability, versatility and value are shown already in investigating: macro-level tourism and destination management issues ( Williams & Ponsford, 2009 ); business operations ( Sigala, Airey, Jones, & Lockwood, 2004 ) and tourism demand ( Mawby, 2000 ). However, as the present and post COVID-19 era is a fertile ground of persistent and new paradoxes in tourism, tourism researchers should seriously consider adopting a paradox lense. For example, the circumstances of COVID-19 (e.g. stay at home lockdowns, social distancing) have necessitated and accelerated the use of technologies by both tourists (e.g. information about travel restrictions, online crisis communication, online COVID-19 alerts and hygiene measures) and businesses (e.g. online food delivery, virtual dining, virtual wine experiences, festivals/events, virtual visits of museums, destinations). However, persistent ‘paradoxes’ (e.g. increase use of social media and loneliness, democratisation of information accessibility and information darkness, technology and (small) business empowerment/equalizing competition rules) are questioning the effectiveness of such technology solutions and have fuelled debates on whether they are a ‘cure’ or a ‘fertiliser’ and “diffuser’ of the pandemic. Not everyone has access to technology and those that they have do not necessarily have the capabilities and knowledge to effectively use the technology tools and information. The persistent digital divide found in consumers and businesses (which mainly represents a socio-economic divide of citizens and size of businesses), has converted the pandemic to an infodemic (e.g. lack or mis-information, diffusion of fake COVID-19 news and advices, emotional contagion of global depression and mental health) and a tool deepening the economic divide and competitive gap between larger and smaller tourism operators. Digital inequalities in tourists potentiated their vulnerability to COVID-19 (e.g. putting themselves and their loved one in health risk while traveling or willing to travel during and after the COVID-19), while COVID-19 vulnerability potentiate to enlarge the digital inequalities [e.g. those who have the tools and means to easier go through the COVID-19 impacts will also be the only ones who can pay and access virtual tourism experiences, who will be well informed on how, where and when travel and who will be able to afford to travel in the future, as increased (hygiene and technology) operating costs and transportation oligopolies may increase costs of tourism]. Similarly, digital inequalities in tourism businesses potentiate COVID-19 vulnerability (as larger operators that were technology ready and ‘inherited’ by size resilience, were the first and maybe the only ones to be able to virtualise operations and experiences for maintaining business liquidity, surviving, re-opening and recovering post COVID-19), while COVID-19 vulnerability increases digital and economic inequalities in the tourism competitive landscape (e.g. larger companies/destinations which are characterised by greater cash liquidity, know-how, technology readiness and resilience and so, have lower COVID-19 vulnerability, will be the ones to survive and thrive post COVID-19). Paradox research that can investigate such contradictions between the abovementioned distinct and oppositional, but also elements interdependent elements can better define, understand, manage and address their concepts and the dynamics of their web of eternal mutuality.

The COVID-19 fortified and generated many other paradoxes, which are also identifiable at all tourism management levels (macro, meso and micro) and COVID-19 tourism research can investigate for advancing and transforming research. Table 1 provides some ideas for applying such paradoxes in COVID-19 tourism research.

Paradox Research: advancing and transforming COVID-19 tourism research.

3. COVID19: Dismantling and re-mantling tourism in three stages

It is widely accepted that crisis management needs to be implemented before, during and after a crisis. Table 2 provides an overview of the impacts and implications of COVID-19 on three major stakeholders (tourism demand, tourism operators, destinations and policy makers) under three stages (representing the respond, recovery and restart stage from the pandemic) to incorporate a transformational stage envisioned in the post COVID-19 era. COVID-19 tourism research does not have to address issues in the last stage in order to be transformative. It can equally be transformative if it re-examines ‘existing’ issues and relations but through new theoretical lenses and/or methodological approaches by embedding a plurality of ‘new’ disciplines into the research designs. By doing this, one can significantly unravel unknown issues and dynamics, provide a better explanatory power and understanding of concepts and relations as well as identify and test new ‘remedies’.

COVID-19 and tourism in three stages: major impacts and some ideas for future research.

3.1. Tourism demand

Tourists have experienced themselves, through their loved ones and/or through the shared experiences of others (e.g. user-generated-content) significant disruptions and health-risks in their travel and bookings plans. The tourists’ experiences and/or exposure to others’ experiences (that are also magnified through the emotional contagion and information diffusion of the social media) can have a significant impact on their travel attitudes, intentions and future behaviours. Psychiatric research investigating the impact of traumatic experiences on people’s life, behaviours and experiences of places and services (e.g. Baxter & Diehl, 1998 ) can provide a useful theoretical lenses for understanding the travel behavior and attitudes of tourists that have been exposed to own or others’ COVID-19 travel trauma. Tourism research has mainly focused on studying how tourists develop their perceived risk and the impacts of the latter on tourists’ decision-making processes, future intentions and segmentation profiles (e.g. Dolnicar, 2005 , Aliperti and Cruz, 2019 , Araña and León, 2008 ). Others have also examined the impact of the tourists’ perception of crisis management preparedness certification on their travel intentions (e.g. Pennington-Gray, Schroeder, Wu, Donohoe, & Cahyanto, 2014 ). Such research is important, as risk perceptions are important for predicting future tourism demand and drafting appropriate recovery strategies ( Rittichainuwat & Chakraborty, 2009 ). It is also relevant for COVID-19 tourism research because of the new COVID-19 standards and certification rules that companies are now required to adopt. Research has shown that perceptions of risks may differ between tourists with different origin-country, final destination, age, sex and the typology of travel ( Rittichainuwat & Chakraborty, 2009 ). However, the impact of crisis communication and social media on perceived risk has been totally ignored. Some research is done for examining the impact of social media use on tourists’ mental health ( Zheng, Goh, & Wen, 2020 ) and crisis information systems and communication – social media ( Sigala, 2012 , Yu et al., 2020 ), however, given the increasing role and impact of social media on crisis communication and people’s health and risks perceptions, this is an area where more research is granted. As a vaccine for COVID-19 may take long to be developed and travelers may need to live with it, tourism research might benefit from medical and health research investigating how people behave, live and cope with chronic and lifestyle-related diseases (e.g. AIDS).

During lockdowns, people have experienced and become familiar with virtual services and tourism experiences. Research in technology adoption would claim that increased technology familiarity and trialability will increase its adoption. But will this apply for the controversial technologies introduced by COVID-19? Political economy and law research explaining how people react and accept human rights ‘violations’ (e.g. surveillance measures, freedom of speech, lockdowns) under conditions of ‘state of exception’ like terrorism or the COVID-19 ( Carriere, 2019 , Bozzoli and Müller, 2011 , Scheppele, 2003 ) can provide a new lenses for studying adoption of the COVID-19 controversial technologies and restrictions Research on political ideologies could further enlighten why people’s ideologies and political values may further perplex their reactions and behaviours to such interventions in their human rights.

It is claimed that while experiencing low pace, new lifestyles and working patterns, people are reflecting and recalibrating their priorities and social values. Is that true in relation to their travel behavior? Would people require and expect greater responsibility and sustainability from tourism operators and destinations? Would they be motivated to travel more but for a meaningful purpose? Or would people go back to their previous travel behaviours and preferences? Past research ( Pieters, 2013 ) has shown that consumers face a “material trap” in which materialism fosters social isolation and which in turn reinforces materialism. This might explain why during lockdowns people increased their online shopping and consumption of virtual entertainment and probably they might not have reflected and reset their values. Is that true and what is its impact on tourists’ behaviours? Consumer psychology and behavioural science explaining how people wish to align the time they spend with their values (congruence theory) can provide useful insights into such investigations. In addition, religion and spirituality studies can further enlighten the impact of COVID-19’s living conditions on tourists’ tourism sustainability preferences and attitudes as well as responses to tourism operators’ and destination sustainability practices and communications. This is because religion and spirituality is found to play an important role in influencing individuals’ thoughts and behaviors ( Laurin, Kay, & Fitzsimons, 2012 ).

Social distancing imposed by COVID-19 includes actions such as, reducing social contact, avoiding crowded places, or minimizing travel. Social distancing can significantly impact how people experience and evaluate leisure and travel activities like hiking, outdoor activities and nature-based tourism or even personal services like spas, dining, concierge services. Social distancing or better physical distancing may influence tourists’ perceptions of health hazards, insecurity and unpleasant tourism experiences. But how ‘far’ away is enough for tourism employees and other customers to be from each other without compromising sociality, personal service and perceptions of social distancing measures? Social distancing has not been studied before in service provision, while law and criminology research on ‘sexual’ consent may provide a different perspective on how people define social space and the ‘invasion’ or not of others into it.

Tourism is heavily a hedonic and sensorial experience. Servicescape design plays a major role in tourism experience by influencing customers’ emotions, behaviors, attitudes and service evaluations. However, COVID-19 operating standards require servicescapes to be redesigned eliminating or inhibiting sensorial elements and ‘changing’ tourism experiences, e.g.: smell of cleanliness instead of fragrance; social distancing and number of co-presence of clients in restaurants, festivals and other tourism settings will influence new standards of psychological comfort and acceptable levels of perceived crowdness; raised voices may generate a wider “moist breath zone” increasing viral spread; warmer temperatures create relaxing environments encouraging customers to stay and spend more, but poorly ventilated or air-conditioned indoor spaces may spread COVID-19. Would tourists and tourism firms change their behaviour and attitudes towards these new COVID-19 servicescapes? What new service etiquettes, customer expectations, behaviours and experiences would COVID-19 determined servicescapes and operational procedures may generate?

These and many other fields of research have been raised due to COVID-19 conditions, and as explained a plurality of theoretical lenses can be beneficial to provide a better understanding of these new concepts introduced in tourism research.

3.2. Tourism supply – Businesses

Tourism businesses have been racing to ensure the safety of their employees, customers, brand image and cash liquidity. To re-start, tourism companies are re-designing experiences (e.g. winery experiences, museum visits, tours, sports events, in-room dining and entertainment instead of hotel facilities) to feature smaller groups of tourists, outdoor activities and/or private experiences complying with social distancing and gathering restrictions and travellers’ expectations. Tourism companies have already upgraded their cleaning procedures by adopting new standards and restraining staff. Many of companies promote their hygiene certifications accredited by health expert associations. Tourism professionals are being trained to become ‘contact tracers’ obtaining relevant certifications confirming their skills to identify cases, build rapport and community with cases, identify their contact and stop community transmission. Restaurants, hotels, airports, public spaces are re-engineering their operations to make them contact-free or contactless. Mobile apps (for check-in, check-out, room keys, mobile payments, bookings-purchases), self-service kiosks, in-room technologies for entertainment and destination e-shopping (e.g. virtual reality for destination virtual visits to museums, attractions and destinations, movies), robots (for reception and concierge services, food delivery museum guides), artificial intelligence enabled websites and chatbox for customer communication and services, digital payments (e.g. digital wallets, paypal, credit cards). In addition, the new operating environment enforced by COVID-19 measures require firms to adopt new technologies and applications to ensure management of crowds and number of people gathered in public spaces (e.g. airports, shopping malls, museums, restaurants, hotels), human disinfectors and hand sanitiser equipment, applications identifying and managing people’s health identity and profiles.

Research can conduct a reality check and benchmarking of the effectiveness of the various respond and recovery strategies adopted by tourism operators. Research can also investigate the role and the way to build resilience to fast develop and implement such strategies. However, such research is useful and important but probably not enough for investigating the resetting of the next tourism industry normal. Transformative COVID-19 research should help industry to reimagine and implement an operating environment that is human-centred and responsible to sustainability and well-being values.

3.3. Destination management organisations and policy makers

Governments and destinations have been providing stimulus packages and interventions (e.g. tax reliefs, subsidies, deferrals of payments) to ensure the viability and continuity of tourism firms and jobs. Governments have intervened in mobility restriction and closures of businesses. Because of these, COVID-19 has resulted in a greater intervention of governments in the functioning and operations of the tourism industry. The government has also become a much bigger actor in the tourism economy (e.g. re-nationalisation of airlines and other tourism firms and tourism infrastructure like airports). This is very unique for COVID-19, as previous crises have generated research and institutional interest, but they did not have policy impact, specifically in tourism ( Hall et al., 2020 ). Would such government interventions and role sustain in the future? How will this influence the structure and functioning of the industry at a national and global level? Debates have already started questioning the effectiveness of such interventions, their fairness and equal distribution amongst tourism stakeholders ( Higgins-Desbiolles, 2020 ), their long-term impacts in terms of austerity and cuts of public expenditures. Future research looing into these issues is highly warrantied. In their CIVID-19 reactions and responses governments and destinations seem to have acted individually and nationalistic and recently selectively (e.g. bilateral and multilateral agreements amongst tourism bubbles). However, systems theory and crisis management, would argue that crises need to be addressed collectively. What would be the impact of such governmental behaviours on the future of tourism and destinations tourism policy making and strategies? As it seems, COVID-19 has raised political, geopolitical and governance issues that frameworks and concepts from these disciplines would need to be used to enlighten such research.

4. Conclusions: What is more and what is next

COVID-19 resulted in numerous socio-cultural, economic and psychological impacts on various tourism stakeholders, some of them for years to stay. Consequently, the pandemic has created a ‘fertile’ new context whereby tourism researchers can conduct research with valuable end-user benefits. However, COVID-19 tourism research should try to avoid the ‘publish or perish’ old mantra that has been driving and mushrooming tourism research ( Hall, 2011 ). Although studies conducting a reality check of impacts, predicting tourism demand, and benchmarking good and best practices are very useful and contextually interesting to assess COVID-19 impacts on various geographies sectors and stakeholders, they potentially offer limited scope to advance our knowledge on crisis management as well as to potentiate the pandemic’s affordance to reset our research agendas and expand the contribution and frontiers of tourism research and industry. It is the aim of this paper to inspire tourism scholars to view and use the COVID-19 as a transformational opportunity for reforming their mindsets in designing and conducting research and for the tourism institutions to reset their standards and metrics for motivating and evaluating the purpose, role and impact of tourism research. In addition, crises also accelerate technology innovation and change ( Colombo, Piva, Quas, & Rossi-Lamastra, 2016 ). However, these should not be viewed as inevitable, unquestionable and impossible to re-shape and re-adjust to serve real needs and meaningful values. It is the responsibility scholars to ensure that COVID-19 tourism research can ensure the latter.

The present analysis is not exhaustive in terms of the COVID-19 impacts, while impacts may not be uniform across all the actors of the same tourism stakeholder group. For example, the COVID-19 has different impacts on tourism operators based on their characteristics such as, the nature of the tourism sector (intermediaries, event organizers transportation, type of accommodation or attraction provider), their size, location, management and ownership style. Similarly, the highly heterogenous tourism demand (e.g. leisure and business travelers, group and independent tourists, special interest tourists such as religious, gay & lesbian, corporate travelers) also means that different COVID-19 impacts and implications are anticipated and worthy to be investigated for different market segments. COVID-19 tourism research should not only disclose such differentiated COVID-19 impacts, but it should also provide an enriched explanatory power about the roots of such disparities with the scope to envision and/or test any suggestions on how to address any inequalities and disadvantages that they may cause to various groups of tourism stakeholders. The analysis did not also include other major tourism stakeholders such as tourism employees, local communities, tourism entrepreneurs and tourism education (scholars, students and institutions alike). Recent developments and pressures faced by some of these tourism stakeholders were further strengthen by the COVID-19, which in turn place them in a more disadvantaged situation. COVID-19 research related to these stakeholders is equally important.

For example, COVID-19 has worsen the already difficult situation (e.g. high labour flexibility but at the expense of low salaries, lack of job security, insurance and other benefits) faced by an increasing number of tourism micro-entrepreneurs (e.g. food delivery people, ‘Uber taxi drivers’, “Airbnb hoteliers”) ( Sigala & Dolnicar, 2017 ). Algorithmic management, increased pressure and work stress are some of the negative impacts of the gig economy, which become more evident and fortified due to the COVID-19 (e.g. food delivery employees have no health insurance or coverage of lost salaries in case they get infected while working; ‘micro-hoteliers’ risk loosing their homes, as they cannot collect ‘accommodation fees’ to pay off home mortgages). Being an unofficial and sometime black economy/employment, gig tourism workers may not even be entitled to governmental subsidies provided to COVID-19 vulnerable employees or businesses. As the COVID-19 is expected to continue and reinforce contemporary paradigms and trends of this ‘causalisation’ of tourism employment (due to the upcoming economic recession and greater operating costs of tourism firms), COVID-19 tourism research needs to urgently investigate issues of employee psychological, mental and physical health, engagement, working conditions (e.g. remote working, virtual teams and virtual leadership) and other human resource issues within the COVID-19 setting. For example, traditional leadership, recruitment, management, and motivational incentives may not inspire, engage, motivate, and attract employees who have recalibrated their personal values and priorities during the COVID-19 lockdown and remote working.

The COVID-19 impacts on tourism employment create further pressures on tourism education that has severely affected by the pandemic. Apart from the virtualization of teaching and learning processes, tourism students and graduates have to also address the halt of industry interships, recruitment and questionable career paths. Tourism programs and universities are faced with reduced students’ intakes, industry and government sponsorship and research funding. Tourism researchers need to find new ways and sources for conducting research addressing social distancing, respecting the mental health and privacy issues of COVID-19 affected stakeholders. Investigating pedagogical issues such as how to make the design and delivery of tourism curricula more ‘resilient’, agile and updated to develop graduates with flexible and transferable skills to other industries is also equally important. For example, new online and offline courses and certifications have already emerged training graduates to become professional ‘contact tracer’ possessing the technical, emotional/social and ethical skills to manage customers and employees in situations of contact tracing, isolation, and quarantine (e.g. how contact tracing is done, how to build rapport with cases, identify their contacts, and support both cases and their contacts to stop transmission in their communities ( https://uh.edu/medicine/education/contact-tracer/ , https://www.coursera.org/learn/covid-19-contact-tracing?edocomorp=covid-19-contact-tracing , https://sph.uth.edu/news/story/trace ). However, is that just an opportunistic educational offering and/or a new ‘skill and qualification standard’ that tourism industry and demand would expect alike?

Many other specialized topics also warrant research within the domain of COVID-19. For example, the social entrepreneurship has been booming in tourism during the last decade ( Sigala, 2019 ) for several reasons including the 2008 economic recession. COVID-19 has boosted such tourism social ventures aiming to create social value, solve social problems created by the COVID-19 and provide help to people in need (e.g. marketplaces enabling the repurposing of various tourism unutilized resources such as labour, hotel and function space, food, cleaning material, e.g. HospitalityHelps.org ). The mushrooming of COVID-19 related tourism social ventures provides many opportunities to study and better understand this phenomenon within new and various ecosystems, stakeholders and circumstances.

Marianna Sigala is Professor at the University of South Australia and Director of the Centre for Tourism & Leisure Management. She is an international authority in the field of technological advances and applications in tourism with numerous awarded publications, research projects, keynote presentations in international conferences. In 2016, she has been awarded the prestigious EuroCHRIE Presidents’ Award for her lifetime contributions and achievements to tourism and hospitality education. She is the co-editor of the Journal of Service Theory & Practice, and the Editor-In-Chief of the Journal of Hospitality & Tourism Management. Professor Sigala was also appointed as CAUTHE Fellow in 2020.

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