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How the UN civil aviation agency is helping airlines take off again

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In normal times, the world’s airlines would be carrying nearly 2 billion international passengers this year. That’s 5.7 million a day. But with the COVID-19 pandemic gripping the planet, these are not normal times. In its latest analysis of the economic impact of novel coronavirus on global commercial aviation, the International Civil Aviation Organization (ICAO) warns of a potential overall reduction of 872 million to just over 1.3 billion international passengers – if signs of recovery emerge in late May.

Should the worldwide slump drag into the third quarter of 2020 or later, that number could soar to 1.124 billion to 1.54 billion travellers, as airlines slash the number of seats on offer by 49 to 72 per cent.

Planes grounded; billions lost

If that is the case, air carriers could find themselves grappling with $198 billion to $273 billion in lost gross operating revenue from their international operations.

Montreal-based ICAO released the figures this week, saying they are the most complete since it started issuing regularly updated analyses of COVID-19’s impact on air transport, in February.

The UN specialized agency, which brings together 193 Member States, is providing ongoing guidance to air transport planners, regulators and operators as the novel coronavirus crisis unfolds.

“In today’s updated analysis, the analytical timeframe was extended for another three months to December 2020, and more reliable air fare data was used to calculate revenue reduction”, said ICAO Secretary-General Fang Liu.

In releasing the figures on Thursday, and as it looks ahead to a post-COVID-19 world of travel, ICAO cautioned that its figures are not forecasts, but rather scenarios that indicate possible paths or consequential outcomes, out of many.

Many variables

The actual impact will depend on many factors – including the duration and magnitude of the outbreak and containment measures, government assistance, economic conditions and the degree of consumer confidence for air travel.

What is known is that, for Asia-Pacific airlines, the COVID‐19 pandemic has already surpassed the 2003 SARS outbreak that prompted a $6 billion drop in revenue. In that instance, it took just six months for the industry to return to pre-crisis levels.

Without the pandemic, ICAO said, international passenger demand could have gone up by 67 million this year, as airlines planned to grow their seat capacity by 3.4 per cent over 2019.

The biggest drop in demand now is expected to be in Europe during its peak summer travel season, followed by the Asia-Pacific region.

Take off for Aviation Recovery Task Force

In addition to its analysis, ICAO announced this week the creation of a COVID-19 Aviation Recovery Task Force, to identify and recommend strategic priorities and policies for States and industry operators alike.

It aims to leverage all available government and industry data to come up with solutions to the immediate challenges that civil aviation is facing across the board – and priorities to be addressed in a post-COVID world.

“An effective recovery of international air transport is essential to support the post-COVID-19 pandemic worldwide economic recovery,” ICAO Council President Salvatore Sciacchitano told the Task Force at its first meeting.

“International air transport has faced several crises in the past from which it was able to regain its position, thanks to timely initiatives by ICAO.” He said.

He added: “The progress achieved over the course of decades could be entirely erased if international air transport does not resume soon and effectively.”

Making up the new Task Force, are ICAO Council members and the directors-general of all major air transport industry associations, among others. UN entities such as the World Health Organization (WHO) and the World Tourism Organization (UNWTO) are also represented, as well as the heads of several national and regional aviation administrations.

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Tourism

Africa’s Tourism Leaders Identify Investments as Key to Sustainable Recovery

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The African Members of the World Tourism Organization (UNWTO) have met in Cabo Verde to strengthen their cooperation and advance plans for recovery and sustainable growth.

The 64th meeting of the UNWTO Regional Commission for Africa (CAF) saw 23 countries represented on the island of Sal, with 21 Ministers of Tourism joining five Ambassadors for the high-level event. Opening the Commission meeting, the President of Cabo Verde Jorge Carlos Fonseca offered a warm welcome to UNWTO’s leadership and to all delegates. The President was joined by Cabo Verde’s Minister of Tourism and Transport, Carlos Jorge Duarte Santos, and Prime Minister Dr. Ulisses Correia e Silva in reaffirming support of the highest political level for tourism and recognition of the sector as a driver of recovery and sustainable development.

Chaired by Christine Kaseba Sata, Ambassador of Zambia to Spain and Permanent Representative to UNWTO, delegates addressed the biggest challenges standing in the way of the sector’s safe restart across the continent. Special emphasis was placed on the importance of speeding up vaccine rollouts across the continent, as well as addressing security issues that continue to have an impact on how global travellers perceive Africa as a safe tourism destination. Also on the agenda was the current level of connectivity between destinations, with improved air links the harmonization of travel protocols identified as an effective means for boosting regional tourism.

Tourism’s restart ‘essential’

Secretary-General Zurab Pololikashvili welcomed delegates to the Commission meeting, providing an overview of UNWTO’s work during the ongoing crisis and how this is driven by the stated priorities of its African Member States. He said. “The continent is united in its determination to use the power of tourism to drive development and opportunity for all. And with coordination and targeted investments, African tourism can finally fulfil its unique potential.”

Rebuilding trust in travel

In Cabo Verde, UNWTO Members were brought up-to-date on the development of the International Code for the Protection of Tourists, a landmark code aimed at helping restore confidence in travel. Members were also presented with an overview of the UNWTO General Programme of Work & Budget for the Period 2022-2023. Additionally, signalling a shared determination to keep moving forward even in challenging times, Members also held elections for key positions within UNWTO decision-making bodies ahead of the 24th General Assembly.

Building capacity

Running in parallel with the Commission meeting, UNWTO hosted capacity building workshops on innovation, digital marketing and investment These workshops were held ahead of the second edition of the UNWTO Global Tourism Investment Forum, opened by Prime Minister Dr. Ulisses Correia e Silva and featuring the participation of investors from Spain, Germany, Switzerland and the USA as well as public and private sector leaders from across Africa. Backing up the workshop on marketing, UNWTO also launched its new Brand Africa publication. Produced with key African Tourism Partners, the publication aims at helping destinations use effective branding to diversify and attract visitors.

Also in Cabo Verde, tourism leader celebrated the signing and approval of the UNWTO Declaration on the Future of Mobility and Sustainable Transportation, a commitment aimed at the better understanding of how investments can help make the sector greener while also encouraging greater cooperation between tourism authorities and transport providers. Concluding the Regional Commission meeting, UNWTO signed a Memorandum of Understanding (MoU) with the Government of Cabo Verde. The aim of the MoU is to enhance cooperation between UNWTO and the Ministry of Tourism to strengthen the country’s branding, boost tourism education initiatives, and support research into the socio-economic impact of the sustainable development of tourism across Cabo Verde.

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Green Hotel Investments to #RestartTourism

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Destination Capital (DC) has signed a collaborative arrangement with the World Tourism Organization (UNWTO) of the United Nations to support the rejuvenation of the hotel industry. The arrangement supports the relationship DC has with the International Finance Corporation (IFC) to promote investment in green and sustainable tourism accommodation and to stimulate re-employment, particularly in the wake of the COVID-19 pandemic.

The collaboration between UNWTO and Destination Capital is based on DC’s adoption of best practices aimed at reducing carbon emissions and operating hotels in a manner consistent with IFC’s environmental and social criteria. Against this backdrop, DC acquires and repositions freehold hotels of 150-250 rooms in Thailand and across South-East Asia with the aim of implementing sustainable water and energy systems. It also works to promote gender equality at every level of the hospitality sector, another of UNWTO’s core priorities and in line with Sustainable Development Goal number 5.

While governments and destinations around the world are working on vaccination programs to accelerate the restart of the tourism, UNWTO is working with the private sector to encourage employers to play their part in the recovery of local communities through job creation and training programs. UNWTO data shows that international tourism arrivals fell by 1 billion in 2020, with the crisis carrying over into 2021. Worldwide, this has placed as many as 120 million tourism jobs directly at risk. Moreover, Asia and the Pacific has been the worst-affected of all global regions, and young workers and women are among the hardest hit by the downturn in tourism employment.

In line with the 2030 Agenda for Sustainable Development, DC recognizes the hotel industry not only has a responsibility to re-hire and re-train hotel staff. It is also increasingly under pressure to reduce its carbon footprint and mitigate the impact of energy and water consumption as well as food waste and environmental degradation. DC is committed to retrofitting its hotels to be compliant as ‘green hotel’s as per the Excellence in Design for Greater Efficiencies (EDGE) standards established by IFC.

About Destination Capital

Destination Capital is a private equity real estate investment company based in Bangkok Thailand which focuses on acquiring, renovating and repositioning hotel assets such that they are EDGE compliant and follow a rigorous sustainability protocol in order to unlock value for our capital partners. Rigorous asset manage programs are in place to yield higher values upon exit while pursuing a “Triple Bottom Line” strategy: Planet, People, Profit.

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Promoting ‘Brand Africa’ to Realize the Continent’s Tourism Potential

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UNWTO’s African Member States will work together to establish a new narrative for tourism across the continent. To better realize tourism’s potential to drive recovery, UNWTO and its Members will also work with the African Union and the private sector to promote the continent to new global audiences through positive, people-centred storytelling and effective branding.

With tourism recognized as an essential pillar of sustainable and inclusive development for the continent, UNWTO welcomed high-level delegates to the first Regional Conference on Strengthening Brand Africa. The conference featured the participation of the political leadership of host country Namibia, alongside public and private sector leaders from across the continent.

UNWTO Secretary-General Zurab Pololikashvili welcomed the common determination to rethink as well as restart tourism. “African destinations must take the lead in celebrating and promoting the continent’s vibrant culture, youthful energy and entrepreneur spirit, and its rich gastronomy”, he said.  

Windhoek Pledge puts people first

On the back of a series of workshops and a Ministerial Think Tank, UNWTO’s African Member States unanimously endorsed the Windhoek Pledge on Advocating Brand Africa. Under the terms of the Windhoek Pledge, Members will engage both public and private sector stakeholders as well as local communities to build a new, inspiring narrative for tourism across the continent. They will identify positive, human-centred stories, and through strengthened partnerships with the media, showcase them to the world, reaching new and diverse tourism source markets.

Over the coming weeks, UNWTO will work with all signatories to create a common roadmap towards establishing Brand Africa. This will include establishing common values and goals and identifying funding needs and opportunities as well as providing branding toolkits for destinations, including guidelines and recommendations and training and capacity building in market intelligence, digital marketing and data management.

Bilateral meetings show support for tourism

Alongside the conference, UNWTO Secretary-General Zurab Pololikashvili, held high-level talks on the restart of tourism with President of Namibia Hage Geingob, as well as with the country’s Deputy Prime Minister Netumbo Nandi-Ndaitwah and with the African Union Commissioner for Trade and Industry Albert Muchanga

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