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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

UNWTO and NEOM Launch ‘Tourism Experiences of the Future’ Challenge

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The ‘Tourism Experiences of the Future’ challenge will source innovative ideas and disruptive business models related to the tourism needs of the future, in line with growing demand for new experiences. All proposals must be aligned with the Sustainable Development Goals and should include the introduction or adaptation of digital and technological elements, as well as being focused at least one of the following areas:

  • Optimizing and maximizing the potential of experiential tourism
  • Harnessing the positive impact of new technology
  • Alternative business models
  • Innovative experiences

The competition is the first national initiative dedicated to identifying new companies that will lead the tourism sector’s transformation in Saudi Arabia. As well as established businesses, the competition also welcomes applications from Saudi Arabian start-ups and innovators with ideas capable of revolutionizing and inspiring tourists by presenting new ways and reasons to travel.

Applications are open until 2 November, with great interest expected, and participants must be Saudi citizens with legal capacity to enter into a contract. Successful projects will be selected based on various criteria, such as the degree of innovation, their viability and sustainability.

An Affiliate Member of UNWTO since 2019, NEOM is an accelerator of human progress and a vision of what a new future might look like. Located in northwest Saudi Arabia along the Red Sea, NEOM is ideally situated at the crossroads of the world, comprising a total area of 26,500 km². A special authority has been established to oversee NEOM, chaired by His Royal Highness Prince Mohammed bin Salman. 

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Tourism

Time to rethink, transform, and safely restart tourism

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Tourism “touches almost every part of our economies and societies”, enabling the historically marginalized, and “those at risk of being left behind, to benefit from development”, declared UN Secretary-General António Guterres on Monday, marking World Tourism Day.  

The impact of the COVID-19 pandemic on tourism could result in a more than $4 trillion loss to the global economy, according to a recent report from the UN Conference on Trade and Development (UNCTAD). 

Emergency for developing countries 

Highlighting the fact that in the first months of this year, “international tourist arrivals decreased by a staggering 95 per cent in parts of the world”, Mr. Guterres said that tourism continues to suffer enormously due to the COVID-19 pandemic.  

“This is a major shock for developed economies, but for developing countries, it is an emergency”, he added.  

“Climate change is also severely affecting many major tourist destinations, particularly Small Island Developing States”, his message added. There, tourism accounts for nearly 30 per cent of all economic activity.  

Tourism for inclusive growth 

Acknowledging that many millions of livelihoods are in jeopardy, Mr. Guterres said that now it is “time to rethink, transform, and safely restart tourism”. 

“With the right safeguards in place, the tourism sector can provide decent jobs, helping to build resilient, sustainable, gender-equal, inclusive economies and societies that work for everyone”, he added. 

According to the United Nations specialized agency for responsible and sustainable tourism (UNWTO), tourism is a recognized pillar of most the Sustainable Development Goals (SGDs), particularly Goals 1 (poverty-elimination), 5 (gender equality), 8 (decent work and economic growth) and 10 (to reduce inequalities). 

In his message, Mr. Guterres went on to call for targeted action and investment, towards green and sustainable tourism, “with high emitting sectors, including air and sea transport and hospitality, moving towards carbon neutrality”.  

Adding that everybody should have a say in how tourism shapes the future of our societies, the UN chief concluded that “only through inclusive decision-making can we ensure inclusive, sustainable growth, deliver on the promise of the SDGs, and transform tourism to fulfil its potential”. 

The sector could then become “an engine for prosperity, a vehicle for integration, a means to protect our planet and biodiversity, and an agent of cultural understanding between peoples”, said Mr. Guterres. 

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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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