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Covid-19: EU support for the tourism industry

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Tourism is one of the sectors most affected by the Covid-19 outbreak. Read more on how the EU is protecting businesses, workers and passengers.

Travel restrictions related to the coronavirus pandemic have decimated the tourism industry, a major player in the EU economy. Revenue is expected to drop 50% for hotels and restaurants, 70% for tour operators and travel agencies and 90% for cruises and airlines. Europe accounts for half of the world’s tourist arrivals and the situation is particularly hard for European countries that are dependent on tourism, such as Spain, Italy, France and Greece.

According to the United Nations World Tourism Organization, as of 20 April, 100% of world tourist destinations had introduced temporary travel restrictions in response to the outbreak, 83% of which had already been in place for four or more weeks. No country has so far loosened those restrictions.

Many travellers have struggled to return home, while tourism businesses are facing severe liquidity issues, as there are very few new bookings and a large number of claims for refunds following cancellations. Air carriers particularly are under unprecedented pressure.

Supporting the tourism industry through the crisis

Businesses and workers from the tourism sector already benefit from EU measures taken in response to the Covid-19 crisis, including liquidity support, fiscal relief and an easing of state aid rules, as well as the temporary suspension of EU rules on airport slots to avoid empty flights.

To protect travellers, the EU has updated the guidelines on passenger rights and the package travel directive. It has also facilitated the repatriation of tens of thousands of Europeans stranded abroad, through the EU Civil Protection Mechanism. EU measures to support the tourism industry complement and reinforce measures taken at national level.

The EU”s tourism sector  

  • Accounts for 10-11% of the EU’s gross domestic products 
  • Provides 12% of employment in the EU 
  • Is composed of nearly three million businesses, 90% of which are small and medium-sized enterprises 

Parliament asks for more action to save the tourism industry

The EU should develop a prevention and management mechanism to protect workers and companies in the tourism sector and ensure passenger safety, MEPs said in a resolution adopted on 17 April.

Parliament’s transport and tourism committee has called for a rescue action plan for the tourism sector.

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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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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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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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