Tourism grew significantly in February 2022, a much better performance than the weaker start of 2021. However, Russian invasions of Ukraine add to current economic uncertainty and are still accompanied by numerous Covid-related travel restrictions pending. In general, tourism suffers losses as the economy is under pressure to recover. The annual total visitor count in the first quarter of 2021 has increased by 1.25% to 11.7 million – the same amount as the year in the third quarter of 2018. The increase of 1.6 billion visitors in 2021 represents a total increase of 1.6 million in 2018.
Europe and the Americas perform the strongest.
All of the regions experienced substantial gains in January 2022, with some of the best countries to visit becoming loosening restrictions, even after a drop to a level recorded in February 2022. Europe (+199%) and America (+98%) posted the strongest performance, while foreign arrivals still surpassed half their pre-pandemic values (57% and 52%, respectively). The Middle East (+89%) and Africa (+51%) also experienced growth over 2021. But these countries have also dropped from 73% to 96% in 2018 versus 2018. As compared to 2018, the global average annual increase was 44%, while many places remained closed, and consequently, the biggest drop in international travel was -96%.
Hospitality and tourism industry statistics
Tourism arrivals rose from 3% in 2018 to 7% in 2019. In 2019, this was the highest since 2016. The 1.2 million tourists dropped by and impacted 1.3 trillion in export revenues in total. This graph illustrates how tourists spent fewer nights in tourist hotels between June and August 2021 in three summers. In 2018, tourist arrivals were up by 23% from the previous quarter. It represents a rise of 18M visitor visits globally in the first month, which equals the total visitor growth for 2021.
Soaring prices
Russo-Ukrainian conflicts came along with current inflation, which increased prices and weakened consumption. Recent oil and gas price spikes and rising electricity bills have led to significantly higher costs. Increasing profits will also add more pressure. Many people choose to avoid travel in the future versus wasting time. OECD projections say that this year economic growth will fall below expectations.
What experts initially believed
Since the outbreak, the tourism industry has been optimistic. Only 1% of tourism industry professionals think the recovery is achievable by 2021. Approximately 15 percent believe this sector is going to recover in 2019. Almost all of those voting voted for 2023. 41% believe that 2024 or later would be better.
“People want to travel”: 4 sector leaders say that tourism will change and grow.
During the aftermath of the Pandemic, the world tourism industry continues to recover at a steady pace. The post-pandemic tourism sector has been recovering as global travel appetite resurfaces. In January 2021, the differences in international tourists were as much as the growth for a similar period in January 2020. But with 4.4 trillion GDP losses and 62 million lost jobs by 2030, it is not too late to begin a new recovery. Some factors can affect performance in the industry.
The way we live and work has changed because of the Pandemic, and the way we travel has also changed.”
Tony Capuano, President, Marriott International. Although COVID19 was the biggest problem in the last two weeks, it looks promising for travelers to travel around the country. Around the world, people are returning home now. Demand for travel remains extremely robust, and despite the increase in vaccination rates, the tourism industry has rebounded dramatically, often owing to leisure activities. The way many people have lived has changed with the Pandemic, and the travel patterns are also changing. Several new travel types were introduced. The rise in the travel of the luxury travel industry is one of the examples that combine business with pleasure travel into one.
The travel and tourism sector will not survive unless it adapts to the virtual market and sustainability conscience travelers.”
Shina Katanozakawa, representative Director Chairman, ANA Holding Inc. The Pandemic has limited the movements of people, and there is a renewed sense that the people are looking toward traveling. In this regard, the most significant change was in the concept of “transport.” One of the best examples is the fast growth in virtual travel. This trend was accelerated by technological advances but also by long-lasting pandemics. The travel and tourism industry will not survive without adapted services. Despite the obvious, the change from virtual to real will be more complex.
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Prospects for recovery
Following a record decrease in 2021 and 2020, international tourists are projected to return in 2022. As of March 24, 12 destinations had not implemented any restrictions relating to COVID-19, and more destinations had eased or lifted restrictions. The Ukraine war presents challenges to the global economy, which may hinder travel. The US and Asian sources markets, which have opened up, may be particularly affected by travel into Europe because they’ve historically been less risk-oriented.