UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis =...

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Transcript of UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis =...

Page 1: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO
Page 2: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

UNWTO World Tourism Barometer May 2020Special focus on the Impact of COVID-19

(Summary)

Page 3: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

The impact of COVID-19 on international tourism

January-March 2020

Page 4: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

Travel Restrictions

100% of worldwide destinations have introduced travel

restrictions in response to the

pandemic

• According to UNWTO’s Report on COVID – 19 Related Travel Restrictions, as of 20 April, 100% of all worldwide destinations have introduced travel restrictions in response to the pandemic.

• 97 destinations (45%) have totally or partially closed their borders for tourists.

• 65 destinations (30%) have suspended totally or partially international flights.

• 39 destinations (18%) are implementing the closing of borders in a more differentiated manner by banning the entry for passengers from specific countries of origin”.

Page 5: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

International Tourist

Arrivals January - March

2020

• Available data points to a double-digit decrease of 22% in international tourist arrivals in Q1 2020, with arrivals in the month of March down by 57% following the start of the lockdown in many countries, widespread travel restrictions and the shutdown of airports and national borders.

• This represents a loss of 67 million international arrivals in the first quarter of 2020 compared to the same period of last year.

• By regions, Asia and the Pacific, the first region to suffer the impact of COVID-19, saw a 35% decrease in arrivals in Q1 2020. The second-hardest hit was Europe with a 19% decline, followed by the Americas (-15%), Africa (-12%) and the Middle East (-11%).

Page 6: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

International tourist arrivals by region in Q1 2020

Source: World Tourism Organization (UNWTO)

Page 7: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

+2 +6

-2

+0 +4 +6

-9

+6

-37

+3 +4 +5

-57 -60 -64

-46 -44 -41

-80

-60

-40

-20

+0

+20World Europe

Asia and thePacific Americas Africa Middle East

Jan. Feb. Mar.

World

Data is provisional

International tourist arrivals fell sharply in March 2020International tourist arrivals, Jan, Feb, March 2020 (% change)

Source: World Tourism Organization (UNWTO)

Page 8: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

The impact of COVID-19 on Tourism in Q1

67 million fewer international tourist arrivals

80 US$ billion lost in exports

100% destinations with travel restrictions

Page 9: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

Looking ahead

Page 10: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

Domestic demand expected to recover faster than international demand

International demand would recover by Q4 and mainly in 2021 according to the UNWTO Panel of Experts survey responses

Source: World Tourism Organization (UNWTO)

0%10%20%30%40%50%60%70%80%90%

100%

Africa Americas Asia and thePacific

Europe Middle East

3- When do you expect international demand for your destination will start to recover?

By May-June By July-September By October-December By 2021

3%

24%

34%39%

14%

45%

25%

15%

0%

10%

20%

30%

40%

50%

By May-June By July-September By October-December By 2021

When do you expect tourism demand for your destination will start to recover?

International Domestic

Page 11: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

+2

-9

-57

-100

-80

-60

-40

-20

0Jan Feb March April May June July Aug Sept Oct Nov Dec

(mon

thly

cha

nge,

%)

Actual data*Scenario 1:Scenario 2:Scenario 3: -78%

-70%-58%

Gradual opening of bordersand lifting of travel restrictions

in July in September

in December

Forward-looking scenarios depend on re-opening of bordersInternational tourist arrivals in 2020: three scenarios (YoY monthly change, %)

* Actual data through March includes estimates for countries which have not yet reported data. Source: UNWTO

Note: the scenarios presented in this graph are not forecasts. They represent alternative monthly change in arrivals based on the gradual opening of national borders and lifting of travel restrictions on different dates, still subject to high uncertainty.

Page 12: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

6.4

0.13.0

9.47.0 5.7 6.6

1.9-4.0

6.6 4.8 4.7 5.1 4.2 4.8 3.87.2 5.7 3.8

-58

-80

-75

-70

-65

-60

-55

-50

-45

-40

-35

-30

-25

-20

-15

-10

-5

0

5

10

15

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(e)

2020(sc)

(% c

hang

e)

Source: UNWTO (e) Estimate (sc) Scenario-based data

2009Global economic

crisis

2003SARS

epidemic2001Sept 11th attacks

-70

-78

2020 ScenariosCOVID-19

Scenario 1: -58% Scenario 2: -70%Scenario 3: -78%

The above are not forecasts. They are scenarios based on the possible opening of national

borders and lifting of travel restrictions in July, Sept. and Dec. 2020 respectively.

Arrivals could drop 58% to 78% depending on pace of normalizationInternational tourist arrivals, 2000-2019 and scenarios for 2020 (% change)

Source: World Tourism Organization (UNWTO) (e) Estimate (sc) Scenario-based data

Page 13: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

674 675 695 692757

810856

913 930 893952

9971,044

1,0971,143

1,1971,243

1,3331,408

1,462

610

440

320

0

200

400

600

800

1000

1200

1400

1600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(e)

2020(sc)

(milli

ons)

2003SARS

-3 million-0.4%

2020 ScenariosCOVID-19

Scenario 1: -850 million (-58%) Scenario 2: -1020 million (-70%)Scenario 3: -1140 million (-78%)

The above are not forecasts. They are scenarios based on the possible opening of national

borders and lifting of travel restrictions in July, Sept. and Dec. 2020 respectively.

2009Global economic crisis

-37 million-4.0%

Source: UNWTO (e) Estimate (sc) Scenario-based

Largest blow to tourism ever could slash 1 billion arrivalsInternational tourist arrivals, 2000-2019 and scenarios for 2020 (millions)

Source: World Tourism Organization (UNWTO) (e) Estimate (sc) Scenario-based data

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496 485 506554

657707

773

892

988901

979

1,096 1,1321,219

1,2811,222 1,250

1,347

1,454 1,480

570

410

310

0

200

400

600

800

1000

1200

1400

1600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(e)

2020(sc)

(US$

billi

ons)

2003SARS

+50 US$ billion-1.4% (real terms)

2009Global economic crisis

-88 US$ billion-5.4% (real terms)

Source: UNWTO (e) Estimate (sc) Scenario-based

2020 ScenariosCOVID-19

Scenario 1: -US$ 910 bill. -62% Scenario 2: -US$ 1080 bill. -73%Scenario 3: -US$ 1170 bill. -79%

(nominal)

The above are not forecasts but scenarios based on the possible opening of national

borders and lifting of travel restrictions in July, Sept. and Dec. 2020 respectively.

International tourism receipts could plunge by US$ 1 trillionInternational tourism receipts, 2000-2019 and scenarios for 2020 (U$ billion)

Source: World Tourism Organization (UNWTO) (e) Estimate (sc) Scenario-based data

Page 15: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

Summary of Potential Impacts in 2020

850 million to 1.1 billion fewer international tourist arrivals

US$ 910 billion to US$ 1.2 trillion loss in export revenues from tourism

100 to 120 million direct tourism jobs at risk

Page 16: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

Source: ICAO Air Transport Reporting Form A and A‐S plus ICAO estimates

International passenger traffic collapses with unprecedented decline in history

5

World international passenger traffic evolution 1945 – 2020*

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Source: ICAO estimates

Estimated impact on international passenger traffic and revenues by region for 2020

7

Capacity:‐39% to ‐71%Passenger:‐238 to ‐420 millionRevenue (USD):‐50 to ‐88 billion

Capacity:‐33% to ‐65%Passenger:‐65 to ‐120 millionRevenue (USD):‐17 to ‐32 billion

Capacity:‐34% to ‐65%Passenger:‐50 to ‐90 millionRevenue (USD):‐10 to ‐18 billion

Capacity:‐39% to ‐72%Passenger:‐34 to ‐61 millionRevenue (USD):‐7 to ‐13 billion

Capacity:‐37% to ‐70%Passenger:‐66 to ‐119 millionRevenue (USD):‐12 to ‐22 billion

Capacity:‐40% to ‐74%Passenger:‐419 to ‐731 millionRevenue (USD):‐57 to ‐101 billion

Note: Compared to Baseline (business as usual, originally‐planned)

Page 18: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

Key Considerations

• Pandemic

how long the pandemic will last and when a treatment or vaccine will become available?

• Lifting of travel restrictions and lockdown measures

when will countries start easing restrictions and how?

how will social distancing rules impact supply?

• Consumer & Business confidence

how long it will take consumers to reassume travel?

how will travel behavior change?

• Economic impact

how deep and how long will the global recession be?

what will be consumers’ discretionary spending decisions?

• Governments Measures

how do government measures support tourism?

Page 19: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

World - Cumulative change in international arrivals (1000s), by months

Note: From month 0 onwards, cumulative change is compared to same month of year prior to each crisis.Month 0 for Sept 11th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

Impact of three previous crises on world arrivals

The recovery of lost arrivals was also the fastest after SARS (11 months)

Page 20: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

Note: From month 0 onwards, cumulative change is compared to same month of year prior to each crisis.Month 0 for Sept 11th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

Impact of three previous crises on most affected regions:

The Americas was the slowest to recover its lost arrivals after a crisis (42 months after the Sept. 11th attacks)

Cumulative change in international arrivals (1000s), by months

Page 21: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

All regions suffered a strong decline in March 2020 Middle East: International tourist arrivals by months (millions)

* Data for January-March 2020 is provisional and includes estimates for countries which have not yet reported data. Source: UNWTO

Page 22: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO

Challenge & Opportunities

• Segments potentially affected are also high spenders: international, long haul, business travel and events

• Major disruption in airline industry with airline failures and concentration

• Lack of references in previous downturns• Perception of travel as a risk• Low levels of demand when restarting tourism due to social

distancing

WEAKNESSES

THREATS• Economic environment: world recession, rising

unemployment and jobs at risk, closure of business mainly SMEs, disposable income, uncertainty weighing on consumer and business confidence

• Uncertain length of pandemic (including resurgence) and vaccine unavailability

• Extent of lockdowns and travel restrictions• Unknown form of the 'new normal'

CHALLENGE

• Proven resilience of tourism in past crises• Domestic tourism can be a buffer • Adaptation capacity: safety and hygiene protocols,

trips closer to home, value for money, responsible consumer behavior

• Government support to the sector

OPPORTUNITIES• Re-think business model• Innovation and digitalization• Sustainability and sustainable-oriented

segments (rural, nature, health)• De-escalation phases initiated by several

countries toward the 'new normal‘• Progress in adaptation plans in destiations

& companies

NEGATIVEPOSITIVE

EXTERNALFACTORS

INTERNALFACTORS

Page 23: UNWTO World Tourism Barometer May 2020 Special focus on ... · Month 0 for Sept 11 th crisis = Sept. 2001; for SARS = March 2003; for Global economic crisis = Jan 2009. Source: UNWTO