Resumption of International Tourism Depends on a Coordinated Response Among Countries: Economic Survey 2021-22
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The impact of COVID-19 has been much severe on contact-based services such as tourism, retail trade, hotel, entertainment and recreation, etc. “At the time of writing, new restrictions were being introduced worldwide due to the spread Omicron variant of the Covid-19. Thus, the trajectory of tourism sector, especially international tourism remains uncertain,” says Economic Survey 2021-22.
According to the survey, the resumption of international tourism will continue to depend largely on a coordinated response among countries in terms of travel restrictions, harmonized safety and hygiene protocols and effective communication to help restore consumer confidence. This is particularly critical at a moment when cases are surging in some regions and new Covid-19 variants are emerging in different parts of the world, the Survey adds.
Tourism sector is a major contributor to GDP growth, foreign exchange earnings and employment in normal times. “However, the Covid-19 pandemic has had a debilitating impact on world travel and tourism everywhere, including India,” the Survey says.
According to the World Tourism Barometer of the United Nation’s World Tourism Organization (January 2021), International Tourist Arrivals (ITA) declined by 74 per cent globally in 2020 over the previous year, with restrictions on travel, low consumer confidence and a global struggle to contain the Covid-19 spread. ITA had reached a total of 1.5 billion in 2019, and reduced to381 million in 2020, leading to an estimated loss of US$ 1.3 trillion in export revenues. This weakness in international tourism has continued in 2021.
During January - September 2021, ITA worldwide was 20 per cent lower than the same period in 2020 and 64 per cent below 2019 levels.