Lessons learned from a situation that threatens the sector
These are certainly challenging times for the tourism sector. After two very difficult years due to the consequences of the COVID-19 crisis, the current Russia-Ukraine conflict threatens the long-awaited scenario of recovery of the activity.
This is the baseline of the webinar “Impact of the Ukraine war on European tourism” organized by the European Travel Commission (ETC) on March 23rd. To assess the situation as it unfolds, 4 experts analyzed the main variables affecting the sector in Europe, where tourism accounts for 23 million direct and indirect jobs.
According to the ETC, the impact on the tourism sector is significant, clearly carrying more direct consequences for the countries involved (Ukraine and Russia) and the neighboring areas: Poland, Bulgaria and Belarus. On the other hand, it should be noted that some countries are very dependent on the Russian market segment, such as Turkey (12% of arrivals), but also Thailand (4%) and Spain (2%). Globally, there has been a generalized decline in bookings, with the North American market being the most concerned by the situation. However, experts point out that the drop does not necessarily mean cancellations, rather than travelers putting their plans on hold as they assess how the situation evolves.
Apart from the ETC, many media have highlighted the effects of the conflict in the tourism field, for instance, the sanctions that have cut off air communications with Russia among other things. Likewise, the Spanish news site Hosteltur points out that 79% of travel agencies state that they have noticed a decrease in the rate of reservations. Other media report as the most affected destinations the aforementioned Turkey but also Cuba, where Russian visitors represent a third of the arrivals. On the other hand, the view of Miguel Sanz, director of Tourspain (Spain’s DMO), is that some countries like Spain can benefit from its distance from the conflict and its proximity to many of the main European source markets, which makes it perceived as a safe and at the same time affordable destination in a context of rising fuel prices and therefore of air travel.
At the mentioned webinar, the experts expressed concern about inflation and its estimated impact on the global GDP. Ultimately, this situation has implications for consumers, who may see their long-awaited travel plans frustrated due to the erosion of their savings. They also agreed on the need to promote Europe as a safe destination despite the uncertainty of the situation. Nevertheless, the positive lessons were also stressed: among other things, the image of unity and solidarity that Europe is projecting, as well as the many initiatives that have originated from the tourism sector to help those affected by the conflict.
As a matter of fact, large operators and hospitality companies have responded by offering transportation and accommodation to Ukrainian refugees. One of these initiatives is Homes for Ukraine, promoted by the camper rental company Goat Roadtrip in Leeds, England. This company is fully committed to picking up refugees from the Polish border and then relocating them to host homes in the UK. The implication is such that the CEO himself is in Poland managing the refugee arrivals, stating that having operated a travel company through a global pandemic taught him that nothing is impossible.
In conclusion, from Pax# we want to take an optimistic approach as we are convinced that in troubling times (and this one is especially so due to the gravity of the situation and the great loss of human lives involved), there is always a positive lesson. In this case, the image of solidarity projected speaks volumes about a tourism sector that is preparing for the long-awaited recovery demonstrating great resilience.
