Due to travel restrictions and a slump in demand for travelers, the COVID-19 pandemic has had a major influence on the aviation industry. Large declines in passenger numbers have resulted in the cancellation of flights or aircraft flying empty between airports, which in turn drastically decreased airline profits and forced many carriers to lay off staff or declare bankruptcy. In order to reduce their losses, others have tried to stop refunding canceled flights. Employees were also laid off by airliner suppliers and airport operators. The resulting recession is the worst ever witnessed in the history of the aviation industry, according to some analysts.
Aviation during COVID-19
Due to the COVID-19 pandemic and mitigation initiatives, the drastic decrease in demand for passenger air travel (and freight, to a lesser extent) challenges the profitability of many businesses in both the air transport market and the rest of the aviation industry, with many jobs at stake. According to IATA, in April 2020, passenger air travel calculated as passenger kilometers of revenue was down 90% year-on-year and already down 75% in August. Freight, which was almost 30 percent lower year-on-year in April and only about 12 percent lower in August, was affected by the collapse in economic development and trade.
Airline businesses face two uncertainties in the long term:
The expense of health-related initiatives. Owing to extra health and safety standards (e.g. disinfection, PPE, temperature monitoring or virus tests), maintenance expenses are expected to escalate in the short term for all carriers and airports until they can be passed on to customers.
The shape of commercial flight recovery. Restrictions on international travel, the reduction of economic activity and changes in transport behavior by wary customers may keep demand levels from returning to pre-crisis levels, even though lockdowns and restrictions on domestic travel are loosened in many countries.
Bankruptcies or mergers and acquisitions between major firms may have a negative impact on air transport competitiveness, with a potential impact on costs. While 80% of passenger seats are on routes with multiple carriers, a limited number of companies rely on many of these routes.
It can take time to organize the implementation of necessary policies and procedures through several governments; however, operators should use considerable experience and leadership to promote 'opening the sky'. In reaction to COVID-19, the resumption of international flights would entail several workshops on strategies and risk control steps. Global aviation cooperation has remained strong , despite differing national policies.
As the constraints of the government and industry on the aviation industry are starting to ease, it is important that the protocols laid out by the related industry bodies and agencies are continuously followed to monitor and handle risks such as the COVID-19 pandemic. As far as passenger travel is concerned, any aspect of the departure and arrival airports, the flights themselves and other supply chain operators must maintain reliable and efficient risk control.
Tourism during COVID-19
Tourism is a big part of many national economies, and the broader economy is influenced by the sudden and immense shock to the tourism industry arising from the coronavirus pandemic. As extraordinary steps to combat the epidemic have been adopted by policymakers around the world, bans on transport, business practices and communications between people have taken the tourism industry to a standstill. In tackling the epidemic, several countries are now entering a new period while overseeing the re-opening of the tourist industry at the same time. This is a dynamic and daunting job, and it is impossible to measure the effect on the tourist industry.
Because of the resulting travel restrictions and the slump in demand for tourists, the COVID-19 pandemic has had a major effect on the tourism industry. As several countries have imposed travel bans in an effort to curb its spread, the tourism sector has been massively impacted by the spread of coronavirus. The World Tourism Organisation of the United Nations predicted that global foreign tourist arrivals will decline by 58% to 78% in 2020, leading to a possible loss in international tourism receipts of US$ 0.9-1.2 trillion. Expected travel went down by 80-90 percent in many of the world's cities. Regional and many visitor destinations around the world, such as libraries, theme parks, and sports stadiums, have been closed by contradictory and unilateral travel bans. In the first six months of 2020, the new report indicates a 65 percent decline in international visitor arrivals.
Domestic tourism, which accounts for about 75 percent of OECD countries' tourism industry, is projected to rebound faster. It offers a key opportunity to drive recovery, especially in countries, regions and cities where many jobs and enterprises are funded by the sector.
The effect of the crisis is being felt in the entire tourism industry and a joint solution will be needed to reopen and restore destinations. Economy-wide stimulus programs favor tourism companies and staff, with several policymakers also adopting tailored initiatives for tourism. The activities of governments and industry are based on:
Lifting transport restrictions and partnering with firms to obtain liquidity aids, applying new healthy travel health guidelines, and helping to diversify their markets.
With new healthy and clean brands for the market, tourist information applications and domestic tourism marketing campaigns to rebuild traveler confidence and stimulate demand.
Preparing ambitious strategies for the recovery of tourism, restoring destinations, encouraging creativity and entrepreneurship and rethinking the tourism industry.
These steps are crucial, but much needs to be achieved in a concerted fashion in order to effectively reopen the tourism industry and get companies up and running, as tourism programs are very interdependent. Governments and the travel and tourism industry should continue to improve their cooperation structures in order to assist companies , particularly the smallest ones, and staff. The most sensitive / vulnerable destinations in the recovery process should also be given special consideration.
Looking ahead, tomorrow's tourism will be influenced by the steps put in place today. While keeping ahead of the digital curve, endorsing the low carbon transition and fostering the systemic change required to create a bigger, more competitive and stable tourism industry, policymakers need to recognize the longer-term consequences of the crisis. The recession is an opening for the future to reinvent tourism.
References
COVID-19 and the aviation industry: Impact and policy responses. (n.d.). OECD. https://www.oecd.org/coronavirus/policy-responses/covid-19-and-the-aviation-industry-impact-and-policy-responses-26d521c1/
COVID-19 could set the global tourism industry back 20 years. (n.d.). World Economic Forum. https://www.weforum.org/agenda/2020/09/pandemic-covid19-tourism-sector-tourism/
Impact of the COVID-19 pandemic on aviation. (2020, March 10). Wikipedia, the free encyclopedia. Retrieved October 28, 2020, from https://en.wikipedia.org/wiki/Impact_of_the_COVID-19_pandemic_on_aviation
Impact of the COVID-19 pandemic on tourism. (2020, April 11). Wikipedia, the free encyclopedia. Retrieved October 28, 2020, from https://en.wikipedia.org/wiki/Impact_of_the_COVID-19_pandemic_on_tourism
International tourism and COVID-19. (n.d.). UNWTO. https://www.unwto.org/international-tourism-and-covid-19
Tourism policy responses to the coronavirus (COVID-19). (n.d.). OECD. https://www.oecd.org/coronavirus/policy-responses/tourism-policy-responses-to-the-coronavirus-covid-19-6466aa20/
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