Tourism will settle to a new normal after the pandemic

Subject

Tourism outlook.

Significance

Tourism accounts for about 10% of global GDP and jobs, when direct, indirect, induced and catalytic effects are considered. The pandemic and associated travel restrictions have severely hit tourism and its business ecosystem. Social distancing will be enforced where possible until there is a vaccine or effective treatment, with major economic and social ramifications. It potentially threatens the wide accessibility of tourism.

Impacts

• Mass tourism will become more expensive and could even be constrained by government policy.
• Tourism service providers will have to restructure their revenue management models to achieve higher yields with fewer customers.
• Destinations will rebrand to promote the benefits of lower tourist numbers; health-related infrastructure investment will grow.
• Sectors associated with tourism, such as construction and travel insurance, will need to adapt their business models carefully.