The United Nations early this week said the global tourism industry lost an estimated $320 billion in five months from the virus. Secretary-General Antonio Guterres said in a policy briefing that tourism revenues could fall by $910 billion to $1.2 trillion in 2020. “That could reduce global gross domestic product by 1.5 percent to 2.8 percent,” he said, adding that the industry employs one in every 10 people on Earth and provides livelihoods to hundreds of millions more. In addition to tourism jobs being threatened, Guterres said jobs in associated sectors, including food service, that provide employment for 144 million workers worldwide are also at risk.
Sandra Carvao, the UN World Tourism Organization’s chief of market intelligence and competitiveness, said the $320 billion in lost revenues from January through May is three times what was lost at the height of the last global financial crisis in 2009.
No other sector has been greatly affected by the Covid-19 pandemic the way it devastated the tourism industry. The closing of borders, airports, and hotels as well as restrictions on mass gatherings, land travel and related services all over the world put hundreds of millions of jobs at risk.
In response to the crisis, some countries prepared their own initiatives to help restart tourism. The Singapore Tourism Board has launched a US$20 million Marketing Partnership Program on top of online training for affected workers. In Japan, a “Go To Campaign” was launched to boost local tourism. The Japanese government said it will subsidize half of domestic travel costs of up to ¥20,000 per night and issue coupons that can be used at souvenir shops and elsewhere. Japanese consumers who bought domestic travel products via travel agents get coupons equivalent to 1/2 of the price, including accommodation discounts, and coupons for local products, restaurants, facilities, etc.
The Philippine tourism industry had a stellar performance in 2019 with 8.3 million tourist arrivals and P550.2 billion in international tourism receipts. However, the industry continues to feel the impact of the pandemic as reflected in the 73-percent drop in foreign visitor arrivals for the first seven months of the year. Latest estimates show that 2020 tourist arrivals and international tourism receipts will go down to 3.9 million and P279.5 billion, respectively. Tourism Undersecretary Benito Bengzon Jr. said only about 1.3 million visitors from January to July 2020 have been recorded, down from the 4,852,107 international tourists in the same months last year.
Health experts say the virus is here to stay, which is bad news for the tourism industry. However, like in other countries, local tourism in areas least affected by the virus can be pushed subject to strict health guidelines. The Philippines has wonderful destinations that will surely attract the tourists after the pandemic. Right now, the government and industry players should take this opportunity to rebuild the sector by helping the affected workers improve their skills, digitalize part of the industry, and rethink the way they do business.
“We have a very huge domestic tourism base. Last year, there were about 109 million domestic trips. We’re confident that as we open up local destinations, it will be the local tourists who will be creating or stimulating the demand,” Bengzon said.
While the Philippine tourism industry is experiencing difficulties at this time, we should remember that the country was able to grow its tourism industry and make it one of the top GDP contributors. With renewed commitment, we are confident that the tourism industry will stage a strong rebound after this pandemic.