Why the world is dependent on tourism and aviation?
We shed some light in a previous article on the importance of aviation and for how long the world can live without it. We also mentioned that aviation is contributing to global economic growth and prosperity (with industries directly or indirectly connected with aviation). Aviation is one of the most “global” industries: connecting people, cultures, and businesses across continents.
One of the world’s most important industries connected to aviation is tourism.
It is very well known that tourism depends on air transportation to bring visitors, while the air transport industry depends on tourism to generate demand for its services.
The COVID pandemic has affected the entire tourism industry from the big players (Airlines, cruise ships, tour companies, car rental companies, rail and road transportation, cultural and sport and recreational activities, retail and trade industries, food and beverage, financial services, and hotel chains) to the very small businesses (like the street cart and family-run inns). Businesses are already laying off workers and are at risk of going bankrupt. Families are losing their incomes.
According to the World Travel and Tourism Council economic impact report:
2019 was another year of strong growth for the global Travel & Tourism sector reinforcing its role as a driver of economic growth and job creation.
In 2019, Travel & Tourism’s direct, indirect, and induced impact accounted for:
- US$8.9 trillion contributions to the world’s GDP
- 10.3% of global GDP
- 330 million jobs, 1 in 10 jobs around the world
- US$1.7 trillion visitor exports (6.8% of total exports, 28.3% of global services exports)
- US$948 billion capital investment (4.3% of total investment)
We can realize from the above brief report, that the world relies on tourism. Tourism is important to every nation from a small country to a big nation, and of course, your home country and city.
At present times, no one knows when life will get back to normal again. Health experts say that travel and physical distancing restrictions might be in place until summer and maybe longer.
The tourism business can provide many economic gains for the interest of the national economy. It is considered a key driver for temporary and permanent jobs. Many governments in the world list business tourism outputs within gross domestic products.
According to the United Nations World Tourism Organization UNWTO, tourism has been hit hard, with millions of jobs at risk in one of the most labor-intensive sectors of the economy.
The news revealed that international tourist numbers could fall 60-80% in 2020, UNWTO reports.
- International tourism down 22% in Q1 and could decline by 60-80% over the whole year
- 67 million fewer international tourists up to March translates into US$80 billion in lost exports
- UNWTO has outlined three possible future scenarios depending on how the crisis unfolds
The following scenarios for 2020 are based on three possible dates for the gradual opening up of international borders. The scenarios point to possible declines in arrivals of 58% to 78% for the year.
- Scenario 1 (-58%) based on the gradual opening of international borders and easing of travel restrictions in early July
- Scenario 2 (-70%) based on the gradual opening of international borders and easing of travel restrictions in early September
- Scenario 3 (-78%) based on the gradual opening of international borders and easing of travel restrictions only in early December.
Under three scenarios outlined by UNWTO, the impact of the loss of demand in international travel could translate into:
- Loss of 850 million to 1.1 billion international tourists
- Loss of US$910 billion to US$1.2 trillion in export revenues from tourism
- 100 to 120 million direct tourism jobs at risk
We just saw how tourism is important with its economic value. We must also emphasize that The correlation between tourism and air transport is vital and organic.
Air transport is an important driver for achieving economic growth and development. Air transport facilitates integration into the global economy and provides vital connectivity on a national, regional, and international scale. It helps generate trade, promote tourism, and create employment opportunities. Both sectors are dependent on each other, and cannot live alone.
On the other hand, aviation is the backbone of the tourism industry and this reciprocal correlation between the two industries is inseparable.
Air transport makes a crucial contribution to people’s mobility. Even long distances can be flown quickly and safely with air travel, which is why aviation in all its forms is fundamental and indispensable whether in commercial, private, or business travel. Air transport enables millions of people to connect in cultural exchange, and it also boosts the tourism industry, which is a major economic factor both in the original countries and in the tourist destination countries.
Despite all the pessimistic expectations and different reports, we in Mixjet our thoughts are especially with those who are sick, to whom we extend our heartfelt wishes for a full recovery.
We are optimistic that the post-coronavirus world has started and the world will gradually be moving forward on its way to overcoming this crisis.
In the meantime, we are determined, as ever, to contribute by providing international aviation services regardless of its well-known complexities at present times.
Our teams are prepared to support all cargo and passenger operators worldwide with all flight support requirements around 24/7 and ready to handle all requirements and demands. After all, it is our duty and corporate responsibility in such hardship times.
If you need any flight support services like Flight Plans, Flight Permits, Ground Handling, Cargo Handling, Fueling, Concierge Services, and any other service whatsoever, Please write to us at ops@mixjet.aero or info@mixjet.aero or call us at +971 65529577 and get the best quality service at the best competitive price.