Travel, Tourism & Hospitality
International tourism to hit pre-Covid levels this year
Following a strong 2023, international tourism is well on track to return to pre-Covid levels this year with the Middle East playing a major role in leading the recovery as the only region to record a 22% jump in arrivals over 2019, according to UNWTO.
Following a strong 2023, international tourism is well on track to return to pre-pandemic levels this year, according to UN agency World Tourism Organization (UNWTO).
The international tourism ended 2023 at 88% of pre-pandemic levels, with an estimated 1.3 billion international arrivals, stated UNWTO in its World Tourism Barometer of the year.
The unleashing of remaining pent-up demand, increased air connectivity, and a stronger recovery of Asian markets and destinations, are expected to underpin a full recovery by the end of 2024. The Middle East, Europe and Africa region had performed the strongest last year, it added.
The latest UNWTO World Tourism Barometer provides a comprehensive overview of the sector's performance in 2023, tracking recovery by global region, sub-region and destination. Key takeaways include:
*Europe, the world's most visited region, reached 94% of 2019 levels, supported by intra-regional demand and travel from the United States.
*Africa recovered 96% of pre-pandemic visitors and Americas reached 90%.
*Asia and the Pacific reached 65% of pre-pandemic levels following the reopening of several markets and destinations. However, performance is mixed, with South Asia already recovering 87% of 2019 levels and *North-East Asia around 55%.
According to the report, four sub-regions exceeded their 2019 arrival levels: Southern Mediterranean Europe, Caribbean, Central America and North Africa.
Available data shows several destinations, including both large, established destinations as well as small and emerging ones, reporting double-digit growth in international arrivals in 2023 when compared to 2019.
UNWTO Secretary-General Zurab Pololikashvili said: "The latest UNWTO data underscores tourism's resilience and rapid recovery, with pre-pandemic numbers expected by the end of 2024. The rebound is already having a significant impact on economies, jobs, growth and opportunities for communities everywhere. These numbers also recall the critical task of progressing sustainability and inclusion in tourism development."
The latest UNWTO data also highlights the economic impact of recovery.
International tourism receipts reached $1.4 trillion in 2023 according to preliminary estimates, about 93% of the USD 1.5 trillion earned by destinations in 2019.
Total export revenues from tourism (including passenger transport) are estimated at $1.6 trillion in 2023, almost 95% of the $1.7 trillion recorded in 2019.
Preliminary estimates on the economic contribution of tourism, measured in tourism direct gross domestic product (TDGDP) point to $3.3 trillion in 2023, or 3% of global GDP. This indicates a recovery of pre-pandemic TDGDP driven by strong domestic and international tourism.
Several destinations reported strong growth in international tourism receipts during the first ten to twelve months of 2023, exceeding in some cases growth in arrivals. Strong demand for outbound travel was also reported by several large source markets this period, with many exceeding 2019 levels.
The sustained recovery is also reflected in the performance of industry indicators.
According to the UNWTO Tourism Recovery Tracker, both international air capacity and passenger demand recovered about 90% of pre-pandemic levels through October 2023 (IATA).
Global occupancy rates in accommodation establishments reached 65% in November, slightly above 62% in November 2022, stated the report, citing STR data.
Looking Ahead to 2024
On its future outlook, UNWTO report said, international tourism is expected to fully recover to pre-pandemic levels in 2024, with initial estimates pointing to 2% growth above 2019 levels.
This central forecast by UNWTO remains subject to the pace of recovery in Asia and to the evolution of existing economic and geopolitical downside risks.
The positive outlook is reflected in the latest UNWTO Tourism Confidence Index survey, with 67% of tourism professionals indicating better or much better prospects for 2024 compared to 2023.
Some 28% expect similar performance, while only 6% expect tourism performance in 2024 to be worse than last year. Key considerations include:
According to industry experts, there is still significant room for recovery across Asia. The reopening of several source markets and destinations will boost recovery in the region and globally.
Chinese outbound and inbound tourism is expected to accelerate in 2024, due to visa facilitation and improved air capacity. China is applying visa-free travel for citizens of France, Germany, Italy, the Netherlands, Spain and Malaysia for a year to November 30.
Visa and travel facilitation measures will promote travel to and around the Middle East and Africa with GCC countries to implement a unified tourist visa, similar to the Schengen visa, and measures to facilitate intra-African travel in Kenya and Rwanda, they stated.
Europe is expected to drive results again in 2024. In March, Romania and Bulgaria will join the Schengen area of free movement, and Paris will host the Summer Olympics in July and August.
Strong travel from the United States, backed by a strong US dollar, will continue to benefit destinations in the Americas and beyond. As in 2023, robust source markets in Europe, the Americas and the Middle East, will continue to fuel tourism flows and spending around the world, they added.-TradeArabia News Service