A united and solidary tourism

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A united and solidary tourism
Thu March 19, 2020

In the face of a historical pandemic, the industry has promoted initiatives that leave competition aside and promote joint work to get ahead


As we all know, the tourism industry has been the first victim of a global economy that has collapsed. Undoubtedly, for there to be demand in each tourist segment, there must be solid companies that generate foreign exchange and, above all, jobs. It is already a fact that once the health crisis is over, the motors will not accelerate from 0 to 100 in 10 seconds, you will have to be patient and consent. Meanwhile there is a beautiful opportunity to show who is who in this story.
For now, much hope announcements such as the one made on Monday by airlines, the three global airline alliances oneworld, SkyTeam and Star Alliance are jointly asking governments and stakeholders to take measures to alleviate the unprecedented challenges facing the industry. of global airlines in the midst of the COVID-19 pandemic. Together they represent nearly 60 airlines worldwide that contribute more than half of the global airline's capacity, strongly supporting a request by the International Air Transport Association to ask governments for help. You read correctly, you put together something that seemed unthinkable until everything exploded.
COVID-19's impact on the airline industry is significant as IATA estimates revenue losses of up to $ 113 billion for passenger airlines worldwide. The impact is expected to have a ripple effect through the value chain that supports the airline industry. The expected loss of income scenario does not include travel restrictions recently imposed by the United States and other governments. The restrictions of the EE. USA Passengers in the Schengen Area will put pressure on the US-Schengen market, valued at more than $ 20 billion in 2019.
To ease the immense pressures airlines are facing in the current operating environment, and in support of the IATA statement of March 12, the three alliances urge governments around the world to prepare for the broad economic effects of the actions taken. by states to contain the spread of COVID-19 and evaluate all possible means to assist the airline industry during this unprecedented period.
Alliances also require other stakeholders to provide support. For example, airport operators are urged to evaluate landing charges and tariffs to mitigate the financial pressure facing airlines due to a sharp decline in passenger demand.

Unpromising figures
The crisis created by the coronavirus COVID-19 will have far-reaching effects on the labor market, according to a first evaluation by the International Labor Organization: it is estimated that between 5.3 and 24.7 million people will lose their jobs. Compared to the 2008-2009 global financial crisis, global unemployment increased by 22 million.
Job declines also lead to huge loss of earnings for workers. The study estimates that these will be between 860,000 million and 3.4 billion dollars at the end of 2020. This will translate into falls in the consumption of goods and services, which in turn will affect the prospects of companies and economies.
All this will lead to a significant increase in working poverty, since "the pressure on income resulting from the decrease in economic activity will have a devastating effect on workers who are near or below the poverty line."
The International Labor Organization estimates that worldwide, between 8.8 and 35 million more people will be in working poverty, compared to the original estimate for 2020 (which predicted a decrease of 14 million globally).
In addition, an exponential increase in underemployment is expected, since the economic consequences of the virus outbreak will translate into reductions in working hours and wages.

No time to waste
WTTC, which represents the global private travel and tourism sector, calls on the governments of all countries to take immediate measures to help ensure the survival of this important job-generating sector. Not soon, not in a few weeks, now.
"The private sector is taking decisive action to protect its employees and consumers, which will certainly help lessen the problem."
Without travel and tourism, economies around the world will face an existential threat. We need to work hand in hand and with immediate actions to preserve a sector that is key to the recovery of the global economy, ”says Gloria Guevara Manzo, President and CEO of the WTTC.
"We call on the world to take urgent and immediate action to prevent this global health crisis from becoming a global economic catastrophe. Doing nothing is not an option. We call on all governments to take drastic and decisive action now to preserve and protect the contribution of the Travel and Tourism sector, on which more than 320 million people and their families depend for their livelihood. "

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