Covid-19 briefing

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- ECONOMIC IMPACT -

Latest update: 20 January

Many economists have cut their GDP forecasts. The 2020 consensus forecast for GDP growth is currently negative and many predict a recession.

According to the OECD, the unemployment rate in OECD nations declined marginally to 6.9% in November 2020 from 7.1% in October 2020.

-3.7%

Consensus forecast for world GDP growth in 2020 is -3.7%.

5%

According to German national statistics office, Germany's real GDP contracted by 5% in 2020.

Impact of Covid-19 on equity indices

- SECTOR IMPACT: Travel and Tourism -

Latest update: 20 January

Travel and tourism market impact

50%-75%

Following vaccine announcements, a 50-75% uplift in air traffic is expected in 2021.

77%

In GlobalData’s emerging technology travel trends survey for 2020, 77% of tourism executives declared that they were prepared for a digital disruption.

Responses to covid-19 worldwide

All travel corridors have been closed by the UK Government until at least 15 February. Travellers must show a negative Covid-19 result from a test completed within 72 hours before travelling to enter the UK (18 January).

Japan has extended its state of emergency to seven more prefectures and banned the entry of foreign nationals (14 January).

France has extended its night curfew (6pm to 6am) across the whole country starting on 16 January for at least 15 days (15 January).

The Emergency order under Reopening Ontario Act (ROA) in Ontario, Canada has been extended till 19 February (16 January). Canada has also suspended all airline services to Mexico and the Caribbean until 30 April 2021.

Turkey has reported that its tourism revenue has decreased by 65% in 2020. 

Key Travel and tourism developments

Creating seamless travel with technology
The increasing need for seamless experiences from travellers has heightened security threats for tourism companies in recent years.

Consumers now want to travel more efficiently and effectively than ever before, creating the need for connected experiences that save time but also add value.

Now 32% of global consumers are either ‘often’ or ‘always’ influenced by ‘how digitally advanced/smart a product or service is’, according to GlobalData’s Week 10 Covid-19 Recovery Survey.

Building firewalls
As well as 52% of business executives stating that cybersecurity will play a significant role in their companies’ recovery, 41% of executives expect cybersecurity technology to live up to all its promises.

Additionally, 66% of travel and tourism executives fully understand this technology, according to GlobalData’s Emerging Technology Trends Survey 2020.

Cyber ignorance and lack of investment could cause detrimental damage to company profitability, security and reputation and many tourism companies have already latched on to this.