Covid-19 briefing

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- ECONOMIC IMPACT -

Latest update: 16 June

After months of decline, GDP estimates for many countries have turned positive.

Polls show that concern over the spread of Covid-19 remains volatile, so does business optimism.

6.1%

Consensus forecast for world GDP growth in 2021.

0.8%

Real GDP growth in the G20 area in Q1 2021 compared to the last quarter.

Impact of Covid-19 on EMPLOYMENT OUTLOOK

- SECTOR IMPACT: TRAVEL AND TOURISM -

Latest update: 3 June

Impact on airlines

$47.7bn

In April, the International Air Transportation Association declared that it expects net airline industry losses of $47.7bn in 2021 with a net profit margin of -10.4%. Losses have decreased since 2020 and the onset of the Covid-19 pandemic, but the government-imposed travel restrictions still in place in June 2021 across destinations worldwide will continue to dampen international travel recovery. Airlines are therefore planning for an extended recovery period.

IMPACT ON INTERMEDIARIES

Many intermediaries are now focusing on experiences as a primary focus with partnerships becoming more common. Recent partnerships include Trivago's (Expedia Group) partnership with Musement, TUI's experiential subsidiary and Booking.com's attraction partnership with Viator (Tripadvisor). As travel remains restricted, intermediaries are exploring tours and activities as another revenue stream.

KEY TRAVEL AND TOURISM DEVELOPMENTS

The development of 'vaccination passports' continues as a measure to revive the travel and tourism sector. Vaccination passport apps will store Covid-19 vaccination data alongside test results and other relevant information to facilitate document checks for travellers. 

The EU Digital COVID Certificate has been approved and is expected to roll out on 1 July 2021. Covid-19 related information will be gathered in the form of a QR code which will then be accepted across the EU depending on entry requirements. 

Domestic tourism remains an area of intense focus. Lockdown measures have created a desire for people to travel, but ongoing travel restrictions and the slow rollout of vaccination programmes in several markets mean options are limited, creating increased demand for domestic travel. Even though some borders are reopening, tourism boards continue to shift their focus towards attracting people from their domestic market.

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