Covid-19 briefing

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- ECONOMIC IMPACT -

Latest update: 14 April 

Concern over the spread of Covid-19 remains, but so does business optimism.

Many employees want a flexible return to offices, and most are optimistic about their job’s future.

6.5%

The Spanish government downgraded its economic growth forecast from 7.2% to 6.5% for 2021.

2.04 million

Unemployment rates in Germany have remained at 4.6%, 2.04 million people, since February, according to Statistisches Bundesamt.

International Tourist Destinations

- SECTOR IMPACT: Travel and tourism -

Latest update: 14 April

TRAVEL market impact

-18%

GlobalData figures show that the total number of jobs in travel and tourism has shrunk 18% from this time last year, a catastrophic drop brought about by layoffs caused by the Covid-19 pandemic.

23%

GlobalData figures show that the number of news items about the travel and tourism industry has gone up by 23% compared to this time last year, as we approach summer and a hopeful end to the pandemic.

Cruise and shipping industry

The cruise industry is still in despair. Many cruise companies have extended their sailing suspensions, due to new quarantine restrictions and the extension of international travel bans. Carnival Corporation has further extended its suspension of US departures until at least 30 June, and Royal Caribbean will not resume US departures before mid-June.

Several operators are encouraging re-booking by offering incentives such as extra credit vouchers, and are publicising their extensive hygiene measures. But with so many ships unable to sail until at least June, the future looks bleak for cruise operators.

Air travel

The travel and tourism industry continues to be hit with uncertainty, owing mostly to a lack of clarity over travel restrictions, quarantine measures and the absence of a clear roadmap to reopening, which is leaving people reticent to book.

British Airways reported a record $8.8bn loss in 2020, and outlook is still bleak, as flights are only running at a fifth of pre-Covid levels.

Airlines are having to scale back flights and reduce capacity to enforce social distancing, including Delta Air Lines’ plan to keep middle seats blocked throughout April.

Government bail-outs seem inevitable, and the likes of Lufthansa and Air France-KLM have asked their governments for support to remain afloat. While most are focussing purely on survival at the moment, in the mid to long-term, there may be consolidation of smaller airlines. 

However, some travel operators such as TUI, easyJet Holidays and Jet2 Holidays have reported a surge in demand for summer vacations from customers in the UK. But due to uncertain quarantine plans, especially with various mutations of the virus, many of these holidays may end up being cancelled.