Covid-19 briefing

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- ECONOMIC IMPACT -

Latest update: 15 July

According to a Nikkei survey, the Chinese economy is forecast to grow at a slower pace of 4.1% in 2022 due to its zero-Covid-19 policies

The IMF revised its 2022 and 2023 economic growth projections for the US to 2.9% and 1.7% from its earlier projection of 3.7% and 2.3%

5%

Unemployment in OECD nations stood at 5% in May 2022, a decline from 6.5% compared to May 2021

6.8%

Unemployment in the Euro area stood at 6.1% in May, unchanged from March, according to Eurostat

- SECTOR IMPACT: Travel & Tourism -

Latest update: 15 July

2022 is proving to be a pivotal year in the travel and tourism industry. Most major travel restrictions have been withdrawn, allowing international passengers to move freely.

Domestic tourism remains an area of intense focus and has led to substantial price surges in some markets. But travel intermediaries are engaging in aggressive marketing towards international travel with some advertising for as late as 2023 to increase revels. Some intermediaries and low-cost airlines are reporting similar capacity to 2019, which is encouraging.

However, there is still some negative sentiment within the industry, with some travellers concerned about the spread of the virus. Furthermore, the increased cost of living and rise of inflation is set to impact consumer behaviour significantly.

While Covid-19 continues to threaten the travel industry, concerns are switching to the economic issues brought on by the pandemic. Inflation and the increased cost of energy are very real issues impacting prices and disposable income on a global scale.

As tourism is not an essential good or service, many would-be tourists could drop their travel plans altogether this year, impacting the speed of recovery.