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Coronavirus Travel – German Bank: How a tourist destination will gain advantage

The leading German bank describes in its report the intractable problems that will have to manage the tourism entrepreneurship this summer . The unclear points and targeted moves that might attract the interest of potential visitors……….
The spread of pandemic coronavirus, the related travel restrictions and lockdowns have led to the collapse of both domestic, and cross-border travel, notes the German Bank, and all types of transport are also affected.

If lockdowns remain in force during the summer, traditional tourist destinations, for example in Mediterranean, will suffer significant financial losses.

The further development of the pandemic coronavirus is too vague and therefore no one can say when and to what extent the current travel restrictions in the EU. can loosen or completely removed. But one thing is certain: The main holiday season in the northern hemisphere will begin in about three months.

The travel and tourism sector generates a significant share of total GDP in many Mediterranean countries. in Italy and Spain, this share rose to 13% (average nationwide) and to 14,6%, respectively, the 2018. in Hellas Nevertheless, the share of transport and tourism amounts to 20,6% of total GDP, German bank upholds. Therefore, the high dependence on tourism is an important issue.

Travel restrictions, the closure of hotels and cultural events canceled, exhibitions and conferences have already led to irreversible loss of revenue All areas affected (travel agents, Hotel and restaurant owners, trade fair organizers, transport companies etc.) already rokanizoun their many business resources, Deutsche Bank continues, which indicates that the default risks have been exaggerated.

However, large part of total tourism revenues generated during the main holiday season, when both values, and the capacity utilization of the companies is significantly higher than the annual average.

If travel restrictions remain in place during the summer months, local businesses, workers in the tourism sector and even the national economies of the affected countries may have huge problems, explains the DB.

It is also likely to increase social tensions in countries of origin of tourists (like the Germany, the United Kingdom, the Netherlands or the Nordic countries) if travel restrictions continue in summer, especially in view of the fact that people can not travel at Easter (another traditional holiday season) and things are unlikely to return to normal by May.

A large majority still accepts travel restrictions. However, this is likely to change over time. consequently, there are significant economic and social reasons to try and reduce as much as possible the spread of the coronavirus in the coming weeks.

What could mitigate the problem

There are certainly more important things on vacation trips this time. However, companies in the tourism sector and local governments in tourist destinations can already take steps that can help holidaymakers traveling with acceptable risks, when the “curve peplatysthei”.

One of them is canceled mass events. A concert audience of thousands of people carry higher risks from a family that goes to mountain hiking or biking.

Furthermore, tourist facilities can disinfect all areas and try to ensure a sufficient distance between the visitor. Restricting access some attractions would help reduce the number. The coverage of the number of visitors from the capacity adjustment can be useful.

Assuming that the number of cases continues to decline in holiday destinations, These preparations will certainly increase the willingness of tourists to visit areas that are currently hard hit by the virus.

Alongside, vacationers may be asked to present especially medical certificates or health certificates to confirm that they do not increase the risk of outbreak recurrence destinations. Of course, this will require testing.

For many, holiday is “Best time of year”. However, holiday travel also play an important economic role. Summer 2020, the governments (as regulators), tourism businesses and tourists will have to find a balance between health risks on the one hand and mitigation of economic losses and recharging “battery” us from the other, concludes the German bank.

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