Healing Solutions for the tourism sector from COVID-19 illness

Travel and Tourism is a vital income generator for local communities across the world. In many countries, it improves the quality of life for their people, providing livelihoods, education and better healthcare however; due to Corona Virus the sector is highly hit.
The top solutions for accelerating the recovery of tourism have been celebrated in the ‘Healing Solutions for Tourism’ Challenge. Launched by the World Tourism Organization (UNWTO) with the support of the World Health Organization (WHO) and with the aim of identifying start-ups with ready-to-implement ideas for mitigating the impact of COVID-19 on the sector, the initiative attracted more than 1,000 applicants from 100 countries, stated World Travel & Tourism Council (WTTC) on its recent press release.
According to the press released, five international air transport and tourism bodies have launched an appeal to international financial institutions, country development partners and international donors to support Africa’s Travel and Tourism sector. Travel and tourism employs some 24.6 million people on the African continent. Without urgent funding, the COVID-19 crisis could see a collapse of the sector in Africa, taking with it millions of jobs. The sector contributes 169 billion USD to Africa’s economy combined, representing 7.1 percent of the continent’s GDP.
The request is being made by the International Air Transport Association (IATA), the UN World Tourism Organization (UNWTO), the World Travel and Tourism Council (WTTC) the African Airlines Association (AFRAA) and the Airlines Association of Southern Africa (AASA).
These organizations are jointly calling on international financial institutions, country development partners and international donors to support the African Travel and Tourism sector through these tough times by providing: 10 billion USD in relief to support the Travel and Tourism industry and help protect the livelihoods of those it supports directly and indirectly.
Access to as much grant type financing and cash flow assistance as possible to inject liquidity and provide targeted support to severely impacted countries; financial measures that can help minimize disruptions to much-needed credit and liquidity for businesses.
This includes the deferral of existing financial obligations or loan repayments; and ensuring that all funds flow down immediately to save the businesses that need them urgently, with minimal application processes and without impediment from normal lending considerations such as creditworthiness.
Some African governments are trying to provide targeted and temporary support for hard-hit sectors such as Travel and Tourism. However, many countries lack the necessary resources to help the industry and these livelihoods through this crisis.
The situation is now critical. Airlines, hotels, guesthouses, lodges, restaurants, meeting venues and related businesses face mounting losses. Typically, Travel and Tourism comprises 80 percent of small and medium enterprises (SMEs). To preserve cash, many have already begun lying off or placing staff on unpaid leave.
“The impact of the COVID-19 outbreak is being felt across the whole Travel & Tourism value chain. The sector is particularly exposed with millions of livelihoods across the world, especially within vulnerable communities, supported by the sector. International financial support is essential to ensuring that Travel and Tourism can lead to wider economic and social recovery in these communities,” said UNWTO Secretary General, Zurab Pololikashvili.
Alexandre de Juniac, IATA’s CEO and Director General for his part said: “Airlines are at the core of the Travel and Tourism value chain that has created quality jobs for 24.6 million people in Africa. Their livelihoods are at risk. Containing the pandemic is the top priority. But without a lifeline of funding to keep the Travel and Tourism sector alive, the economic devastation of COVID-19 could take Africa’s development back a decade or more. Financial relief today is a critical investment in Africa’s post-pandemic future for millions of Africans.”
Gloria Guevara, WTTC President and CEO said that The Travel and Tourism sector is in a fight for survival, with over 100 million jobs losses globally and nearly eight million in Africa alone due to the COVID-19 crisis. Travel and Tourism is the backbone of many economies across Africa and its collapse will lead to hundreds of millions of livelihoods being impacted and enormous financial pressure for years to come.
“Now, more than ever, it is vital that governments work together on a global coordinated approach towards a swift recovery and ongoing support for Travel and Tourism. It is critical that the most vulnerable communities receive international help. The speed and strength with which the international community comes together and responds through international financial institutions, country development partners and international donors will be paramount to provide support to the many millions of people whose livelihoods are heavily dependent on our sector,” she added.
According to Abdérahmane Berthé, AFRAA Secretary-General, air transport and tourism industries are among the worst impacted by the COVID-19 pandemic. Air transport is critical for the economic development and integration of the African continent. As such, support to the airline industry will aid in a faster economic recovery.
An end of operations by African airlines would trigger a host of serious financial consequences, while replacing the air service provided by the airlines would be a challenging and costly process. Urgent, immediate and consistent measures need to be taken for the survival and rebound of the industry, said Berthé.
As to Chris Zweigenthal, AASA CEO, the impact of COVID-19 in Africa continues to be brutal. Air travel and tourism have essentially shut down.
“Now, more than ever, countries of the world need to come together to help the most vulnerable communities. The survival of our industry and its allied sectors has serious ramifications for Africa’s entire air transport system,” said Zweigenthal.
Ethiopia is also working to protect the tourism sector. Recently, the Ministry of Culture and Tourism has come up with a plan to recover from the ongoing crisis in country’s tourism sector, which is suffering from the Cov-19 epidemic.
National Tourism Recovery Plan, developed by the Ministry in collaboration with the Tourism Ethiopia and the Hotel and Tourism Associations, was recently approved by the National Committee for Tourism and discussed with officials of the Regional Culture and Tourism Bureaus.
At the video conference, Minister of Culture and Tourism, Dr. Hirut Kassaw, said that tourism is one of the major sectors affected by the Corona pandemic. With this in mind, it is important to develop a speedy recovery plan, which is a timely plan.
Tourism Ethiopia Director General, Sileshi Girma on his part said that the country can take advantage of the challenge created by the re-emergence of tourism sector after the Corona pandemic. “By reinforcing Corona’s response to the move today, we will be able to return to international markets with a strong tourism from Corona.”
As tourism is the fastest-growing industry with the problem of its behavior, he said it was prepared as a viable and flexible recovery plan is needed. This plan is designed to revitalize the sector’s activity from low levels of living to large investors.
The Minister said that the overall stimulus plan is being coordinated with the rehabilitation plans of international agencies such as the World Tourism Organization and the International Travel and Tourism Council (UNWTO, WTTC).

The Ethiopian Herald May 12/2020

BY ESSEYE MENGISTE

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