While the restrictions have been eased, upcoming winter holiday sales are down about 40% and TUI has reduced capacity for next summer to 1/5, although bookings are now increasing. significantly compared to last year.
The company has borrowed nearly 2.9 billion euros ($ 3.4 billion) from the German government, not expecting business to return to normal before 2022. Like many other companies, they are yet to attend. Her financial performance this year due to the pandemic.
TUI’s deep outlook reflects the great degree of uncertainty that still surrounds the path of the virus’s future.
The International Air Transport Association said on Thursday that flights within Europe in recent months were 50% lower than in the same period in 2019, despite the reopening of the border. In the first four months of the year, the number of international tourists to Europe decreased by 44% year-on-year, according to the European Travel Commission.
More than 7 million jobs supported by tourism and tourism in Europe are now at risk, up from estimates. 6 million in June, according to IATA. IATA Europe Vice President Rafael Schvartzman said in a statement: “It is very worrying to see the prospect of air travel falling further this year, and the serious impact on employment and prosperity. “.
Trillions of GDP are at risk
TUI’s earnings are just the latest indication of the devastating impact of the pandemic on tourism and tourism, which is spreading across dozens of other sectors and will hamper the resilience of the global economy.
Without “coordinated emergency action” between major governments, tourism and tourism will suffer “irreversible damage,” according to the World Travel and Tourism Council.
The industry agency is currently forecasting a loss of 197 million jobs worldwide and a $ 5.5 trillion drop in the industry’s contribution to global GDP this year – a 62 percent drop. compare to 2019. About 18.3 million jobs may be lost in the European Union.
Prospects have deteriorated rapidly. In April, WTTC is forecast to lose about 100 million jobs and $ 2.7 trillion in damage to GDP. The escalating crisis is largely due to persistent barriers to global travel, such as quarantine and travel restrictions, WTTC said in a statement last week.
“The confusing patchwork of international quarantine and bans and lack of coordination, has deterred many from traveling with the 2020 summer peak tourist season but all have suffered. wiped out, “it added.
Managing Director Gloria Guevara said: “Governments around the world must adjust their policies and work with the private sector to revive tourism and travel, so that we can restore jobs and help revive the global economy.
WTTC this week sent a letter signed by more than 100 industry leaders to the heads of the G7 economies, as well as Australia, South Korea and Spain, calling for a joint response and marking. measures to get travel in the right direction.
These include mandatory masking on all modes of transport, inspection and traceability, and the elimination of quarantine measures.
James Gellert, CEO of RapidRatings, specializes in analyzing the financial health of companies around the world, with “inherent global nature,” travel and tourism representing one of the “supply chains. integration and interdependence ”.
“Everyone is affected by the drop in travel, whether you are a destination dependent on hotel and restaurant groups or suppliers of products and services to companies in the US,” he told CNN Business. tourism and entertainment market.