With world arrivals forecast to be down -50% by the end of 2020, the global travel industry is under strain.
Which is why countries are using innovation to accelerate its recovery, according to global market research company Euromonitor International’s new report ‘Accelerating Innovation after Coronavirus’.
The company revealed that in Europe, a strong rebound of 5% real GDP growth and a 76% increase in inbound receipts are expected in 2021.
Euromonitor International stated that sustainable tourism will play a big part in the recovery process, with countries looking to achieve net positive impact for local communities, especially in destinations suffering from overtourism like Barcelona.
With a rise in nature-based activities known for its cognitive benefits, Scotland is developing a therapeutic recovery programme to improve mental wellbeing post-lockdown.
In Asia Pacific, recovery is expected within three years, which is relatively quicker than Western Europe.
Home to the world’s largest population of internet users, innovation in the region is already thriving, with concepts tackling various needs during the lockdown, including customer journey, mobility and sustainable destination management.
With mobile sales accounting for 62% of all APAC online sales this year, this trend will continue apace post-pandemic. It is predicted that by 2025, Singapore will lead online travel sales with an average spend of $1 200 (R18 687) per person a year.
In the Americas, Panama and Argentina are forecast to experience a 20% compound annual growth rate (CAGR) in inbound receipts between 2021-2025, ahead of the US at 12% CAGR.
The report also revealed that digitalisation is accelerating with a wide range of technology incorporated into new travel concepts, including AI, automation, blockchain and the Internet of Things, to create a safer, more sustainable and seamless travel experience. Insights from Euromonitor show that 61% of US travel companies expect AI to impact their business in the next five years.
Countries in the Middle East introduced new health and hygiene protocols to reassure people’s safety.
It revealed that some mosques in Saudi Arabia were using Ozone technology and thermal cameras for mass disinfection and temperature scanning.
While, in Africa, the potential for smart connected cities is close in countries such as South Africa and Nigeria, with the acceleration in digital identity creation and rolling out 5G.
See the full report here.