Tourist travel faces structural change

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A recent meeting of the World Tourism Organization (WTO) Tourism Recovery Committee concluded that recent world events have temporarily stunted the pace and scale of recovery but that consumers will still seek to travel, even if it includes changing traditional travel patterns

The WTO Tourism Recovery Committee of industry officials met for the third time during the World Travel Market in London last week and produced a summary of regional research papers. Participants agreed the impact on tourism has been international and the attacks in Bali, Djerba and the US have combined with the downward economic effects in certain key countries, such as Germany for example, to suppress tourism.

The impact of the crisis varied widely according to market segment. For instance air travel was most affected, particularly long haul. Consumer behaviour has changed, which caused shorter stays in closer-to-home vacation destinations accompanied with later bookings. According to representatives from private tour operators, structural changes on the supply side were accelerated. There was also a desire in the industry to grow traveller confidence and only to issue negative travel warnings where supported by reliable intelligence and analysis.

The World Tourism Organization said it would react immediately to the challenges identified; in particular it would assist Bali and the Indonesian authorities in the recovery action plan there. According to the Indonesian Minister for Culture and Tourism earnings from international tourists will plunge by $1.8bn in the current year with an equivalent sum also being lost from domestic tourists. These figures will trigger a 6.6% drop in Indonesia's gross domestic product. Duty-free operators in Bali reported sales down 80% following the devastating October 3 bomb blast. Speaking to Duty-Free News International, Plaza Bali Duty Free, which operates in Denpasar airport and Kuta downtown, said the drop was in line with the fall in hotel occupancy and airline passenger numbers.