The cost of living crisis threatens long-haul travel around the world this winter, with desire to visit Europe stagnating in key markets.
A study by the European Travel Commission and Eurail covers travel intentions in seven overseas markets – Australia, Brazil, Canada, China, Japan, Russia and the US.
The ETC said: “With the cost-of-living crisis set to have a crippling impact on household budgets globally this winter, personal finances have become the main reason behind respondents’ (24%) decision not to travel long-haul.
“Brazilians (55%), Canadians (31%) and Americans (30%) are most sensitive about money matters.
“Furthermore, Covid-19 related concerns are still off-putting to many, with 19% of respondents stating it as a reason not to travel overseas, particularly those in Asia.”
Travel sentiment to Europe remains weak among Americans, with 41% of US respondents stating that they will feel more confident travelling to European destinations when their economic situation improves.
Of those Americans who are planning a trip to Europe, more than half (56%) want to visit multiple countries, with France, Italy, the UK and Germany at the top of their bucket lists.
Priorities for American tourists include high-quality tourism infrastructure (35%), security (33%) and prices (31%). Americans also consider how crowded a destination might be as an important criteria (23%), more than respondents in other markets.
The resumption of flight connections and the gradual lifting of travel restrictions in Canada have resulted in a positive sentiment to visit Europe and may signal the beginning of a rebound in international travel, according to the report.
Almost 60% of Canadians wanting to come to Europe desire multiple-country trips. At the top of their destination wish list are France, Italy and the UK. Exploring Europe’s cultural and historical heritage is the leading motivation for Canadians over the autumn and early winter.
Similarly, travel sentiment is positive among Brazilians, with 55%) of respondents eager to visit European destinations in the next months. It is expected that interest in the region will continue to grow, in part because of improved air connectivity between Brazil and European cities. Portugal (41%) tops the list as the preferred destination for Brazilian travellers.
Despite a zero-Covid strategy, Chinese travel sentiment to Europe has turned positive, with 64% of respondents hoping to visit a European destination in the coming months. Nonetheless, Covid-19 concerns remain the main barrier, with 39% of Chinese stating it as a reason not to travel in September-December 2022. More than a quarter of Chinese respondents (29%) feel it is still too complicated to travel overseas due to Covid-19.
Japan is a more risk-averse market as the sentiment level for travel overseas has remained negative since the start of the pandemic. Of all surveyed Japanese, only 22% consider taking a long-haul trip in the coming months, with 13% having Europe in mind.
Nearly 60% of surveyed Australians plan an overseas trip by the end of 2022, with 38% considering a European destination.
When choosing a holiday destination, the perceived safety and the quality of tourism infrastructure are of utmost importance for Australians. Compared to other markets, they pay more attention to the costs of services and products at the destinations.
Travel sentiment by Russians remains below the levels registered over autumn in the past years, reflecting the geopolitical situation and current obstacles for Russians to travel outside their country due to restrictions imposed because of the war in Ukraine. Turkey, which kept air connectivity and its borders open to Russian citizens, is the most popular destination among potential travellers.
ETC president Luis Araujo said:“It is positive to see a continued improvement in long-haul travel sentiment. Nonetheless, this latest long-haul travel barometer reflects the negative impacts that the increased cost-of-living is having on people’s ability to travel internationally.
“It is likely that personal finances will significantly alter people’s travel choices in the coming months – this is a situation which ETC and its members are committed to monitoring closely and addressing.”