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Higher inflationary costs main threat to international tourism rebound, study shows

International tourism is “well on its way” to returning to pre-Covid levels, new data shows. 

Twice as many people travelled during the first quarter of this year than in the same period in 2022, according to the latest UNWTO world tourism barometer.

The figures show that international arrivals reached 80% of pre-pandemic levels in the January to March period with an estimated 235 million tourists travelling.

Southern Mediterranean Europe and North Africa recovered to pre-pandemic levels in the three months, while western and northern Europe, Central America and the Caribbean all came close.

The economic situation remains the main factor weighing on the effective recovery of international tourism in 2023, with high inflation and rising oil prices translating into higher transport and accommodation costs.  

Tourists are expected to increasingly seek value for money and travel closer to home as a result. 

“Uncertainty derived from the Russian aggression against Ukraine and other mounting geopolitical tensions, also continue to represent downside risks,” the UNWTO cautioned.

Revised data for 2022 shows more than 960 million tourists travelling internationally, meaning two-thirds (66%) of pre-pandemic numbers were recovered.

International tourism receipts grew back to hit the $1 trillion mark last year, growing 50% in real terms compared to 2021.

UNWTO secretary-general Zurab Pololikashvili said: “The start of the year has shown again tourism’s unique ability to bounce back. In many places, we are close to or even above pre-pandemic levels of arrivals. 

“However, we must remain alert to challenges ranging from geopolitical insecurity, staffing shortages, and the potential impact of the cost-of-living crisis on tourism, and we must ensure tourism’s return delivers on its responsibilities as a solution to the climate emergency and as a driver of inclusive development.”

Separately, the European Travel Commission (ETC) reported international tourist arrivals at 18% below 2019 levels last year.

Despite increasing demand, flight volumes have continued to plateau, signalling that supply constraints are still stalling recovery. 

Data from Eurocontrol indicates that European air traffic remained down 14.4% in January this year compared to the same month in 2019. 

Other challenges from 2022 are expected to spill into 2023 in terms of elevated food and jet fuel prices, as well as higher operating costs for airlines and the hospitality sector.

Commenting following the publication of the report, 

ETC president Luís Araujo said: “It is encouraging to see healthy levels of recovery as we hurtle towards the summer peak season. 

“However, many challenges still hinder the travel industry. From battling inflation to dealing with the fallout from the war in Ukraine, the travel industry has its hands full at the moment. 

“Nonetheless, we must also focus on tackling longer term challenges. To preserve the sector for future generations, tourism businesses, policymakers, and destinations must strengthen their efforts to encourage responsible tourism practices, minimise negative impacts on the environment and create positive impacts on the wellbeing of our populations.”

Amadeus’ air bookings in the first quarter were 32.8% higher than in the the same period last year at 121.8 million but still down  25% on the first three months of 2019.

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