Global industry figures have forecast a strong rebound in leisure travel but warn of “different challenges” post-pandemic amid concerns about the state of the world economy.
Nicolas Mayer, global tourism leader at business consultancy PwC, told the inaugural Global Tourism Resilience Forum in Dubai last week: “The industry is in very different places in different geographies and different sectors.
“Certain sectors are still dealing with the absence of demand. But in the Middle East we see demand at or above the pre-pandemic level.
“We sense much stronger confidence than six months ago. People are coming out [of the pandemic] with different challenges than they thought, other than cash.”
Sandals Resorts chairman Adam Stewart agreed, telling the forum: “It depends where you are and what segment you’re in. Initially the problem was not understanding how serious this [pandemic] was for tourism.
“Today we have new challenges – inflation, high fuel costs which feed into air fares, and recruiting.
“We could have a solid 2022-23. [But] beyond that there is speculation about where the world is heading and what is going to happen with the world economy.”
Stewart argued: “We’ve seen a big recovery in leisure in the Caribbean. [But] on the investment side, banks started to get more conservative about backing tourism ventures.
“Brands that have trust are going to have investment. The strongest brands, the biggest brands are going to attract finance.”
Mayer argued: “The businesses that pivoted their business and found new business models are going to come out stronger.”
But he added: “After two years of Covid, people either came out with strengthened [business] relationships or came out pre-divorce style – still married but one or the other partner thinking they didn’t get what they wanted from the relationship.”
Mayer also warned: “Business travel is going to come down substantially, whether by one quarter or one third. I don’t believe it will come back to the pre-covid level.”
Raki Phillips, chief executive of the Ras Al Khaimah Tourism Development Authority (RAKDA), told the forum: “The worst is over. The recovery is remarkable. Investment in tourism is attractive.”
But he added: “The investor mentality has changed. Investors are looking for sustainability and sustainable growth, not the big pizzazz.”