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The post On the way to recovery! With summer holiday season on, global air traffic spikes appeared first on TD (Travel Daily Media) Travel Daily.

The International Air Transport Association (IATA) announced passenger data for May 2022 showing that the recovery in air travel accelerated heading into the busy Northern Hemisphere summer travel season.

Total traffic in May 2022 (measured in revenue passenger kilometers or RPKs) was up 83.1% compared to May 2021, largely driven by the strong recovery in international traffic. Global traffic is now at 68.7% of pre-crisis levels.

Domestic traffic for May 2022 was up 0.2% compared to the year-ago period. Significant improvements in many markets were masked by a 73.2% year-on-year decline in the Chinese domestic market due to COVID-19 related restrictions. May 2022 domestic traffic was 76.7% of May 2019. International traffic rose 325.8% versus May 2021. The easing of travel restrictions in most parts of Asia is accelerating the recovery of international travel. May 2022 international RPKs reached 64.1% of May 2019 levels.

“The travel recovery continues to gather momentum. People need to travel. And when governments remove COVID-19 restrictions, they do. Many major international route areas – including within Europe, and the Middle East-North America routes – are already exceeding pre-COVID-19 levels. Completely removing all COVID-19 restrictions is the way forward, with Australia being the latest to do so this week. The major exception to the optimism of this rebound in travel is China, which saw a dramatic 73.2% fall in domestic travel compared to the previous year. Its continuing zero-COVID policy is out-of-step with the rest of the world and it shows in the dramatically slower recovery of China-related travel,” said Willie Walsh, IATA’s Director General.

European carriers’ May traffic rose 412.3% versus May 2021. Capacity rose 221.3%, and load factor climbed 30.1 percentage points to 80.6%. The impact of the war in Ukraine remained limited to areas directly impacted.

Asia-Pacific airlines had a 453.3% rise in May traffic compared to May 2021. This is significantly higher than the 295.3% year-on-year gain registered in April 2022. Capacity rose 118.8% and the load factor was up 43.6 percentage points to 72.1%. Improvements in the region are being driven by reduced restrictions in most of the region’s markets, except China.

Middle Eastern airlines’ traffic rose 317.2% in May compared to May 2021. May capacity rose 115.7% versus the year-ago period, and load factor climbed 37.1 percentage points to 76.8%. The progressive re-opening of Asian markets is boosting traffic through Gulf hubs.

North American carriers experienced a 203.4% traffic rise in May versus the 2021 period. Capacity rose 101.1%, and load factor climbed 27.1 percentage points to 80.3%. With most restrictions removed for travelers from this region, tourism and a high willingness to travel continue to foster the international recovery as several other routes areas are now outperforming 2019 results.

Latin American airlines’ May traffic rose 180.5% compared to the same month in 2021. May capacity rose 135.3% and load factor increased 13.5 percentage points to 83.4%, which was the highest load factor among the regions for the 20th consecutive month. Some routes, including those from Central America to Europe and to North America, are outperforming 2019 levels.

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The post Tourism sector in China to create over 30 million jobs over next decade appeared first on TD (Travel Daily Media) Travel Daily.

The World Travel & Tourism Council (WTTC) has revealed the travel and tourism sector in China is expected to create more than 30 million jobs over the next decade, representing a quarter of all new jobs globally.

The forecast from WTTC’s latest Economic Impact Report (EIR) shows the sector will reach more than 107 million employed within the sector by 2032. According to the global tourism body’s latest data, travel and tourism’s GDP is expected to grow at an average of 9.7% over the next 10 years, more than twice the 4.4% growth rate of the national overall economy, making it one of the fastest growing countries.

This growth will boost the sector to reach more than ¥25.2 trillion (13.7% of the total economy) by 2032. The report shows the travel and tourism sector’s contribution to China’s economy could also surpass pre-pandemic levels next year, when it is projected to rise almost 10% above 2019 levels.

By the end of 2023, the sector’s contribution to the national economy could reach more than ¥ 13 trillion, with a year-on-year growth of more than 32%. Employment within the sector could also exceed pre-pandemic levels, creating more than 766,000 additional jobs, to reach more than 83 million by the end of 2023.

WTTC warns that this will only be achieved if China continues to facilitate both international and domestic travel.

Julia Simpson, WTTC President & CEO, said: “Over the next decade, the outlook is incredibly positive. “But in the short term, while much of the rest of the world and indeed the region is now open to travellers, travel to China remains off limits for many international travellers. Domestic travel has provided and will continue to provide some relief to China’s economy, but at the moment, international travel spending is very low and is critical for the Chinese overall economy. Although cutting the quarantine time for international travellers is a step in the right direction, it’s not enough to have any real positive impact.”

In 2019, when travel and tourism was at its peak, international visitor spending in China reached nearly ¥951 billion (14% of total internal spending). However last year, as China kept its borders closed, the total spend was less than ¥91 billion (3%), missing out on nearly ¥862 billion every year.

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The post European tourism recovery is in full swing appeared first on TD (Travel Daily Media) Travel Daily.

Uncertainty brought about by worsening inflation, prolonged war disruption and rising rates of Covid-19 continue to endanger the tourism outlook across Europe. Nonetheless, the European Travel Commission (ETC) predicts willingness to travel this summer will prevail.

The most recent edition of the ‘European Tourism Trends & Prospects’ quarterly report indicates that recovery is in full swing going into the peak summer season of 2022, with consumers’ savings accumulated through the pandemic expected to support travel demand.

ETC predicts Europe will recover 70% of pre-Covid travel demand this year. For 2022 to date, Bulgaria (-8%), Serbia (-10%) and Turkey (-14%) saw the strongest rebounds in tourist arrivals. Monaco (-22%), Croatia (-30%), Iceland (-35%) and Slovenia (-37%) – the only destinations reporting data to May – also exhibited a strong recovery. At the other end of the spectrum, Latvia’s geographical proximity to Russia is slowing the country’s tourism recovery from the pandemic (-63%) following mass hotel booking cancellations. Slovakia and the Czech Republic are also among the Eastern European destinations exceeding the 50% decline.

Commenting following the publication of the report, Luís Araújo, ETC’s President, said: “Covid-19 restrictions have been rolled back, and people are eager to make up for two years of lost travel opportunities. We are witnessing a much faster rebound than travel businesses in Europe had been expecting, and staff shortages may prove to be an obstacle to a complete recovery. Bringing back talent, and making careers in the sector more enticing, is the top priority for European tourism recovery in the months to come. It is also crucial that the EU continues to monitor the impact of inflation on the cost of living – Europe must do everything within its power to ensure that travel does not become inaccessible for the average European.”

While travel sentiment in Europe remains strong, the savings base – which was expected to bolster growth – has been eroded by the increasing cost of living due to energy and food price hikes. Moreover, the steep acceleration in fuel prices also directly increases the price of travel, or more specifically transport. For consumers, the price hike will likely shift preferences to lower cost options such as staycations, or more affordable forms of transport to nearby countries.

As a result, short- and medium-haul travel is expected to continue driving European tourism recovery. Arrivals from long-haul markets still lag significantly behind, especially in Asia where travel sentiment has been hampered by ongoing Covid-19 restrictions. Although sentiment in the United States is more positive, recovery has still been slower than expected. US citizens returning from Europe were required to take PCR tests prior to travel until the end May/beginning of June, which may have held back demand.

Given the stronger than expected demand bounce-back during 2022, the ongoing lag in labour supply is creating staff shortages across the European travel and tourism sector. As a result, many European destinations may struggle to facilitate the high demand this summer. The primary reasons cited for these shortages are the restricted pool of available workers, long lead times on security clearance and the sector being viewed as an unstable employment opportunity post-Covid.

Although staff shortages in hospitality are acute, presently a shortage of workers in the aviation sector is dominating headlines. Roughly 190,000 European aviation workers were laid off during the pandemic. Despite airlines and airports reacting with recruitment drives, it is unlikely the industry will be able to respond within this peak summer season.

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