Economic Survey: Trajectory of tourism remains uncertain due to Omicron

The trajectory of the tourism sector, especially international tourism, remains uncertain due to the spread of the Omicron variant of COVID-19, according to Economic Survey 2021-22.

The pandemic has had a debilitating impact on world travel and tourism everywhere, including India, and the resumption of international tourism will continue to depend largely on a coordinated response among countries, said the Survey.

Nations will need to coordinate in terms of travel restrictions, harmonised safety and hygiene protocols and effective communication to help restore consumer confidence.

"At the time of writing, new restrictions were being introduced worldwide due to the spread of the Omicron variant of the COVID-19. Thus, the trajectory of the tourism sector, especially international tourism remains uncertain," according to the pre-Budget document tabled in Parliament by Finance Minister Nirmala Sitharaman on Monday.

 

Citing the World Tourism Barometer of the United Nations World Tourism Organization (January 2021) data, the Survey said that international tourist arrivals (ITA) declined 74 per cent globally in 2020 over the previous year, with restrictions on travel, low consumer confidence and a global struggle to contain the spread of COVID-19.

ITA had reached a total of 1.5 billion in 2019, and reduced to 381 million in 2020, leading to an estimated loss of USD 1.3 trillion in export revenues, it added.

"This weakness in international tourism has continued in 2021. During January-September 2021, ITA worldwide was 20 per cent lower than the same period in 2020 and 64 per cent below 2019 levels," the Survey said.

India had also taken measures to contain the spread of the virus, including suspension of all commercial international flights in March 2020. The restriction has been extended till February 28, 2022.