WTTC calls for ‘air corridors’ between key global cities to restore business travel

The restoration of ‘air corridors’ between the world’s top financial centres are vital to revive international business travel and help kickstart the global economic recovery, according to the World Travel & Tourism Council (WTTC).

WTTC, which represents the global Travel & Tourism private sector, says it is crucial that international business travel resumes, following its near-collapse due to the coronavirus pandemic.

Inbound international business travel accounts for more than US$272 (£215) billion. While leisure travel makes up the bulk of international Travel & Tourism spend (83.77%), it is (inbound) international business travel (at 16.23%) which most international airlines rely upon for the majority of their profits on many flights, especially on highly- competitive routes across the Atlantic.

WTTC research shows that restoring the confidence of international business travellers to resume flying, especially across the all-important transatlantic routes, could be key to an economic revival.

The positive impact of this could ripple throughout the Travel & Tourism sector, from airlines to hotels, taxis and across the hospitality industry, reviving a multitude of companies who depend upon business travel for their livelihoods.

However, WTTC warns this will only happen if the government takes a targeted approach, ditching blunt country-wide quarantines which have a devastating economic impact.

Instead, WTTC advocates a laser-like focus to re-open ‘air corridors’ for international business travel along ‘city corridors’ with similar low COVID-19 case numbers, such as between London and cities like New York, Washington, Paris, Frankfurt, Dubai, Amsterdam, Hong Kong, and Shanghai.

Gloria Guevara, WTTC President & CEO, said: “International business travel is the lifeblood of the global economy contributing more than US$272 (£215) billion a year. We must push ahead with the responsible re-opening of popular business travel routes for airlines which will help revive the world’s ailing financial health.

“The government should abandon quarantines which don’t work and focus on more targeted measures. Every time the UK government places another destination on its quarantine list, the economy suffers.”

The UK is the fourth biggest G20 economy in terms of international Travel & Tourism spend from business travel, which amounted to US$9.5 (£7.5) billion in 2019; 26.5% of all international Travel & Tourism spend.

Of the other G20 countries, the US had the highest international business travel spend in 2019, at US$47.75 (£37.72) billion. Germany was second with US$12.8 (£10.1) billion, China was third with US$10.7 (£8.45) billion, and Russia was fifth with US$8.6 (£6.8) billion.

Last week, WTTC revealed a staggering £22 billion – or £60 million a day – could be lost from the UK economy due to the collapse of international travel during 2020.

Travel restrictions, such as quarantines introduced by the government, has seen international travel and visitor numbers to the UK collapse. International visitor spending was predicted to plunge by 78% compared to 2019 levels, putting three million UK Travel & Tourism jobs at direct risk of being lost in a ‘worst case’ scenario mapped out by WTTC economic modelling.

But the Travel & Tourism sector’s recovery looks to have stalled, thanks to 14-day quarantines being imposed on more countries as the government attempts to counter a second COVID-19 spike.

This has all but crushed consumer confidence to travel with the concern being raised within the Travel & Tourism sector that further travel restrictions could be re-imposed on Portugal this week, snuffing out what remains of any remaining demand for the late Summer 2020 travel season.

WTTC has continually been at the forefront in leading the private sector in the efforts to rebuild global consumer confidence and encourage the return of Safe Travels.

The health and safety of travellers and those who work within the sector has always been its number one priority. WTTC advocates the implementation of a rapid test and trace strategy, with strong collaboration between governments to ensure a standardised global approach to the crisis, which is critical to contain the virus and enable people to travel in safety.

Worldwide, Travel & Tourism was responsible for one in 10 jobs (330 million total), making a 10.3% contribution to global GDP and generating one in four of all new jobs.

Original source: WTTC