- ECONOMIC IMPACT -

Latest update: 16 November

GlobalData forecasts that the world economy will grow at a slower pace of 3.1% in 2022 following a 5.9% growth in 2021. Global inflation is projected to rise to 8.4% in 2022 from 3.5% in the previous year due to supply chain disruption.

Real GDP growth for Asia-Pacific has been revised down by 1.4 percentage points (pp), East Europe by 3.6pp, West Europe by 1pp and North America by 2.1pp in October 2022 compared to February 2022 projections.

- SECTOR IMPACT: TRAVEL AND TOURISM -

Latest update: 16 November

Key Travel And Tourism  developments

Revenue impact


Sector analysis from UK-based hotel booking platform hoo states that the Ukraine crisis could cost $10.6bn in lost tourism revenue across Ukraine, Russia, Belarus, and Moldova, with further impacts likely to be felt across neighbouring countries. The loss of Russian and Ukrainian tourists will
prolong the Covid-19 recovery timelines of specific destinations.


According to GlobalData, in 2021, combined outbound tourist expenditure from Russia and Ukraine accounted for 3.5% of total global outbound tourist expenditure. With the conflict and sanctions impacting both economies, a significantly reduced number of travellers from both countries will be taking
trips internationally in 2022, which will contribute to an uneven tourism recovery from the pandemic.

SANCTIONS

Egypt is now looking to capitalise on a lack of outbound options for Russian travellers, created by sanctions. Conversations between Egypt and Russia to apply the Russian payment system MIR in Egyptian resorts have occurred. In previous years, tourists from Russia and Ukraine have accounted for up to 40% of beach holidaymakers in Egypt, according to the Ministry of Tourism and the Egyptian Chamber of Tourist Establishments.


However, inbound flows from these two countries have been heavily impacted by the conflict, which has had a knock-on impact on Egypt’s tourism industry. According to Russian tour agency Travelata, Egypt was in the top five tourist destinations for Russian tourists for the Summer of 2022. Egypt is now looking to capitalise on this pent-up demand by enhancing accessibility for Russian travellers.


Luxury cruise company, Tradewind Voyages, which operates the Golden Horizon, has paused operations due to sanctions against Russia. The company has been impacted by sanctions placed on its major lender VTB bank, Germany, which has its headquarters based in Russia. This shows that travel and tourism companies may still be heavily impacted by sanctions indirectly, even when they have no physical presence in Russia and Ukraine.

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Go to article: Home | Expanding The NetworkGo to article: In this issueGo to article: ContentsGo to article: CR Ocean EngineeringGo to article: BriefingGo to article: Industry newsGo to article: Shipping industry briefingGo to article: Ukraine crisis executive briefing by GlobalDataGo to article: MartechnicGo to article: CommentGo to article: What’s in store for the shipping industry in 2023?Go to article: Applying human and artificial intelligence to maritime mattersGo to article: Accurate data can ensure optimum outcomes for shipowners and chartererGo to article: Multi-stop tourism could spur growth for Caribbean destinationsGo to article: C.C. Jensen WindowsGo to article: In DepthGo to article: UN pushes ahead with Ukraine grain inspections as Russia backs outGo to article: Could the Panama Canal ease the US warehousing logistics crisis?Go to article: Royal Yacht funding redirected to MROSS projectGo to article: China continues to move into global portsGo to article: Sea safety and the Stad Ship Tunnel projectGo to article: Southerly DesignsGo to article: Future CruiseGo to article: The cruise industry briefingGo to article: MSC World Europa brings myriad firstsGo to article: Explora Journeys looking for “discerning travellers”Go to article: In DataGo to article: Asia-Pacific is seeing a hiring jump in digital media rolesGo to article: Industrial automation hiring levels rose in August 2022Go to article: Filings buzz: 32% increase in big data mentions in Q2 of 2022Go to article: Industrial automation innovation has dropped off in the last three monthsGo to article: EventsGo to article: Next issue