- ECONOMIC IMPACT -

Latest update: 19 January

According to China’s General Administration of Customs, the country’s trade surplus rose to $676bn in 2021, the highest since records began.

Goldman Sachs estimates that the Chinese economy will grow by 4.3% in 2022, which is a downward revision from its previous estimate of 4.8%.

0.9%

According to the ONS, the UK’s economy grew by 0.9% in November 2021, surpassing its pre-pandemic level GDP.

8.3%

According to the World Bank, real GDP growth rate of the Indian economy is forecast at 8.3% in FY22 and 8.7% in FY23.

IMPACT OF COVID-19 ON EMPLOYMENT OUTLOOK

- SECTOR IMPACT: TRAVEL AND TOURISM -

Latest update: 7 January

IMPACT ON AIRLINES

Airline traffic continues to be volatile, and any surge in a country’s cases is negatively impacting carriers, with traveler uncertainty
continuing to remain moderately high. International travel demand could now face a period of decline due to the Omicron variant.


Ed Bastian, Delta chief executive, recently stated that Omicron had hit bookings for January 2022, mainly for international travel.

IMPACT ON INTERMEDIARIES

Intermediaries have been under significant pressure during the pandemic. Many online travel agencies have been on the end of legal cases involving untimely repayments. In some cases, relationships with suppliers such as low-cost carriers have broken down where conditions around flexibility and refunds have not been clear.


Google is also being accused of delaying the recovery of intermediaries. Online intermediaries blame Google for promoting either those that pay the most in auctions for advertisements or its own travel products, creating unfair competition in the process.

Travel enters a new era

Low tourist demand means many cars rental companies have been forced to sell their fleets in order to stay afloat during the Covid-19 pandemic.


Markets in which airport pickup is the largest channel, such as the US, have particularly suffered, but the effect has been felt all over the world.


But as demand picks up, with more people traveling and supply still down, major price hikes are likely to be in store for anyone who wants to rent a car.

Key Travel And Tourism  developments

After a summer that created hope for many global destinations due to vaccine rollouts and improved traveler confidence, the outlook now looks significantly bleaker, with the global outbreak of the Omicron variant.


As infection rates surge across European countries, a sustained rebound from the pandemic looks less likely as many destinations reimplement restrictions upon international travel, and the Netherlands goes back into a national lockdown.


Domestic tourism remains an area of intense focus and has led to significant price surges in some markets. However, travel intermediaries are engaging in aggressive marketing towards international travel with some advertising for as late as 2023 to increase revenue.


However, even though some borders are re-opening, the pandemic's uncertainty means that many will opt for a staycation in 2022.

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