- ECONOMIC IMPACT -

Latest update: 15 September

The UK economy shrank by 0.6% in Q2 2022, following the 0.8% growth in Q1 2022, according to the Office for National Statistics

The IMF has revised its economic growth forecast for China down to 3.3% in 2022, and to 4.6% in 2023

4.9%

Unemployment in OECD nations stood at 4.9% in July, declining from 6% in the same month of 2021

6%

The unemployment rate in the Euro area stood at 6% in July 2022, compared to 6.1% in the previous month, according to Eurostat.

IMPACT OF COVID-19 ON EMPLOYMENT OUTLOOK

- SECTOR IMPACT: TRAVEL AND TOURISM -

Latest update: 15 September

Travel and tourism summary

2022 is proving to be a pivotal year in the travel and tourism industry. Most major travel restrictions have been withdrawn, allowing international passengers to move freely. However, there is still some negative sentiment within the industry, with some travellers concerned about the spread of the virus.


While Covid-19 continues to threaten the travel industry, the concern is now switching to the economic issues brought on by the pandemic.


The increased cost of living is a very real issue impacting prices and disposable income on a global scale. As tourism is not an essential good or service, many potential travellers could decide against travelling altogether this year, impacting the speed of recovery.


In May 2022, non-essential outbound travel was once again restricted in China. Even though Covid-19-related restrictions on inbound travel have recently been relaxed to some extent, this major source market is holding back international tourism recovery as travel demand begins to creep back up to pre-pandemic levels across much of the globe.

Key Travel And Tourism  developments

Short-term


There is uncertainty over the length of travel restrictions and the indication is that measures will be in place even when travel opens back up.


Travel bubbles and travel corridors will branch open for more countries. Covid-19 testing and vaccination requirements are now part of the new normal.


Once leisure travel resumes, demand will return. It may be used by tour operators to entice people to book but a return to normal levels will take some time.


Long-term


Travel will return. Intermediaries are seen by many as a necessary aid when booking so demand will return.


Excursions are something travellers can forgo but experiences are a primary travel motivator so once travel picks up, so too should this stage of the chain.

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