Washington D.C. to Spend $20 Million to Close Global Tourism Recovery Gap

Global companies are investing in tourism projects again after taking a break during the pandemic, but they have a long way to catch up to their 2019 level, according to a report by UN World Tourism Organization and fDi Intelligence.

With the pandemic now over, what’s the future of tourism? What does the decline of full-time office employees mean for tourism and business travel? Why hasn’t U.S. solved its visa delay mess? We’ll discuss these topics with the executives of NYC Tourism+Conventions, U.S. Travel Association, Visit Britain, Intrepid Travel and others on-stage at the Skift Global Forum in New York on September 26-28. 

In just the past few days, there have been two key moves that ease restrictions for travel from China to the U.S. Tourism officials have been clear that the lifting of these restrictions is critical to a full recovery –though key hurdles remain. On Thursday, China lifted pandemic-era group tour restrictions for the U.S. and other key markets. Before the lift, Chinese travel agencies were banned from selling outbound group or package travel to the U.S.

The travel spending gap between outbound American travelers and inbound international travelers amounted to $802 million in September, the third month this year with a deficit for the U.S., according to the National Travel and Tourism Office. In May and June, the U.S. also experienced a spending a gap of $800 million.

The absence of Chinese tourists as countries around the world opened their borders again remains the most impactful development this year. China’s commitment to zero Covid cases dashed the normalcy return hopes of the global tourism industry.

Royal Caribbean Group heads into 2023 with booking demand stronger than it was in 2019, a fully operational fleet, and a passenger market ready to splurge on onboard experiences. 

Ethiopia’s tourism sector has been hit hard in the last two years by Covid and a brutal civil war, with spending down by more than $2 billion. The tourist sites and infrastructure have been spared, but the sector doesn’t have the confidence of governments, travelers and tour group operators that the conflict is over and the country is a safe destination.

Rural and outdoor destinations are contending with slower growth rates compared to their pandemic boom as big cities become competitive again and Americans travel internationally. 

The number of international visitors to the U.S. reached 4.6 million in November, up 61 percent year over year, according to the National Travel and Tourism Office. November’s volume represented 76 percent of pre-pandemic November 2019’s.

The U.S. will receive 62.8 million international visitors in 2023, according to the National Travel and Tourism Office. That’s a 21.2 percent rise from 51.8 million in 2022, but it’s still below its 2019 level of 79.4 million.

While Chinese travel demand accelerates to pre-pandemic levels, the global tourism industry is still not fully ready to service it, according to some panelists this week at an ITB Berlin session titled “Outlook of Chinese Tourism Market 2023.” 

Destinations and attractions are investing in virtual and augmented reality technologies to drive interest and foot traffic to historical attractions. During the ITB Berlin conference last week, some attractions, tech providers and destinations discussed how such technologies will heighten the visitor experience.