Travel Industry Experiences Over 80% Reduction in Revenue, According to Reports from Associations
The German tourism industry is facing a challenging period due to far-reaching travel restrictions that are expected to last well into next year, according to Norbert Fiebig, president of the German Travel Association (DRV).
The crisis brought about by the coronavirus has resulted in the closure of approximately 11,000 travel agencies, 2,300 tour operators, and many thousands of tourism service providers. This has left the industry burdened with billions in losses.
The financial situation of the industry is extremely tense, with insolvencies as a result, as stated by Fiebig. The travel companies are referred to as "merchants without goods" due to the current travel restrictions.
The German tourism industry employs 2.9 million people, and the industry is experiencing more than 80% revenue losses in 2020, amounting to around 28 billion euros.
In an effort to mitigate these financial losses, the German federal government has taken measures such as providing additional funding to the German National Tourism Board (around 700,000 euros) to promote Germany internationally as a travel destination. Furthermore, they have allocated further funds to support institutional partnerships abroad until 2026.
However, the travel warnings and restrictions have brought the tourism market to a virtual standstill, with a few exceptions. Nearly all 193 countries worldwide currently have official restrictions that make travel difficult.
Fiebig has called on the federal government to contribute to securing the structures of the tourism industry, emphasising that the travel companies will continue to be affected by the far-reaching restrictions on travel well into next year.
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