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REPORT – WTM 2010: The travel and tourism industry fears it will take at least a further five years to recover from the global financial downturn, reveals exclusive research from leading travel exhibition World Travel Market.
The impact of the global financial downturn on demand, price and profitability in the industry over the next five years is the industry’s biggest fear with more than half (56.6%) highlighting it as the industry’s biggest issue, according to the poll of 1,200 senior industry executives.
Demand factors are the primary concern for 31.3%, with 25.3% specifying the downturn’s negative influence on price, profits and margins, reveals the poll released at World Travel Market today (Monday November 8).
A more general question showed concerns about the slowdown are more widespread. More than half (51.5%) had demand issues related to the slowdown, with a similar number (48.8%) fearing the impact on price, margins and profits. Multiple responses to the general question were possible and showed that indirect consequences of the slowdown are also a concern. More than 40% expressed concern about exchange rates with 25.7% worried about oil prices, although only 12% and 4% respectively identified these as the biggest single issue.
The downturn’s impact on the travel and tourism industry over the past twelve months was identified as a negative influence by more than three-quarters of the sample – 78.4%, saying it had hampered demand, with 76.9% feeling the effect on prices profits and margins. More than half (56.8%) said that exchange rates had also been a concern over the same period.
World Travel Market Chairman Fiona Jeffery said: “The global financial slowdown has had a dramatic impact so far, and remains the largest and most consistent worry for the global industry over the next five years.
“It is clear that the concern runs deep, with many worried about what will happen to the demand, with a similar number concerned about what happens to their bottom line.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
