deVere Investor Insight - Q1 2021

Survival of the Industry Reinventing Tourism Many theatres will never open again and the amount of vacant shops where restaurants used to be are increasing. The addition of the cancellation of major sporting events like the Olympics, Formula one races, Tennis tournaments and Football matches have also kicked tourism in the gut. So much so, that it is going to take several years to recover globally. The biggest losers, however, have been the small businesses who do not have corporate or franchise support and funding. These include bespoke shops in tourist destinations, B&B’s, tour operators, restaurants, and taxi/ shuttle services. And, what little profits are made, have to go into COVID-19 prevention measures such as sanitising, masks, plastic screens, and special cleaning services. With all these factors sabotaging the industry, what have the businesses that have survived done to stay afloat? They have had to do some creative out of the box thinking to attract business. Tourism is probably the industry that has taken the largest knock during the pandemic. According to the United Nations World Tourism Organisation, 2019 generated 330 million jobs worldwide, along with 1.5 billion international tourist arrivals, and 10.3 % of global GDP. In fact, global tourism was booming year on year. Last year saw the biggest global recession that tourism has ever seen, causing hundreds of thousands of job losses and many companies shutting doors or filing for bankruptcy, not to mention the standstill of the airline industry. Lockdowns have paralysed global travel and hotels and resorts have seen empty rooms. Tourists either cannot travel or are scared to travel in fear of being infected. Tourism and tourist numbers have dropped on average by about 80% globally. Theatres and attractions have been closed for several months already, bringing the arts sector to its knees. Gone are the days of a night out on the west end for a popular show and dinner. Investor Insight // Q1 - 2021 7