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Australians’ travel plans yet to rise after vaccinations

Australians’ travel plans yet to rise after vaccinations
August 25, 2021

While the travel and tourism industry worldwide has suffered extreme financial losses due to the COVID-19 pandemic, travel agencies have found that their expectation of rising business in the current financial year have not been realised.

According to the World Travel and Tourism Council, the pandemic caused US$4.5 trillion worth financial losses to the tourism industry in 2020. Unfortunately, international travel seems to be stagnant, if not worsening, in the current financial year.

With vaccinations, travel agencies had been expecting that business would pick up steam in 2021. However, the reality is not keeping in line with the previous predictions as Australians’ travel plans are not being executed as expected even after vaccination.

With the industry still awaiting travellers to hit the road, it becomes crucial to understand the causes of the stagnancy. 

Why have travel plans not picked up steam after vaccination?

• Unsystematic distribution of vaccines - Countries worldwide differ based on their economic stability, growth, and human resources. First world countries like the USA are capable of producing mass vaccines, but countries like South Africa are economically weak, thus, efficient vaccination is a big milestone for them. In such scenarios, worldwide vaccination stands at a place where one demographic is well vaccinated, while the other one is still struggling with the noose of the pandemic.

• New variants are the real danger - New variants like the Delta variant emerging in various demographics like India is a serious hurdle in the battle against COVID-19. For instance, Australia was successful in combating the first wave of the virus and commenced the travel bubble with New Zealand. However, new emerging cases of Delta variant in Sydney led to suspension of the bubble. Thus, in scenarios of new variants, it gets highly risky to make international travel plans.

• Effectiveness of the vaccine - There is no proof that the COVID-19 jab provides 100% protection against the virus. The vaccine reduces the risk of transmission, but it does not eliminate it. Thus, until the pandemic isn’t over worldwide, the hope of tourism revival will be a mirage.

• Unprecedented times - These times are unprecedented. No doctor, or a researcher can predict the next course of circumstances. The world currently is witnessing one of the most impactful pandemics in human history; thus, planning seems to have no real-life implications. In times like such, people find it challenging to make travel plans, especially international travel plans.

• Psychological impact - In 2019, no one had predicted that the world was going to slip into the most difficult times. Thousands of people have died, many lost their parents. In such times, the utmost important thing for people is safety against the virus. To remain safe, people are preferring to stay homebound. Even when many countries have permitted leisure travel, people are prioritising staying indoors until the pandemic is over.

• Responsibility over leisure - The pandemic has taught people that every citizen needs to be responsible to help the society win over the virus. Being at home, not going to hotspot regions and following COVID-19 protocols makes a person both responsible and safe. Thus, people are discouraged to travel even after they have been vaccinated.

All in all, the industry will see the pathway of revival only when equal mass vaccination happens worldwide, and people follow COVID-19 protocols diligently. Vaccination is happening, but governments and researchers need to look at to what extent it is effective.

About the author

Kunal Sawhney

Chief Executive, Kalkine Group

An entrepreneur with revolutionary ideas, Kunal Sawhney is a financial professional with wealth of knowledge in equities who aims to transform the delivery of equity research through tech-driven digital platforms

With his knowledge, skillset, and overarching vision, Sawhney established Kalkine (a business that is based on Digitally Powered Architecture and Extensive Data Science led Premium Research) that has become one of the fastest growing equity market research firms across Australia in 2014; and subsequently, in other emerging and developed markets.

Sawhney’s entrepreneurial and commercial skills backed by the passion to establish a tech-empowered research platform, helped in building Kalkine’s global presence across diverse geographies - Australia, New Zealand, Canada, and the United Kingdom. Further, the plans for the US launch in 2021, have set the premise for attaining an all-encompassing client reach for Kalkine’s Subscription and Media Operations.

With a Master of Business Administration degree from University of Technology, Sydney; Sawhney’s business acumen has enabled his brainchild, Kalkine, help clients navigate through equity related matters in a proficient and seamless manner.

Sawhney is featured regularly on CNBC, Sky Business, Biz News, Daily Mail, Yahoo Finance, KCBS Radio (Audacy), Bloomberg, Sydney Morning Herald, Global Banking and Financial Review and many more.

Click here to visit the Kalkine website.

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