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Crisis Committee of the World Tourism Organization Reports on
Response Around the Globe to Restore Travel Confidence

Tourism Industry Takes Action To End Crisis - The committee included
tourism ministers from 21 of the countries most affected by crisis

London, 21 November, 2001 - The tourism industry is responding to the crisis that followed the September 11th attacks with dozens of measures taken around the globe designed to strengthen tourism companies and restore public confidence in travel. 

Recovery strategies and an assessment of the current situation in tourism were presented on Sunday in a meeting of the newly created Crisis Committee of the World Tourism Organization (WTO), held on the eve of the World Travel Market trade fair in London. The committee included tourism ministers from 21 of the countries most affected by crisis, 15 leaders of private sector tourism companies or associations, and representatives of the European Commission. 

�The crisis is a global one, but it must be managed on a local basis,� said Egyptian Tourism Minister Mamdouh El Beltagui, who chairs the committee. �Some destinations are more effected than others and some types of tourism are more affected than others, so specific actions need to be tailored to fit the different situations.� 

WTO reported that travel reservations worldwide currently stand 12-15% below the levels of last year this time, as a result of the terrorist attacks, the war in Afghanistan and a global economy that was weakening even before September 11th. 

The hardest hit destinations are ones dependent on long-haul air travel, places that are heavily reliant on tourists from the United States and countries in the Muslim world, according to the new WTO study Tourism after 11 September 2001: Analysis, remedial actions and prospects. 

Participants agreed that the tourism sector has never before experienced a crisis of this magnitude. The immensity of the attacks, the fact that the United States was the target and the uncertainty inherent in terrorism have all combined to put the plans of thousands of travelers on hold. 

Before the September 11th attacks, world tourism was on track for an increase of 3-4% in 2001. Now WTO estimates that year-end results will show growth of just 1% in tourist arrivals. 

�We expect the industry to begin to comeback as the global economy improves in the second half of 2002,� WTO Secretary-General Francesco Frangialli told the committee. �People need to travel for business and people nowadays consider holidays to be more of a necessity than a luxury, so the tourism industry proves time after time to be very resilient one.� 

Meanwhile, the crisis is proving to be a catalyst for the industry. Countries around the world have taken fiscal measures to strengthen tourism companies, they are working in closer cooperation with foreign tour operators, and they have initiated new marketing campaigns. 
Tourism leaders are also taking advantage of the attention given to the crisis to emphasize how important the industry is to their national economies.
 

Mexico, which depends on the US for 85% of its tourist arrivals, has put together an aggressive package of ten measures to stimulate the industry. Tourism Secretary Leticia Navarro said that sales taxes on conventions have been eliminated and the promotion budget has been increased by 50% through a new public-private consortium. Mexico is also beginning a domestic awareness campaign next week to demonstrate the relevance of tourism.
Argentina is cutting taxes on tourism businesses and re-focusing its promotional Campaigns towards domestic tourism, according to Culture, Tourism, and Sport Minister Hernán Lombardi.  
Caribbean Tourism Organization (CTO) Secretary-General Jean Holder reported that member nations have come up with an emergency joint marketing, promotion and public relations campaign that is set to begin before the end of the year.
In Egypt, US$30 mil has been earmarked to subsidize charter flights into the country and ensure that tour operators do not reduce seat capacity. An intensive communication effort has also been launched to keep consumers informed about what is happening.
In the United States, a US$20 mil TV advertising campaign starring President George W. Bush is set to begin next week. The Travel Industry Association of America (TIA) has already brought together 3,000 tourism industry executives from 26 sub-sectors of the US industry to formulate a legislative package that includes low-interest loans for businesses, tax credits for personal travel, and the formation of a government Tourism Policy Council.

Despite the flurry of activities, participants agreed that fear of travel among consumers is dissipating rapidly. 

�In the immediate aftermath of the attacks, safety and security was a big concern,� said TIA President and CEO Bill Norman, �But now we find that economic considerations are the major concern of US travellers.� 

�Tourism was not a target of the September 11th attacks, it is just as safe as before,� said Birger Bäckman, Secretary-General of the Universal Federation of Travel Agents� Associations, adding that human contact with travel agents can help travellers overcome lingering fears of flying. 

In the conclusions, participants agreed to rename their group the Travel and Tourism Recovery Committee, in acknowledgement of all that is being done throughout the world to rekindle the industry. They agreed to continue to monitor the situation closely and meet again in March at the ITB tourism fair in Berlin. 

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Contact:
World Tourism Organization (WTO)
Deborah Luhrman /Alla Peressolova
 WTO Press and Communications 
 Email: [email protected]
http://www.world-tourism.org/

Also See Tourism Knocked Down, But Not Out / Sept 2001 


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