Africa-Press – Mauritius. Ensuring bounce back and long term resilience after induced coma OUR tourism supply chain has been shaken to its core. The direct, indirect, induced and catalytic impacts of tourism is such that the effects will reverberate both downstream and upstream along the value chain for a long time.
Many years worth of industry growth has already been lost. While some businesses will come back, there will be some permanent scars and structural damage to the industry.
The sector is currently still in an induced coma phase with collapsed revenue and under life support with a combination of financial assistance from Government, significant cost containments, deferment of loan payments and rising indebtedness to help businesses withstand the crisis.
This is clearly an unsustainable predicament both for government and the operators. Policy makers and stakeholders must start focusing on what it will take in terms of an action plan to enable a recovery for financial reasons and a blueprint to rethink the future of tourism in a new post-Covid-19 environment.
With declining consumer demand, the recovery will be complicated, unstable, weak and lengthy. Demand is unlikely to recover anytime soon. As a tourism-dependent country, we face a formidable challenge, as people are in very uncertain times and businesses in survival mode.
Because the travel and tourism sector is the worst hit by the sudden, deep and prolonged downturn, there is an economic and financial imperative to lift restrictions so as to potentially go back to how it was before as fast as possible, even if the industry was not without its structural problems before Covid-19.
It is argued that we have to learn to live with the virus. Understandably, this is the preferred choice of airlines and hoteliers which hope that travel will normalise quickly and will make a major comeback once a trusted vaccine or a safe and an effective therapy is widely available;
At the same time there is a compelling case to embrace projects, policies and strategies to prepare for the new normal as the industry will be fundamentally and structurally different in the medium to long term.
The mindset, inclinations, behaviours and attitude of both tourists and business travellers are changing. The Covid-19 health crisis will affect consumer willingness to travel and destination preferences. This will impinge significantly on both the supply of and demand for travel and tourism.
Also, airlines, airports, hotels and cruise lines will all have to adhere to new guidelines about social distancing, mask- wearing, enhanced sanitization, temperature checks, food service and other health protocols. In short, after the current suspended animation of the tourism industry, the country has to work on both a recovery and a resilience action plan.
We should envision a balanced and a co-ordinated policy roadmap to rekindle the industry and also consider the longer term implications of the crisis and propose an innovative strategy to shape the tourism of tomorrow.
Lack of policy content and substance for recovery and transformation The priority for the sector is to resume operations as early as it is safe to do so, but re-opening will just be the start of a challenging recovery. All countries are in this pandemic for the long haul and it has already changed the face of life as we know it.
However it also provides a chance for a much-needed introspection and a unique opportunity for government, private operators and other stakeholders to re-imagine, reinvent and reset what tourism should mean for the country.
There is a constructive case to rethink the tourism of the future so as to build back better, be stronger and more sustainable and resilient as Covid-19 reshapes the landscape significantly.
Unlike some countries, Mauritius currently suffers from a double policy deficit. First, we have not yet crafted a viable strategy with clear measures for the safe and orderly restart of tourism. There is neither policy content, nor substance.
There is complete uncertainty on when and how borders will open, what health protocols will be in place, what is the fate of the national carrier, what promotion and marketing strategy will be pursued and which destinations will flights originate from ?
Second, we have not even started preliminary discussion to fully understand the factors that will drive the future of the industry and grasp how the evolving structure and character of the hospitality and business travel will change as a result of Covid-19.
So as to facilitate informed decision making among both the public and private sectors as they navigate the effects of the pandemic in the short and medium term and come out stronger from the process.
Experts believe that the pandemic has changed travel and that there will be a new normal. However, finding out which changes are permanent is more difficult as we simply do not know how to predict the new and uncertain future of travel and tourism.
There are not only many unknowns and but also some unknowables on the trends that will underpin the industry and their implications for the sector. Searching answers for some 25 questions with blue-sky thinking.
There are some probing questions that must be answered in order to craft a recovery and resilience tourism strategy. Some of them are as follows: 1. How long will it take to reignite the engine of the tourism industry?
2. What will be the pace and shape of the recovery? 3. How will the new health and sanitation protocols impact the sector? 4.
Will the health crisis permanently change the mindset, behaviours, attitude and inclinations of people and the way they travel for leisure? 5. How will consumer willingness to travel and destination preferences be affected?
6. Will business travel suffer as executives resort to video conferencing to replace in person meetings? 7.
Will cruises decline as tourists opt for lower risks, less crowded spaces and more health safety? 8. Will MICE be severely impacted as virtual events take hold?
9. Will there be a shift away from long-haul destinations to domestic and regional vacations?
10.Will people develop a preference for villas and private accommodations against traditional hotel rooms to avoid crowded space and pay more attention to privacy, health and safety?
11. Will demand for longer stay tourists rise with retirees and entrepreneurs seeking safer and more secure destinations? 12.
Will outdoor activities become more important in the short to medium term? 13. Will there be an acceleration of health and wellness in the tourism space?
14.How will technology and digital applications affect the travel and tourism industry both from the supply and the demand standpoint? Including marketing, distribution and promotion.
15. What will be the future of the travel agency business after Covid-19? 16. Will travel become unaffordable for many as cost rises and disposable income shrinks? 17.
Should Mauritius go for a truly low volume, high value strategy? With fewer but quality, value- added and long-stay tourists? 18. How will the near demise of MK affect the recovery and resilience of the industry?
19. Will there be a reliable and viable national airline to support tourism as MK used to carry a very high share of tourists? 20.
Will the tourism industry be smaller in terms of employment and revenue? 21. Will there be medium term consolidation in the industry as vulnerable players go under?
22. Will the sector be vertically integrated with larger firms offering multiple services along the supply chain? 23. Should policies reflect more on the impact human activity has on climate change, including how people travel and enjoy holidays? 24.
What type of coordination, collaboration and cooperation is required between the public and the private sectors to prepare recovery plans, rebuild the destination and chart out a new pathway for the entire tourism ecosystem?
25.And last but not least, is this a wake-up call to comprehensively rethink the tourism industry? By articulating a new vision that redefines success in a more balanced way that goes beyond traditional growth metrics? So as to protect biodiversity, enhance quality of life, create quality and inclusive employment, foster a thriving local supply chain and an equitable distribution of benefits.
Frankly, responding to these questions will not be a walk in the park. However, we simply cannot avoid the exercise. It should be done thoughtfully, carefully and intelligently in an informed, disinterested and holistic manner.
The strategy must be flexible and adaptable to meet changing circumstances. The country needs a frank discussion on what we should and should not do in terms of financial viability, environmental sustainability, resilience and inclusion.
The thought process is complicated as there are no rules or playbook to deal with this seismic change and we simply cannot limit our analysis by the legacy of the past.
Both the game and the rules of engagement have materially changed and it would be foolhardy to bury our heads in the sand and hope that the new normal will be akin to the old one. We need some blue-sky thinking.
While it may be too early to provide definitive answers, we should start wearing our thinking cap so as to be ahead of the curve to either avoid policy mistakes and/or to leverage opportunities that will arise in the new environment. By focusing on reigniting demand, revitalising supply and shoring up our resilience.
For More News And Analysis About Mauritius Follow Africa-Press
