The Covid-19 pandemic has been looming over us for more than 20 months since it started to spread from Wuhan, China, in December 2019. It was declared a pandemic by the World Health Organisation (WHO) on 11 March 2020, whereby it has caused massive damage to human lives and social norms. Researchers worldwide worked hard, day and night, to combat this virus. They shared their resources and created a vaccine to combat Covid-19 in under a year which generally takes 10-15 years to develop. However, WHO suggests that Covid-19 may become an ‘endemic’ whereby it means that we will have to live with it for the rest of our lives. Subsequently, Malaysia’s Health Minister, Mr Khairy Jamaluddin, announced that the country is expected to move from the Covid-19 pandemic status to an ‘endemic’ phase by the end of October 2021. He stated that we might have to ‘live with the virus’ as this would allow more sectors to be reopened with new Covid-19 norms being monitored and practised by the public.
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Source: World Bank: International tourism, receipts & inbound tourists (1995 – 2020), World Tourism Organisation: International Tourism Highlights 2020 Ed
The Rise and Fall of Global Tourism
Countless industries have been hit hard by Covid-19 pandemic, and one of the industries that were hit the ‘hardest’ was the tourism industry. The figure above depicts the world’s annual tourism receipts and arrivals. The global tourism market has grown enormously for the past ten consecutive years, with a CAGR of 5.87% in terms of international arrivals. Albeit with occasional shocks, yet still exhibiting its strength except for this unprecedented pandemic where the majority of the countries imposed strict travelling rules and restrictions to curb the spread. Plus, there are many other reasons, such as personal health and safety, whereby the public avoids travelling domestically, more so internationally. The World Travel & Tourism Council (WTTC) has reported that in 2020 the global tourism industry suffered a US$4.5 Trillion loss in GDP compared to its US$9.2 Trillion GDP in 2019. This amounts to a 5.1% drop in global GDP contribution compared to 2019, which was 10.6%. In terms of employment, it has resulted in 62 million jobs lost, leaving 272 million still employed globally. The industry is being supported by various government retention schemes and reduced hours, whereby many more could lose their jobs if the situation persists.
Covid-19 : A catalyst that accelerated the digitisation of tourism
As businesses worked hard to survive and stay afloat in this Covid-19 pandemic while adhering to new social norms, this has caused the acceleration of digitisation and digitalisation. According to data gathered in Oliver Wyman’s report (2020), 66% of people opted to use lesser physical cash transactions and prefer contactless solutions. Whereby 45% of them are ready to use biometric identification rather than a physical passport. The International Air Transport Association (IATA) that is supported by the Airport Council International (ACI), developed a One ID project that aims to pin a single biometric token for the traveller’s digital identity. This eliminates the need for travellers to go through checkpoints that many individuals can. Other private organisations like the Royal Caribbean Cruise have implemented biometric technology for its check-in and boarding process. The Emirates had applied thermal screening measures on all US-bound travellers for health and safety reasons. It is expected that many emerging technology-like contactless fingerprints identification, iris and facial recognition, gesture control and even touchless document signing for the identity verification process to be adopted in other premises that require identification and security control.
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Source: Visit Portugal: Can’t Skip Tomorrow; Tourism Switzerland: Dream Now -Travel Later
Technology Adoption in Tourism Industry
In the tourism industry, usage of digital technology ranges from contactless payment (QR-payment), mobile hotel app bookings and check-ins, e-menus for browsing and ordering, contact-tracing for health monitoring to name a few. Ministries of Tourism around the world have been promoting their countries and keeping international travellers engaged like Portugal’s “Can’t Skip Tomorrow”, Switzerland’s “Dream Now, Travel Later”, Ireland’s “I Shall Return” and many others. Museums throughout the world have offered free virtual tours to people globally that are stuck at home due to stay-in-home orders and recommended physical distancing norms. Museums like the Smithsonian National Museum of Natural History in the United States, Van Gogh Museum in Amsterdam and even the Louvre in France provided various kinds of virtual tours like the Louvre’s first-ever immersive VR experience of the Mona Lisa, the ‘Mona Lisa: Beyond the Glass’ at the comfort of one’s home. The Louvre has also adopted virtual solutions that require all visitors to book their time slot in advance with a European Health Pass issued to them. This rule includes those that could enter the premises for free.
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Source: Google Play Store: European Union: Re-Open EU
In several parts of the world, travel bubbles have been established between governments. They are being supported by technology and data-driven analytics to drive its economic and tourism sector. For countries in the European Union, citizens and residents of the union will have the EU Digital COVID Certificate issued and verified across its union members and some non-EU countries. The European Commission has built a gateway where all certificate signatures are verified across participating connected states. Individuals will have a commonly-agreed QR code containing essential information tagged upon them that is recognisable between participating states. This allows restrictions to be lifted on certificate holders and exempted from travel-related testing. Furthermore, a ‘Re-open EU’ Mobile Application and website have been created for tourists to plan their travels and get up-to-date information. This application is also available in 24 different languages.
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Source: Metro Wine & Cellar; Fèis Ìle Official Website: The Islay Festival
Virtual approach towards annual events
In the same part of France in the Bordeaux region, the ‘En Primeur’ event is held annually. ‘En Primeur” translates to Wine Futures, whereby wine merchants or wine writers worldwide would travel to Bordeaux to get their hands on samples on wine barrels that are still ageing in the barrel for 2 to 3 more years before its physical bottling and delivery. Merchants and buyers could get their hands on the vintage release at a lower price. With the Covid-19 pandemic, international travelling had become extremely hard. The wine producers in Bordeaux sent out barrel samples to those wine merchants and writers worldwide in its 2020 En Primeur event. As for its sister industry, the whisky industry in the Islay Region of Scotland, it conducts its annual Fèis Ile event. This annual event attracts whisky lovers from all over the world to the island of Islay. Islay whisky producers like Bunnahabhain, Lagavulin, Bowmore, Ardberg and other Islay distilleries would release Fèis Ile-exclusive bottling to the public. Due to the pandemic, the Fèis Ile event has been conducted virtually for the past two years. Whisky enthusiasts could obtain event-exclusive bottles through official channels while experiencing the event virtually in the comfort and safety of their own home.
Locally, in Malaysia, liquor distributors like Whisky Bull would conduct virtual whisky tasting with brand ambassadors worldwide. Before the virtual session, the establishment would send whisky drams via local logistic companies to whisky enthusiasts, often bi-weekly or at an event like World Whisky Day. The brand ambassadors would then explain the notes of those particular drams and its barrel as a solution to government restrictions as part of the non-essential industry to stay afloat in their businesses.
In conclusion, although the pandemic has shut the doors for many businesses, digital technology and solutions are readily available in the market. It is up to the people to take up the challenge and adapt, staying relevant and ahead of its competitors with digital solutions. So, is your business digitally well-equipped, remaining relevant in your respective sector with robust social media strategies and prepared to meet the new social norm? Contact us to understand how your company may benefit from digitising your business process.
