Travel News

Credit crunch won't affect tourism, says UN

Wednesday, 22nd October 2008

Written by Francesca Cookney

Credit Crunch won't affect tourism, says UN The current economic crisis will not stop people travelling, said the UN earlier this week, but it might lead to a cut-back on spending in resorts.

Francesco Frangialli, secretary-general of the UN World Tourism Organisation (WTO), told delegates of the United Federation of Travel Agents' Associations that "tourism is resilient" and while concerns may not be entirely misplaced, he expressed confidence that the industry would weather the storm.

"We are not giving in to panic," he said. "The need to go on trips, to take holidays, is too strong in our post-industrial societies." What the tourist sector was more likely to see, he explained, was a decrease in incidental expenditure. This means people are opting to self-cater rather than eat out, forgoing day trips and cutting back on extras such as entertainment and transport options.

In terms of actual travelling, however, the effect is likely to be less than in cases such as the 2003 SARS outbreak when foreign travel, especially to Asia, dipped dramatically. That said, the rising cost of fuel means that many are choosing to holiday closer to home, rather than forking out for flights.

Travel agencies in the Philippines, one of South East Asia's most popular destinations, said that bookings were looking fine up until January 2009 but that they expected to see a serious downturn towards the spring.

"When a global economic crisis hits, the first thing that people cut are the luxury items and activities," said Jose Clemente, "and travelling is one of them".