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Berlin fair marks comeback of tourism post COVID-19, defying inflation

Friday, March 10, 2023

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The Berlin tourism industry fair gathering returned after a three-year hiatus enforced by the COVID-19 pandemic crisis, with 5,500 exhibitors from 161 countries descending on the German capital.

The Berlin tourism industry fair this week celebrated its comeback from the dark days of the coronavirus pandemic with strong demand that has so far defied high inflation figures.

The industry gathering returned after a three-year hiatus enforced by the pandemic crisis, with 5,500 exhibitors from 161 countries descending on the German capital.

Julia Simpson, the head of the World Travel and Tourism Council said during the fair that travel is back.

In 2022, the World Tourism Organisation (UNWTO) registered an increase in international arrivals of almost 900 million compared with the previous year.

In total, arrivals stood at 67 percent of their pre-pandemic level, with the figure reaching as high as 80 percent in Europe.

UNWTO Europe director Alessandra Priante said that they are already at a similar level to 2019 in some countries.

China’s abandonment at the end of last year of its zero-Covid policy, which strictly regulated travel in and out of the country, has been another boon.

Before the pandemic, Chinese travellers represented 15 percent of all tourists.

The atmosphere at the fair was celebratory with delegates from central Asia and Pacific islands parading through the aisles in traditional garb to promote their region.

The upturn in fortunes has continued despite painfully high inflation in many parts of the world.

Consumer prices in the eurozone rose at an 8.5-percent pace in February and look set to remain elevated. But the positive trend may not carry forward very far.

Consumer behaviour is already changing as a result of inflation.

In Germany, more and more holidaymakers are booking early in the year to benefit from discounts, the German tourism industry group DRV said in early March.

In the cruise industry, 55 percent of customers say they want to spend less money, or travel less far, according to Markus Stumpe, CEO of a website.

At the fair in Berlin, the startup Room Price Genius is demonstrating software which allows small hotels to estimate the ideal price for a room.

Not just consumers, but the sector itself is reeling from rising costs, especially for energy.

To limit the sector’s impact on the environment, people will also have to “pay more”, according to Soeren Hartmann, head of the German federal tourism organisation BTW.

Rising global temperatures are having a major impact on much-loved holiday destinations as winter snows fail to materialise and summer heat waves become more frequent.

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