International financial institutions, international donors and country development partners have been urged to act to support Africa’s travel and tourism industry. This appeal has been made jointly by the United Nations World Tourism Organisation (UNWTO), the World Travel and Tourism Council (WTTC), the International Air Transport Association (Iata), the African Airlines Association and the Airlines Association of Southern Africa.

The travel and tourism sector in Africa employs about 24.6-million people. It contributes $169-billion to the continent’s economy, amounting to 7.1% of Africa’s gross domestic product. The vast majority (typically 80%) of tourism enterprises in Africa are small or medium-sized companies. Many have already had to lay off staff or place them on unpaid leave, to try and preserve cash. Should the sector collapse, the socioeconomic consequences would be severe.

Some African countries are attempting to support their travel and tourism sectors, but many other countries simply lack the resources to do this. The situation is becoming critical.

“The impact of Covid-19 pandemic is being felt across the whole tourism value chain,” highlights UNWTO secretary-general Zurab Pololikashvili. “The sector and the millions of livelihoods it supports across the world, including vulnerable communities, are particularly exposed. International financial support is key to ensuring that tourism can lead to wider economic and social recovery in these communities.”

The five organisations are calling for $10-billion in relief for the African travel and tourism sector and the provision of as much grant financing and cash flow assistance as possible. They are also calling for the postponement of existing financial obligations or loan payments plus other financial measures to minimise credit and liquidity disruptions to the businesses. They are further urging that all such support funds are directly transmitted to the businesses that need them, without obstruction from normal lending processes (for example, creditworthiness) and with the need for only minimum application processes.

“The travel and tourism sector is in a fight for survival, with over 100-million job losses globally and nearly eight-million in Africa alone due to the Covid-19 crisis,” stresses WTTC president and CEO Gloria Guevara. “Travel and tourism is the backbone of many economies across Africa and its collapse will lead to hundreds of millions of livelihoods being impacted and enormous financial pressure for years to come. … The speed and strength with which the international community comes together and responds through international financial institutions, country development partners and international donors will be paramount to provide support to the many millions of people whose livelihoods are heavily dependent on our sector.”

“Airlines are at the core of the travel and tourism value chain that has created quality jobs for 24.6-million people in Africa. Their livelihoods are at risk,” emphasised Iata director-general and CEO Alexandre de Juniac. “Containing the pandemic is the top priority. But without a lifeline of funding to keep the travel and tourism sector alive, the economic devastation of Covid-19 could take Africa’s development back a decade or more. Financial relief today is a critical investment in Africa’s post-pandemic future for millions of Africans.”