ÖW Global Talk: Restart Tourism?

At the end of February, the Austrian National Tourist Office presented the current situation of tourism in Austria in its digital format "ÖW Global Talk" and presented research results on the travel outlook for summer 2021. We have summarized the most important topics.

"Many people can and want to afford a vacation in 2021."

Despite many uncertainties, the desire for vacations is there and the longing remains unbroken. This is shown by the results of a joint study with the NIT Institute for Tourism and Spa Research. More than half (54%) of Austrians' vacation plans include Austria as a vacation destination, while 13% of holidaymakers from the most important source market, Germany, would like to travel there. In particular, the months of August and - surprisingly - September 2021 are being considered by Germans for possible trips.

"Covid has set Austria's tourism back by around 50 years"

Petra Stolba (Managing Director, ÖW) looks at the development of arrivals and overnight stays: While global tourism has been set back around 30 years by the pandemic, Austria has been hit even harder. This crisis has hit tourism like nothing before.

The future forecasts are still mixed - many question marks determine the development: the course of the pandemic, the EU regulations on travel, the global progress of the vaccination. In the best-case scenario, the 2020 figures are expected to be maintained in 2021, but a further decline is more likely. A normalization is only foreseeable with the return of city tourism.

However, according to Petra Stolba, two aspects give rise to optimism:

1. Tourism has been one of the economic sectors with the greatest growth in recent decades.
2. Everyone wants to go on vacation.

Safety through information

For Carmen Breuss (Region Manager, DACH ÖW), it is clear that Austria will enter into massive competition with German domestic tourism in the summer. She sees the following as the most important aspects for vacation bookings:

Security/trust

• in the vacation destination: Austria must no longer be classified as a risk area from the outside - the incidence of infection must be reduced.
• through experience: Last summer showed that vacations in Austria are easily possible.
• through information: The experiences of last summer as well as current concepts and compliance with them must be communicated.
• through planning: Information about what a vacation in Austria can look like (instead of a beach vacation, for example) is particularly important for new guests.

Flexibility

• short-term bookings: As in summer 2020, short-term bookings will be possible.
• Cancellation conditions: Providers should provide transparent information on worst-case scenarios.

Usual ranking of destinations, but one special feature

Ulf Sonntag (Head of Market Research, NIT) agrees that the desire for vacations in both Austria and Germany is as high as it was before the pandemic. As soon as travel is possible under reasonable conditions, demand will pick up again immediately. And then as much information and transparency as possible will be required - because people prefer to travel the way they are used to. They want to know whether traveling is possible at all. The ranking of the most popular destinations has remained the same, although destinations that can be reached by car and where distance can be maintained have clearly moved up the list. People want to travel to places where they feel comfortable and are willing to put up with certain inconveniences as long as they remain calculable.

"More ready for a vacation than ever before"

Despite the many uncertainties and lack of predictability, Heidi Tscharf (Head of International Market Management, ÖW) assumes that many people will catch up on their vacations. On the one hand, this is assumed due to the current high savings rates. On the other hand, people have never been as ready for a vacation as they are at the moment.

When can we expect European guests?

As in the previous year, the domestic and local markets will play the biggest role, with Germany as the most important market for Austria - depending on the easing of restrictions, of course. Guests from Germany can be expected from the 2nd/3rd quarter of 2021. Heidi Tscharf gives a brief overview of the local markets:

• Switzerland - Travel is currently possible within the country. The procedure there is very controlled and disciplined. Apart from a few hotspots, the winter season has gone quite well. Visitors from Switzerland can be expected soon.
• Italy - Italians are currently only allowed to travel in their own regions (the measures currently apply until 06.04.21), ski areas are closed, relaxation is to be expected.
• Netherlands - The national borders remain closed for travel, there will soon be openings within the country.
• Belgium - With the aim of vaccinating 70% of the population by the summer, guests can be expected at the end of the 2nd/3rd quarter of 2021, especially in winter.
• Czech Republic - Due to the currently particularly high number of cases, immunization of the entire population can no longer be ruled out.
• Hungary - The state of emergency in the country currently applies until 23.05.21.

What about the distant markets?

Many neighboring countries are currently still in lockdown - the situation is similar in the long-distance markets. Despite a higher vaccination rate in Asia, guests from there are not expected before the 4th quarter of 2021, as Asian countries want to keep their borders closed for the time being to protect themselves. Only guests from the Arab region can be expected from the 2nd/3rd quarter of 2021. In the USA, the incidence figures are currently still at high critical levels, meaning that cross-border travel will not be possible there in the near future.

Overall, guests are expected to arrive in Austria from the 3rd quarter of 2021 in particular. Key factors for travel are the duration and type of journey as well as the vaccination strategies and speeds of the individual countries, entry and quarantine regulations and ultimately the coronavirus measures in Austria.

Culinary delights are gaining in importance

Erich Neuhold (Managing Director, Styria Tourism) highlights the most important motives for people when traveling: Culinary delights are becoming more relevant, as well as freedom, moving around in nature, being with the family outside their own four walls. He also emphasizes clear communication of the measures to guests, as they (especially German guests) want to have a clear picture of what to expect at their vacation destination and that the communicated regulations will be adhered to. Stakeholders must cooperate to achieve this. The crisis in particular has shown that challenges are best overcome together.

And what will travel look like then?

The entry requirements for facilities are currently being discussed, and it will probably be necessary to present a negative test - the trend is towards mandatory testing, according to Petra Stolba. However, guests will not be deterred by mandatory testing because their desire for the experience outweighs this. The advantage for Austria: thanks to the intensive testing regime, testing has already reached a certain level of normality here. "Tests and masks will continue in the fall and winter."

The ÖW offensives for 2021

Florian Größwang (Head of Partner Management, ÖW) finally points out the potential of the crisis: 36% of Austrians and 28% of Germans who plan to travel to Austria would actually have had other travel destinations if it weren't for coronavirus. This opportunity should be used in addition to regular customer loyalty. As last year, free information content will be made available to the industry on the website at the end of March 2021.

The campaigns and offensives of Österrreich Werbung are in preparation and some are already in the starting blocks. In addition to the summer campaign in 8 local markets, there will also be a "Cycling" campaign in Germany, the Netherlands and the Czech Republic. City tourism is also being prepared for international markets. A MICE offensive is also planned for Austria as a conference destination.

All information on the ÖW Global Talk on 25.02.2021 can be found here.