Muscat: The Arab travel and tourism industry, which represents an average of 14.2 percent of the GDP of Arab countries, has about $25 billion in tourism receipts, $8 billion dollars in revenue loss for Arab airlines, and $12.96 billion in tourism investments lost from the beginning of the year until late March 2020.
As per the available indicators from the booking sites of various airlines, scheduled international flights from Oman are unlikely to resume partially or fully before June 1.
"The Covid-19 crisis is threatening the loss of about one million permanent jobs and hundreds of thousands of seasonal jobs in the Arab world that depend for their livelihood on the travel and tourism sector," said the Arab Civil Aviation Organization (ACAO) in a report.
It may be noted that millions of reservations done with airlines and at hotels have been canceled in various countries, the flood of tourists to the world´s leading Arab touristic destinations has stopped, thousands of flights of Arab airlines have been canceled, and 800 aircraft belonging to those airlines have been parked at airports.
To help the jumpstart the economic contribution of the travel and tourism sector when this crisis is over, Arab Tourism Organization, ACAO and the Arab Air Carriers´ Organization have established a regional strategic team to develop a series of measures and action plans that would support the return of this sector to play its natural role in sustainable development.
Some steps suggested by the three organizations are
To provide tax exemptions to the relevant sectors for a period of at least two years.
To approve rescue plans and fiscal stimulus for the relevant establishments to ensure the continuity of their workforce in order to provide a social safety net, in addition to providing for them a quick return to work as soon as this cloud passes.
To request lenders and service providers to provide a grace period for the institutions concerned before resuming payments of their dues.
Airport operators and air navigation services providers to exempt airlines from paying aircraft parking fees and also canceling or reducing other airport and airspace user charges for a sufficient period of time to enhance the touristic appeal to Arab destinations.
Governments to compensate for the new additional costs that relevant establishments are bearing and that relates to the containment of the virus and sterilization procedures.
Governments to cancel or simplify visas as much as possible, as well as reducing or eliminating visa costs.
Governments to reduce "unnecessary barriers" at ports and airports.
Governments to reducing taxes on travelers such as air travel and hotel accommodation taxes.
Governments to increase budgets for promoting touristic destinations.
The three organizations also called on governments to give the travel and tourism sector all the privileges that the industrial sector gets, as it is an engine for all other industries directly or indirectly, in addition to providing grants and financial facilities for small and medium-sized companies.
Oman Observer is now on the WhatsApp channel. Click here
