Travel
Back-up plans and good governance make tourism more resilient
The opinions expressed in this article are those of the author and do not represent in any way the editorial position of Euronews.
As we celebrate UN Global Tourism Resilience Day, let us commit to building an industry that thrives in the face of adversity, safeguarding the livelihoods of millions, and ensuring the sustainability of this vital sector for generations to come, Dr Maryam Ali Ficociello writes.
Nearly four years after the devastating effects of COVID-19, the tourism industry is out of intensive care and approaching a full recovery. Welcome to the era of resilience.
Passenger demand for international air travel has rebounded and is now just 5% shy of what it was in 2019, the year before the pandemic. Hotel occupancy rates have risen to 60% after tumbling to 22% in 2020, according to UN Tourism.
This month, we observed the UN Global Tourism Resilience Day, a valuable reminder that resilience is vital not only for successful tourism, but for our overall economic well-being.
Tourism accounted for one in every 10 jobs before COVID-19, and many of the world’s poorest countries depend on it for jobs and revenue. The UN designated 17 February to highlight the importance of resilience in this valuable industry.
Resilience grows from good governance and effective risk mitigation, though it can be hard to define.
For example, resilience for a developer of tourism destinations can mean one thing in relation to its corporate offices but something quite different in the context of its actual projects.
We need to build resilience into every aspect of what we do, and that means integrating ESG (Environmental, Social, and Governance) and sustainability principles into all facets of our work.
Resilience through energy efficiency
Sustainability and energy efficiency have become paramount for the post-pandemic tourism industry. Resilience, in this global context, extends beyond economic considerations to encompass environmental stewardship.
By investing in energy-efficient technologies and practices, tourism businesses can not only reduce their operating costs but also position themselves as responsible, forward-thinking players on the world stage.
Given the increasing scrutiny that companies and governments alike face for their ESG and sustainability commitments, those that embrace renewable energy will fortify themselves against potential criticism and prove more likely to keep partners, suppliers, creditors, investors, and consumers on their side.
A good example is Costa Rica, where renewables account for 98% of the energy supply, providing the foundations for a successful eco-tourism economic model. As a result, the country has reduced its carbon emissions and strengthened relationships with major international organizations.
Costa Rica has won numerous environmental awards over the last few years, including the Earthshot Prize and the UN Champion of the Earth honours. This achievement led the International Monetary Fund to select it as the first nation to benefit from the IMF’s Resilience and Sustainability Facility in 2023, which will help the country respond to external shocks and climate change risks.
At Red Sea Global, we’re responsible for meeting the energy demands of guests, employees, local communities, and thousands of business partners. Our flagship destination in Saudi Arabia, called The Red Sea, is completely off the national grid and powered by solar energy – from hotels to utilities and mobility networks.
As the tourism industry recovers, it has an opportunity to re-create itself as a force for sustainability, drawing on clean energy and harnessing innovation to protect against unexpected disruptions.
Plan for the worst, and monitor risks
Resilience in the tourism industry also demands a proactive approach to risk management, including meticulous planning for worst-case scenarios.
The lessons learned from the pandemic underscore the necessity for continuous monitoring and adaptation.
Dedicated governance, risk, and compliance departments can start by anticipating the worst possible scenarios, deploying project specialists to build resilience and contingencies in the design stages, and preparing for what may happen if even backup plans fail.
These scenarios should cover everything from health, safety, and transportation to impacts from climate change and threats to natural habitats.
Tourism businesses cannot risk depending on a single supplier for most of their needs. Resilient and diversified supply chains are essential, whether they are for IT services or fresh produce. Strong supplier partnerships can make all the difference.
An analysis of the response of New Zealand’s hospitality industry to the COVID-19 lockdown found that the level of preparation was a key differentiator between organizations that survived and those that didn’t.
Success tends to depend on good knowledge about one’s suppliers and an awareness of available options in case of disruptions. Many organizations succeeded by turning to local suppliers for day-to-day operations.
This reinforces the point that partnerships are crucial for agile supply chains. It’s also important that our partners, affiliates, and subsidiaries align with our resilience policies and make their own contingency plans, coordinate with all relevant stakeholders, and adhere to global standards.
A pledge for the future of global tourism
Thanks partly to the lessons of COVID-19, the industry is starting to take resilience seriously.
As pioneers of responsible development, we encourage our peers to join us in making equally powerful commitments to ensure resilience in tourism, not only for the sake of the industry’s survival but for the sake of people and the planet.
As we celebrate UN Global Tourism Resilience Day, let us commit to building an industry that thrives in the face of adversity, safeguarding the livelihoods of millions, and ensuring the sustainability of this vital sector for generations to come.
Dr Maryam Ali Ficociello is Chief Governance Officer at the Red Sea Global Group.
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Travel
A 4-year cruise or a €1 house in Italy: Inside the schemes helping Americans skip Trump’s presidency
Searches by Americans for moving abroad soared in the 24 hours after the first polls closed, according to Google data.
Following the recent US election result, Google searches for ‘how to move to Europe’ increased by more than 1,000 per cent in some countries.
Searches by Americans for moving to Canada and Australia soared by 1,270 and 820 per cent respectively in the 24 hours after the first polls closed, according to Google data.
The interest in leaving the States has not gone unnoticed by marketing firms.
A residential cruise ship is now offering Americans a four-year ‘escape’ trip while a Sardinian village has relaunched its €1 house scheme.
Cruise company offers four-year escape from Trump
Cruise firm Villa Vie Residences is marketing a four-year round the world trip to Americans looking to skip Donald Trump’s second term as president.
The Tour La Vie programme offers passengers a stay of up to four years onboard while visiting 140 countries – which doesn’t include the US.
The irreverently named packages include a one-year ‘Escape from Reality’ cruise, a two-year ‘Mid-Term Selection’ option, a three-year ‘Everywhere but Home’ cruise, and the four-year ‘Skip Forward’ trip.
Guests would join the Villa Vie Odyssey, a residential cruise ship which set sail from Belfast in September, several months into its voyage.
“We came up with this marketing campaign before we even knew who would win. Regardless of who would have won, you would have half of the population upset,” CEO Mikael Petterson told US news site Newsweek.
“Quite frankly, we don’t have a political view one way or the other. We just wanted to give people who feel threatened to have a way to get out.”
Prices start at a little under $40,000 (€38,000) a year. For those opting for the full four-year escape, single-occupancy cabins start at $256,000 (€243,000) while double-occupancy costs up to $320,000 (€303,000).
The price includes all food and drinks (alcohol only at dinner), WiFi, medical visits, weekly housekeeping service and bi-weekly laundry.
Sardinian village relaunches €1 house scheme for Americans
In rural Sardinia, the village of Ollolai has revived its €1 house scheme, now targeting Americans exhausted by the election.
The homes-for-the-price-of-an-espresso offer has been relaunched for US citizens “worned [sic] out by global politics” and “looking to embrace a more balanced lifestyle”, local authorities write on the village’s website.
“Of course, we can’t specifically mention the name of one US president who just got elected, but we all know that he’s the one from whom many Americans want to get away from now and leave the country,” village mayor Francesco Columbo told US news site CNN.
“We have specifically created this website now to meet US post-elections relocation needs.”
Those needs include slowing down and recharging with Ollolai’s dreamy Mediterranean lifestyle.
“Nestled in pristine nature, surrounded by incredible cuisine, and immersed in a community with ancient traditions in the rare Earth’s Blue Zone, Ollolai is the perfect destination to reconnect, recharge and embrace a new way of life,” the website claims.
Available properties will soon be listed online with prices ranging from €1 for houses needing substantial renovations to €100,000 for those that are ready to live in.
This is not the first time the village in Sardinia has put houses for a pittance on the market. In a bid to halt a steep population decline, Ollolai began selling off abandoned homes in 2018 to people willing to carry out $25,000 (€24,000) of renovations within a three-year timespan.
Travel
Catalonia’s holiday rental ban may not be allowed under EU law as Airbnb pushes back
Catalonia has said they want to rid Barcelona of its 10,000 holiday lets in the next 5 years.
Catalonia’s recent ban on Airbnb-style holiday rentals breaches EU law, according to a complaint filed with the European Commission by an industry group.
The European Holiday Home Association claims that the ban, introduced by Catalonia in June this year, breaches the provision of services directive.
The Spanish region announced that they wanted to rid Barcelona of its 10,000 tourist flat licences over the next five years. The city has not granted new licences since 2014 but this has not helped to stem a housing crisis, with locals saying they can not find places to live at affordable prices.
Why has Barcelona’s Airbnb ban been challenged?
“We are convinced that EU law has not been respected,” Viktorija Molnar, Secretary General of the European Holiday Home Association (EHHA), said in a statement released on Wednesday.
“By submitting the EU complaint, we hope that the European Commission will take a step further and open a formal infringement procedure against Spain,” added Molnar, whose group represents short-term rental platforms like Airbnb and Expedia’s Vrbo.
The move follows legal concerns raised by the European Commission itself that restrictions brought in by the Spanish region were disproportionate to the aim of tackling housing shortages.
EHHA argues that “unjustified, disproportionate and unsuitable” restrictions breach the EU’s Services Directive, which regulates a swathe of activities from hotels to legal advice. They also said that claims about the impact of Airbnb on housing affordability are “politically inflamed”.
The lobby group may have support from the European Commission itself, whose officials wrote to Spanish authorities to protest the law in February according to a document seen by Euronews Travel.
“The Commission services consider that the restrictions laid down in [Catalonia’s] Decree-law 3/2023 are not suitable to attain the objective of fighting housing shortage and are disproportionate to that objective,” the document said.
Spanish authorities could have also considered less swingeing restrictions and hadn’t offered evidence that short-term rentals were responsible for housing market tensions, it added – noting that there were three times as many empty dwellings as tourist rental properties in Catalonia.
Barcelona is just one European holiday destinations trying to find ways to tackle overtourism.
Cities like Venice have banned cruise ships from stopping on their shores, Athens regularly restricts visitor numbers at the famous Acropolis and Amsterdam is moving its red light district out of the city centre to try and clean up its image.
How the European Commission is taking on holiday rentals
Brussels has already taken action to bring the sharing economy within the regulatory fold, offering new rights to platform workers and hiking value-added tax on short-term lets and ridesharing apps such as Uber.
But the issue could prove totemic for Commission President Ursula von der Leyen – who has created the first-ever European Commissioner for Housing as part of her second mandate, set to take office within weeks.
She has told Denmark’s Dan Jørgensen to “tackle systemic issues with short-term accommodation rentals”, in a mission letter that handed him the housing brief alongside responsibility for energy policy.
A spokesperson for the Catalan government did not immediately respond to a request for comment.
CORRECTION(20 November, 10:02): corrects spelling of Molnar’s name
Travel
Microsoft pitches AI agents that can perform tasks on their own at annual Ignite event
The move has been criticised by other tech companies who have branded Microsoft as being a “panic mode”.
In opening remarks to a company conference in the United States on Tuesday, Microsoft CEO Satya Nadella has set the stage for where the company is taking its artificial intelligence (AI) business.
AI developers are increasingly pitching the next wave of generative AI (GenAI) chatbots as AI “agents” that can do more useful things on people’s behalf.
But the cost of building and running AI tools is so high that more investors are questioning whether the technology’s promise is overblown.
Microsoft said last month that it’s preparing for a world where “every organisation will have a constellation of agents – ranging from simple prompt-and-response to fully autonomous”.
Microsoft elaborated in a blog post Tuesday that such autonomous agents “can operate around the clock to review and approve customer returns or go over shipping invoices to help businesses avoid costly supply-chain errors”.
Microsoft’s annual Ignite conference caters to its big business customers.
Microsoft criticised
The pivot toward so-called “agentic AI” comes as some users are seeing limits to the large language models behind chatbots like OpenAI’s ChatGPT, Google’s Gemini and Microsoft’s own Copilot.
Those systems work by predicting the most plausible next word in a sentence and are good at certain writing-based work tasks.
But tech companies have been working to build AI tools that are better at longer-range planning and reasoning so they can access the web or control computers and perform tasks on their own on a user’s behalf.
Salesforce CEO Marc Benioff has criticized Microsoft’s pivot. Salesforce also has its “Agentforce” service that uses AI in sales, marketing, and other tasks.
“Microsoft rebranding Copilot as ‘agents’? That’s panic mode,” Benioff said in a social media post last month. He went on to claim that Microsoft’s flagship AI assistant, called Copilot, is “a flop” that is inaccurate and spills corporate data.
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