The coronavirus is wreaking havoc on our healthcare system once more. A new strain of the virus called the ‘Delta variant’ is highly contagious and causing newfound concern. What can we expect in terms of traveling? Here’s what we know about the Delta variant and the repercussions the travel industry is experiencing.
U.S. Travel Restrictions
In terms of U.S. travel restrictions, none will be lifted at this time. This means the restrictions placed on other countries trying to enter the U.S. will remain. There is talk of re-evaluating this in September, but there is no official timeline. Experts expect Covid numbers to continue to spike in the next few weeks. An article written by David Shepardson for reuters.com states, “Given where we are today … with the Delta variant, we will maintain existing travel restrictions at this point,” White House spokeswoman Jen Psaki said on Monday, citing the spread of the Delta variant in the United States and abroad.”
International Travel Restrictions
For now, vaccinated Americans are still permitted to travel internationally. About 2/3 of the world’s countries have re-opened to tourists from the U.S. The CDC is asking people to exercise caution while traveling. They also suggest researching the Covid situation wherever you want to travel. If there are spikes in the number of cases in that area, they recommend postponing your international travel. Despite this, there are currently no specific restrictions for traveling to ‘open’ countries.
Future Ramifications
Tourism, the airline industry and the hospitality industry are struggling. Each was heavily impacted by the first wave of the Coronavirus. Airlines only brought in about 40% of their typical yearly revenue in 2020. This tremendous financial hit will likely be felt for years to come. Experts don’t anticipate traffic to return to pre-pandemic levels before 2024. Additionally, many airlines were forced to borrow money from the government to stay afloat. The industry borrowed more than $180 million in 2020. Bad credit ratings and increasingly high financing costs mean that if airlines aren’t careful, their debt might exceed their earnings by 2024. If this happens, expect ticket prices to skyrocket.
The hospitality industry is another that has been greatly affected by the pandemic. Regarding the recovery of the industry, an article written by Vik Krishnan, Ryan Mann, Nathan Seitzman, and Nina Wittkamp for mckinsey.com states, “Our research suggests that recovery to pre-COVID-19 levels could take until 2023—or later. Investors are providing similar views of hotel companies’ prospects, as seen in the underperformance of US lodging real estate investment trusts (REITs). Like so many industries, hospitality will also see both subtle and substantial shifts in the post-pandemic era.” Due to the uncertainty of the industry, staffing has become a significant issue. The actual ability for this industry to bounce back to pre-pandemic volumes remains to be seen.
For now, the Delta variant hasn’t caused too much additional strife for the tourism, airline and hospitality industries. Here’s hoping it stays that way!