Abstract
The following chapter focuses on the evolving landscape of global business tourism in light of emerging trends and challenges. With a particular emphasis on the role of the WTO, this study delves into the factors influencing the resilience and sustainability of the business tourism sector. Through an interdisciplinary approach involving economics, policy analysis, and tourism management, the research analyzes recent developments in business tourism. Special attention is given to the implications of the COVID-19 pandemic on business tourism, including relief efforts and policy interventions undertaken by governments and stakeholders. Critical challenges confronting the business tourism industry, such as supply chain disruptions, inflationary pressures, and environmental sustainability concerns, are identified. By synthesizing insights from economics, policy analysis, and tourism management, the research offers strategic recommendations to bolster the resilience and competitiveness of the business tourism sector amidst evolving global trends.
TopIntroduction
The onset of a severe respiratory illness was initially identified in Wuhan, Hubei province, China, in late December 2019. A surge in patients presenting with pneumonia of unknown origin was observed by the World Health Organization (WHO) and healthcare professionals in China. Subsequent investigations revealed a novel virus named Coronavirus Disease 2019 (COVID-19), distinguished by its highly communicable nature. Designated as SARS-CoV-2, this new strain of SARS proliferated globally, prompting the World Health Organization to declare it a global pandemic. The virus was believed to have originated from bats and wild birds, extending its reach to both non-mammals and mammals, possibly through the contamination of meat from wild animals in Chinese meat markets (Yeh, 2021).
COVID-19, primarily transmitted through respiratory droplets produced during sneezing, coughing, or exhalation, had profound consequences on a global scale. In response to the escalating crisis, numerous countries implemented non-pharmaceutical interventions such as lockdowns, travel controls, isolation/quarantine measures, and social distancing, all aimed at mitigating the virus's spread. The imposition of these measures had an immediate impact on national economies, resulting in grounded populations and disruptions across various sectors.
This initial phase of the pandemic set the stage for a protracted global struggle against COVID-19. Over the subsequent period, the world witnessed an exponential rise in confirmed cases, surpassing 400 million, with a sobering toll of over 5 million deaths across 240 countries as of January 15, 2024. Notably, South Africa, grappling with the highest number of SARS-CoV-2 infections in Africa, reported its first case on March 5, 2020, marking the onset of widespread community transmission and a persistent surge in daily cases.
As the pandemic unfolded, the global landscape continued to evolve. In 2020, COVID-19 showed an accurate picture of how developed and developing countries were impacted. Because of the uncertain economy, people cut back on their purchases, while businesses postponed investments and hiring new employees. By the end of 2022, the cumulative global cases exceeded 1 billion, and the death toll surpassed 15 million. By the close of 2023, these figures climbed to 1.5 billion cases and 25 million deaths. These ongoing developments further underscored the enduring impact of COVID-19 on a global scale (Abuseridze et al., 2023).
The impact of the pandemic on the tourism industry was unprecedented. As nations grappled with the complex challenges posed by stringent measures to contain the virus, the sector faced a prolonged period of decline in both supply and demand. Current analyses project a tentative recovery only in the fourth quarter of 2021, with approximately 100 to 120 million direct jobs at risk. The severity of consequences varied across nations, with those heavily reliant on the tourism sector expected to bear the brunt. South Africa, for instance, experienced unparalleled ramifications, particularly affecting its rural population, which was heavily dependent on tourism-related livelihoods. In the wake of the profound ramifications precipitated by the COVID-19 pandemic, this chapter undertakes a thorough investigation into the manifold repercussions observed within the intricate nexus of tourism demand and supply dynamics. The ensuing subsections meticulously probe the nuanced interrelationship between economic variables and the resilience of the tourism sector, with specific emphasis directed towards two pivotal dimensions: Global Resonance and the Assessment of Tourism Resilience vis-à-vis COVID-19 Relief Endeavors.
Key Terms in this Chapter
European Union: An international organization comprising 27 European countries and governing common economic, social, and security policies. Originally confined to western Europe, the EU undertook a robust expansion into central and eastern Europe in the early 21st century. The United Kingdom officially withdrew from the European Union at the beginning of 2020, in a move known as Brexit.
Small and Medium-Sized Enterprises: Businesses that maintain relatively small levels of employees and revenues compared to larger corporations. The precise definition of SMEs varies by country and industry, but they are generally characterized by factors such as limited scale of operations, lower revenue thresholds, and fewer employees compared to large enterprises. SMEs play a significant role in driving economic growth, innovation, and job creation in many economies around the world.
12th Ministerial Conference: The WTO's 12th Ministerial Conference represents a crucial gathering of member states aimed at addressing key issues and advancing the organization's objectives in the realm of international trade. As one of the WTO's highest decision-making bodies, MC12 provides a platform for member states to engage in substantive discussions, negotiate agreements, and chart the course for the future of global trade governance. Building upon the outcomes of previous ministerial conferences, MC12 serves as an opportunity to tackle pressing challenges facing the multilateral trading system, including issues related to trade facilitation, agricultural subsidies, intellectual property rights, and dispute resolution mechanisms. The conference also offers a forum for member states to explore avenues for enhancing inclusivity, transparency, and effectiveness within the WTO framework, with the ultimate goal of promoting economic growth, development, and prosperity for all nations.
World Health Organization: It is a specialized agency of the United Nations responsible for international public health. Established in 1948, the WHO is headquartered in Geneva, Switzerland. The organization's primary objective is to coordinate and provide leadership on global health matters, shape international health policy, monitor health trends, set norms and standards, and provide technical assistance to countries. The WHO plays a crucial role in addressing public health emergencies, conducting research, and promoting health equity and access to healthcare worldwide.
Least Developed Countries: It is a term used by international organizations, particularly the United Nations, to categorize countries that exhibit the lowest indicators of socioeconomic development. The classification is based on criteria such as income, human assets (including education and health), and economic vulnerability. LDCs face significant structural challenges, including low income, high levels of poverty, and limited access to essential services. The designation as an LDC is important in the context of international development assistance, as these countries often receive special attention and support from various aid programs and initiatives aimed at promoting sustainable development and improving their economic and social conditions.
COVID-19: A respiratory illness caused by the SARS-CoV-2 virus, first identified in Wuhan, China, in late 2019. The acronym “COVID-19” stands for “Coronavirus Disease 2019,” reflecting the year of its discovery. The disease has since evolved into a global pandemic, affecting millions of people and prompting widespread public health measures to control its spread.
World Trade Orgazniation: It is an international organization that deals with the global rules of trade between nations. The WTO was established in 1995 and is headquartered in Geneva, Switzerland. Its primary purpose is to facilitate trade negotiations, resolve trade disputes, and enforce agreements among its member countries. The WTO provides a forum for member nations to negotiate trade deals, discuss trade policies, and work towards the reduction of trade barriers such as tariffs and quotas.
The International Monetary Fund: It is an international financial institution established in 1944 with its headquarters in Washington, D.C., USA. The IMF's primary purpose is to promote international monetary cooperation, exchange rate stability, balanced trade growth, and financial stability. It provides financial assistance and policy advice to its member countries, particularly those facing balance of payments problems or financial crises. The IMF also conducts economic research, monitors global economic trends, and offers policy recommendations to promote sustainable economic growth and development.
Gross Domestic Product: It is a key economic indicator that represents the total monetary value of all finished goods and services produced within a country's borders in a specific time period. GDP is often used as a measure of a nation's economic performance and is a crucial factor in assessing the overall health and size of an economy. It is typically calculated on a quarterly or annual basis.
The Group of Twenty: established as an international forum, comprises 19 countries alongside the European Union, collectively representing the world's major developed economies. This diverse assembly of nations holds significant global influence, with G20 members jointly accounting for an impressive 85% of global Gross Domestic Product (GDP), 75% of international trade, and encompassing approximately two-thirds of the world's population. The forum serves as a platform for addressing pressing global economic challenges, facilitating dialogue, and fostering cooperation among its member states to promote sustainable and inclusive economic growth on a global scale. With its substantial economic clout and extensive reach, the Group of Twenty (G20) plays a pivotal role in shaping international economic policies, strategies, and initiatives aimed at addressing complex issues confronting the global community.