In 2019, Russian spending on travel abroad reached US$ 36 billion and Ukrainian spending US$ 8.5 billion. A prolonged conflict could translate into a loss of US$ 14 billion in tourism receipts globally in 2022. The US and Asian source markets could be particularly impacted, especially regarding travel to Europe, as these markets are historically more risk averse.Īs source markets, Russia and Ukraine represent a combined 3% of global spending on international tourism as of 2020. The military offensive risks hampering the return of confidence to global travel. The easing of travel restrictions are contributing to the normalization of travel (36 countries had lifted all COVID 19 related travel restrictions as of ) but the conflict continues to pose a serious threat to the recovery.Ī possible loss of US$ 14 billion for the tourism economy Air bookings also show rising demand for intra European travel and for flights from the US to Europe. Russian bookings of outbound flights also plunged in late February and early March but have since rebounded according to data from Forwardkeys.ĭespite the conflict, European air traffic has grown steadily from mid March to early May. (compared to 2019 levels), Slovenia (-42%), Latvia (-38%) and Finland (-36%) according to data from Eurocontrol.

The destinations most impacted so far (aside from Russia and Ukraine) are the Republic of Moldova with a 69% drop in flights since 24 Feb. It has exacerbated already high oil prices and transportation costs, increased uncertainty and caused a disruption of travel in Eastern Europe. Russia’s military offensive in Ukraine represents a downside risk for international tourism. Our thoughts go to the people suffering from this conflict. A risk to the ongoing recovery of tourismįirst and foremost, the biggest concern is for the human tragedy unfolding in Ukraine.

Ukraine russia war 2020