{"id":2208,"date":"2020-04-23T14:37:02","date_gmt":"2020-04-23T11:37:02","guid":{"rendered":"http:\/\/www.liberalglobe.com\/?p=2208"},"modified":"2020-04-23T14:37:05","modified_gmt":"2020-04-23T11:37:05","slug":"the-blow-to-global-shipping-travel-and-tourism-industries","status":"publish","type":"post","link":"https:\/\/www.liberalglobe.com\/?p=2208","title":{"rendered":"The Blow to Global Shipping, Travel and Tourism Industries"},"content":{"rendered":"\n

Entire economies have been dramatically hit by the enforced lockdown and quarantine respectively to successfully deal with the spread of the Covid-19 (Coronavirus). But there are some sectors of the economy that have been hit even harder and hardest.<\/p>\n\n\n\n

The global shipping and travel industry are one of those sectors first hit by the crisis caused by Covid-19. More specifically, they began to be affected by 03 February 2020 and from the beginning of the outbreak of the pandemic in the Far East, China and South Korea.<\/p>\n\n\n\n

By T.C.<\/strong><\/p>\n\n\n\n

\u00a9The law of intellectual property is prohibited in any way unlawful use\/appropriation of this article, with heavy civil and criminal penalties for the infringer.<\/em><\/p>\n\n\n\n

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The impact of Covid-19 on global shipping<\/strong>
Photo by the website www.ship-technology.com <\/figcaption><\/figure><\/div>\n\n\n\n

Problems and challenges<\/strong><\/strong><\/p>\n\n\n\n

The problems and challenges facing the global shipping industry are of many dimensions:<\/p>\n\n\n\n

1.<\/strong> The closure of China’s shipbuilding industry, with the aim of protecting workers from the dispersal of Covid-19, which essentially marked the closure of all shipbuilding activities.<\/p>\n\n\n\n

2.<\/strong> Stopping the purchase and sale of ships.<\/p>\n\n\n\n

3.<\/strong> The dramatic fall in fares and the value of ships, dry cargo and container ships.<\/p>\n\n\n\n

4.<\/strong> The problem with the movements of officers, technicians and crew, as it was not possible to arrive in China, amid the disruption of flights and since and if there was the possibility of a plane landing then passengers were quarantined 14 days before going out to go on their ships.<\/p>\n\n\n\n

5.<\/strong> The human sense of fear that the entire crew possesses as to what might happen to them and at the same time the great challenges that crew departments had to face.<\/p>\n\n\n\n

6.<\/strong> In some countries they do not accept travelers from certain nationalities at all, while in other countries they only accept the entry of their peers, whom they quarantine.<\/p>\n\n\n\n

7.<\/strong> Seafarers and due to the implementation of social isolation and lockdown measures worldwide are forced to remain on their ships for longer than predetermined and until they are allowed to replace them.<\/p>\n\n\n\n

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Virgin Australia Airlines Pty Ltd (Virgin Blue until 2011) headquarters in Bowen Hills, Brisbane, Australia<\/strong>. It is the first victim of the crisis caused by Covid-19 pandemic since on Monday 20 April 2020 declared stop payments
Photo by Author: Commander Keane, Source: Own work, licensed Public Domain<\/a><\/figcaption><\/figure><\/div>\n\n\n\n

Problems in the travel industry<\/strong><\/p>\n\n\n\n

1.<\/strong> There is no activity since all airports are closed or open only for co-nationals and no flights are made.<\/p>\n\n\n\n

2.<\/strong> Airlines have suspended their activity by 95%-100%.<\/p>\n\n\n\n

3.<\/strong> A dramatic drop in corporate travel, which reaches 95% and individual travel reaches 99% respectively.<\/p>\n\n\n\n

4.<\/strong> In the marine & offshore travel sector respectively, traffic is reduced by 70% and is projected to reach 95% by mid-April, as most shipping companies worldwide are led to a crew change freeze as it is impossible to carry out these replacements.<\/p>\n\n\n\n

How the future is <\/strong>shaped<\/strong><\/p>\n\n\n\n

Without state support and brave funding, the aviation industry worldwide is in more danger than ever before. Citizens, even after the crisis, will not continue to travel at the rate they did before but much more hesitantly because until the vaccine is found, they will think that the person next to them on the plane may be an a-symptomatic carrier of Covid-19 and that he belongs to the vulnerable groups.<\/p>\n\n\n\n

A scenario that greatly increases to getting stuck and getting sick. And of course, passengers won’t travel to all destinations.<\/p>\n\n\n\n

It is estimated that the annual decrease in travel activity is already 40% compared to 2019. This figure means about 1.6-1.8bn fewer passengers by 2020.<\/p>\n\n\n\n

Necessarily, people will start socializing differently now and not only this but also decide differently until a safe vaccine is found.<\/p>\n\n\n\n

The proposed solutions that will break the deadlock in the aviation and tourism industry worldwide<\/strong><\/strong><\/p>\n\n\n\n

The solutions that governments of all countries worldwide should advocate in order to rescue both the aviation and tourism sectors respectively are the implementation of the labour subsidy model (rather than the subsidy of unemployment) entitled Kurzarbeit or Furlough.<\/p>\n\n\n\n

It is the specific model of subsidised employment that has retained thousands of jobs during the global financial crisis that began in 2008 and lasted at least four years.<\/p>\n\n\n\n

Under this scheme, companies are prevented from redundancies which they may have had to go through due to falling demand, while at the same time employees limit their loss of income, even though they work fewer hours.<\/p>\n\n\n\n

This is because the State finances, by paying directly to the employee, the bulk of its net salary corresponding to the fewest hours of work, since he must work part-time. The remainder of the salary is still paid by the employer.<\/p>\n\n\n\n

All countries will have to implement it to deal with the economic crisis caused by the Covid-19 pandemic. <\/p>\n\n\n\n

The subsidy as much of labour (and not unemployment) as of employees can be made through a subsidy of employer social security contributions-proportional to the contribution of the employee-and supplementary allowances to the Kurtzarbeit logic, instead of strengthening the social security net of protection of employees who will be made redundant from these sectors of the economy.<\/p>\n","protected":false},"excerpt":{"rendered":"

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