Article written by CARMEN WEISSENSTEIN
The ongoing war between Russia and Ukraine has already had a negative impact on Europe the Hotel Job Market, such as the rising energy prices and disruptions of the supply chain. The former is increasing the inflationary pressure and is distressing the general population and the latter poses a great burden for corporations as well as the toursim industry. But what does the present war mean for tourism and the hospitality sector? It can be established that Russian tourists are considered a pillar of Austrian winter tourism – especially in Vienna, Salzburg and Tirol, the culture-loving Russian guests have become indispensable. Given that the current trend of tourism is drifting away from sun and beach and the idea of active summer holidays is becoming more and more popular, Austria is using its high profile as a popular winter holiday destination among foreign visitors as a steppingstone for increasing its popularity as a summer holiday destination among foreign travel-experienced guests.
Due to the current situation, it can be said that the sanctions against Russia might affect Hotel jobs and Tourism in Austria indirectly. Although Russian citizenships have not been banned from entering Austria so far, it can be expected that in the short term, the restrictions on air and capital traffic will mean that Russian guests will largely stay away from Austria. Another factor that contributes to the latter is the fact that Austria stopped promoting and advertising itself as a holiday destination in Russia last week thus indirectly boycotting tourists from this country.
It can be said that while the lack of Russian tourists will have a manageable effect on Austrian tourism, the latter will be affected indirectly by the war since the economic and psychological consequences of a war significantly bring down the desire to travel. Moreover, the overall economic situation is more uncertain than it was just a few weeks ago and there are legitimate concerns about a further increase in energy prices and a possible recession. It can be determined that a setback for the Austrian national economy or even the global economy would also affect the hotel industry. Nonetheless, the economic consequences of war in Ukraine can hardly be assessed at this time and nothing is set in stone yet.
