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            Opinion

            When will Aruba’s tourism industry recover?




            By  James  Hepple,  BA,  PhD,  Assis-  •  As of Wednesday April 1st, Aru-  mand from the USA and from the
            tant Professor, FHTMS, University of    ba has reported it had 55 posi-  north-east USA.
            Aruba                                   tive cases of COVID 19, which  It might be possible to diversify our
                                                    is 487 cases per one million per-  source  markets,  but  this  will  take
            ORANJESTAD  —  In  the  following       sons. The USA reported 207,637  aggressive  marketing  and  having
            editions  of  Aruba  Today  we  will    positive  cases  on  the  same  enough  airlift  in  place  and  could
            publish an opinion article by James     date,  which  is  628  cases  per  take  a  considerable  amount  of
            Hepple, today we share Part I.          one million persons. In both in-  time.
            As of April 1 2020, Aruba’s tourism     stances the number of cases is  As  of  April  1st,  what  do  we  know
            industry has shut down as the Gov-      growing significantly on a daily  (and what don’t we know) about
            ernment attempts to slow the rate       basis.                          COVID 19 and the situation in the
            of infections from the COVID19 vi-                                      USA?
            rus.                                Aruba and its Economy
            By way of background: -             Aruba  has  an  official  population  We know: -
            •  On  March  15th  regulations  of 113,000 persons. Of these, 24.3%  •  COVID 19 is a novel (new) virus
                were  put  in  place  regulating  are  between  o  and  19  years  old,   for which there is no effective
                the entry of visitors.          61.6% are between 20 and 64 years       vaccine.
            •  On March 21st the Aruban bor-    old, and 14.1% are 65 years old or  •  The  virus  is  mutating  which  is
                der  was  closed  indefinitely  to  older.                              not  unexpected  and  is  not
                incoming visitors and returning  The  Aruban  economy  is  almost       necessarily a bad thing.
                residents.  On  the  same  date  completely  dependent  upon  its  •  It  will  take  12  to  18  months  to
                a curfew from 9 pm until 6 am  tourism industry. According to the       develop an effective vaccine.
                was implemented.                World Travel and Tourism Council in     It will take a further amount of
            •  On Sunday March 29th a Shel-     2019 tourism accounted for 98.3%        time to produce the vaccine in      and in implementing Shelter at
                ter  in  Place  order  was  imple-  of Aruba’s GDP of US$ 2,876 billion   large quantities and to admin-    Home policies.
                mented  whereby  the  popu-     and generated 47,000 jobs, that is      ister doses.                    •  The  most  effective  long-term
                lation  was  confined  to  their  99% of all employment. WTTC esti-  •  It is highly contagious.            policy  is  “test  and  trace”.  This
                homes.  No  date  was  given  mated that visitors spent US$1.876  •  It  can  take  a  number  of  days     requires  thorough  effective
                when this order would be lifted.  billion in Aruba in 2019.             before  infected  persons  dis-     testing  of  as  many  people  as
                All bars, restaurants, nightclubs,  In 2019 75% of Aruba’s visitors came   play symptoms.                   possible,  isolating  those  who
                casinos, stores, malls, and other  from the USA, with 4% coming from  •  That the USA currently has the     have been infected and trac-
                related facilities were deemed  Canada and 4% from the Nether-          largest number of positive cas-     ing those with whom they have
                non-essential and were closed.  lands,  with  the  balance  coming      es in the world. As of April 1, it   been  in  contact.  This  also  re-
            •  The  airline  industry  responded  from the rest of the world.           has  reported  207,637  cases,  a   quires  significantly  expanding
                to  these  regulations,  and  to  Again in 2019, 52% of Aruba’s visi-   rate of 628 per one million per-    the  health  care  facilities  es-
                other  similar  regulations  being  tors  from  the  USA  came  from  the   sons.                           pecially  hospital  facilities  and
                implemented elsewhere, by al-   five states of New York, New Jersey,  •  That  China  has  probably  sig-   having  enough  supplies  such
                most  immediately  suspending  Massachusetts,  Connecticut  and         nificantly  under-reported  the     as  masks  and  ventilators,  to
                air service to Aruba.           Pennsylvania. New York was by far       number of cases and deaths.         deal with the rise in the number
            •  According to the Official Airline  the most important state generat-  •  According to the World Health       of patients.
                Guide (OAG), between March  ing 20% of all visitors from the USA.       Organization the global mortal-  •  That South Korea has probably
                16th  and  March  30th  Aruba                                           ity rate of those infected is 3.4%   managed the crisis better than
                lost  84%  of  its  air  seats,  falling  The recovery of the tourism industry   but this varies very much from   any other nation.
                from 33,338 seats for the week  will depend upon two things – re-       country to country. In Italy the  •  In  some  countries,  where  lo-
                of March 16th to 5,266 seats for  covery of demand and the situa-       mortality  rate  is  11%,  in  Spain   cal  transmission  has  been  sig-
                the week of March 30th, a drop  tion in Aruba.                          9%.                                 nificantly  slowed  (China  and
                of 28,072 seats, with further cuts                                  •  The  overall  global  policy  re-    South  Korea),  new  infections
                to come.                        Demand                                  sponse  has  been  to  “flatten     are  being  caused  by  visitors
            •  Many  airlines  have  indicated  As  has  been  indicated  the  USA  is   the  curve”,  that  is  to  try  and   from  outside  resulting  in  such
                they will not be flying to Aruba  by far the primary source of visitors   slow  the  increase  in  the  rate   countries  closing  their  borders
                during the month of April with  to Aruba. It could be argued that       of infections to prevent health     to foreigners.
                indications that the suspension  visitors from the USA generate 74%     care  facilities  becoming  over-  •  It is highly probable that the vi-
                of these flights could well con-  of Aruba’s GDP, while visitors from   whelmed  and  thus  mitigating      rus  will  become  endemic,  like
                tinue through May.              New  York  State  alone  generate       the number of deaths.               flu,  and  will  reappear  again
            •  Many  cruise  lines  suspended  15% of the country’s GDP.            •  To achieve this many countries       and again in the future.
                operations on March 13th and  So,  following  the  existing  business   have implemented “social dis-
                have  stated  they  do  not  plan  model,  the  recovery  of  Aruba’s   tancing”  policies,  that  is  mini-  Part II of this column is to be con-
                to  recommence  their  cruises  tourism  industry  will  be  heavily    mizing contact between mem-     tinued in Aruba Today’s edition of
                again until at least May 11th.  dependent  upon  recovery  in  de-      bers of the resident population  Tuesday April 14.q
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