Who would have thought that in March 2020 the COVID19 pandemic would last more than 2 years and affect the global economy as much as our ability to travel? Even though the extended closure of borders was justified to temporarily protect our population, it has brought tourism companies and their employees to their knees. By the end of 2021, air traffic was down 80 percent from 2019 while 84 percent of the 300,000 direct and indirect jobs in the tourism sector have been laid off or made redundant.

The travel industry is a huge contributor to a country's entire economy. Indeed, tourism is one of the few sectors that generate so many spillover effects on other sectors: agriculture, fishing, transportation, logistics, trade, imports and exports, services, etc. Look at the most dynamic economies, you will see that the development of air transport has been a real economic priority. To draw a comparison, while Madagascar has barely a dozen international air services, Ghana is served by 38 airlines, Vietnam by more than 70, and Thailand by 122 airlines! Tourism and air transport are key economic drivers in these countries where GDP growth rate beats records in their respective continents.

This is the first track of recovery: our fight at the CTM is not only to restore the airline services that existed before COVID, because many of them have remained; but also, to support the development of new services and to increase flight frequencies that will better connect us to the world. Studies have demonstrated a link between increased air traffic and growth in employment and GDP, and let me quote one of them that estimated that each 10-percent increase in international air services led to a 0.07-percent increase in GDP, which can translate into millions (or even billions) of dollars in incremental GDP[1].

I firmly believe that Madagascar's economic take-off can only take place if our skies open up completely because we are an island, and a giant one, and we need the spin-off effects and trade opportunities that air transport offers, both for passenger flows and for goods. Let's change the paradigm! Let's aim for at least 20 airlines within five years and double that number within ten years. The number of passengers will increase and fares will drop. It is just mathematical. Otherwise, all the current public policies will remain only nice words, and the figures announced by the successive governments a utopia.

While the World Bank has just published its latest economic outlook report on Madagascar where the trend is rather gloomy with only 2.2-percent growth expected in 2022[2], the World Tourism Organization (UNWTO) recently launched its new Digital Futures Programme for SMEs that aims at accelerating the adoption of new technology among tourism enterprises. The goal is to help them with hands-on tools to recover from the impacts of the pandemic and drive the sector forward through innovation and new technology. In the tourism sector, this applies to five key digital dimensions: connectivity, business growth, e-commerce, big data and analytics, and payments and security. This initiative of digital transformation of the tourism sector is fully in line with one of the axes of the post-COVID recovery plan elaborated with the CTM and the private sector.

The pandemic has shaken up consumer codes and trends, including in the tourism industry: customers, even in Madagascar and whether local or international, are increasingly present on social media. They are sensitive to the image that they see on the internet, but they also pay attention to the services offered by operators and their digital showcase (website quality, dynamism on the Facebook page, online payment options, etc.). Those who stand out today are those who have succeeded in identifying, reassuring and seducing their customers remotely. This is why I strongly believe that digitalization and the acquisition of digital skills within tourism companies in the five above-mentioned areas must be made a priority. That is the second key driver for the revival and growth of the tourism industry.

Finally, we must ensure that our tourism products are competitive and that our businesses and entrepreneurs can work in an environment that is conducive to development. To achieve this, I have identified several equally important factors, including the availability of infrastructure (energy, water, roads, etc.) and the availability of skills. Indeed, infrastructure is such a crucial element for tourism – as it is for all other economic sectors – because no one can claim to develop tourism without access to tourist sites or without access to water or telecommunications.

But if I had to choose a third key driver in the current context, it would be “skills development.” The pandemic has not only led to a financial crisis, but it has also generated skills drain in the tourism sector. That is the case in the capital city where many former tourism employees have joined call centers, using their language skills and reception techniques. We rejoice for these people who were able to bounce back in a difficult context, but our challenge today is to be able to replace them.

If there is one universal pillar of development that can ensure a flourishing future for a country (and a sector), it is education, education, and education. You can build the most beautiful roads in the country, or spend billions promoting the destination, or create a magnificent luxury ecolodge, but if you are not backed with the necessary skills, all these efforts will be in vain and will not be sustainable. And this is applicable to all levels: corporate staff, managers, and government officials alike. This is why we are working to promote vocational training dedicated to the tourism sector and to implement relevant and concrete solutions (such as work-study contracts) to enable young people to join tourism companies.

As a conclusion, we are all aware of the huge challenges. However, tourism is historically a resilient sector that has been able to bounce back after each crisis. Recent hotel developments with international brands are also strong signals for our destination. We therefore remain confident that tourism in Madagascar will be able to realize its potential and contribute to the strong growth that we all expect.

[1] InterVISTAS Consulting Inc., “Measuring the Economic Rate of Return on Investment in Aviation”  

[2] The World Bank, « Madagascar Economic Update: Navigating Through the Storm”, 27 May 2022