What travel? Border closures and travel restrictions 
brought global travel and tourism to a 
virtual standstill, devastating airlines, 
cruise ship operators, hotels, casinos, 
and tourism-related businesses 
worldwide. After the S&P 500 reached 
a new high in mid-February 2020, the 
market capitalization of the so-called 
BEACH sector—booking, entertainment, 
airlines, cruises, and hotels—dropped 
CAD $450 billion within a month.6 There 
are signs of recovery, with cruise line 
bookings up significantly from the same 
time last year and a potential return to 
the seas in late summer or early fall. This 
example illustrates what is likely pent-up 
demand for experiences and fun after the 
prolonged lockdown, and may translate 
into rapid re-engagement across the 
sector categories. While travel restrictions are beginning 
to ease in parts of the world, it could 
still take two to three years for the travel 
and tourism sector to regain its former 
strength. Canadian consumers say they 
expect to spend much less (45 percent 
less) on travel in the weeks ahead,7 
and with Canadian travel restrictions 
remaining in place, it seems unlikely that 
spending will rise much in the months 
to come. In the near term, Canadian 
consumers are likely to stay close to 
home, visiting destinations within easy 
driving distance—such as cottages, where 
authorities allow it. This will require many 
hospitality organizations to redirect their 
efforts to understand and engage with 
this new domestic, short-trip traveller.