Ministry of Education, Culture and Research of the Republic of

Moldova
State University
Faculty of "Economic Sciences"
"Economy, Marketing and Tourism" Department

Individual Work
In the discipline: International Tourism
Topic: The impact of covid and the war on tourism in the Republic of
Moldova.

Performed: Poloncean Măriuța,

student of the SHTA 191 group

-Chișinău,2023-
 The pandemic and inflation are reflected in tourism. Sustainability, on the
other hand, does not concern anyone anymore, when the reservations are
made for the vacation.

Among the most affected economic fields in the sphere of services is tourism.
The logical question arises: what should the representatives of the tourism
business expect and what should the consumer-tourists expect?

To answer this question, it is necessary to carry out a brief analysis of the

statistical data related to the tourist business. We take as reference the year
2019, the period January - June.

From the total of 151,586 tourists, participants in tourism organized by travel

agencies and tour operators, according to the purpose of the visits, the tourists
were distributed as follows:

Inbound tourism (reception of foreign citizens in the country) – 8408, which

means 25879 tourists/days, the amount constituting 35.1 mln. lei.
Outbound tourism (movement of residents of the Republic of Moldova
abroad) – 121,215, which means 761,253 tourists/days, the amount
constituting 948.1 mln. lei.
Domestic tourism (movement of residents of the Republic of Moldova within
the country for tourist purposes) – 21,963 tourists and hikers, which means
133,788 tourists/days, the amount constituting 94.9 mln. lei.
For all types of organized tourism, the turnover achieved by travel agencies
and tour operators amounts to 1.1 billion. lei. Taking into account the
minimum commission applied by travel agencies and tour operators, which
represents an average of 7%, then the losses for 6 months, recorded by the
agencies of the tourist market, will be 77 million lei. (without the HORECA
field and only for 6 months).

For information. In 2019, the turnover recorded by tourist market agencies

was 2.17 billion. lei. Making the same calculation at the minimum 7%
commission, the estimated losses for 2020, compared to 2019, would be at least
151.9 million. lei. (without the HORECA field).

The start of 2020 for the country's tourism industry is predicted to be quite a
good year. Advance bookings, which were up 10-15% year-on-year, reflected
this trend.

But..., with the migration of the Covid-19 pandemic to the European

continent, then to other continents, all predictions and forecasts turned upside
down.

What should tourism market agents do at the moment and how should
tourists behave in such a situation?

Recommendations to tourist market agencies:

during the exceptional situation, when the commercial activity of the travel
agency/tour operator is impossible, according to article 80 of the Labor Code
of the Republic of Moldova, by order of the director of the entity, the staff can
be placed on technical unemployment, benefiting from an allowance, which
cannot be less than 50 percent of their basic salary;
it is necessary to renegotiate the lease contracts of the commercial space
rented by the agencies of the tourist market. For the period of the exceptional
situation, lessors and lessees must find a compromise option in order to
establish the lease price of the leased property. I believe that it is not in the
lessor's interest that the tourist enterprise becomes insolvent, to subsequently
lose him as a tenant;
rescheduling vacations for consumer-tourists. Following the experience of
previous years, the first charter route is scheduled for mid-April, which
means very soon. In the situation created with the Covid-19 pandemic, the
2020 summer season seems to be compromised. Even if the pandemic will
have a downward trend, at best, the summer season could start in July for
outbound tourism. In this situation, it is necessary to start negotiations with
tour operators from abroad, regarding possible rescheduling.
Recommendations for tourists:
Do not insist on immediate recovery of the money paid for the holiday from
the tour operator. The money that was paid for the reservations operated,
(including advance reservations) was transferred to the service providers in
the tourist destination country. The travel agency or the local tour operator
does not have these financial means at the moment. Litigation filed could
place the tourist market agent in insolvency and as a consequence –
bankruptcy. With the bankruptcy of the enterprise, the possibility to recover
any financial means will be minimal.
Once the state of emergency expires, contact the travel agency where you
work to reschedule your vacation. The rescheduling of the holiday will be
done according to the possibilities of the accommodation unit in the country of
the tourist destination, also arising from your possibilities.
According to article 1602 of the Civil Code of the Republic of Moldova, the
tourist has the right to terminate the contract for the provision of
tourist/travel services, at any time before the start of the trip. If he declares
the termination under the previous statement, the tourist may be obliged to
pay the organizer a termination fee. In the case of advance reservations, the
amount given can be 100%, because according to the Early Booking policy,
the amount paid in advance is not refundable.
With the outbreak of the war in Ukraine, some tourist service providers
thought they would go bankrupt, because many visitors canceled their stays.
The situation was rectified, however, in a short time when the travel agencies
were convinced that the Republic of Moldova is a safe country. To this were
added the guests from Latin America and the Scandinavian countries who
postponed their visits due to the pandemic and who now, with the lifting of the
restrictions, were able to reach the Bessarabian lands. The tourist attractions
in the countryside and the rustic atmosphere are to the liking of foreigners,
who choose to stay in guesthouses and spend, on average, 150 euros per day.
Moldova is an emerging tourism destination, strongly affected by the impact
of the pandemic and the war in the region. The paradigm of resilience and the
model of development and recovery can only be based on the principles of
sustainable development, because, through a sustainable tourism industry, we
can create value distributed equitably between various participants and
regions. Tourism operators will manage their business in a respectful manner
towards nature and towards people, communities and heritage. This is a
strategic objective also stated by the project of the National Tourism Industry
Development Program 2022-2026. Through this public commitment, the
Ministry of Culture, together with private sector representatives and strategic
partners are committed to transposing the most recognized international
standards of sustainability in the tourism industry, in partnership with GSTC
and the USAID Rural Competitiveness and Resilience Project."
 According to the Eurobarometer (2021), 82% of Europeans are willing to
change their travel habits to more sustainable practices, such as consuming
locally sourced products, reducing waste and water consumption, traveling
off-season or to destinations less visited and the choice of means of transport
according to their ecological impact. At the same time, when choosing
destinations, Europeans are mainly interested in nature (41%) and culture
(42%), and a third of them would be willing to pay more to support local
nature and local communities. The European Union represents the travel
source region for the receiving tourism from the Republic of Moldova.

The tourism industry produces up to 10% of the global Gross Domestic

Product, employs 10% of the global workforce, managing to recover 74% in
2022 in Europe. However, tourism causes about 8% of the global CO2
footprint, which may increase by 25% by 2030, with a concerted round-up
imminent, through the commitment of authorities and businesses. This is why
the tourism industry in the Republic of Moldova aligns itself with global
initiatives, with harmonization to the criteria of the Global Council for
Sustainable Tourism and the implementation of an ecosystem of policies,
codes of conduct, practices, measures to support and stimulate sustainable
practices throughout the tourism value chain.
The progress of the tourism industry in the last pre-pandemic years was noted
by the development of a national tourist brand, international and local impact
campaigns, the launch of about 60 rural guesthouses and tourist attraction
centers, the tripling of the number of wineries open to tourists, the
development of over 300 km of tourist routes, dozens of innovative tourism
products, a constant increase in the number of tourists until the pandemic,
successful thanks to the projects financed by USAID, the constant strategic
partner of the tourism industry during the last 10 years.
The war in Ukraine not only causes serious economic and logistical problems
for business, but also provides an opportunity to rethink the country's
economy. These are some of the conclusions of the public discussion "The
impact of the war in Ukraine on the private sector in Moldova and the
adaptation of economic activity to current conditions", organized by the
Center for Entrepreneurship and Economic Policies (CAPE).

Transporters were the first to feel the consequences of the war – the rerouting
of Ukrainian and Moldovan cargo flows by road overburdened Moldovan
customs, creating tens of kilometers of queues. Therefore, Moldovan
companies have adapted and found alternative routes for transporting goods,
but the additional costs are passed on to consumers.

In addition, business associations suffer from a lack of manpower, there is a

migration of business from Moldova, and concerns from the business
environment are caused by regional security risks.

In terms of the energy sector, the uncertainty regarding the country's natural
gas and electricity supply is affecting the planning and financial stability of
companies. In this sense, the government should initiate discussions with
business associations whose members use gas in the production process to
identify mechanisms that will allow them to remain competitive.