Saudi G20 Presidency Draws up Map for Recovery of Global Tourism

The G20 tourism ministers hold a virtual meeting amid the pandemic.
The G20 tourism ministers hold a virtual meeting amid the pandemic.
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Saudi G20 Presidency Draws up Map for Recovery of Global Tourism

The G20 tourism ministers hold a virtual meeting amid the pandemic.
The G20 tourism ministers hold a virtual meeting amid the pandemic.

Saudi Arabia hosted last week the G20 Leaders Summit as tourism throughout the world is enduring its worst ever crisis due to the novel coronavirus pandemic.

The outbreak has led to global economic recession, crippled transportation and lockdowns have struck at the very core of tourism.

Realizing the danger, the leaders of the G20 countries sought to revive the sector, underscoring its economic importance and employment of hundreds of millions of people throughout the world. Estimates at the beginning of the pandemic showed that 75 million jobs in the travel and tourism sectors were at risk.

Given that tourism and travel make up nearly 10.3 percent of the world’s GDP, Saudi Arabia, as G20 president, sought since the beginning of the pandemic to support efforts to revive these sectors. It exerted efforts to push forward economic revival as the outbreak began to weaken.

The G20 Leaders' Declaration addressed the tourism and travel crisis, with members expressing their commitment “to ensuring that global transportation routes and supply chains remain open, safe and secure, and that any restrictive measures related to COVID-19, including for air and sea crews, are targeted, proportionate, transparent, temporary and in accordance with obligations under international agreements.”

“We will continue to explore concrete ways to facilitate the movement of people in a way that does not impede our efforts to protect public health,” they added.

“We will continue our efforts in collaboration with stakeholders, including the private sector, to facilitate the travel and tourism sector's recovery from the pandemic. We welcome the Tourism Community Initiative as a catalyst of sector recovery, including the creative economy,” they continued.

“We endorse the G20 Guidelines for Inclusive Community Development through Tourism and encourage the use of the AlUla Framework for Inclusive Community Development Through Tourism that aim to create jobs, empower local communities, especially rural, safeguard the planet, and preserve cultural heritage. We also endorse the G20 Guidelines for Action on Safe and Seamless Travel and welcome the establishment of the G20 Tourism Working Group,” they declared.



Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
TT

Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices rose over 1% to hit a two-week peak on Friday, heading for the best weekly performance in more than a year, buoyed by safe-haven demand as Russia-Ukraine tensions intensified.

Spot gold jumped 1.3% to $2,703.05 per ounce as of 1245 GMT, hitting its highest since Nov. 8. US gold futures gained 1.1% to $2,705.30.

Bullion rose despite the US dollar hitting a 13-month high, while bitcoin hit a record peak and neared the $100,000 level.

"With both gold and USD (US dollar) rising, it seems that safe-haven demand is lifting both assets," said UBS analyst Giovanni Staunovo.

Ukraine's military said its drones struck four oil refineries, radar stations and other military installations in Russia, Reuters reported.

Gold has gained over 5% so far this week, its best weekly performance since October 2023. Prices have gained around $173 after slipping to a two-month low last week.

"We understand that the price setback has been used by 'Western world' investors under-allocated to gold to build exposure considering the geopolitical risks that are still around. So we continue to expect gold to rise further over the coming months," Staunovo said.

Bullion tends to shine during geopolitical tensions, economic risks, and a low interest rate environment. Markets are pricing in a 59.4% chance of a 25-basis-points cut at the Fed's December meeting, per the CME Fedwatch tool.

However, "if Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," said Soni Kumari, a commodity strategist at ANZ.

The Chicago Federal Reserve president reiterated his support for further US interest rate cuts on Thursday.

On Friday, spot silver rose 1.8% to $31.34 per ounce, platinum eased 0.1% to $960.13 and palladium fell 0.6% to $1,023.55. All three metals were on track for a weekly rise.