COVID-19: The hardest hit to the tourism and travel industry
Stay at home — these three words have grounded holiday plans over the globe as the coronavirus pandemic rages.
The revolution in technology that has brought us closer together by making travel easy, and fueled more than one billion trips per year — is impotent in blocking a virus that demands ‘we shelter in place ‘.
The travel and tourism industry was among the first sectors to be hit by the pandemic and maybe the last one to revive.
According to the industry expert, the virus has given a sharp drop in bookings. Spiraling cancellations and the latest restrictions on international or domestic travel by either air rail or bus sector has left this sector at a virtual standstill.
This multibillion-dollar sector, which is a growth engine for many economies, is on its knees worldwide. From top executives to ticketing staff, forex dealers to housekeeping personnel, guides and hawkers at tourist spots, all face an existential crisis. World Travel and Tourism Council, a trade group representing major global travel companies, projects an overall loss of over 75 million jobs and about 2.1 trillion dollars in revenue.
India’s tourism sector estimates an overall loss of Rs 5 lakh crore and job cuts for 4–5 crore people. The slump in travel will cause a $910 billion hit to the US economy that is seven times the impact of 9/11 on the industry, according to the analysis.
“Summer vacations on hold, worst time of the year for this to happen,” says Isabel Hill, director of the Commerce Department’s National Tourism Office. It is the season when the travel and tourism industry makes a significant amount of its revenue.
So why this sector will take the longest time to revive?
Fear is the key. Fear of the invisible virus. Fear of touching someone. Fear of being touched or being infected, and also fear of bringing back the virus from travels overseas. Fear! Yet more fear.
Global travel seems bleak with country borders not open to all for a while. Some geographies might become a no-no for a while. Countries like Italy, Spain, Germany, the UK, and the US, which have recorded a large number of corona demise may not have too many takers for tourism soon. Tourism may be domestic directed. Business travel will also shrink significantly; since Zoom meetings have become the norm. MICE (Meetings, Incentives, Conferencing, and Exhibitions) market will go into a coma for a while. Group travel will reduce. Leisure travel too will dwindle for some time. With God too headed for a hiatus, religious tourism will drop. Destination weddings will also suffer a setback. School trips will dry up. With the government likely to mandate that the middle seat in the economy be left empty to maintain social distancing, Air travel will become more expensive. Cruises will be shunned for a while. With ‘Hometown’ tripping, big segment Hotels will have nothing to gain.
This business may take anything between 9 to 24 months to start climbing back to previous peaks. Till then the headwinds will be severe. Some will succeed, some will struggle and some will perish.
Although, with so much uncertainty-shut borders, grounded flights, shuttered establishments, job losses, recessionary economy, uncertain school terms, holidays seem a distant frontier for now.
Note: Photo credits to their owners respectively.
