The latest global epidemic, COVID-19, has brought travel to a standstill. The pandemic has hit the tourism industry in the worst possible way. The amount of economic loss this poses to the countries is also massive. The number of job losses and a rise in unemployment due to this is also huge. The technology industry which helped bring us closer to the travel sector is also unable to stop the Coronavirus pandemic. With people locked at home due to strict lockdown policies, one can only wonder what will happen in the tourism industry.
Analyzing the total losses in the tourism industry is not that easy. This is mainly because the losses increase with the increase in the COVID-19 infection rate. But according to the report from the World Travel and Tourism Council, losses can be around $2.1 trillion in revenues alone. On top of this almost 75 million jobs are at stake.
Reopening New York’s economy means luring back tourists
Will they want to come to a city with officially confirmed 188,000 coronavirus infections and 20,500 deaths?
Of the 900,000 jobs projected to be lost citywide, 400,000 are related to tourism https://t.co/BF9tfsuzeY
— Alfons López Tena (@alfonslopeztena) May 16, 2020
Coronavirus: Effect of the pandemic on the tourism industry
Gloria Guevara, CEO of World Travel and Tourism Council, is trying to win over the government’s attention to receive some support in order to cushion the potentially large amount of job losses. The worst effect on the tourism sector will be seen right after the effects of the Coronavirus pandemic diminishes. Many countries may not allow overseas travel for a significant amount of time for the time being. Containing the virus seems to be the best way to fight of COVID-19. Therefore, it might be possible for countries to stop international travel for several months if not years.
Even if international travel is allowed, the frequency will be very less. Another point is the economic condition of the people suffering from coronavirus. With the basic instincts of survival kicking in, people are careful about spending on any luxury. Right now vacations are something, no one will go for. It has a lot of health risks, and moreover, it costs a lot.
For the tourism industries to survive, they need to come up with an economic solution of some sort. With so many losses already seeping in, it is unlikely that agencies will offer even more discounts. To conclude, the tourism industry might not recover any time soon.
Let us know your opinions on this topic in the comments section below!