The fact that COVID-19 has caused massive disruptions to our way of life is now beyond doubt. Within the seven months that the virus has been around, it has continued to wreak havoc, leaving a trail of destruction in its wake.
As of the time of writing (August 4, 2020), more than 18.2 million people have contracted the virus, The United States leading with 4.8 million infections. Close to 700,000 people have succumbed to the disease and about 11 million recovered, with the rest still considered active cases.
The tourism industry has undoubtedly taken the worst beating from the ravaging effects of the coronavirus disease. The following are the five impacts of COVID-19 on the global travel & tourism industry.
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#1 Decrease in the Number of International Travelers
Even before COVID-19 was declared a global pandemic, several countries all over the world had already taken proactive containment measures, such as introducing travel restrictions. As infections began to pick up pace, most travelers were basically returnees going back to their native countries.
A shrink in the number of international travelers has undoubtedly reflected negatively on the global travel and tourism industry. But as it turns out, we might need to buckle up for a bumpier ride ahead. According to the United Nations World Tourism Organization, the global international tourist arrivals might drop by 20 to 30 percent in 2020. That works out as between USD 30 and 50 billion in losses.
Remember, these estimates are subject to the hopes that scientists find a cure or vaccine to the deadly virus within the year. Should the status quo persist, then we might be looking at a scenario where countries will permanently ban all international arrivals in desperate attempts to contain the highly-contagious virus.
#2 Loss of Jobs
As the coronavirus disease leaves a trail of economic destruction in its wake, it’s only natural to expect massive job losses. However, the global travel & tourism industry was already feeling the heat just a few months after the virus began to spread.
With all the travel restrictions imposed by several countries around the world, it was only a matter of time before businesses in the hospitality industry began to feel the pinch.
The airline sector was the first to take a beating. Even in countries that were still receiving international arrivals, it was nearly untenable for airlines to continue with their operations due to significantly reduced passenger capacity.
After airlines, followed the hotel industry. For instance, as of April 11, 2020, more than 95% of hotels in Austin, Texas, went unoccupied. Hotel facilities that relied primarily on the revenue from international guests, such as beachside resorts and country clubs, were the worst hit.
Other tourism-related sectors that have since been affected by COVID-19 include the casino industry, the restaurant industry, and the cruise industry. Not forgetting the car rental industry. Manufacturers and retailers of essential car accessories like universal roof rack have been struggling to find new buyers. All they can hope for is that a miracle happens to restore things to the way they were before the virus broke out.
#3 Decrease in the Popularity of Business Travel
The prospects of leisure travel are already in limbo and the situation may remain that way for an unforeseen duration. Not many people would prefer to go on vacation with fears of a deadly virus traveling around like wildfire.
Countries that have since lifted their measures on lockdown can only report a handful of travelers. And a huge percentage of those are domestic travelers.
In such a situation, the business travel sector would be the only recourse for travel and tourism stakeholders. That’s because whatever happens, we must continue working for self-sustenance amidst the COVID-19 pandemic.
However, the situation is quite the other way around. Technological innovations like video-conferencing and screen-sharing have made it easier to conduct corporate meetings virtually, eliminating the need for business travel. This has dealt a heavier blow to an already battered industry.
#4 Disruption to the Global Events’ Calendar
This is another significant effect of COVID-19 on the tourism industry. Events of different nature, ranging from sporting events to religious, cultural, and even military events, have had to be either called off or rescheduled to a later date.
When a disruption occurs to the global events calendar, there are only two things to expect. First, various event sponsors may pull out. That’s because they would not be getting any meaningful returns on their campaign investments when the events are canceled or rescheduled to a later inconvenient date. Also, cancelation or rescheduling of events affects the number of attendees to those events, which bears negatively on ticket sales.
Recently, there have been widespread rumors suggesting that the 2020 Olympics could be canceled. If that happens, there’s no telling if the event will attract significant audiences even if the International Olympics Committee goes ahead and conducts it anyway.
#5 A Paradigm Change in the Concept of Traveling
When COVID-19 first struck, it was only natural for countries to impose lockdown measures and travel restrictions. The expectation was that the virus would come and go without causing any significant disruptions to the global economy.
But several months later, countries are grappling with a dilemma of whether to reopen their economies and avert a possible recession or continue with lockdowns and face starvation. Some countries have had to reopen their economies while still monitoring their COVID-19 situation.
By opening up their airspaces, such countries can now receive travelers. However, to instill the spirit of self-discipline among travelers, the whole art of traveling will shift from being a comfortable, convenient experience to a solemn and highly-precarious one. You can no longer sleep peacefully on a plane when the guy sitting next to you exhibits COVID-19 symptoms, even if they’re not necessarily positive.
Granted, COVID-19 has adversely affected the global world economy. But if you’re in the tourism and travel industry, you’d better brace yourself for an even bumpier ride.
