Impact of COVID-19 on Tourism and Hospitality Industry

Business and Manage-
ment Dissertation

Table of Contents
Title: “To explore the influence of COVID-19 on Tourism and Hospitality industry at Global
level”................................................................................................................................................4
A) INTRODUCTION......................................................................................................................4
Rationale and importance of the research............................................................................4
B) Theoretical background and research focus.............................................................................4/5
Theme 1: Implication of COVID -19 over the global economies........................................5
Theme 2: Impact of COVID-19 over productivity and profitability of Hospitality and
Tourism industry....................................................................................................................5
Theme 3: Challenges faced by Hospitality and Tourism industry due to current pandemic5/6
Theme 4: Solutions adopted by Hospitality and Tourism industry for dealing with issues of
COVID-19...........................................................................................................................6/7
Research aim:........................................................................................................................7
Research Objectives...............................................................................................................7
Research Questions................................................................................................................7
C) Justification and contextualization..................................................................7/8
Why is your research important?............................................................................................8
Why is it important to find what you are trying to find?........................................................8
How will it build on the existing body of evidence?..............................................................8
Is it timely? Does it respond to an existing need? What makes it so?................................8/9
D) Methodology...............................................................................................................................9
REFERENCES.........................................................................................................................12/13
Title: “To explore the influence of COVID-19 on Tourism and Hospitality industry at
Global level”.
A) INTRODUCTION

Tourism and hospitality industry is one of the industries that is most hit by the COVID-
19. Travel agents, hotels, providers of leisure activities, restaurants and other associated service
companies discontinue their operations. Most of the people are staying home & avoid travelling
by their choices and government restrictions as well. The current pandemic affects adversely on
the hospitality and tourism industry as it declines the overall performance and profitability (Yeh,
2020). The health of employees and guest is top priority of industry and is also required to reor-
ganise for gaining the opportunity. The hospitality and tourism industry are more focused to-
wards providing sustainable level of quality to their guest so that bookings are increases that fur-
ther assist in maintaining performance in an effective manner. The industry is making use of var-
ious strategies to recover their losses and to get on track which is important for retaining at mar-
ketplace. These are offering healthy foods, promoting safety, adopting quality level of sustain-
ability and so on.
The world economy is facing a situation of worst crisis since the time of century. Economies
across different parts of the globe are facing a sharp contraction in the growth that is caused
because of the economic lock-down situation that is related to the spread of virus. It has led to
reduction in output supply, employment scenario and consequent demand. Many industries that
include essential goods and services like drugs, pharmaceuticals, essential health and financial
services like insurance are observing a rapid growth. But other industries that are based on
discretionary spending like entertainment, restaurant and tourism are hit because of this dynamic
situation.
The impact of economic slowdown is widespread because each sector is dependent on
global supply chains and trade mediums. The panoramic is already existing and slowing down
the economy. The industries like entertainment, restaurants and tourism are one of the hardest hit
industries. Impact of economic slowdown was widespread because each sector is dependent on
the trade and global supply chain. The pandemic is leading to existing slowdown and is of much
serious concern (Jones, and Comfort, 2020). Current report is based on analysing the immediate
effect of covid-19 virus on travel and tour sector across globe. There will be analysis of the
impact of covid-19 on the hospitality as well as travel industry. The main reasons behind the
project are to analyse the impact of covid-19 situation on tourism and hospitality industry. It is
related with analysing the consequences of covid-19 virus across global markets. Further there is
an analysis of the impact of covid-19 virus over profitability and productivity on the travel and

tourism sector. The main reason for this project is to understand the way there can be regulation
of the covid-19 impact and examine the issues that are faced by hospitality and tourism sector in
this pandemic situation.
Present research is based on analysing the laid aims and objective by application of secondary
available information. For this purpose there will be collection of information from available
sources that are going to assist in the process of analysing and reaching to relevant
recommendations.
Rationale and importance of the research
The main reason behind conducting this dissertation is to identify the impact of COVID-
19 on Hospitality and Tourism industry. It is one of the major issues which has negative influ-
ence on business performance and productivity in a negative manner. This topic of dissertation is
significant for hospitality and tourism industry to develop new strategies and come on track at
marketplace. Apart from this, present investigation is also significant at personal level as it en-
hances time management, data analysis, data collection, research skills and communication skills
of researcher. All these skills will be advantageous for investigator in conducting dissertation in
an effective and systematic manner.
Moreover, it will also assist researcher in conducting more studies in future properly.
B) Theoretical background and research focus
Theme 1: Implication of COVID -19 over the global economies
According to Madhuri Saripalle, (2020), it is stated that world economy is facing major crises
due to this pandemic COVID-19. In addition to this, economies all over the globe are seeing a
sharp contraction within growth caused due to economic lock down that took place to control
spread of virus. All this effect on the business in a negative manner such many of the companies
has shut down, and it has major loss for the economy (Prayag, 2020). It is determined that
Tourism industry is affected adversely due to coronavirus as travel sector is directly impacted by
Government’s decision to quarantine dozens of cities and ban overseas tour groups (Impact of
COVID-19 on hospitality industry, 2020). Many of the Airlines trimming their schedules and
cancelled all flights all over the World. This effect on the overall economy and is not easy to re-
cover quickly.

Furthermore, the Governments are bringing effective plans to decline the negative affect and to
settle down things in a proper manner.
Theme 2: Impact of COVID-19 over productivity and profitability of Hospitality and Tourism
industry
As per the viewpoint of Dogan Gursoy, (2020), it is stated that pandemic has confronted the hos-
pitality sector with an unprecedented challenge. The strategies used by government to flatten this
pandemic were social distancing, community lock downs, mobility and travel restrictions that
have resulted in temporary closing of hospitality businesses and decline the demand for busi-
nesses (Seraphin and Dosquet, 2020). In addition to this, many of the countries prohibited visi-
tors to travel which impact on the tourism sector and many of the tourism business has shut
down. It shows that COVID-19 has affected negatively on the overall performance of hospitality
and tourism industry which is not easy to recover rapidly.
Moreover, many of the organisation shut down and many of is not able to sustain which arise a
high loss to the industry and impact adversely as well.
Theme 3: Challenges faced by Hospitality and Tourism industry due to current pandemic.
According to Greg Harbor, (2020), COVID-19 has affected travel sector due to resulting travel
restrictions and slump within demanding among travelers. In addition to this, tourism sector has
been adversely affected by the spread of coronavirus as many of the new countries have intro-
duced restrictions on travel to reduce the spread. It is determined that in many of the cities
planned travel drop down by around 80% which shows that industry has adversely or massively
impacted by COVID-19 (How the coronavirus impacted on Travel industry, 2020). Unilateral
and conflicting travel restrictions arise regionally as well as many tourist attractions globally
such as amusement park, sports venue and museums closed, also many regions and countries-im-
posed quarantines, restrictions for citizens or recent travelers, entry ban on the most affected ar-
eas. It is analyzed that travel restrictions have negative economic influence on Tourism and Hos-
pitality industry. The highly infectious of corona virus continues affecting the sector and arise se-
rious question about the survival of Tourism sector.
According to Vik Krishnan, (2020) COVID-19 has affected every industry across the globe and
one of the major industries that hit by this pandemic is Hospitality industry. It is analysed that re-
covery of pre COVID-19 take years and is not easy as well. The restrictions and ban of hotels de-
cline the overall growth of Hospitality industry and many of the hotels shut down permanently as

they are not able to carry out activities in this situation. In addition to this, many of the hotels
laid off its employees or cut down salary of staff members as they are not able to pay them and
fulfil their requirements. This pandemic impact adversely on the hospitality industry which is not
easy to recover till 2024. The hotel managers are going to struggle to manage price wars, pres-
sure to reduce rates, occupancy drops and so on. It is vital for hotels to act wisely and focusing
on retaining at marketplace in this situation (Lu and et. al., 2021).
Theme 4: Solutions adopted by Hospitality and Tourism industry for dealing with issues of
COVID-19
As per the viewpoint of Lena g. Combs, (2020) The impact of COVID-19 is being felt through-
out the entire Tourism industry as rebuilding and reopening destination will need a joint up ap-
proach. It is analyzed that tourism workers and businesses are benefiting from economy wide
stimulus packages as government is also introducing specific measures to this sector. One of the
major strategies used by traveling industry is to restore traveler confidence and stimulating de-
mand with clean and safe labels for the sector. In addition to this, travelers get information apps
for visitors as well as domestic tourism promotion campaigns.
Furthermore, most of the companies bringing innovation in offering services and ensure its cus-
tomers about the safety precautions followed by them.
On the other hand, hospitality industry focusing on giving response to this major health issues as
hotel operators are planning with their teams for the possibility of two scenarios that is:
If hotel get infected with virus and potential loss of income from diminish travel because of
virus spread (Yeh, S.S., 2020). The organization’s make use of applications which directly track
customers and provide them information if they are infected from the virus. In addition to this, it
provides information to its customers about population stay within the hotel and from which ar-
eas as it makes customers to trust on hotel services and continue to reserve it.
Moreover, hotels make use of digital technology and decline face to face interaction to minimize
the risk of spread the virus. Furthermore, many of the hospitality organisations ensure its cus-
tomers about their safety and follow all the precaution as well as guidelines of government. All
these strategies will assist Hospitality and Tourism industry to deal with such issues and rapidly
maintaining its performance at marketplace.
Research aim:

“To identify the impact of COVID-19 on productivity and profitability of Tourism and Hospital-
ity industry”.
Research Objectives
 To explore the implication of COVID -19 over the global economies.
 To determine the impact of COVID-19 over productivity and profitability of Hos-
pitality and Tourism industry.
 To analyze the challenges faced by Hospitality and Tourism industry due to cur-
rent pandemic.
 To examine the solutions adopted by Hospitality and Tourism industry for dealing
with issues of COVID-19.
Research Questions
 What is the implication of COVID-19 over the global economies?
 What is the impact of COVID-19 over productivity and profitability of Hospitality and
Tourism industry?
 What are challenges faced by Hospitality and Tourism industry due to current pandemic?
 What are the solutions adopted by Hospitality and Tourism industry for dealing with is-
sues of COVID-19?
Literature review:
Effect of COVID -19 over the global economies
As per view point of Mathew Paniati (2020), Coronavirus is the major event in the global
economy this year. United States has been worst affected because of the spread of covid-19 virus
there have been tense of million cases and hundreds of thousands that that has led to
overwhelming of medical capacities. It has also led to major economic sectors in a situation of
the freeze. In the present situation of preliminary of the year 2021 United State accounted for
devastating majority of covid-19 virus and high manners of deaths in the Western hemisphere
although by having one third of the region’s billion of an individuals. The World health
Organisation acknowledged the COID- 19 infection as the global pandemic. Large number of
individuals as per to various fragments of the world representing indications of covid-19 created
a panic amongst some of the republics in the initial phases (Baum and Hai, 2020). Various
businesses as across different portions of the world have been radically affected because of the

covid-19 virus. As per the world travel and tourism assembly travel is one of the enormous
subdivisions that is causative approximately 11.5 % of the global gross national product and is
also a major contributor as per to 12% of the global employment (Baum and Hai, 2020). In the
initial stages in the year 2019 December Chinese visitors started facing a global ban the tourism
business was practically affected at this stage only. Some industries started having a drastic
effect with serious implications across various other industries like entertainment industry,
hospitality industry, food and beverage as well as luxury goods industry (Sobaih and et.al.,
2021).
The tourism industry was globally and nationally is affected because of the challenges
arising because of the covid-19 virus. Many international airlines and hospitality brands that are
running through family-run operations small and medium businesses are to immediately seek
help to rebuild the businesses. There are many important factors that are considered by people in
this scenario of covid-19 that has affected the tourism industry (Guzzo and et.al., 2021). There is
increasing unemployment situation people have lost half a million jobs in UK tourism sector
because government has failed to significant the open the international tourism. The impact of
travel restrictions has resulted into a damage of 22.3 billion in the overall contribution towards
economic growth in UK. Many existing tourism brand is focusing on using certain measures that
can help them in dealing with this impact of covid-19 virus. For instance TUI as part of global
tourism industry is working towards using a sustainable approach to minimise the overall
environmental impact. For this purpose there is minimization on the environmental impact
respecting of culture and bringing economic benefits to communities (Sigala, 2020). The travel
and tourism business is playing a positive role across different parts of the work because tourism
sector accounts for 10% of the world’s GDP and 7% of the exports across different parts of the
world. Tourism the present 25% of the economy of a country
It is said that one in every three household relies on the tourism it is part of their income.
Domestic tourism contributes towards 20 billion pounds to the economy (Kim, Han and Ariza-
Montes, 2020). It is very much reliant on the tourism industry to be part of the economy of
country like UK. Tourism sector has been adversely affected in the past few years because of the
global pandemic situation (Our approach, 2020).