Impact of Consumer Spending on Hospitality Sector Amidst Covid-19 Pandemic

Newspaper article

Consumer spending tend to present and
reflects about the total money spent on final
goods and services by individuals and
households for personal use and enjoyment
within an economy (Agrawal, Cake and
Gresham, 2022). Further, the concept of the
Consumer spending can be regarded as
complementary to personal saving,
investment spending, and production in an
economy. Beside this, the concept and
implication of the consumer theory tend to
states about the how people decide to spend
their money that is based on the level of
individual budget constraints as well as their
preference level.
Based on the implication and use of the
consumer spending theory it has been seen
and analysed that the hospitality sector will
tend to struggle over the next 12 months
based on the issues and challenges created
by the global pandemic of the covid-19
(Elbanna and et. al., 2022). It has been seen
and analysed that the hospitality sector tends
to includes and comprises of the broad
category of fields within the service industry
that includes lodging, food and drink
service, event planning, theme parks, travel
and tourism along with the hotels, tourism
agencies, restaurants and bars. It has been
seen that the global pandemic of covid-19
leads to sudden lockdown which create
restrictions for the hospitality sector as
international as well as domestic tours and
travelling is not allowed along with check
on social gathering. Thus, hospitality sector
is the one that tend to be made struggle for
the next 12 months.
Figure 1: Decline in world GDP and
customer spending, 2021.
The above graph is presenting and
reflecting that the during the times of the
Covid-19 a decline on the customer
spending within the hospitality sector tend to
decline (Arıkan, 2022). This decline has
been perfectly supported by the consumer
spending theory as individuals tend to make
choices, and select the preferences based on
and subject to how much income they have
available to spend and the prices of goods
and services. During the times of covid-19
due to sudden lockdown the spending power
of the customers is significantly affected
thus, nit have mush amount to spend on the
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