Impact of Coronavirus on Global Hospitality and Tourism Industries

Overview - Coronavirus also known as COVID – 19, is considered as one of the most pandemic situation all over the
world. Most of the countries are suffering from such new strain of Coronavirus i.e. Severe acute respiratory syndrome
coronavirus (called SARS - CoV 2).This has bring in a huge impact on every sector across the world resulting in fall in the
economy globally. One of the impacts can be seen in the context of the UK’s Hospitality as well as Tourism Industry which
was considered as valuable economic booster for it thereby providing massive employment and services to large number of
consumers at both domestic as well as international level.
LO 1 Scope of Global Hospitality and Tourism
The scope of hospitality industry across the globe basically comprises of wide range of businesses which provides
services, facilities such as accommodation, food and beverage, entertainment, gaming, relaxation zone and its other related products.
Currently, this industry contributes around almost 10% in the UK GDP and is considered as one of the highest employment sector
providing massive employment and profits as well. Tourist sector contribute to high sales, large profits, huge jobs, tax revenues which
attributes to increase in economic growth. By focusing on factors such as:
Sustainable services
Eco friendly products and customizable facilities
Easy booking with economic and pocket friendly cost
Attractive local tourist destinations
But with the outbreak of COVID – 19, this industrial sector has been facing downfall in its business line with following
consequences:
1. Changes in the buying behaviour and purchasing power of individual consumer worldwide.
2. Poor economic, financial as well as political assistance and methodologies by the government for supporting the
hospitality and tourism sector industries (Gössling, Scott and Hall, 2020).
3. Resilience capability of an individual, business organisation and tourism destination has been affected as a result of such
pandemic crisis as fear of getting infected with the virus is among every individual.
4. Need for sound strategies and proper management related to the destination along with strong and effective marketing
response can help needy individual in reaching required place.
LO2 Macro Environmental issues
The new outbreak related to the pneumonia as caused by the novel coronavirus has begun in the Wuhan city of China in December, 2019 and had spread
subsequently across the globe i.e. among many countries. It has been announced by the World Health Organisation (WHO) as a public health emergency having international
concern. It has thus created huge impact which can be studied with the help of macro environmental factors such as SWOT and PESTLE analysis.
1. SWOT Analysis – For performing systematic analysis of the COVID-19 epidemic prevention and control strategy S, W, O and T analysis can be done for
formulating and identification of appropriate strategy for fighting with it.
Strength – Improvement in the Medical and Health Care System in UK as well as in the other countries has been noticed while this critical situation. Also, preparations have
been made by increasing the number of beds in the health and medical institutions. Furthermore, emphasis has been made on increasing medical resources, technologies and
technicians along with effective cooperation all other departments.
Weaknesses – Because of huge population of UK, there are many places where individuals are not serious of such epidemic situation. They are refusing to follow health as
well as safety guidelines as published by the World Health Organisation such as maintaining of social distance, wearing of mask, staying away from crowded areas, stay home
etc. This has resulted in increase in the case of COVID – 19 and because of lack of awareness, relief materials the situation started deteriorating day by day. People use to
travel from one place to another without having any idea whether they are in risk zone or not.
Opportunities – By creating public awareness related to the COVID - 19 epidemics on the large scale has provided a good opportunity for making nation informed about
infectious disease (Wang and Wang, 2020). Also, what preventive measures needs to be taken for protecting ourselves as well as family members from COVID – 19 with the
help of advertisements, newspaper can help UK in minimizing cases. By restricting travelling from one place to another and remaining at home has resulted in decline in
hospitality and tourism graph.
Threats – UK under the pandemic situation of Coronavirus has been suffering from impact which has been made on the national economy because of international restrictions,
cancellation of international flights, other transportation, accommodation bookings etc. Also, it has caused import and export trade of UK to some extent during such time
period.
2. PESTLE Analysis – It analyses overall environmental factors which has made impact on the working of UK hospitality and tourism industry because of
Coronavirus.
Political – Because of government provisions of staying at home and restrictions on travelling at both the domestic and international level, it has resulted in negative fall in the
profits of hospitality and tourism business firms.
Economical - Lack of workforce as a result of home quarantine has affected the production as well as profitability scenario of the UK economy. Thus, economic output
reduced bringing in poor market performance.
Social – Coronavirus has discouraged large number of individuals from travelling because of fear of catching virus. Thus, most of the airlines companies along with hotel
industry are facing lack of customers and making losses.
Technological – Conducting of continuous research and experiments for controlling virus by medical and health care institutions, some advancement has been achieved related
to testing of suspected individual.
Legal – Many countries has made lockdown as one of the most effective way for stopping the chain of coronavirus from being spread. Punishment has been imposed on
breaching of rules and regulations during such pandemic situation.
Environmental – COVID – 19 has creates negative impact on environment as individuals are not able gathered socially for any purpose. Though pollution level and air has
become more purified, but it is at the cost of human health.
Global Hospitality and Tourism Industries
LO 3 Contemporary Issue having impact on Hospitality and Tourism Industry
One of the most contemporary issues which have made both the hospitality as well as Tourism Industry of UK suffered includes Coronavirus,
Brexit situation. From the past few months, there has been drastic and unprecedented fall in the graph of visits by the tourists. It has thus resulted
in the almost closure of few business firms. Following are some contemporary issues discussed:
1. Brexit Situation – It has been defined as the plan on the basis of which Britain has decided to get split from the European Union
with the aim of having separate nation as well as pursuing of its own regulation policies. Because of such Brexit crisis, it has enabled the whole
economy to come up with large number of new changes as was there earlier before. Also such changes had resulted in deterioration of
relationship of the United Kingdom with all the other European countries in the context of hospitality, trade, tourism, security sector. Also it has
created impact on the extent of migration which used to take place in between both the countries. It has been noticed that because of such sore
relationship the graph of tourism and hospitality sector has declines which in turn has impacted trade relationship in between both the economies
(Halliday and Hacker, 2017). Because of the Brexit debate, large numbers of migrators as well as tourists change their mind of supporting UK
and hence negative impact started thereafter.
2. Coronavirus – During the pandemic of Coronavirus crisis, the hospitality industry is considered as one of the mostly worst
affected industries along with the tourism sector. Almost, all the countries along with UK have restricted arrival of foreign travellers from other
countries so as to minimize the risk of such disease from being spread on rapid speed. It has thus resulted in cancellations of bookings for
travelling, flights and of hotel accommodations as well on the mass scale which in turn has bring recession in the global economy. Also, large
number of workforce has become jobless and requires government support after sharp decline has occurred in the first quarter of the year 2020.
LO 4 Issues related to Globalisation of Hospitality and Tourism Industry
With the help of Globalization, most of the hotels and travel business firms hire individuals from different countries as it
provides ease in dealing with the foreign customers. It assists in understanding different languages, customers taste and preferences, culture
etc. Globalised economy provides more travellers and visitors coming from different countries as a result of which hospitality and tourism
industry requires large workforce to serve them as per their needs and taste. But with the emergence of Coronavirus, this sector is highly
affected resulting in downfall of business graph. Following are some issues which are being currently faced by such industrial sector:
Globalization helps UK tourism and hospitality industry in expanding their business across other countries and cultures so as to gain market
share additionally (Nicola and et.al., 2020). The higher the number of properties will help in attracting more customers and profits as
well.
Seasonal employment is another issue which many individual has to face. During seasons, there are lot of jobs available which vanish with
the end of peak season. This brings unemployment, poverty with no income for unspecified time period as everything depends on
tourism and hospitality situation.
CONCLUSION
Coronavirus has made disastrous impact on the economy of almost every countries resulting in reaching in the recession phase. Highly
affected industry during such crisis is Hospitality and Tourism as government of every country has imposed restrictions on making
international as well as domestic travel.
REFERENCES
Books and Journals
Gössling, S., Scott, D. and Hall, C. M., 2020. Pandemics, tourism and global change: a rapid assessment of COVID-19. Journal of Sustainable Tourism. pp.1-20.
Halliday, A. and Hacker, J., 2017. Brexit and European science.
Nicola, M. and et.al., 2020. The Socio-Economic Implications of the Coronavirus and COVID-19 Pandemic: A Review. International Journal of Surgery.
Wang, J. and Wang, Z., 2020. Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis of China’s Prevention and Control Strategy for the COVID-19 Epidemic.
International Journal of Environmental Research and Public Health. 17(7). p.2235.
Online
Brexit and Air transport issues. 2019. [Online]. Available through: <https://www.iata.org/policy/consumer-pax-rights/Pages/brexit-study.aspx>.