Tourism And Hotel Economic Analysis

Running head: TOURISM AND HOTEL ECONOMIC ANALYSIS
TOURISM AND HOTEL ECONOMIC ANALYSIS
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TOURISM AND HOTEL ECONOMIC ANALYSIS1
Summary of the Article
One word which has shattered almost the whole world is Coronavirus. And the same has
affected 81 passengers, who all are stuck on board in the MV Greg Mortimer cruise ship which is
anchored beside the coast of Uruguay (sbs.com.au, 2020). It has been stated in this news that
almost 100 passengers from Australia are present in this ship. Out of 126 passengers and crew
present ion the ship, 81 passengers, as said earlier, has been tested positive, whereas results of 90
other people are awaiting and will be received within 12 to 24 hours. The nationalities of the
affected persons are not disclosed, but it can be noted that there are at least few Australians who
are affected with this disease. Australian nationality has been confirmed to be on board of this
ship, which is stranded in Montevideo for the last two weeks. The affected people are treated in
the hospital of this capital city of Uruguay. The operator of the cruise are working and planning
with the authorities of Uruguay to send the unaffected people to their homes through chartered
flights as early as possible.
References to Economic Theories
The overall demand and supply of the tourism and leisure industry will be affected,
where demand for tour packages and other leisure activities like that of Cruise Travel that is
mentioned in the above discussion will be lessened. All the factors of production will also get
hugely affected due to sudden fall in demand. There will a shift in the demand curve, where
disposable income will be there with the people, but the overall demand to avail the services in
travel and tourism sector across the world will get affected (Sato, 2013). Revenue or Yield
Management will play an integral part in this scenario, through which the authorities who are
having the monopoly power will only be able to increase their revenue earning through following