Impact of COVID-19 on the UK Tourism Industry

This essay evaluates the impact of COVID-19 on the UK tourism industry. It discusses the challenges faced by the industry, such as job losses, decreased demand, and restrictions on travel. The essay also explores the measures taken by the government to overcome these challenges and the positive impact of post-pandemic trends in domestic tourism.

Evaluate the impact of the
Covid-19 Pandemic on the
UK tourism industry

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
Impact of COVID-19 on the UK Tourism Industry.....................................................................3
.........................................................................................................................................................4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Corona virus pandemic has been bad for business sector, especially the UK's tourism
industry. In the year 2020, there were at least 3 million deaths has been recorded due to COVID-
19 pandemic. As of 31st December 2020, corona virus had infected over 82 million people
worldwide. In addition to this, due to pandemic many industries and sectors has suffered a lot of
challenges while doing business. Some major industries who have impacted by pandemic are
hospitality sector and Transportation sector. The present essay will be based on impact of
COVID-19 pandemic on the UK tourism industry. Prior to the emergence of pandemic, the travel
industry and other hospitality sector was about to reach an estimated value of £257bn which is
quite high amount.
Impact of COVID-19 on the UK Tourism Industry
Travelling is the most popular and entertaining way to meet new people and explore new
destinations only if the route is free of crime, anxiety, depression and illness. Pandemics are the
most disturbing news for travellers who want to explore new places. In such financial and
economic crisis it may be difficult for tourism and hospitality sector to avoid uncertainty quickly.
During that time people have to deal with challenges to avoid the illness. Besides, not on the
people who travel but also the other people they contact during the journey are at risk because
hospitality sector were highly influenced during pandemic time. Due to emergence of a new
variant of virus, every year since 2019 tourism sector have to be prepared for rapid changes of
restrictions and guidelines provided by government related to safety and hygiene. In UK,
Pandemic has lead to mental complications such as depression, anxiety, mental disorders because
of loss of income (Chemli, Toanoglou and Valeri, 2022). Especially in tourism sector, this
mental complications have impacted employment, business performance and labour market. The
world tourism sector is facing the impact of the financial crisis because of pandemic and national
lock-down. Tourists travel risk and management perceptions has also faced problems. There
were many tourist doing unnecessary travel before a nationwide lock down was announced in the
year 2020. After that, government of UK has announced relaxation with the opening of tourism
sector operation. Business activities in these industries became easier for some time, although
regional rules and policies have led to differing impacts on many types of businesses. Tourism
industry was again affected badly by the 2nd and 3rd lock-downs in the year 2020 and 2021.

During the pandemic, demand for travel industry was more because people want to go
their home town to keep them safe. Overseas travel and tourism was more in the year 2020
because of this passenger traffic at UK airports and station people have to face a lot of challenges
related to travel restrictions and safety precautions. Just because of this reason more international
restriction were imposed in the month of august but gradually fell at a slower pace. According to
survey taken at that time, there were 2 types of passenger traffic have performed domestic and
international visitors traffic was far more seasonal (Khalid, Okafor and Burzynska, 2021).
During that time many people were losing their jobs and end up being unable to purchase a basic
necessity while travelling. However, the government of UK have taken drastic measures to
control such issues but these restrictions will hit tourism revenues, performance level and
productivity. This is the brutal effect a global lock down has had on a hospitality sector that was
one of the fastest growing industry. Due to travel restrictions in the UK, the government
introduced policies related to safety and health of people. During that time, government has
revealed the restrictions on travelling in order to maintain travel risk, service delivery,
transportation facility, distribution channels, management of hygiene and safety.
Source: (Pham and et.al., 2021)

From the above mentioned chart, it has been evaluated that domestic and international air
passenger traffic fell to less than 2 percentage in the year 2020 month of February and high fall
in April 2020. As per the report, London would record the highest drop which has impacted the
business and employment in the tourism sector.
As businesses closed and national lock downs introduced in the year 2020, restrictions on
travel was increasing as the time passes. The travel, hospitality, tourism sector has been badly
affected throughout this year, which has led to large number of job losses which was almost 2.4
million. Due to this, many people was facing financial losses and caused global health issues.
They were not able to fulfil their basic needs and this has affected mental wellbeing of visitors
(Kumar and Nafi, 2020). Along with this, closing of hotels, restaurants, pubs, attractions has also
impacted the tourism sector and transportation service. People in UK are doing jobs in this sector
have faced a lot of challenges and end up with the lowest incomes. Around more than 20% of the
UK working age population has been impacted by pandemic. In the tourism sector,
According to report and survey taken during that time, nearly 50% of all the jobs at risk
are in this occupations earning less than as compared to other sector. The businessmen are not
able to continue to employ and pay their employees which has impacted their daily routine lives.
In addition to this, the pandemic has brought heavy changes to transportation facility and the way
they can provide benefits and accommodation to their customers. With the biggest challenges
around the world, the areas of safety measures, maintaining hygiene and social distancing has
been taken into consideration (Pham and et.al., 2021). Because of this, the travel industry was
having high pressure of taking these measures seriously in order to maintain the health of
customers. They are also investigating different seating arrangements in the flights, buses and
trains providing safety. By having seating options available travel industry was allowing for
profitable density of travelling. Travel companies have to make more investment in maintaining
hygiene. This pressure has impacted many businesses and their business operations. The
pandemic shock has impacted the demand side and supply side both in the tourism sector. Which
includes restrictions on freedom of movement, fear of infection led to low social gathering,
closing of shops and mall, closure of accommodations as well as other facilities used for travel
and hospitality industry.

Source: (Toanoglou, Chemli and Valeri, 2021)
In the UK, During that time employment level have been decreasing and still not
recovered properly. As young generation and workers aged between 25-34 years have been more
likely to work in tourism sector, they have to leave their job because of unfair payment.
Unemployment has risen to 3% in this sector which is highest among all in the year 2020. The
tourism sector was also facing working hours issue. A large fall in working hours was another
indicator of the pandemic labour market in the tourism sector (Zhang and et.al., 2021). As people
have to work in the flexible working hours in which they have to work sometime more than
working hours and sometime no work. The workload has impacted many lives and employees
have to face heath issue such as mental health disorder, depression and anxiety. They were not
able to spend their precious time with their family members, relative and friends because of
heavy workloads. Some travel company has faced low working hours as compared to their pre-
pandemic levels. Their hours per worker are higher as employment is still below pre-pandemic
levels which has impacted their revenue and profitability and overall performance of employees.

There were also negative balance of payments due to heavy increasing trends in domestic and
local tourism. Furthermore, pandemic has also affected the public transport facility because
people were avoiding going by bus and trains maintaining social distancing. In the end of the
year 2021 and starting of 2022, easing of pandemic lock down measures a reopening of these
sectors especially travel industry and leisure activities of businesses has been noted (Toanoglou,
Chemli and Valeri, 2021). As the time passes, hotels and restaurant will have good opportunity
to gain advantage from domestic travellers. But they have faced huge issues in remaining viable,
while complying with very strict restrictions related to safety and health policies. It has been
noted that some popular area of the UK, such as south-west has to face a lot, and they battle hard
to overcome the negative impact of pandemic.

According to new research from Cumbria tourism, In 2020, Cumbria's visitor economy
contribute a huge amount which was £3bn to the UK, but by the end of this year in the may, the
corona virus has cost more than £1.45bn almost half of the travel sector related income for the
UK. Although, the government support for this sector has overcome the negative impacts.
Source: (Liu and et.al., 2021)
Recommendation:
On the positive impact side post pandemic, there was increasing trends in rate of tourist
flow to domestic destinations by having safety precautions. There was sudden increase in family
picnic and outings to nature based tourism and increase the numbers of people want to explore
there. There was increase in the standards in hygiene, health, communication and sanitation. It
has been recommended to wear a mask on daily basis, maintain safe distance and get vaccinated.
It is advisable to restore traveller confidence by using flexible policies solutions such as get

vaccinated. Build sustainable tourism and maintain cooperation to improve revenue. Provide
clear information to passengers and manage their safe return of international travel.
CONCLUSION
To conclude, due to corona virus pandemic air passenger arrivals fell from 6,804,900 to
112,300 in the year 2020. By evaluating the essay it has been concluded that, to deal with this
situation, government has taken steps like safety measures and promoting support towards nature
awareness and culture. People were highly attracted towards measures which includes travel
insurance, wearing mask, hand sanitizer, staying at home and mandatory RT-PCR report while
travelling.

REFERENCES
Books and Journals
Toanoglou, M., Chemli, S. and Valeri, M., 2021. The organizational impact of COVID-19 crisis
on travel perceived risk across four continents. Journal of Organizational Change
Management.
Pham, T. D. and et.al., 2021. COVID-19 impacts of inbound tourism on Australian
economy. Annals of Tourism Research. 88. p.103179.
Zhang, H. and et.al., 2021. Forecasting tourism recovery amid COVID-19. Annals of Tourism
Research. 87. p.103149.
Kumar, S. and Nafi, S. M., 2020. Impact of COVID-19 pandemic on tourism: Recovery proposal
for future tourism. GeoJournal of Tourism and Geosites, Year XIIII Vol. 33.
Khalid, U., Okafor, L. E. and Burzynska, K., 2021. Does the size of the tourism sector influence
the economic policy response to the COVID-19 pandemic?. Current Issues in
Tourism. 24(19). pp.2801-2820.
Chemli, S., Toanoglou, M. and Valeri, M., 2022. The impact of Covid-19 media coverage on
tourist's awareness for future travelling. Current Issues in Tourism. 25(2). pp.179-186.
Liu, A. and et.al., 2021. Visitor arrivals forecasts amid COVID-19: A perspective from the
Europe team. Annals of Tourism Research. 88. p.103182.