Exploring COVID-19's Impact: Tourism and Hospitality Industry Analysis

This dissertation explores the significant influence of COVID-19 on the global Tourism and Hospitality industry. It begins with an introduction outlining the research's rationale and importance, followed by a theoretical background that examines the pandemic's implications on global economies, its impact on the productivity and profitability of the hospitality and tourism sectors, the challenges faced, and the solutions adopted. The research aims to identify COVID-19's impact on the productivity and profitability of the tourism and hospitality industries, supported by specific objectives and research questions. The methodology involves a literature review, analyzing secondary sources to understand the consequences of the virus across global markets, evaluate the impact on productivity and profitability, examine industry challenges, and assess recovery strategies. The report details how the pandemic led to travel restrictions, economic slowdowns, and operational challenges, while also highlighting the industry's responses, such as adopting safety measures, digital technologies, and government support, to mitigate the negative impacts and ensure long-term sustainability.

Business and
Management 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
reorganise for gaining the opportunity. The hospitality and tourism industry are more focused
towards providing sustainable level of quality to their guest so that bookings are increases that
further assist in maintaining performance in an effective manner. The industry is making use of
various strategies to recover their losses and to get on track which is important for retaining at
marketplace. These are offering healthy foods, promoting safety, adopting quality level of
sustainability 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
influence 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 enhances 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
recover 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
hospitality 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
businesses (Seraphin and Dosquet, 2020). In addition to this, many of the countries prohibited
visitors 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
introduced 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-
imposed quarantines, restrictions for citizens or recent travelers, entry ban on the most affected
areas. It is analyzed that travel restrictions have negative economic influence on Tourism and
Hospitality industry. The highly infectious of corona virus continues affecting the sector and
arise serious 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
recovery of pre COVID-19 take years and is not easy as well. The restrictions and ban of hotels
decline 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,
pressure 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
throughout the entire Tourism industry as rebuilding and reopening destination will need a joint
up approach. 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
demand 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
customers 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
areas 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
customers 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
Hospitality 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
Hospitality and Tourism industry.
 To analyze the challenges faced by Hospitality and Tourism industry due to
current 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
issues 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).

Impact of COVID-19 over productivity and profitability of Hospitality and Tourism
industry
As per Michael Hall (2020), The COVID 19 virus is one of the biggest human tragedies
that has affected health of Lacs of people across different parts of the world. Impact of covid-19
virus on tourism and hospitality industry is reach ahead. Asphalt United Nations World tourism
Organisation many experts are stated that international tourism will be down by 20 to 30% in the
year 2020 as compared to your 2019. It has been compared to SARS outbreak in the year 2009
that led to decline of 0.4% in international tourism market. Various economics and countries
have been hard hit by this pandemic situation. Such as In India, experts suggested that domestic
hotel brands have to face a week financial year 2020 and fourth quarter. Tier 2 and Tier 3 hotels
have also witnessed small erosion in the business (Mohamed, Patwary and Mohamed, 2020. In
Europe, the commerce authorities have endeavoured to shield the effect on global manner of the
hotel industry in the previous year 2020. There are many spare measures that are obligatory to
limit the range of virus that is previously leading to a thoughtful influence. In China, in the year
2019 occupancy has lower down by 68%. As per recent reports 87% of the hotels are now
suffering from the occupancy situation. Hotels across United States are also experiencing
unprecedented booking cancellations because of the pandemic situation that is leading to
situation of decline in the average occupancy by 96% in Italy and in United Kingdom it is down
by 67% (COVID-19 and Tourism, 2021).
Apart from this, it is determined that the overall sales of tourism and hospitality industry
is decline around 80% which is a huge percent and dealing with it is complex as well as it is not
easy to cover up the high loss in short time period. It is analysed that hospitality and tourism
companies is gaining no profit and is also not able to bear the expenses as well (Sobaih and et.al.,
2021). It is determined that many of the companies shut their business or close their branches
which decline their market presence as well as customer base level. Therefore, it is analysed that
there is adverse impact of COVID-19 on the productivity and profitability of Tourism and
hospitality industry.

The challenges faced by Hospitality and Tourism industry due to current pandemic
As per view points of Thams Andreas (2020), there are some of the challenges faced by
tourism and hospitality industry in the present situation. In the tourism sector there is difficulty in
up scaling the candidates. Up skilling is a process where adequate training is required to deal
with the changes in situations that are affecting major and minor hotel as well as travel brands
(Wachyuniand Kusumaningrum, 2020). The global and regional travelling restrictions have
created a survival threat to the industry. It is also creating new social consequences in terms of
driving towards reduction in their travelling trends. The present crisis has definitely changed the
spending habits of people (Hudson, 2020). Hospitality revenue managers have to face struggles
for managing the price was pressure to reduce rates and occupancy drops. Hoteliers have to act
wisely for promoting dramatic price cuts that may impact the quality experiences and businesses
in long run. Sustainability aspect of present situation is also leading to more serious commercial
financial crisis because of the spread of covid-19 virus (Rahma. and Arvianti, 2020). Many
substantial markets and destinations are suspended their commercial activities and operations.
Major market players in different areas of touristic value change like tour operators, airlines
retailers and cruise lines have minimised or completely stopped their production for undefined
time period. These situations have created a sudden and total cutoff in the revenue streams for
tourism and travel industry (An initial assessment of economic impacts and operational
challenges for the tourism & hospitality industry due to, 2020).
The other challenge faced by tourism and hospitality industry is to deal with the changing
demand of customers as it is difficult in the present time period. In addition to this, investments
for the clean and sanitary measures is beneficial for companies but occur high cost to
organisation which at present is a major challenge for the tourism and hospitality industry
(Shapoval and et.al., 2021). It is analysed that there are also other major issues faced by tourism
and hospitality industry because of current pandemic is closure of branches, decline in revenue,
decline in customer base level, increase cost pf innovative ideas and so on. All this impact
massively on the tourism industry which further decline its presence at marketplace.

Solutions adopted by Hospitality and Tourism industry for dealing with issues of COVID-
19
According to jhen, (2021) COVID-19 has triggered an unprecedented crisis within the
tourism and hospitality industry and given immediate as well as immense shock to this industry.
In addition to this, the tourism industry prepares comprehensive recovery plans, encourage
investment and innovation, rebuild destinations and so on. The tourism industry developed
information apps for visitors so that they can get knowledge about the restrictions on the
particular places while visit.
In context to the hospitality industry, one of the solutions adopted by them is using of
innovative technologies as it helps in providing virtual tour of hotels to customers due to which
they believe that they can stay within the hotel and is safe for them as well. In addition to this,
the hotels provide high discounts and develop creative packaging which adds value to consumer
without costing them high (Hao, Xiao and Chon, 2020). Another effective and popular technique
used by hotels is to develop new revenue streams that are food and beverage or spa. This help in
attracting customers towards buying service of hotels. Apart from this, hotels are focused on
maintain their service levels and did not reduce standards. The guest are very sensitive to change
but providing high quality of services help in attracting and retaining them in this pandemic
situation also. Furthermore, the hospitality industry make use of eco friendly products which
help in protecting the environment and developing positive mindset of customers towards the
brand due to which they prefer to consume services of hotel. This also helps hotels to gain
sustainability in this pandemic situation (Jung, Jung and Yoon, 2021). The digital advances such
as robotics, artificial intelligence as well as adoption of smart destination reshape the purposes
and are significantly assist in avoiding face to face contact with customers. All this solutions help
both tourism and hospitality industry to deal with the situation of COVID-19 and remain
effective at marketplace.
One of the effective solution adopted by tourism industry is adoption of sanitary
measures which is one of the major concern of people in the present time period. This also help
tourism companies to attract large number of customers as safety is the important aspect for the
customers (Smart and et.al., 2021). Another solution is bringing of new idea or innovation that
fulfil the demand of customers. The innovative ideas assist companies to get on track rapidly and
allow to gain competitive edge that is important in order to gain growth and success (Kim and

Lee, 2020). Apart from this, there area also other measures such as contactless payments,
digitalisation and so on. All this solution and strategies help tourism and hospitality industry in
dealing with the situation of COVID-19 pandemic in an appropriate and effective manner.
C) Justification and contextualization
Why is your research important?
This investigation is significant as it puts focus on the impact of COVID-19 on productivity and
profitability of Tourism and Hospitality industry. In addition to this, it assists in understanding
the challenges faced by hospitality and tourism industry due to this Pandemic and the strategies
hotels and tourist companies adopt to deal with this situation and to reach on the normal position
(Yeh, 2020). This investigation is also significant as it shows that how Hospitality and Tourism
industry brings innovation and focus on health and safety of its customers.
Moreover, the implications of COVID-19 on the global economy are also undertaken in this
study.
Why is it important to find what you are trying to find?
It is important for investigator to identify the impact of COVID-19 on hospitality and tourism
industry at global level as it helps in increasing knowledge about issues faced by respective
industry due to Covid-19. This pandemic makes Hospitality industry operations and activities
down and many of the organization is permanently closed as they are not able to perform and
sustain at marketplace. COVID-19 affect Tourism industry adversely which is not easy to
recover and is also facing many losses (Kim, 2020). Gaining of information about impact of
Covid-19 on hospitality industry and tourism industry will help in improving knowledge about
strategies used by such industries to cope up with these issues in an effective manner.
How will it build on the existing body of evidence?
For conducting investigation, researcher has used secondary methods. It is an approach that is
adopted for systematic investigation and herein, investigator mainly depends on the information
which already exists in the environment. In addition to this, the research information is sourced
from journals, Internet, reports, textbooks from different organization. The information is also
available online, Internet sources and many more. It is stated that investigator first studies and
analyze information and then apply its knowledge within the research. Thus, secondary research
depends on the information which has given by the primary research.