The Impact of COVID-19 on Tourism: A Comprehensive Business Report

This report delves into the significant impact of the COVID-19 pandemic on the tourism industry. It highlights the industry's vulnerability due to travel restrictions, decreased demand, and subsequent economic repercussions, including substantial job losses. The report examines the decline in tourism revenue, the imposition of travel bans and quarantines, and the overall negative impact on the travel sector's economy. It emphasizes the challenges faced by small and medium enterprises within the tourism sector and the potential for long-term behavioral changes in travelers. Furthermore, it addresses issues such as poor risk management, viral globalization, and over-tourism, as well as the need for enhanced security measures in the face of infectious diseases. The analysis underscores the need for the tourism industry to adapt and respond effectively to the challenges posed by the pandemic and provides insights into potential recovery strategies.

Current Issues in Tourism
1

CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Current issue in tourism...............................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
2

INTRODUCTION
Tourism is a vast, dynamic, vibrant and growth oriented sector that highly contributes in
growth and development of economy by contributing in Gross domestic product of nation. It is
referred as the set of industries that facilitate by administering products, services and
infrastructure and make it possible to travel for distinct purposes and travelling to destinations of
business interest and leisure (Barua, 2020). However, due to covid-19 pandemic, the industry is
facing many issues which adversely impact its revenues and profitability. This report is based on
the current issues in tourism in which the selected issue is "covid-19" and its impact on
businesses in tourism sector.
MAIN BODY
Current issue in tourism
Tourism is one among the growth oriented sector which highly contributes in Gross
domestic product of country and development of economy. Tourism industry is experiencing a
sharp decline in demand of travel and job losses all over the world which puts many small and
medium enterprises at risk. In spite of proven resilience of tourism in response to crisis, the
breadth and depth of covid-19 pandemic will possibly to have long lasting influence on
international tourism in comparison to other sectors, more possible to recover once the
restrictions will be lifted. it is because of potential long-term alterations in behaviours which
individuals likely to be more cautious regarding overseas travelling in future. Due to covid-19,
millions of jobs could be lost in the tourism industry (Ozili and Arun, 2020). The covid-19
outbreak has had drastic influence on tourism sector because of resulting restrictions on travel
and slump in demand of travelling among travellers. There is a massive impact on the tourism
industry by the spread of covid-19 as many nations have restrict travel from one place to another
in an attempt to prevent its spread. Apart from this, many nations have imposed entry bans,
quarantines as well as other restrictions for its citizens. Along with decline in willingness to
travel, it had a negative influence on economy of travel sector (Chinazzi, and et. al., 2020).
The health crisis associated with coronavirus is hitting the economy of all over the world as
well as the tourism sector most of all. A drop in tourism revenue is expecting by the World
3

tourism organisation of 300 to 500 billion dollars in year 2020, which is up to one third of the
revenue generated in year 2019 (Coronavirus (and other problems): 2020, a dark year for global
tourism, 2020). In the tourism industry, millions of jobs are under threat all over the world. It has
been analysed from the study that the covid-19 pandemic has drastic impact all over the world
and has drastic consequences for global tourism. It creates biggest challenge in front of tourism
industry as it adversely impacts the revenue and profitability of entire sector. Tourism is one of
the leading industry that highly contributes in Gross domestic product of the nation as well as
improving the economy of the world. Many people travel here and there to visit a new
destination, for business purpose, educational tour etc. which helps tour operators in generating
high revenues. But, the outbreak of deadly disease, that is covid-19 pandemic limits the spending
of people on tourism (Chinazzi, and et. al., 2020).
Due to outbreak of covid-19, people are now being not able to go anywhere which highly
impacts the revenues of tourism sector. At the initiation of crisis, Chinese people were the most
affected tourist and they are the biggest spenders far ahead of Americans. Then, the crisis hit one
of the top global destination, i.e., Europe. In year 2018, around 672 million tourists were
welcomed by the continent, which was half of the international arrivals of world. One third
among these tourists travel in Spain, France and Italy, all of these are among the six Nations
which are most impacted by the outbreak of coronavirus along with some of the popular
destinations like Florence, Milan, Paris and Venice. Because of the nature of tourism services,
the process of deciding to book holidays is a risky decision in current environment (Wen, Kozak,
Yang, and Liu, 2020). It is not possible to try before buy and is a crucial investment which need
searching of a lot of information as well as comparison of destinations and prices. The overall
tourism sector has entered into a negative phase of growth with between 3 percent and 12 percent
fewer tourists relying on areas as stated by World tourism organisation. Although, covid-19
pandemic has short term destructive impact on industry of tourism, this pandemic episode of
corona virus may also be seen as the implication of vulnerable condition instead of the initiation
of instability period. The underway research into challenging the tourism industry practices is
drawing focus on succession of problems associated with movements of population as a part of
leisure activities. The very first issue is poor management of risk in the sector which must be
highly reliable (Fernandes, 2020).
4

The another one is viral globalisation, which means the diseases travel cross borders
thousands of kilometres just like tourists and put the vulnerable people in danger. The research
also depicts third issue as over tourism. It is one of the biggest issue of mass tourism. Too high
volumes of travellers or holidaymakers are included in it which damages living conditions for
residents, ecosystems, sites and experience of visitors. Apart from this, the another issue is
associated with population which is caused by the activity. It involves sole utilisation of
consumer products passengers in road transport and transit, yet it is carbon emissions from
aviation (Hall, Scott and Gössling, 2020).
The new face of year 2020 depicts the changing times as security issues in tourism
continues to be a problem all around the world. Outbreak of infectious disease like covid-19,
providing safety and security to becomes a challenge in front of tourist operators. Most of the
Nations have considered tourism as a great contributor to growth and development of economy
as well as is accepted widely that year after year all over the world a huge investment constantly
to pour in tourism development. In travel industry, leisure hits the most. There has been major
impact of covid-19 pandemic all over the world and economy. Tourism has been seen as the
sector which is getting affected as population started to reduce their travel budgets. However, but
sector has direct role to play when considered coronavirus which has spread widely in many
countries or nations with huge number of tourists (Iacus and et. al., 2020). The covid-19
pandemic is the biggest challenge that has ever faced by Nations as due to this international
travel is impacted adversely by up to 25% this year that is almost equivalent to 3 months’ loss of
travel. The world is confronting an unprecedented global economic, social and health emergency
with coronavirus pandemic. The most affected sector in this is travel and tourism with airplanes
on ground, travel restrictions and hotels closed virtually in all Nations around the world. In this
blow to tourism industry, the virus pandemic has reduced international tourist arrivals in very
first quarter of year 2020 to a fraction of a year ago. As per the report published by United
Nation World Tourism Organisation, it is found that double digit decline of 22% in quarter 1 in
year 2020 with arrival decrease by 57% in march. Due to this, a loss is faced by industry of
around 67 million international arrivals as well as around 80 billion US dollars in receipts. The
year prospects have been downgraded many times since covid-19 outbreak in view of high
uncertainty level. In current scenario, a decline of 58 to 78% is point out in international tourist
arrivals, relying on the containment speed and travel restrictions duration as well as shutdown of
5

borders. Although, this Outlook keeps highly uncertain (IMPACT ASSESSMENT OF THE
COVID-19 OUTBREAK ON INTERNATIONAL TOURISM, 2020). According to the report of
United Nation World Tourism Organisation, the current scenario of covid-19 pandemic reflects
three possible patterns or ways of monthly alteration and arrivals from the month of April to
December in 2020 supposing that the restrictions on travel initiate to be lifted and the national
borders open 58% in July, 70% in early September or 78% in early December. All these values
will put around hundred to 120 million tourism jobs at risk. In the historical series associated
with international tourism, this is by far the worst outcome and will put an abrupt end two period
of 10 year of sustained growth since financial crisis in year 2009. The considerable challenges
related to covid-19 pandemic remain ahead, initiating with unknown period of pandemic as well
as restrictions on travel in relation to economic recession all over the world. Wide range of
measures are executed by the countries all around the world in order to mitigate the influence of
outbreak of covid-19 as well as to improve the recovery of tourism industry. As per the report of
UNWTO, the restrictions related to covid-19 as of 20 April, cent percent of all destinations of
world have introduced restrictions on travel in response to the pandemic (Koirala and Acharya,
2020).
Due to coronavirus, around 45% of destinations have close their borders completely or
partially for tourists, 30% destinations have suspended international flights and 18% are
executing closing of borders in more differentiated way by restricting passenger’s entry from
particular nations of origin. The tourism system nature means it has contributed in both,
experience the repercussions of disease and spread of disease along all the parts of supply chains
and value of tourism. The global reach of disease as well as the application of classical controls
of disease in the form of isolation, reduced mobility, current time have had drastic impact on
domestic as well as international tourism alike with different industry specific influence
including booking agencies, travel and transport, restaurants, attractions, conventions and events
and hospitality. The current issues associated with tourism is emphasize on influence of covid-19
pandemic on organisations, destinations, markets, consumers, transit zones, tourism transport
and destination communities. The influence of covid-19 outbreak has impacted adversely on
tourism industry in terms of consumer behaviour, destination in business attractiveness, tourism
employment, political dimensions of coronavirus and tourism and utilisation of Quarantine etc.
The outbreak of virus representing an evolving challenge tourism industry (Maliszewska, Mattoo
6

and Van Der Mensbrugghe, 2020). Covid-19 pandemic containment is the priority and industry
is committed to respond the challenge effectively. A massive loss is foreseeing by United Nation
World Tourism Organisation in the revenues of tourist, especially at international level. It is
anticipated that covid-19 pandemic may cut millions of jobs in the sector as it is expected that
travelling is significantly drop in year 2020 all over the world. In response to the outbreak of
virus, many Heritage properties of the world are currently closed, social distance is imposed as
this having economic and social consequences on societies and communities that live around and
in the sites. The virus has also suspected various intangible cultural heritage activities or
practices which significant implications for cultural and social life of communities all around the
world. Although, these conditions make the tourism very much vulnerable, the industry is in
good position to contribute broadly (Nicola and et. al., 2020).
CONCLUSION
As per the above mentioned report, it has been concluded that tourism is one of sector
which is highly impacted by COVID-19 pandemic. The industry is facing huge challenge due to
outbreak of virus as it sharply declines the demand of people to travel which adversely impacts
the revenues of company. Apart from this, it also put millions of jobs in risk which impacts
adversely on economies of nations.
7

REFERENCES
Books & Journal
Barua, S., 2020. Understanding Coronanomics: The economic implications of the coronavirus
(COVID-19) pandemic. SSRN Electronic Journal https://doi org/10/ggq92n.
Chinazzi, M., and et. al., 2020. The effect of travel restrictions on the spread of the 2019 novel
coronavirus (COVID-19) outbreak. Science, 368(6489), pp.395-400.
Fernandes, N., 2020. Economic effects of coronavirus outbreak (COVID-19) on the world
economy. Available at SSRN 3557504.
Hall, C.M., Scott, D. and Gössling, S., 2020. Pandemics, transformations and tourism: be careful
what you wish for. Tourism Geographies, pp.1-22.
Iacus, S.M., and et. al., 2020. Estimating and projecting air passenger traffic during the COVID-
19 coronavirus outbreak and its socio-economic impact. Safety Science, p.104791.
Koirala, J. and Acharya, S., 2020. Impact of Novel Corona Virus (COVID-19 or 2019-nCoV) on
Nepalese Economy. Available at SSRN 3560638.
Maliszewska, M., Mattoo, A. and Van Der Mensbrugghe, D., 2020. The potential impact of
COVID-19 on GDP and trade: A preliminary assessment.
Nicola, M., and et. al., 2020. The socio-economic implications of the Coronavirus and COVID-
19 pandemic: A Review. International Journal of Surgery.
Ozili, P.K. and Arun, T., 2020. Spillover of COVID-19: impact on the Global
Economy. Available at SSRN 3562570.
Wen, J., Kozak, M., Yang, S. and Liu, F., 2020. COVID-19: potential effects on Chinese
citizens’ lifestyle and travel. Tourism Review.
Yu, M., Aad et. al., 2020. Communication related health crisis on social media: a case of
COVID-19 outbreak. Current Issues in Tourism, pp.1-7.
Online
Coronavirus (and other problems): 2020, a dark year for global tourism, 2020. [Online].
Available through: <https://www.hospitalitynet.org/opinion/4098500.html>
IMPACT ASSESSMENT OF THE COVID-19 OUTBREAK ON INTERNATIONAL TOURISM,
2020. [Online]. Available through: <https://www.unwto.org/impact-assessment-of-the-
covid-19-outbreak-on-international-tourism>
8