Challenges and Opportunities for Hospitality and Tourism in COVID-19

This report examines the profound impact of the COVID-19 pandemic on the hospitality, leisure, and travel industries. It explores the substantial challenges, including travel restrictions, economic losses, and shifts in consumer behavior. The report also highlights positive impacts such as technological advancements and the acceleration of digitalization within the sector. It provides an in-depth analysis of the industry's adaptability and innovative responses to the crisis, including investments in sanitary measures and the decline in planned travel. The conclusion emphasizes the need for organizations to understand the challenges they face, leverage positive aspects, and navigate the negative impacts to ensure long-term sustainability and growth within the evolving landscape of the tourism sector. The report uses several sources like books and journals to support its claims.

Challenges of
Hospitality Leisure and
Travel industry during
Covid-19 pandemic

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Positive effect on companies.......................................................................................................3
Negative effect on companies......................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The international tourism has effectively depicted the suitable growth for the ten consecutive
years that report around 1.5 billion international tourist arrivals (Kumar and et. al., 2020). The
situation of covide-19 has unprecedented impact over the hotel industry as they fall out
considering the ultimate scale of the outbreak. Also, travel restrictions and social distancing
polices had a dramatic effect on the hotel industry and the government of several countries also
impose restrictions on the non-essential travel to countries that are affected by the disease.
Apart from that, industry specialists have attempted to forecast the impact of the COVID-19
pandemic on the worldwide hotel business for 2020, projecting a profit reduction of 11-29
percent. It has also been revealed that emergency measures to stop the spread of the virus are
already having a major impact on pubs, cafes, and hotels. Cancellations have increased by nearly
half, according to a European survey, and hospitality companies estimate they could lose up to
33% as a result of the government’s emergency measures.
While the economic crisis and low spending power will be the primary short-term problems,
one of the most significant long-term tasks will be to closely monitor and respond to the dynamic
forces shaping new consumer behaviours, consumption patterns, perceptions, expectations, and
trends. Almost the entire world is currently on lockdown. This will result in new societal
implications and long-term habits. The good news for the hospitality and tourist industries is that
one of their savings goals is to use the money for future travel and Holi-stay (Xiao, Qiu and
Cheng, 2019). This has offered independent hotel businesses the opportunity to better understand
the shift in expectations and consumption habits that has occurred as a result of the price wars.
MAIN BODY
Positive effect on companies
There are several positive sides of the pandemic that are useful for the company in regard of their
overall growth and development. It is important for the organisations to ensure that they are
willing to take advantage of the positive sides and also move towards the growth and success of
tourism industry. For this, some of the positive impact of pandemic over the tourism sector are
discussed as:
Advanced technology: It is the most essential benefit which is being provided by
pandemic to the tourism sector regarding the advancement of technology which is useful for the

company regarding their working in an effective manner and accurately. Along with this, the
advanced technology is useful for the company in terms of having suitable and beneficial system
which is useful in order to enhance the management of organisations and also provide the
competitive advantage within the market (Joo and et. al., 2019). With the help of technology, it
becomes easy for the organisations to survive in the market and also overcome from the complex
situations by offering best services to their customers in tourism sector.
Digitalization: Because of the pandemic most of the people tends to have presence over
the online platform and also ensure that they are update in whole market and also interact with
their customer base. For this, it is important for organisations to have digital presence in terms of
connecting and also helpful for most of the organisations to motivate customers and try their new
services and concerning products. It is also useful for the company in terms of offering accurate
information regarding the company to attract maximum number of customers. The digitalisation
strategy of company tends to ensure that an organisation is active within the market and also
provide great scope for the overall development.
Adaptability: Because of the pandemic, the working patter and operations of the tourism
sector gets change. For this, people are trying to opt several changes prominently so that they can
provide effective services to their customers. Along with this, organisations are also try to
indulge new process that leads to enhance overall ability to opt new things, it leads to make
things more flexible and also provide further opportunities regarding the growth of company
(Rybaczewska, Sułkowski and Bilan, 2021). For this, people and organisations tends to provide
more flexible things that has scope regarding the overall development in future.
Enhancement in innovation: COVID-19 leads to make changes lot of things regarding the
procedure and working of tourism sector that leads to provide prominent number of scope of
innovation within the management of an organisation. For this, organisations are involve in the
innovation process in terms of providing contact less services to their overall customers and also
make sure that they lead to take proper measures by which overall customer base and employees
are safe (Tuan, 2021). Along with this, it is important for the company to undertake innovative
techniques in the management and overall system by which they can cope up with the external
environment of an organisation and gain trust of most of the customers in order to make people
safe.

Negative effect on companies
Most of the organisations also negatively influenced due to the pandemic within the tourism
sector as they are majorly affected due to the pandemic. People are not feeling safe while
travelling or exploring things as most of the areas has implemented travel restrictions. For this, in
terms of neglecting this situation which is not good for the organisation, the sector need to think
in terms of becoming more sustainable, more creative for society and responsible enough which
is useful in terms of surviving in the pandemic and also make thing efficient for the future
possibilities.
Investments in sanitary measures: Pandemic put negative impact over the working
pattern of tourism sector by which they tend to make high investments in terms of executing
sanitary measures which is compulsory for the sector in order to have things according to the
new rules and norms of the government (Parrish and Lam, 2021). For this, organisations also
need to attract customers and start working for the company as they need to comply with
effective rules and regulations and also executed by the government in terms of providing safe
working environment to their customers. Providing contact less services can become major issue
by which effective measures are taken that include high cost.
Decline planned travel: There is a huge number of reduction in the planned travelling as
there is wide change within the behaviour of the customers that make things more difficult for
the tourism sector for their extra efforts and also make modification in terms of attracting new
customers. As per the reports, the planned traveling is decreased by 70 to 80% which is quite
huge number as the majority of the income within the tourism sector depends on travellers.
Economic loss: The economies of the region or country undertaking the tourism sector
has majorly impacted by the pandemic as people leads to neglect spend much time on the
tourism sector because it is not safe for their health. For this, the tourism sector need to pay high
taxes to the government which is pretty much difficult for the tourism sector after the pandemic
(Schiopu and et. al., 2021). For this, the major source of income of the government depends on
the tourism sector who are not doing things pretty much well.
Investment in technology: Advancement in technology is a good thing for organisations but
the cost indulged regarding the advancement is little bit heavy on an organisation and its
management as well. For this, company cannot neglect advancement for their technology and
concerning factors by offering huge loss which is being provided by competitors in terms of a

chance to attract customer base of an organisation (Chau, Luo and Duan, 2021). For this, the
business of tourism sector is closed and also does not operate things that make it quite difficult
for the organisations to invest high amount regarding the advancement of technology.
CONCLUSION
From the preceding discussion, it has been analysed that it is essential for the organisation to
prominently understand and identify the challenge which they are facing presently. For this, it is
useful for the company in terms of coping up the overall environment and also take help in order
to make prominent efforts which is beneficial for the organisations. In regard of this, the positive
impact of the pandemic is discussed that define the requirement of industry in order to ensure
that they need to take proper advantage of the offered positive factors and exploit them in order
to enhance their overall reach. For this, it is useful for the company in terms of having wider
reach and also leads to attract maximum number of customers. Moreover, it is also useful for the
organisation in terms of enhancing brand awareness. Besides from this, the negative impact of
pandemic over the workings and environment of an organisation is also given. For this, it is
useful for an organisation in order to identify the negative aspects and also work on that which
can help organisations in terms of having least impact at the time of facing negative factors.

REFERENCES
Books and Journals
Chau, K.Y., Luo, J.M. and Duan, X., 2021. A Qualitative Investigation of the Impact of COVID-
19 on Macau’s Gaming Industry. Journal of Quality Assurance in Hospitality &
Tourism, pp.1-11.
Joo, H and et. al., 2019. Economic impact of the 2015 MERS outbreak on the Republic of
Korea's tourism-related industries. Health security, 17(2), pp.100-108.
Kumar, M.S and et. al., 2020. Applications of industry 4.0 to overcome the COVID-19
operational challenges. Diabetes & Metabolic Syndrome: Clinical Research & Reviews,
14(5), pp.1283-1289.
Parrish, C. and Lam, M., 2021. Impact of the COVID-19 pandemic on a community soccer
organization in the United States: the case of Asheville City Soccer Club. Soccer &
Society, 22(1-2), pp.138-151.
Rybaczewska, M., Sułkowski, Ł. and Bilan, Y., 2021. Covid-19 Pandemic and Independent
Convenience Stores in the United Kingdom. Engineering Economics, 32(3), pp.258-
265.
Schiopu, A.F and et. al., 2021. Virus tinged? Exploring the facets of virtual reality use in tourism
as a result of the COVID-19 pandemic. Telematics and Informatics, 60, p.101575.
Tuan, L.T., 2021. Employer event communication and hospitality workers’ resilience during the
COVID-19 crisis: the role of core beliefs examination and family support. International
Journal of Contemporary Hospitality Management.
Xiao, C., Qiu, H. and Cheng, S.M., 2019. Challenges and opportunities for effective assessments
within a quality assurance framework for MOOCs. Journal of Hospitality, Leisure,
Sport & Tourism Education, 24, pp.1-16.