How the coronavirus epidemic has affected the tourism industry

(coronavirus affected tourism industry)

The pandemic has hit the entire service market. But there are areas where its influence is especially painful. Tourism, entertainment, international transport – they all suffer losses due to quarantine and closed borders. Let’s see what is happening with the tourism sector now and how the current crisis will affect it.

Coronavirus and travel business

The birthplace of the new coronavirus ˗ China. The country was the first to introduce strict quarantine measures and to restrict the movement of citizens. To slow the spread of the epidemic, many countries have banned entry to Chinese citizens. Then the tourist market for the first time felt the crisis shocks because travelers from China are the most active tourists in the world. Until 2020, the outbound tourism market from China was the fastest growing in the world. By April 2020, most countries have closed borders and restricted air traffic.

Hotels and airlines refund reservations. Sights are closed to the public ˗ for example, the pyramids in Egypt or the Indian Taj Mahal. So the sphere of travel and related areas are frozen until the world defeats the pandemic. The World Travel and Tourism Council has estimated that up to 50 million people in the tourism industry could lose their jobs due to the coronavirus.

The Asian countries, where tourism revenues make up a significant portion of GDP, will be the hardest hit: Hong Kong, Macau, Thailand, Cambodia and the Philippines. According to the Association of Tour Operators of Russia, in February 2020 the country expected to receive 45 thousand Chinese travelers and earn 45 million dollars from them, the same amount was expected in March. Losses of tour operators from canceled tours in only four directions (China, Italy, South Korea and Iran) can amount to about 2 billion rubles.

What are the losses incurred by airlines?

Airlines lose profits due to the cancellation of most flights. The International Air Transport Association estimates. That air carriers around the world will lose up to $ 113 billion in 2020. The head of the Federal Air Transport Agency Alexander Neradko estimates the losses of Russian airlines at 100 billion rubles.

What about the hotel services market?

Hard times have come for hotels as well: they are having a hard time. Due to the lack of foreign tourists. According to experts, due to the coronavirus epidemic in Russia. Up to a quarter of a small hotel, facilities may be closed. Hostels and hotels with 10-25 rooms and non-network facilities are at the highest risk. The hotel business is especially affected in Moscow, St. Petersburg, Baikal, and the Far Eastern region, where tourists from China and the EU countries most often came.

Against the backdrop of the massive cancellation of flights to popular tourist countries and the closure of borders. The resorts of the Crimea and Krasnodar Territory could remain in positive territory. The spring peak of bookings there falls on the May holidays. But this year, domestic sanatoriums and boarding houses will remain without guests. From March 28 to June 1, the authorities have banned the reservation of seats. According to experts, this is 100-150 billion in losses. How hotels survive under quarantine

What’s next?

What will happen to the tourism business next, after the end of the epidemic? Our analysts believe that those companies that have an impressive financial “safety cushion” will survive. According to optimistic forecasts, the industry will revive by the summer, according to pessimistic forecasts, by October. Then you should expect a surge in tourism, and those who managed to survive will make their profit. Experts also agree that this crisis will be an impetus. That will give an opportunity for the development of domestic tourism.

(coronavirus affected tourism industry)

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