Worldwide Impact of COVID-19 on Tourism Industry

Tourism industry is one of the industries which were witnessing continuous growth before the pandemic happened and completely changed the scenario. Globally, the entire hospitality and tourism industry was going on a grand boom growth of around 59% percent in the former decade. As we stand on the verge of a new decade, pandemic took a jibe on the industry and pulled it back to the rock bottom. According to studies, tourism is bearing the severe impacts of the widespread of corona virus. We are still in the time when there are few countries which haven’t opened their borders and air space for tourism. We have complied here all the studies and research around the impact of pandemic on the travel industry. You can read here how this unfortunate timeline of events happened which affected millions of households which were dependent on tourism for their livelihood. Here, we have decoded all the happenings around the world which led to complete shutdown and series of lockdowns.

Timeline of COVID-19 Worldwide

  • China reported a bunch of cases of Pneumonia in Wuhan on 31st December, 2019 and eventually identified corona virus.
  • WHO set up a special support team to deal with the possible outcome on 1st January, 2020.
  • On 7th January, 2020, WHO announced a new virus and named it 2019-nCoV.
  • On 10th January’20, WHO issued guidelines for all countries to detect, test and manage potential cases. Next day, China reported first death from the virus.
  • First case outside China was reported in Thailand on 13th January’20.
  • First case of corona virus was detected in India on 31st January 2020. On the same day, WHO declared global emergency as the death toll in China went to 170 with 7,711 cases. India airlifted citizens from China and 324 Indians were brought to the country.
  • India cancelled existing visas for Chinese and foreigners who visited China. Around 3,711 people were quarantined on cruise ship including 138 Indians.
  • On 11th March’20, WHO declared COVID-19 a pandemic. India suspended all the visas from March 13th to April 15th.
  • By 29th March, around one third world’s population was living under corona virus related restrictions. Many major countries banned incoming flights and domestic movement. Many were practicing a complete lockdown with absolute zero movement within the country.
  • From May-end, many countries started to reopen domestically slowly and still partially continuing to open their borders and airspace.

Impact on Tourism Industry

The outbreak of COVID-19 has emerged as a black swan moment which shook almost every economy in the world. For months, several countries observed complete lockdown and shutdown which took a jibe on their economies very badly. Pandemic is like a blot from the blues for which no one was actually prepared. Almost every industry is affected due to restrictions, curfews, work from home policies, quarantine and stay home policies. These factors affected the travel and hospitality sector really bad. According to UNWTO (UN World Trade Organization), the industry bore a loss of US$910 to 1.1 trillion export revenues, loss of 1.1 billion international tourist arrivals, and affected 100-120 million jobs which were dependent on this particular sector. Earlier, tourism industry had highest contribution in developing and developed countries. Travel and tourism industry contributed around US$ 2.9 trillion to GDP in 2019. It was a recorded highest contribution of any particular sector to the world’s GDP.

Pandemic pulled down even the largest and fastest growing economies in the world. Be it U.S.A, Japan, UK, Europe or India, all are going through a continuous downfall economically due to COVID-19. According to World trade Organization, the world economy has gone down by 32% in 2020. The major reason for this steep downfall is due to the restrictions being imposed for months on domestic and international movement. According International Labor Organization, pandemic has negatively impacted world economy leading to sudden increase in unemployment ranging between 5.3 million to 24.7 million.

The travel industry accounts for around 10% of the global GDP. It contributes for around 30% of global export services. As the earliest prevention action, almost every government imposed travel restrictions, shutting down airports, travel bans and passengers ticket cancellations. Apart from the travel industry, hospitality sector has also seen a really bad downfall. The concept of stay home and social distancing has led to people choosing not to stay outside or take any hospitality services.

According to some studies, there has been a huge economic loss as compared to HIV, AIDS pandemic, Zika virus, Ebola virus, than what COVID-19 had done to the world. As per the data released by IATA, SARs epidemic is the most impactful pandemic which has dented the tourism industry very negatively. This pandemic has been the worst in terms of global economy as none other pandemic effected so many countries on such a large measure.

Since, the outbreak is still living in the society; it is hard to conclude with any of the future prediction of the growth of travel industry. Many countries have invented their own vaccines and others are imported as much doses as they can. Each nation is trying their bit to get the things back on track and boost the industries which have been badly impacted by this deadly outbreak. We all have seen pandemic so closely still it’s hard to estimate or get prepare for any such future possibilities.

As many citizens are stuck in foreign lands, many countries are operating air bubbles to bring back those who are stranded due to pandemic. If you wish to book your travel plan, you can check out EaseMyTrip flights offer and hassle free.