Uninvited guest COVID19 checked into the hotels, it has become frightful for the industry Email-nemaprakhar97@gmail.com (For full matter of presentation)

1. Impact of COVID19 on Travel
and Tourism Industry
By- Prakhar Nema
MA Economics Sem-1

2. Concepts
Travel & Tourism
• Derived from Latin word “Tomos” & Hebrew word “Torah”
• In India: Taittiriya Upanishad mentions “Atithi Devo Bhava”
• Purpose- Recreational, leisure, family or business
• Types:
A. Domestic:
B. Inbound:
C. Outbound:
• Reasons for Tourism Growth
I. 1950-60s:
II. 1970-1990s:
III. 1990 onwards:
• Importance of the sector: (Source- UNWTO 2020)
 GDP- US $2.9 trillion in 2019
 Employment: 300 million jobs
 Cultural- Appreciating own and others’ cultures
 International relations- Source of forex reserves & way to showcase soft power

3. Concepts
 December 2019- Wuhan, China reported
outbreak of a form of pneumonia with unknown
causes
 WHO declared it public health emergency of
international concern
 Spreads primarily through contact with infected
person when they cough or sneeze
 Symptoms- Cough, fever and even difficulty
breathing
 Total confirmed cases worldwide (close to 100
million) & deaths (2.2 million)
 Prevention: Washing hands regularly, 1 meter
distancing, avoid touching face
COVID19

4. Relation between COVID19
and Tourism
• The impacts of COVID-19 on tourism threaten to increase poverty (SDG
1) and inequality (SDG 10)
• Tourism is one of the sectors most affected by the COVID-19 pandemic,
impacting economies, livelihoods, public services and opportunities on
all continents.

5. Cause and Victim of COVID19
Cause
• Source related issues:
– Annually 170 million Chinese
outbound tourists
– China being the World
manufacturing hub
• Virus related issue:
– Incubation period of virus is 14
days- People got in without being
detected
• Institutional issue:
– World Health Organisation not
recognising it as “Disease of
Public health concern immediately
(Not sealing borders)
Victim
• Individual decision:
o Panic so cancelling bookings and
delaying travel plans
o Quarantines- huge time, almost
every country
o Lesser savings left post salary
cuts during lockdowns
• Societal decision:
o Social distancing: Ostracisation,
violence
• National decisions:
o Travel restrictions
o Sealing borders

6. Effects on Tourism Industry
• Worst crisis that international tourism faced since 1950 (7 times more
than 9/11 incident)
• Black swan event- suffered 3 quarters of economic wipeout
• First to fall and last to rise: Atleast 10 months required to recover

7. Effects on Tourism Industry
Jobs Overseas
Tourists
Forex
Reserves
Hotel
occupancy
42
10.8
30
80%
29.5
3.456
10.2
30%
INDIA
Pre-COVID19 Post-COVID19
Additional effects India World
Economy Strong forward and backward linkages with sectors like agriculture, FMCG, handloom etc.
Regions depending upon tourism
as a major source of revenue
Uttarakhand, Rajasthan, Kerala,
Himachal Pradesh, Goa, Sikkim, NE
states
Origin (China, Hong Kong, Taiwan)- 95% decrease
Tourism dependent (20% of GDP)- Thailand,
Malaysia, Italy or SIDS- Decrease by 80% in exports
Women empowerment 54% of the tourism workforce are women
Jobs Overseas
Tourists
Export
revenues
Hotel
occupancy
0.33
1.4
2.6
0.18
0.4
1.4
WORLD
Pre-COVID19 Post-COVID19

8. Sectors- Top Losers
Aviation
– Precautions taken now
– Impacts:
o Airlines: $85 billion loss
o Airports: AAI- 92% fall in revenue (2973 crores to 239 crores)
o Sharp fall in valuations- less share prices (Nosediving from 100 to 60)
o Jobs- 50% decrease worldwide.
– Indian Govt initiatives: UDAN scheme without restrictions, air links with
countries like Canada, France, Maldives etc.
Transportation Sector

9. Sectors Top Losers
• Taxi services
 95% of vehicles were off-road
 Short taxis-
 Self-driven cars
 Other Tourist vehicles like 12 seater taxis, buses
 Impacts (Data- Bus and Car Operators Confederation of India)
o Dropping of fares by 2/3rd due to less demand
o Decrease in sharing of travelers
o Jobs- 20L in India
o People preferring to travel by their own vehicles (V shaped recovery of auto sector)
 Changes: Drivers using masks, hand sanitisers, encourages cashless payments, tried
to offer emergency services
 Solutions:
• Railways-
 Revenues due to lesser passengers + lockdown  63% cancellations
 Suggestions-
• Cruise ships and Yachts
 Global fleet value fell by nearly $40 billion
 Impacts:
 Stranded employees and tourists: Since closing of international borders
 Many cruise ships were sold for scrap +
 Adverse effect to on board purchases like alcoholic drinks, casino gambling, spa treatments, art auctions,
sea food chains
 Suggestions:

10. Sectors-Top Losers
 $150 billion loss
 Start-ups:
 AirBNB cutting 25% of workforce
 India: Oyo at the verge of closing down
 Destination weddings
 Workers worst hit- salary cuts and unpaid leaves
(70% lost jobs)
 Many 5 star hotels getting converted into quarantine
facilities
 Ripple effect on food production, liquor, wine and
beer production
 MICE (Meetings, Incentives, Conferences,
Exhibitions)
 Online meet such as SAARC, zoom, Microsoft teams
 What is done?:
Hotel Industry

11. Sectors-Top Losers
• Restaurants
– 50% shrink in 2020 worldwide
– Local Bhopal Café Mokachi:
– New concept of Bubble dining has been made popular
• Pubs- Major consumers for alcoholic beverages, snacks, FMCG
etc. in tourist places
• Fast food global chains- Coca Cola, Burger king, Subway.
McDonalds, Papa John’s etc.- Offline sales were shut
• Street Food-
• Food bloggers- Pinch of Yum, Minimalist Baker, Swad official,
Wassup Bhopal etc.
Food and Beverage Industry

12. • Cultural
– Livelihood opportunities for indigenous communities.
– Lesser people to people contact – Cultural exchange
– Pilgrimage
– Museums
• Vaise hi kam revenue tha ab sustenance bhi issue
• Souveneirs
• Environment (Wildlife tourism):
 Increased poaching, looting and consumption of animals
 Reduced adopting of animals (supplying of Food). Eg: When talked to Van Vihar
Official
 Maintenance of wildlife sanctuaries and national parks etc. got affected
• Entertainment
 Casino- Macau (world’s top gambling destination) - 88% revenue drop
 Movie Theatres- Closed for a long time
 Concerts- Singers, instrument players. Eg: Tomorrowland, EDM festivals- singers in
depression, instrument players unable to earn livelihood
 Shows. Eg: Gordon Ramsey laid off 500 people from his staff
 Sports (IPL, Big bash, Football in Spain)
Sectors-Top Losers
Types of Tourism

13. • Travel technology companies-
 Online travel agencies and online booking
platforms
 MakemyTrip, Fab, Agoda, Trivago etc.-
 Domino effect or ripple effect on other industries
like handicrafts, fisheries, farming
• Tourist agency & operators: expected to incur a
loss of Rs 35,070 crore with hotels likely to see
80% to 85% erosion in the revenue streams.
Sectors-Top Losers
Directly related

14. Blessing in disguise
• Charters:
o Tourist guidelines and statutory briefings
o Sensitisation of workers in Tourism industry
• Nudge Policy:
 Hygienic measures (gloves, masks, proper line)
 People treating the ones not wearing masks with disfavor
(embarrassment and guilt)
• Work-cation
o India-Dharamshala, Goa, Kasol
o World- SIDS giving remote work visas like Cayman Islands, Mauritius, Dubai,
Barbados etc.
• Travel Insurance-
• 400% increase y-o-y from pre-covid levels. Eg: Starr insurance company of
USA, Bajaj Alliance etc.)
• Entertainment related to tourism
o TV Channels- TravelXP, TLC, Goodtimes, Fox Traveler etc.
o Webseries- TVF Tripling, Homecoming Departures, Ugly delicious etc.
• Environment:
• Transport related GHG emissions. (Tata safari, sumo, Indica, and other old
models

15. Signs of Recovery
• Why:
– Gradual reversal of Pandemic
– Lifting majority travel bans (More than 73% of
the countries)
– Improvement in traveler’s confidence
– Revenge travel

16. Steps taken by various governments
• World:
 Egypt- Postponement of payment of dues on tourism, hotel establishments, fast food chains,
cafeterias till tourism safely resumes
 Italy- Low interest loans, paying employee salaries
 Rwanda- Strict guidelines and enforcement of the same. Progressive penalizing in case of violation
 Britain- Bubble restaurants
 France- Corona vouchers (one meal coupon to tourists redeemable at tourist places food joint)
 Greece- Virtual tourism experiences. Eg: Greece from Home campaign
 Europe- Marshall Plan of Tourism through bailout packages.
o Eg: Italy- Announced Euro 4 billion, France- 18 billion euros
 Overall: Declaration with tourists that if they feel ill, they would immediately inform govt regarding the
same
 Africa- Relief package of $11 million for MSMEEs in hospitality and tourism sector
 ASEAN- $1 billion stimulus for tourism and civil aviation with additional tax waivers to hotels and
restaurants
• India:
 Individual: Tax incentives, postponement to repayment to banks
 Banks: EMI deferring, waiving off interests
 Tourist spots:
o Funds under existing schemes to enhance health and safety measures. Eg: PRASAD scheme

17. Roadmap to be followed
• Sector overall:
• Hotels and Restaurants
– Government:
– Self:
• Tribals & MSME owners-
• Environment:

18. Conclusion
• Limitations of the study
 Secondary data
 Ongoing nature of event- inability to forecast the long
term effects
 Unavailability of data for sector specific to tourism.
• Parting Thoughts
– Revenge travel
– Expected rebound