Economic effects of the coronavirus pandemic on tourism and hospitality

Abstract

The coronavirus pandemic has caused unprecedented problems, both economically and organizationally, healthily and socially. Among the most affected industries are tourism and hospitality. The introduction of quarantine, the inability to travel and the restriction of movement, as well as the decline in interest, have led to enormous financial losses for hotels and restaurants around the world, and redundancies. The connection between tourist organizations, carriers and hotels was suddenly severed, so that the entire tourist season in 2020 failed. When you look at the assumptions about the recovery of the tourism industry, it is obvious that the situation is not good, it is even devastating. The multi-year trend of progress and development, which brought in large incomes and employed millions of people around the world, was interrupted. It will not be possible to return to the level from 2019 for at least a year or two, so different scenarios are mentioned, from moderate to pessimistic. In that sense, the biggest loss will be the dismissal of more than 100 million employees in the sector worldwide, as well as the large losses of airlines and carriers. Since the losses are almost irreparable, agencies, hotels, restaurants, airlines and tour operators have sought the help of their governments, in order to overcome the catastrophic situation to some extent. First, assistance was offered to airlines in America and Europe, and later in Asia (South Korea, Singapore, Malaysia). Later, with the apparent extension of the pandemic, governments began to consider the need to provide funds for the financial consolidation of hotels, restaurants and tour operators. That support varies from country to country, from company to company.