In the wake of covid-19 country’s economy is compelled to sleep. Coronavirus has not only hit the world physically but also mentally and most importantly economically. It is the economy which stands still as the backbone of the country and becomes the wheel on which the nation runs towards the destiny of development. The high spread of coronavirus in the country had left no other option than to put the shutters down of the nation. The agricultural sector is somehow coping in this situation and even some other sectors hold the hope to recover but the worst hit sector has to be the hospitality sector.
The city life is best explained with the availability of hospitality services available among today’s generation. But the situation has pulled the charm of the cities down by locking down the sector. Hospitality sector contributes a good amount to the nation’s GDP. This sector provides employment facilities on a large scale.
As the governments all over the world have sealed their international borders therefore both the international and national flights have been suspended and the nationwide lockdown is adding more fuel to the already burning condition of the hospitality industry. And as the ongoing situation is interpreted even after the relaxation of the current restrictions won’t heal it soon as the havoc across the world for the same has created deep roots of fear in people’s mind.
The sector is suffering hard this time as people are not even considering hospitality service as an option to enjoy in the on-going scenario. The sector asks for governmental help.
According to a report by Confederation of Indian Industry, the going on situation of shutters down will stretch till the month of October. After assessing each and every aspect it is assumed that the industry will be able to hold its normal ground by the end of this year.
The sector has witnessed negative hiring trend up to 91% which has made the aspiring students and the job seekers in this field anxious. The pandemic hit the country at the time when the placements were about to take place and now the hiring is left in hold. The professional institutes have also allowed and provided students for certificate courses to compensate the gap created by the pandemic.
Businesses suffering under this sector
Tours & Travel
The travel and tourism sector contributes to about 9.6% of the total GDP of the country that is about USD 333.7 billion. The world considers this sector as a major contributor to the economic growth. But this ongoing pandemic situation has resulted ti travel restrictions worldwide because countries got no choice but have to contain the spread of coronavirus. Global international tourist arrivals might decrease by 20%-30% this year according to the estimation done by United Nations World Tourism Organization, which will further lead to a disheartening loss of 30-50 billion US dollars.
The travel industry somehow affects the other hospitality sectors too such as Hotels and Restaurant industry.
Hotel & Restaurant Industry
Covid-19 has successfully hit all the sectors across the globe but it is giving the toughest time to the hotel industry. The investors of this industry are portraying a view that recovery to pre-corona levels could take until 2023.
The initial cancellations of flights and train tickets already horrified the hotel industry, the panic misguided them to understand the situation which was a red alert alarm ringing situation. The hotels across the nation are virtually closed now for a long time, profiting them essentially zero revenues.
Earlier the focus was on just the mid-market or premium branded hotels segment of the market and left the independent or unbranded hotels segment ignored or overlooked which in the notable terms form the bulk of the hospitality sector.
According to a report 40%-50% revenue of the nation’s organized dine-in restaurants is likely to cut by coronavirus pandemic this financial year of 2020. It is heard that in the first 45 days after lifting of the lockdown, restaurants will operate at 25%-30% of their monthly service levels; given to the low demand and social distancing norms.
Hence it can be concluded that the sector would pass through a really rough time before any noticeable upliftment from the current situation.