The business around the tourism sector is one of the main important sectors of the economy. The immediate and most visible impact of Covid-19 is seen within the tourism and hospitality sector. The pandemic disaster is one of the worst crises ever to hit the International, Indian tourism and hospitality industries by impacting all its geographical segments like inbound, outbound, and domestic, international almost all tourism verticals. “The impact of COVID-19 on travel is six or seven times greater than the 9/11 attacks,” says Roger Dow, president, and CEO of the U.S.
The tourism industry has a worth chain with hotels, restaurants, travel agents, tour operations, destinations, and family amusement venues, and sea, land, and air transportation which have been afflicted by a coronavirus because of the restrictions impose by the government on travel. In March 2020, various travel restrictions were imposed by the Indian government as well as governments across the globe like forwarding bookings for various conferences and leisure travel bookings to foreign destinations that have been canceled. The cancellation of visas for foreigners therefore the robust recommendation issued to Indians to avoid unnecessary travel will have worse results within the upcoming years.
The COVID-19 impact is predicted to derail future growth of Indian tourism and hospitality industries as a result of no countries will permit their citizens to travel in the countries which are affected by the virus. This results in enormous loss which these industries can bear in the future.
- In mid of May, Kerala Tourism Minister Kadakampally Surendran said that the state’s tourism sector has incurred a loss of Rs 15,000 crore due to the coronavirus-induced lockdown
- During April-June, the Indian tourism industry is expected to book a revenue loss of Rs 69,400 crore, denoting a year-on-year loss of 30%.
Will the impact of COVID-19 on Tourism and Hospitality Industries Over?
Hotels are a vital part of the tourism product. They contribute to the overall tourism industry through the standards of facilities and services offered by them. Relating to Indian travelers, we tend to expect a really small movement to countries that are affected the most due to Covid-19 for the next six-nine months.
The effect of this Pandemic on the Indian tourism industry will not finish soon in the future because people will not feel safe to travel anywhere either outside or with in the country due to coronavirus. In a case within a country if people travel then they will like to stay at their relatives’ place instead of hotels. Thus there will be a decline in their profits and revenues which they can’t cover in the near future.
- If the hotels bear losses, then the restaurant will suffer loss too. Because many hotels have their own restaurants. If people do not stay at hotels that directly means people will not go for dining. Thus the restaurant will also bear the loss. On June 8, 2020, according to the source, the year-over-year decline of seated diners in restaurants worldwide was a staggering 76.39 percent on June 8, 2020.
- When customers will not go for dining it will affect directly on the employment. Many employees of these industries like Oyo have already lost their jobs due to COVID-19. There is no chance to get back on work under these industries which are already bearing giant deficit due to this virus.
- We know that transportation has been an integral part of the tourism industry. The main mean of this sector is to carry passengers, that is, the tourists to the actual site where tourism services are performed. Thus coronavirus has also impacted the transportation sector which ultimately affected the hospitality and tourism industry.
Impact of Corona on Hospitality Industry Like OYO
Hotels under the Oyo chain will be affected badly because Oyo has incurred heavy losses in the recent past months and it has no revenue to give a discount further in the future. Ritesh Agarwal admitted that its revenues had plunged by “over 50-60%”.
In March 2020, it was reported that Oyo China will downsize and lay off up to 72% of its staff.
Oyo chain is almost on its ending line. It’s all business is rely on the tourism industry. Due to the rise in corona cases rapidly in India, we cannot expect that the pandemic will over in upcoming years which ultimately affects the Oyo chain because people will not travel in affected cities as well as countries.
Example: People especially foreigners who used to visit famous places like Golden Temple will not like to come to India because of high cases of corona Virus. In such case hotels, either Oyo chain or not nearby famous cases will suffer huge losses. Besides them, Indians will also not travel from one state to other states except in urgency.
“Many enterprises are facing demand challenges, and firms in certain sectors in specific regions such as retail, tourism, and hospitality continue to be under restrictions regarding opening up,” said CII director general Chandrajit Banerjee.
The COVID-19 pandemic could deal a crippling blow to the Indian travel and tourism industry, especially with the government suspending all visas, with the economic impact being assessed to run into thousands of crores of rupees. How the travel habits of people change is yet to be determined, however, we do feel that most people will try to avoid traveling or look at traveling to less crowded destinations that aren’t considered popular in the future.