The Silver Lining in Post-COVID 19 Era
Posted By : Signum Hotels
One of the most significant casualties of the novel Coronavirus outbreak has been the Hospitality Industry. The tourism business activity, which contributes a whopping $28 billion, has lost its track.
Impact of Coronavirus on the Tourism Economy: Current Scenario
In 2003, the SARS virus impacted the hospitality industry drastically. There was a 50% decline in hotel bookings, which led to a drop of nearly 9.4 million in International tourist arrival, with losses estimated at between $30 billion and $50 billion. Despite this adversity, the travel industry managed to register immense growth by 2006, with a total contribution of $5,160 billion to the global GDP within the year.
India can stage a relatively rapid recovery, if we make a plan to increase the sales starting from Nov - Dec (if everything settles down smoothly) and as a motto to assure the safe stay we can make it up to 40-45% rise.
The Future of Travel: Safe Tourism
A global future travel survey conducted in April 2020 showed that people still want to travel as soon as the restrictions are lifted. The pandemic has shown most of us the ephemerality of life.
Our governmental bodies are hard at work to uplift the damaged economy. Atmanirbar Bharat Vocal for Local, MSME Schemes has been launched successfully that can help attract the travellers from all over the globe and will play a vital role in an expected growth of economy for the hospitality department from 1.5% to 2.8% .
World-wide 45% would prefer domestic travel and, as expected, 33% will travel internationally. While 75% would resume their trips this year and which can be a positive sign that how it will help the hospitality industry to get back on track.
How will the Industry change after the Pandemic?
About 75% of employees are jobless. Since many people have lost their jobs, or gone back to their hometowns, employment will also see a rise once again not with the same pace but rehiring (at an estimation of 45%) will be done as per the requirements and losses will be recovered.
Almost 82% (around loss of 15000 crore) of global air traffic has declined, but with the willingness to travel, the aviation industry will pick up with the same speed as the tourism and hospitality industry estimation recovery around 3000 crore if everything is settled quite well till Nov- Dec 2020.
How Does the Hospitality Industry continue to provide Services?
The consumption patterns of consumers are changing and we need to take new initiatives and make strategies to align ourselves with these new consumption patterns such as safe tourism. This is the time to stop moping around and build new safety policies and strategies to strengthen the industry.