Tourism has been a cornerstone of the global economy for ages, contributing to the economic vitality of various regions. The scenic landscapes, historical paraphernalia, vibrant cultures and cuisines have always attracted a myriad of leisure tourists, history aficionados, adventure enthusiasts, and culinary experts from across the globe. However, the outbreak of the COVID-19 pandemic has created unforeseen complications and has brought about seismic shifts in the tourism industry in an exceedingly short period.
The domino effect of the constraints posed by the pandemic was felt worldwide, but the tourism industry bore the brunt disproportionately in comparison to various other sectors. The imposition of stringent travel restrictions, lockdown protocols, health concerns, and global economic slowdown culminated in a steep decline in international and domestic tourists, effectively stalling the multi-billion dollar industry.
Initial studies by intergovernmental organizations and leading market research firms have indicated a prospective loss of millions of jobs worldwide in the tourism industry owing to the pandemic. The World Travel and Tourism Council (WTTC) warned that the COVID-19 pandemic could cut 50 million jobs worldwide in the travel and tourism industry and Asia is expected to be the worst affected. Similarly, according to Statista, causing a slump never before witnessed in the contemporary era, the revenue in the worldwide travel and tourism industry is expected to show an annual growth rate of -44.5% in 2020.
Notably, airlines, hotels, travel agencies, and restaurants—the pillars of the tourism industry—have suffered staggering losses. Airlines bear the brunt with companies such as Air Canada, Lufthansa and Qantas reporting colossal losses and opting for mass layoffs due to the near-total collapse of passenger air travel. As borders shut and international travel ground to a halt, the rippling effect of this downturn cascaded through the entire spectrum of the tourism sector.
Parallel to this, the hospitality industry witnessed a plummet in hotel occupancy rates. Major hospitality chains around the globe grappled with substantial losses, and consequently, many hotels had no choice but to temporarily halt operations or to shut down entirely. While hotels tried to stay afloat by adapting to quarantine protocols and incorporating practices such as contactless check-in and enhanced sanitization procedures, the overall impact of the pandemic has led to massive job losses, closures, and financial strains.
Moreover, the dining sector was not spared from the ravages of the pandemic either. With many countries enforcing lockdowns and social distancing rules, the once-thriving restaurant sector saw a dramatic decline. Many restaurants are faced with closure, and even those that survived are operating under new, stringent regulations, with cut down capacity.
However, the adversity brought by the pandemic has created an environment for possible changes and adaptations in the tourism industry. With extensive discussion on ‘rebuilding’ the tourism sector post-pandemic, the concept of ‘sustainable tourism’ has become more critical than ever. Amidst talk of recovery, there’s an increased emphasis on reinventing tourism in a manner that values the environment and it is applauded not just for economic revenue but also for its potential contribution to sustainable development.
In light of this, many countries are shifting their focus to promoting domestic tourism to kick-start their crippled economies. Domestic tourism has risen in countries like China, where the government has been encouraging its citizens to explore their nation. Similarly, New Zealand has also been promoting its local tourism sector in a bid to recover from the impact of the pandemic.
With the rollout of COVID-19 vaccines, there’s hope for the gradual lifting of travel restrictions and the revival of the tourism industry. Yet, the emphasis on safety and health precautions is unlikely to dissipate soon. Tourists are likely to prefer destinations that managed the pandemic well, and travel companies and hotels which delineate clear health and safety guidelines.
This has resulted in strategic shifts in the tourism industry— with a noticeable transformation, being the explosion in digitalization. Contactless services, online reservations, virtual tours, and digital health passports have gained immense popularity, with these trends likely to continue in the future.
The effect of the COVID-19 pandemic on the tourism industry underscores the need for resilient structures to withstand future threats. While it sparked significant economic hardships, this crisis also put forth an opportunity—an opportunity for transformation. The challenges have prompted the industry to rethink its strategies, emphasize sustainable practices, focus on local tourism, and accelerate digital transformation.
Even though the long-term effects of this pandemic on the tourism industry are yet to be fully realized, one thing is clear: the tourism industry will adapt and move forward, but it will not be business as usual. No doubt, the tourism landscape post-pandemic will look significantly different from what we once knew, embodying the lessons learnt amidst the crisis and the translative strategies adopted towards a new norm.
Share this content: