Impact of Coronavirus on Travel Industry: What they are Going Through?

Impact of corona virus on Travel Industry

Being identified at the start of the year 2020, the COVID-19 virus has spread all over the world and causing huge losses to several countries’ economies and small industries.

Up until now, the number of coronavirus cases has been found to be over 874,560 among which the virus has been responsible for taking over 43,428 lives all across the globe. 

In lieu of the spread of the virus to over 203 countries, on March 11, the World Health Organisation (WHO) declared it as a national Pandemic.

Even currently, there has been no vaccine found to stop the virus and many of the countries are taking several measures such as quarantine, social distancing, and lockdowns to slow down the spread of the virus.

Whereas the lockdown is expected to cause some positive effect on the spread of COVID-19, there are some of the small and medium industries which are getting affected by this lockdown, taking them to the edge of being closed.

Among these industries, one of the most badly impacted industries is the Travel and Tourism industries who are going through a shocking phase of loss. 

COVID Quarantine a Standstill for Travel Industries?

The travel industries are facing a serious loss due to coronavirus which also remains intact for an unknown period of time.

In the meantime, the officials are following the guidelines on similar other former viruses such as Ebola as they don’t know what to do in this situation.

The virus has mostly affected China’s travel and tourism industry which accounts for a total of 11% for the country’s GDP which is now growing steadily at a rate of 7%.

As per the joint statement issued between World Health Organisation (WHO) and the World Tourism Organisation (UNWTO), the travel industries all over the world have been advised that the services for the upcoming future should be measured and consistent in the benefit of the general public.

Among the travel industries list, the most affected industries are airlines, hotels, and cruises.

The factors which are contributing to the loss faced by these travel industries include cancellation of trips, temporary adjustment of the employment, fall in the incomes and user events. 

The most extreme case of the impact of coronavirus on the travel industry has been encountered in Spain where more than 2,000 trips have been canceled by Zurich Insuree for its employees from and to Spain and other foreign countries. 

Similarly, in Europe, Lufthansa comes under the greatly impacted travel industry which has issued an unpaid permit for all the employees to cancel the trips to China in lieu of the deadly virus, leaving 13 planes to halt.

Apart from it, some other companies such as Deutsche Bank and BBVA have canceled the trips of the employees to other countries that have been affected by the virus including Japan, Italy, China, Iran, Korea, Singapore, etc.

Also Read About US travel advisories for the month of April 2020.

What Stats Say About Impact of COVID-19 on Travel Industries

As per the estimation made by the International Air Transport Association (IATA), in the upcoming future, the revenues of the travel and tourism industries may go down by 5% for the year 2020.

This loss of 5% accounts for a total loss of 29.3 billion dollars, accounting for a total of 27,000 million Euros.

In the meantime, the OPEC has also lowered the demand for oil by 19% which accounts for a reduction of a total of 100.73 barrels per day.

The loss in the travel and tourism industries have been encountered all over the globe with the stock market greatly impacting the market collapse for some airlines, hotels and cruise industries.

Additionally, the US specialists managed an incredible hit to the world the travel industry, on the grounds that before the alert by the Corona Virus the Administration that directs Donald Trump spoke to organizations and open focuses to stay away from the movement and enormous gatherings.

These measures will no uncertainty largely affect individuals’ movement game plans to one of the most well-known relaxation goals in the US in Las Vegas, as specialists will presently look to confine individuals’ eye to eye communications, something that should have a positive thump on the impact on the capacity of the online club and web-based wagering locales worldwide to profit by their inadequacies in the coming weeks. 

In China, then again, there is presently developing good faith that the pestilence will get leveled out by late April.

Famous pulmonologist Zhong Nanshan, leader of the group of clinical specialists at the National Health Commission of China, has said that his nation is certain of having the flare-up of Corona Virus leveled out toward the finish of April, as arranged. 

The Corona Virus has shaken the world the travel industry, with huge lodging networks and computerized stages, for example, Booking being compelled to drop reservations in the Asian nation.

The travel industry faces a remarkable juncture of dangers – made up of a worldwide wellbeing caution; the deficiency of airplane because of the emergency of the Boeing 737 Max; the social disparagement of movement; misrepresented and even bogus media offensives; atmosphere fiascoes; division charges; insolvencies of administrators and carriers; and the political flimsiness and financial stoppage in the enormous markets – which alludes to least a worldwide constriction for the travel industry business sooner rather than later.

Conclusion

With almost all the countries across the world being badly impacted by the spread of COVID-19. There are some of the industries which are getting mostly affected by this pandemic.

Travel and tourism industries are among the top of such industries facing a great loss due to lockdown and cancellation of trips to foreign countries and its employees.

These stats also tell us that if the pandemic virus is not controlled by the countries anytime soon, it may lead to the collapse of some big as well as small travel industries. Whatever the reason, we will know surely only when the time comes.

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