Corona Virus Impact on The Hotel Industry (Research Paper Sample)

COVID19 impact on the hotel industry
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Table of Contents TOC \o "1-3" \h \z \u 1.0 Introduction PAGEREF _Toc66452397 \h 32.0 CHTA's COVID-19 Initiatives PAGEREF _Toc66452398 \h 33.0 Financial Implications PAGEREF _Toc66452399 \h 44.0 The Challenges for Reopening Resorts PAGEREF _Toc66452400 \h 65.0 Facilitating the sector’s recovery PAGEREF _Toc66452401 \h 76.0 Conclusion PAGEREF _Toc66452402 \h 87.0 References PAGEREF _Toc66452403 \h 9
1.0 Introduction
The COVID-19 pandemic brought about unprecedented conditions before the delicate hotel industry. In Caribbean the health crisis caused an economic recession in many countries, reflected by a drop in tourists' activities among other service industry. The virus has continued to thwart the industry and upturns serious concerns regarding the tourism and hospitality industry's future. The Caribbean Hotel and tourism association (CHTA) remains a significant part of many economies, and the corresponding and immense shock on the tourism and hospitality resulting from the pandemic has affected the broader economy. The current trend of fight the virus while managing the re-opening of the tourism economy has aimed and rescuing the failing service industry. The COVID-19 has heavily impacted the tourism and hospitality industry, as governments try to control and reduce the spread. The introduction of unprecedented measures by the Caribbean government to contain the virus, such as;-like curfews, restricted travels, restricted people-to-people interactions, and business operations have brought the tourism and service industry to a standstill.
2.0 CHTA's COVID-19 Initiatives
The CHTA has been part of the bodies involved in implementing COVID19 government protocols. The establishments work with Global Tourism Resilience and Crisis Management Centre (GTRCMC) – to synchronize hotel industry’s promptness and comeback undertakings. The COVID19 crisis has resulted in a reduced number of customers in the service industry. Due to the fear of infection, social stigma, and increased disease levels, many people, mostly the old and the vulnerable, have resulted in locking themselves indoors. Brealey et al. (2019) indicate that since its discovery, the increase of coronavirus has been persistent and has arrived at basically all nations, upsetting many people and prompting a massive number of deaths. When pandemic like COVID-19 occur, they force the service industry to change their working techniques (Kaushala & Srivastavab, 2020). These instances result in undeniable degrees of vulnerability and, for the most part, require speedy reactions in confronting adverse effects. However, preceding research has directed that there is diminutive willingness for an emergency occurrence in the hotel industry, due for the most part to an absence of devoted resources and an deficiency of information and knowledge about acceptable behaviour to control the spread.
There has been a reduced source of resources, making it hard for many institutions to have a smooth flow of products. Reduced transportation services have impacted both people and goods delivery. The hotel industry flourishes on the forms of appearances. Decision-makers set remarkable undertakings to draw in guests to help the sector and upgrade the multiplier impact. These movement interdicts, line terminations, occasion’s terminations, quarantine requirements and trepidation of spread; have put outrageous challenges on hotel industry (Kaushala & Srivastavab, 2020). Air transport, for instance, has been observed as an enhancing and speeding up factor for flu (Katsadze & Milojevic, 2020). This portion has seen precarious abridgements as the need for individual wellbeing, and survival has gotten urgent (Brealey et al., 2019). It has likewise unambiguously diminished the prerequisite for leisure travel and quest for libertine getaways.
3.0 Financial Implications
The Caribbean tourism is expected that as many as 2.4 million jobs have been lost and that 25% of regional travel have been adversely affected. It is approximately 14% total of the entire employment and counts for 15.5 percent of the region GDP. The near total lockdown forced to fight the pandemic prompted a 98 percent decrease in international travelers universally in May 2020 contrasted with 2019.1 A 56 percent year-on-year drop in tourists appearances around the world among January and May was additionally noted. This converts into a fall of 300 million travelers and US$320 bn lost in international the travel industry receipts, more than threefold the misfortune during the worldwide economic emergency of 2009.The International Monetary Fund (IMF) and World Bank have come in to offer loans and grants that would be helpful in supporting the financial aspects of the region. The table below shows the economic significance of tourism and potential impact.
The coronavirus affects tourism in both the long term and medium term in the hospitality industry. The majority of professionals expected the pandemic to be short-term crises and had short-term plans for crisis management; however, the magnitude of the pandemic, which has lasted for more than a year, has raised concerns on the long-term preparedness for many businesses. Many institutions have experienced a remarkable decline in the occupancy rate due to a reduction in the number of guests arriving and the revenue generated by these businesses. In keeping with Kaushala and Srivastavab (2020), the hospitality industry's activities worldwide drastically decreased by two thirds by the end of March 2020. it resulted in many workers' layoffs and reduced expenses by closing unutilized facilities within the industry. For example, lockdowns resulted in lodge and accommodation facilities being lenders uneconomical to run in many hotels and restaurants. Some of the enterprises declared bankruptcy in some extreme events and halted the activities until the impacts of social interruptions reduce and governments' lifts bans, lockdowns, and curfews.
4.0 The Challenges for Reopening Resorts
There has been a challenge in reopening the Resorts which has called for research to improve methods of improving operations on the services. The pandemic's raise has been an eye-opener to many institutions that have been hit by unprecedented calamity. Many have vowed to improve on preparedness for eventualities by taking preventive measures. Irrespective of the massive blow, the tourism and hospitality sector rescues resources and means to stay afloat for the present. The aspects considered while reopening the hotel industry include the reinfection rates of the COVID19. The infection graph trajectories and the cooperation between the involved institutions. Given the number of the hotels looking to reopen, there is a need to strategic decisions should be made in regard to the procedures required.
Although the government of Caribbean has come to reduce their industries' economic impact, there has been a slow road to recovery due to the governments' preventive measures. Health-related crises are a significant factor affecting the industry because they have resulted in the contraction in tourism demand. After all, the epidemic has limited travel. People advised using other forms of engagement, as online booking, to avoid congestion (Chi, 2020). Further, social media and advertisement have helped businesses formulate methods for generating income through open-door policies that align with the laid coronavirus rules. Similar to SARS, the epidemic has created fear among tourists and travellers. It has resulted in reduced tourists demands in the tourist's industry.
5.0 Facilitating the sector’s recovery
Companies have resulted in improvements in innovation and technology to remain relevant in the highly competitive sector. There has been a dire need for crisis management within the industry due to the global recession and reduced productivity in the tourist and hospitality industry. Crisis management has remained a primary reoccurring rejoinder in the hotel industry. Often, this has caused creating a blueprint for the support at the time of unforeseen eventualities. The approaches to economic and social management for many businesses have resulted in either closure, change of tactics, or innovation and technology i