The Effects of Corona Virus in the Tourism Industry (Research Paper Sample)

The Effects of Corona Virus on the Hospitality Industry
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TABLE OF CONTENTS
Contents TOC \o "1-3" \h \z \u 1.Introduction PAGEREF _Toc119587871 \h 12.Literature Review PAGEREF _Toc119587873 \h 13. Analysis PAGEREF _Toc119587874 \h 23.0 Impact on Tourism PAGEREF _Toc119587875 \h 23.1 Food and Beverages PAGEREF _Toc119587876 \h 33.2 Accommodation PAGEREF _Toc119587877 \h 33.3 Entertainment and Recreation PAGEREF _Toc119587878 \h 53.4 Future and Recovery PAGEREF _Toc119587879 \h 64. Conclusion PAGEREF _Toc119587880 \h 75. Recommendations PAGEREF _Toc119587881 \h 85.0 Incorporation of Technology PAGEREF _Toc119587882 \h 85.1 Adhering to Health Safety Measures PAGEREF _Toc119587883 \h 86. References PAGEREF _Toc119587884 \h 9
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1 Introduction
Covid-19 has become a pandemic as the virus keeps mutating and developing. The epidemic has had some effects on most economies, civilizations, and sectors worldwide. The hospitality sector is particularly affected by the epidemic as its firms are highly interrupted while seeking to operate normally in the constantly changing Covid-19 environment. Since the epidemic is a current issue that's on many people's minds, an academic study has attracted attention by taking into account both the mechanism of the illness and its effects in various fields. Researchers are working hard to stay current as viral modifications continue to develop and dramatically influence society and industries. This study aims to create a general understanding of how the Covid-19 epidemic has affected the hospitality industry around the world.
Given that the research is still in its infancy, it is particularly desirable to comprehend the existing study paths in the field through the identification of investigation emphases. A specific technique was used to look for recent critical studies about how the virus affects the hotel sector. A survey of recent literature was conducted, and judgments about the key themes found in the papers under analysis were reached.
2 Literature Review
A technique for finding important academic content about the hotel industry was implemented using Google Scholar, books, and journals found on the internet. Keyword searches were included but were not restricted to "The impact of COVID-19 on the hospitality sector.” This study found that factors such as rising disposable income, new tourism patterns, an increase in online travel due to increased internet usage and online banking, the online availability of hotels and travel directories on the web, and many others were driving the hospitality industry before the COVID-19 epidemic. Tourism has been one of the major forces behind the growth of the hospitality industry before the crisis. The number of foreign visitors has been noted to rise gradually in recent decades. However, this quantity of international trips abruptly decreased following COVID-19. The primary problems affecting the hospitality economy are reduced tours and travel, the interruption of flights and international visits, and the closures of businesses that offer food and beverages, accommodation, entertainment, and recreation, all of which have led to the downfall of the hospitality sector.
3. Analysis
3.0 Impact on Tourism
Security measures to contain the Coronavirus have a detrimental effect on tourism because a substantial component of the industry's international travel segment was stopped or drastically reduced. Trips for both business and pleasure were halted for a sizable period, as were flights, trains, cars, ships, and other modes of transportation. As a result, most hotels postponed operations because of eager travelers and meeting attendees canceling or delaying their reservations, resulting in employees losing jobs worldwide. Subsequently, tourism, as one of the key economic sectors, has contributed up to 80% of exports and significant portions of the financial systems of both advanced and developing countries. However, it is one of the industries most impacted by the Covid-19 epidemic and negatively influences all continents' economies, lifestyles, and public services. For instance, more than half of the 144 million employees employed globally in sectors connected, such as the labor-intensive lodging and food services industries, lost their jobs.
The pandemic significantly impacted places like African nations and the Least Developed Countries, which depend most on tourists for employment and economic growth. The abrupt decline in tourism eliminated natural conservation funds and caused workers to lose, leading to increased wildlife poaching and theft. The closure and interruption of the travel sector prove to have been a bad strategy for the tourism sector. Quang (2022) claims that without transportation, there would be no supply of tourists, which would make the tourism sector unviable. Although the safety regulations placed on the travel industry can be to blame for the decline in international travel, people were also worried about their health. Only a tiny number could risk flying.
3.1 Food and Beverages
Hoteliers suffered as the illness spread around the globe, despite making some progress as restrictions were relaxed. During the epidemic's early stages, temporary closures of everything from local restaurants to processed foods were the norm, and restaurants incurred significant losses during that period. Most restaurants have yet to reopen, and the ones that have reopened frequently have capacity restrictions. In addition to these losses, food and beverage establishments are learning that pre-pandemic figures still need to be fulfilled as many consumers have yet to return after restrictions and constraints are eased. This situation may be due to various factors, such as potential customers' anxiety about going out in public. Although a shortage of willing clients is undoubtedly a concern, there is another issue to consider if customers return. The supply system for all foods, from the most basic to the most specialized, has been seriously damaged. Bucak and Yigit (2021) argue that there is a severe shortage of workers who can satisfy the needs of a hungry population.
Even though the epidemic negatively impacted the food and beverage business, there have been some encouraging developments in the sector. Due to declining customer support, business owners changed the services they offered to make up for part of the lost revenue. Hemmington and Neil (2022) claim that increases in home delivery, takeout, and artificial intelligence innovations have made it possible for some businesses to continue operating. Increased habits and awareness of health, cleanliness, and safety are also noticeable. Most importantly, business people are putting procedures in place to ensure that their employees are using proper safety and health precautions and carrying out these procedures with the future customer in mind. Many customers find this appealing since they are incredibly cautious about interacting with anything that could make them ill. The COVID-19 crisis had adverse effects on the hotel businesses, but it also had some favorable effects on the food and beverage industry.
3.2 Accommodation
One of the hospitality sector sub-sectors that the COVID-19 outbreak has severely impacted is the hotel business. The impacts mainly contributed to prevention strategies that had been put in place to stop the spread of COVID-19. They included the new safety strategy of social distancing, which has led to a decreased demand for accommodation services; the restriction applied to international visits, which reduced the number of international visitors; prioritizing working at home, which has adversely affected the market for hospitality services, particularly the food and beverage services; early business closing hours, which has decreased the business operation durations and temporary lockdowns across nations have reduced interstate travel. These actions have slowed down hotel businesses, pushed them to operate at lower capacity, and, worst yet, shut down completely.
A decrease in open hotels during the COVID-19 epidemic signaled the hotel industry's downturn. For instance, according to a study conducted in Kenya, the percentage of busy restaurants fell to almost 72% by March 2020 and over 35% by May 2020, as shown in Figure 1. This reduction reflects pressure on the business brought on by COVID-19 policies. According to projections, most individuals who lost their employment due to the COVID-19 outbreak worked in the hotel business. According to Figure 1, the hotel business witnessed high unemployment rates in May 2020, with 67% of employees losing their jobs.
Figure 1
However, the number of employees rose to 60% towards the end of the season due to the relaxation of COVID-19 laws and increased demand for hotel services throughout the holiday period. To stop the spread of the Coronavirus, restaurants, lodgings, hostels, and resorts closed. This limited availability of services offered by the closed facilities and also business owners worried about the future. However, the hotel industry is projected to see significant advancements soon due to advances designed to operate successfully in the COVID-19 environment.
3.3 Entertainment and Recreation
The COVID-19 pandemic severely affected the entertainment and recreation sector, costing multinational entertainment corporations billions of dollars. Global entertainment firms like Walt Disney World and Box Office incurred enormous losses, forcing some businesses to lay off executives and workers in the struggle for survival and capital preservation. According to Nhamo et al. (2020), the pande...