IMPACT OF COVID -19 ON TRAVEL AND TOURISM INDUSTRY
Dept.of microbiology, Nrupathunga University
PRASHANTH K R, Nrupathunga University
PRASHANTH K R
Nrupathunga University, Dept of microbiology
[email protected]
Report done by:
1.Ahmed, Z. U., & Krohn, F. B. (1992). Marketing India as a tourist destination in North America—challenges and opportunities. International Journal of Hospitality
Management, 11(2), 89–98. https://doi.org/10.1016/0278-4319(92)90003-E
2.. Sigala M. Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research. J Bus Res. 2020;117:312-321.
doi:10.1016/j.jbusres.2020.06.015
3.Dash, J. (2020, April 28). Covid-19 impact: Tourism industry to incur Rs 1.25 turnover revenue loss in 2020. Retrieved November 15, 2020, from https://www.business-
standard.com/article/economy-policy/covid-19-ndustry-to-incur-rs-1-25-trn-revenue-los5-trn-revenue-loss-in-2020-120042801287_1.html
4.https://www.tourmyindia.com/blog/impact-of-covid-19-on-travel-tourism-industry/
References
•Covid 19,worst worst humanitarian disaster has affected people
and their business triggering a global economic crisis.
•Covid 19 not only affected economic foreign exchange etc.. But
also affected TOURISM INDUSTRY.
•There is substantial decline in arrival of tourist to India since
2020.
•And this report aims to create awareness and predicts the
arrival of tourists to India.
•This report gives odds of tourists arrival through using artificial
neural networks (ANN).
•We discuss about recovery plans to strengthen Travelling and
tourism industry
Abstract
•From the unit root test it has been verified that arrival of number of
foreign tourist data series is non-linear and non-stationary. Hence,
the ANN model is used to forecast the arrival of foreign tourists in
India.
•Forexample, Witt and Martin(1987) used econometric models,
such as Ordinary Least Square (OLS) and Cochrane-Orcutt (CO), to
predict international tourist demand.
From the graph we can conclude that as the dawn of Covid-19 we can
see rapid decline in the tourist visit to India.From January to March
tourists visit declined from -10% to almost -70%.
Impact of COVID-19 pandemic on tourism economy
•The foreign exchange earnings (FEE) from tourism is one of the
major revenue source for the Government of India. The FEE is the
revenue generated by inbound foreign tourists, and decrease in
foreign tourists’ number leads to reduce FEE(foreign exchange
earning).
•Due to decrease in the FEE, the Dollar has surged from 70 to 76
during December 2019 to April 2020 respectively .
Introduction
•On account of Coronavirus, the Indian tourism and hospitality
industry is expecting a potential job loss of around 38 million.
•At the dawn of Covid-19 Indian hotels saw decline of 65% occupancy
in seats.
•The restaurant industry in India is expecting almost zero revenue in
the immediate term, and a drop of 50% in the months to come.
•There is a threat of job loss of nearly 15% in the hotel and restaurant
industry once the lockdown is lifted, as they will not see an immediate
surge in demand.
•Most of the people lost their jobs as tourist guides, hotel managers,
drivers,etc which inturn declined per capita income of states.
•Infact, most of the YouTube vloggers, travellers,bike-riders, and many
has suffered due to lockdown restrictions on travelling.
•Ultimately covid-19 lockdown has affected travelling and tourism.
Effects of Covid-19 on tourism industry
•The reduced number of students possibly will travel abroad to
study.
•Religious tourism will drip as there are strict government directions
on mass gatherings.
•Domestic tourism will be more favourable than international.
•The markets will become less crowded.
•The hotel occupancy and Food & Beverage consumption will be
impacted.
•The hotel occupancy and Food & Beverage consumption will be
impacted.
RECOVERY PLANS
•we are staring at a gradual or in fact slow recovery scenario of the
tourism industry in India, however, the important thing to focus on is
there’s hope of recovery after all.
•Experts have emphasised on the need to focus on the potential of
domestic tourism and try to gain some profit through it.
•It is also being recommended to cautiously utilise the FF&E
Reserves. Operators would need to support the hotel owners.
•Vaccination must be made mandatory for immigration and
emigration.
•Bio-bubble should be mandatory for sports and athletes in case of
abroad travelling.
Future trends-Post covid -19
Coronavirus may have brought the pace of travel & tourism industry in
India to a complete halt, but it hasn’t yet defeated the spirit of the
people involved in this tourism sector. Once the pandemic ends When
everything gets back to normal tourism industry will regrow and
everyone will get a chance to lead a pre-pandemic life. As a responsible
citizen everyone must ensure covid 19 norms before travelling. since
Olympics like big events are about to happen internationally, it’s
everyone’s responsibility to follow covid 19 norms before travelling to
abroad
Conclusions
•Tourism and hospitality businesses are profoundly affected
byCOVID-19 that has been declared as pandemic on 12thMarch
2020 (WHO, 2020).
•Due to the COVID-19pandemic, the travel and tourism industry’s
employment loss is predicted to be 100.08 Million worldwide.
•India is one of the developing nations known for its uniqueness in
its tradition, culture and unparalleled hospitality.
•India is one of the developing nations known for its uniqueness in
its tradition, culture and unparalleled hospitality. It is a major
destination for many international tourists, creating several
employment opportunities and generating enormous taxes.
•The Indian tourism industry can be divided into three major
segments, such as (I) international inbound tourism; (ii) domestic
tourism; and (iii) out-bound tourism.
•The Indian tourism industry has created about 87.5 million jobs,
with 12.75% of total employment, thereby contributing INR 194
billion to India’s GDP (WTTC, 2018).
•There is a 66.4% decline in overseas tourists’ arrivals in India in
March 2020 compared to last year (TAN, 2020).
•It has been estimated that there will be about 40 million direct and
indirect job losses in India, with an annual loss in revenue of around
USD 17 billion in India (FICCI, 2020;Scroll, 2020).
Prediction of arrival of foreign tourists
Chart . USD VS INR (DEC2019-APRIL2020
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