Tourism is one of the most popular sectors in the world. Countries consider the tourism income to be a vital injection of funds into their economy. In countries like Macau and Maldives, the tourism sector contributes to almost 40% of the economy of the country. In India, the tourism sector is going to see one of its steepest falls in history. With the government suspending all visas and not allowing any inter-state transport. Buses, cars, trains, and flights are all grounded and the sector has come to a halt. Due to the lack of travel, the hospitality sector is also paying the price.
The CII National Committee on Tourism has said that between October to March, every year there is an estimated value of 28 billion dollars for 60-65 percent each year. The Committee has said that the sector is suffering even more due to the cancellation of visas. The value at risk from this sector will be tens of thousands of crores. This is vital money for the economy of the country. India is an already slowing economy that has been forced into a standstill due to the lockdown imposed to combat the coronavirus. A subpar economic relief package has been introduced but there seems to be no real investment.
The World Travel and Tourism Council has warned that the coronavirus pandemic could cause a loss of almost 50 million jobs worldwide in the travel and tourism industry. The Council also stated that Asia would be the worst affected, due to the origin being in China. Once the virus is controlled and the lockdown guidelines are relaxed, it is expected to take as long as 10 months for the recovery of the travel and tourism sectors. The tourism sector currently accounts for 10% of the global GDP. Out of the 50 million jobs that will be lost, it is projected that 30 million of those jobs will be in Asia, 7 million in Europe, 5 million in the Americas, and the rest of the 8 million spread across the other continents. The Council has suggested simplifying visas wherever possible, cut taxes and introduce incentives once the pandemic is under control. Airlines are closing down and are turning out to be the most affected. The most recent casualty is Thai Airways, filing for bankruptcy and requesting the Thai government for financial aid and go through with the bankruptcy process.
The virus has affected all of us in some ways, some more than others and the damage has just begun, we are still to see the further changes made due to the pandemic. We are sure that after the pandemic is over we will be in a new world.