The Coronavirus has spread across the world at an alarming rate, governments have no choice other than a lockdown to contain the spread of this virus. One of the worst hit sectors in the world are the Hospitality sector. This is a sector we use the most. It consists of hotels, casinos, and restaurants. Due to the restrictions of Section 144, or restriction of large group gatherings and closure of travel into and out of cities, the hotels and restaurants have been shut to curb the spread of the virus. This may see the most casualties due to the respective lockdowns of the countries. Many hotel chains, restaurants etc are currently fighting for their existence. For the South East Asian countries, a report was drawn up by HVS or the Hospitality Valuation Services. The Hospitality Valuation Services in India and South Asia’s report shows the following points-:
1.) The latter months of the year (June-December) will be the most damaging months of 2020 to the hospitality sector. There is an uncertainty for people to make bookings for travel due to the magnitude of the spread of the virus and nobody knows when Government guidelines will relax, so until they do there is no way out for this sector and its players.
2.) The report says that the plan should ensure slow and sustained growth for the sector after the relaxations and should not focus on making up for lost time by pumping huge amounts of money as the world is changing, people are becoming more cautious and taking more precautions to ensure their safety. A slow plan and phased opening of all the hotels and restaurants is what will benefit for the long term.
3.) HVS proposed two plans in its report-:
- STOP GAP PLAN- This is a plan where the hotels stay in touch with customers and try to receive their inputs and any changes that they would like to see in the hotel and try to make those changes as this is now the perfect time for renovations.
- ii) Plan 2 is a phased plan to open all the facilities slowly, with protection and safety precautions for all the workers. It must be a long term plan as the aim should be sustainability and not quick returns for the lost time.
As far as the economic packages have come, The United States Of America have handled it properly and provided the necessary funds for the worst hit sectors and businesses. A total of almost 500 billion has been provided for the worst hit sectors and businesses to help them get out of this crisis. Once, this crisis is done with and fully extinguished, these sectors will be able to get back to normalcy. It is not a matter of if but a matter of when we get back to normalcy around the world.