Stats on Impact of Covid-19 on Hotel & Travel Industry
The rate at which COVID-19 is spreading has been unprecedented, with the new cases confirmed increasing rapidly each day. Many sectors of the economy have been affected. Some of the most severely affected industries include tourism, aviation, and food and beverage. As of 27 March 2020, the global infections topped 537,736, with US recording (85,612 confirmed cases, the UK having 11,658 confirmed cases, and Spain recording 65,719 )confirmed cases. Spain had recorded 5,138 deaths from corona virus as of this date. So how has the hotel and travel Industry been impacted by the COVID-19 pandemic and what do statistics show?
Reduced Number Of Tourists
Various countries have experienced reduced numbers of tourists as the COVID-19 crisis continues. In Italy, it is expected that the country will register a decrease of about 4.7 million tourist arrivals because of the pandemic. Veneto region is expected to be the most hit, with a decrease of about 970,000 arrivals. Italy has been struggling to contain the virus, with many food and beverage establishments previously known to be busy with tourists now remaining empty.
50% of Hotels May Not Close
A survey conducted by Know land shows that 505 of hotels in the US aren’t planning to close down due to Corona virus. Know land is a top group hospitality analytics company and its live survey involving more than 700 hoteliers showed that hoteliers are willing to hold on. Many hotel owners are having the “stay the course” mentality at a time when 70% of the correspondents already have had about 75% or more cancellations within the next 90-120 days. Many hotel operators hope that the CARES Act stimulus bill is going to help them keep operating and prevent them from shutting their doors.
Many workers in the travel and hotel industry will lose their jobs due to COVID-19. Worldwide, there will be close to 75.2 million job losses in the travel and tourism market. The Asia Pacific region and Europe are among the regions to witness job losses. Approximately 48.7 million jobs will be lost in the Asia Pacific region while Europe is forecast to face 10.1 million job losses.
In essence, the shrinking tourist arrivals in different countries would mean that hotel occupancy rates remain low with some hotels opting to shut down. But even with the virus wreaking havoc on many countries, hoteliers are hoping that things will get better.