Minor Project 5
Minor Project 5
REPORT ON
A study on impact of covid 19 on tourism industry
BBA Semester 2
Batch 2021-2024
Submitted To: Submitted by:
Ms. Rekha Prasad Ashutosh Rai
Enrollment No.
02824501721
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ACKNOWLEDGEMENT
Any accomplishment requires the effort of many people and this work is no
different. Racing against time and fast approaching deadlines, the fact that I was
able to complete this project on time would not have been possible without the
help and support of many people. I thank all of them whose patience and
support were very instrumental. I also thank them for making me learn the
ethics and culture of corporate world. The kind of value addition that I have
done to my existing knowledge base is exceptional and I will cherish all these
moments throughout my life. It gives me immense pleasure in mentioning the
name of my project guide Ms. REKHA PRASAD who’s helping hand led to the
completion of my project. I would also like to thank my family and friends for
providing me with monetary as well as non-monetary support, as and when
required. Their trust patience is now coming out in form of this. Last but not the
least; I would like to thank all of them who directly or indirectly helped me in
completing this project that will go a long way in my career, the project is really
knowledgeable and worth cherish
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STUDENT UNDERTAKING
I, ASHUTOSH RAI, a student of commerce from JIMS, Kalkaji hereby declare
that I have completed MINOR PROJECT REPORT on “A Study on Impact of
covid 19 on tourism industry” as a part of the course requirement. I further declare
that the information presented in this project is true and original to the best of my
knowledge.
ASHUTOSH RAI
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CERTIFICATE
This is to certify that the study conducted by ASHUTOSH RAI entitled: “A study
on impact of COVID 19 on tourism industry” being submitted in the partial
fulfilment of BBA 2021-2024, GURU GOBIND SINGH INDRAPRASTHA
UNIVERSITY, is faithful record of the Bonafede research work carried out by him
under my supervision and guidance. This minor project report is his original work
and has not been submitted to this or any other university/institution for the award
of any other degree or diploma
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Contents
Acknowledgement 2
Student undertaking 3
Certificate 4
Content 5
List of figures 6
Introduction 7
Literature review
11
Underpin data 12
Research and
Methodology 17-33
Discussion 34
Limitations 36
Conclusion 37
Recommendation 41
Bibliography 44
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LIST OF FIGURES PAGE NUMBER
FIGURE 1 16
FIGURE 2
31
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Introduction
The world tourism industry is facing the effect of the Covid-19
pandemic. Tourists’ travel risk and management perceptions are
crucial matter in their decision to travel destinations during the
ongoing uncertainty of Covid-19 epidemic. Tourists’ travel risk and
management perceptions can influence their psychological behavior
for travel to destinations Tourists can view their travel risk and
management issues differently due to the spread of the existing
pandemic. Tourists will avoid visiting destinations if they consider it
risky. Tourists’ travel risk and management are associated with
tourism destinations, which is multidimensional where the outcomes
are uncertain due to the impact of Covid-19. Therefore, it is difficult
to recognize the common risk and management dimensions for
developing a theoretical foundation based on the tourists’ risk and
management perceptions and incorporating their outcomes. However,
due to having a crucial concept of travel risk during the Covid-19
pandemic, this study has paid attention to explore and evaluate the
tourists travel risk and management perceptions associated with the
tourism attractions.
The Covid-19 pandemic has ruined all the previous narratives on
development. Lockdowns at the largest scale in human history have
imposed by governments around the world to control the spread of the
pandemic. The consequences of this pandemic could change many
aspects of human life and business including tourism management as
almost half of the global population adopted restrictions on movement
at an unprecedented scale. The Covid-19 is an infectious disease
caused by a new strain of coronavirus. Co stands for corona, Vi for a
virus, and D for the disease. This disease refers to as 2019 novel
coronavirus or 2019-nCoV. The impact of the novel Covid-19
pandemic is expected to have antagonistic results on the tourism
sector, and the economy worldwide. The economic estimations are
foreseeing diminished financial development and showing negative
attitudes to residents from countries most intensely affected by the
Covid-19 pandemic. The Covid-19 pandemic started at Wuhan in
China in December 2019 and other countries in February 2020. It has
various effects and countries around the world are looking for a
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sustainable development approach to mitigate its negative impact. The
pandemic is calamitous for recovering the economy of every country,
nonexistent the travel industry, and social angles including long-term
health issues in those affected by the infection and losses the friends
and family. The effect of Covid-19 has mental effects and it appears
to be essential to identify them appropriately and address these issues
to directly control the spread of infection.
Societal wellbeing or safety measures through lockdowns can control
the spreading of infections. However, when such safety measures are
excessively strict, they can have negative impacts on developing the
tourism industry, interruption of economic development, and increase
the unemployment rate. It is reported that the business world today is
directly or indirectly impacted by different external factors such as
financial, sociocultural, global, political, and technological. The
changes in these factors lead to a change in business performance in
industry in the region-specific or worldwide. The world is aware of
the Covid-19 pandemic and its social outcomes remain ambiguous.
Although China, the United States and other developed countries have
produced vaccines and started vaccination, most of the developing
countries are struggling for getting the vaccine for protection against
the outbreak of the Covid-19 epidemic. There is a lack of healthcare
safety and security in many countries regarding handling Covid-19
patients, lack of doctors, a lacuna of vaccine, and testing facility.
Covid-19 is a global phenomenon, and it may appear soon as an
established external factor in curricula on strategic management for
business performance and emerging tourism marketing.
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Other factors are mostly controllable by social frameworks, and
individuals. Pandemics are generally uncontrollable because they
appear suddenly everywhere. The travel and tourism sector are
particularly motivated by changes in external factors and given the
idea of political and financial systems. The travel industry involves
various sectors and contributes to these areas’ advancement and the
global value of tourism management. The effect of the Covid-19
pandemic on the tourism destination, tourists’ behavior, and their
preference is irrespective of district or nationality. The earlier studies
have confined the connection between pandemic and tourism
regarding risk. Few studies analyzed the tourism restrictions on the
spread of the Covid-19 pandemic and explained how destinations
decided to react to a pandemic. Travel and tourism are one of the
largest industries all over the world, however, despite this industry,
the hospitality and tourism industry is currently highly sensitive to
significant shocks (e.g., Covid-19 pandemic). It is crucial to
investigate how the tourism industry will recover from the effect of
the Covid-19 pandemic.
The rapid transmission and high mortality rate of the Covid-19
pandemic led to the scientific community monitoring its spread of
infection. The pandemic encourages the continuation of social
quarantine and adverse financial effects. The clinicians and
researchers have expressed their concerns about the negative effects
of the Covid-19 epidemic on the health of people and behaviors.
Recently a few studies discussed Covid-19 from healthcare
perspectives. Some studies focus on the risk management of the
Covid-19 pandemic. Some researchers focus on the travel and tourism
crisis while others proposed the necessary procedures that prevent
potential biosecurity threats because of worldwide pandemic
outbreaks. There is a study that focused on the Covid-19 pandemic
and its effect on Chinese residents’ lifestyle and travel, which leads to
enlightening long-term patterns of behavior and tourism destination.
A few countries have made explicit strides in suspending their visa on
arrival strategy and initiating strict travel bans to control the spread of
the pandemic. Another research study reported that the Covid-19
epidemic has carried economic collapse to Singapore, Bali,
Barcelona, Rome, and other counties that were once tourists’
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attractions. The effects of this outbreak on the travel and tourism
industry in the world have been extremely debated by industry
practitioners, the tourism department of the government, and the
academic community.
Most of the countries all over the world are decided to close their
borders and postpone their airline’s services due to the Covid-19
pandemic. United Nations World Tourism Organization reported that
there is a global crisis in the tourism industry and Covid-19 is
responsible for a decline of international tourist arrivals that estimate
the losses of US$300–450 billion. This is surprisingly more terrible
than the effect of SARS in 2003. The Covid-19 pandemic has affected
many countries and the global tourism industry faces terrible
situations in which business has been closed, lives have been lost, and
people are on high alert for social safety. The earlier studies indicate
that the academic community timely provides research for everyone’s
benefit over the healthcare, sociologies, and hard science. Concerning
this research, the existing study aims to investigate the social impact
of the Covid-19 epidemic on tourism destination and tourists’
behaviors as well as their preferences during this pandemic. This
investigation likewise explains how global travel and hospitality
practices are probably going to change because of the pandemic. This
study depends on the synthesis of early literature and sources of
published news and reports related to tourism management,
marketing, healthcare, and tourist behavior. Based on these, the study
draws a conceptual model for empirical assessment. For the post-
Covid-19 and business recovery, these insights will assist tourism
operators, managers, marketers, and industry practitioners tailor their
tourism products and services.
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Literature review
Underpinning theory
This study uses the concept of pathogen-stress theory to evaluate the
travel risk and management perception due to the Covid-19
uncertainty and determining human behaviors in societal issues. Some
authors have explored the influence of pathogen thereat in the context
of Covid-19 epidemics. The personality traits are predicted by a
parasite-stress theory of human sociality that highlights the infection
risks related to the interaction with conspecifics. The travel risk and
management perception refer to the risk of human-to-human
transmission. The infection risks are connected to the openness of
human contact. The increased contact with many group members
implies a higher risk of human-to-human transmission. According to
this theory, when people develop in a parasite-infested environment,
they become less open to visitors, less curious, less exploratory and
reduce their chance of infection. This theory is not only emphasized
cultural differences but also cultural difference over space such as
between different human populations. Generalizing the concept of
pathogen-stress theory, this study explores the effect of Covid-19
epidemic and its impact on travel risk and management perceptions.
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alter psychological and social behaviours of humans, as well as have
an influence on their immune system.
Effect of Covid-19 pandemic
Covid-19 is a new pandemic that first erupted in December 2019 in
China and spreads rapidly across the world through human-to-human
transmission. Most countries all over the world are instituting short-
term travel restrictions to stop the spread of infection which increase
the concern caused by the Covid-19 pandemic on the tourism industry
worldwide. Researchers must think about the previous disaster of the
2003 SARS outbreak and the 2004 tsunami in Sri Lanka for lessons
on how to manage the crisis from the disaster. Tourists prefer an
inclusive tourism package, safety and security when travelling to
popular destinations. They want to avoid risk and crowded tourism
destinations, and they may decide not to visit destinations if their
destination preferences diminished well-being after the outbreak. The
covid-19 pandemic is already brought severe concerns to the world
tourism industry and niche market. United Nation reports that the
recent circumstance of the tourism sector is very worse due to the
pandemic. This crisis expanded in the world and Covid-19 pandemic
easily immobilize international tourists’ emotional stability. The
impact of Covid-19 epidemic is greatly affected tourists’ travel risk
and management perception. Researchers suggested the practitioners
for exploring the tourists’ travel behavior towards tourism
destinations. The discussion of existing literature evidence that there
is no empirical examination that focuses on the impact of Covid-19
pandemic on tourists’ travel risk and management perception.
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The Covid-19 pandemic has made people conscious of hygiene and
safety. People are concerned about their safety and hygienic need in
public transports, hotels and recreational sites. To reduce the
symptom of people of Covid-19 epidemics, face masks use can be
helpful for the hygiene and safety of people. Covid-19 pandemic have
greatly affected the travel decision of tourists and their health safety
and hygiene. It implies that safety and hygiene can be a significant
factor for the travel risk and management perception of tourists.
Because the risk mostly belongs to safety and hygienic including
health-related issues. The potential tourists are generally like to seek
destinations’ safety and hygiene, cleanliness, established
infrastructure, and high-quality medical facilities during the Covid-19
pandemic. Thus, this study postulated that:
Based on the existing theoretical and empirical assessment, this study
proposes a conceptual model.
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Covid 19 effect on world tourism industry
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Scenario 3 (new): International tourist arrivals start to recover in
December, based on limited recovery in international tourism
before the end of the year (-80%).
In the near term, the expectation is that domestic tourism2 offers the
main chance for driving recovery and supporting the tourism
sector. The domestic tourism economy is significant and accounts for
around 75% of the total tourism economy in OECD countries3.
Domestic tourism flows have also been heavily affected by
restrictions on the movement of people, but are expected to recover
more quickly once containment measures are lifted. Nonetheless, it is
unlikely that domestic tourism could compensate for the decline of
international tourism flows, particularly in destinations heavily
dependent on international markets. This will translate into significant
macro-economic effects in countries, regions and cities where the
sector supports many jobs and businesses.
Beyond the tourism economy, the pandemic has triggered a global
economic crisis, and many economies are falling into recession. Early
OECD macro-economic estimates indicated that for each month strict
containment measures are in place, there would be a loss of output
equivalent to 2 percentage points in annual GDP growth. If the
shutdown continued for three months, with no offsetting factors,
annual GDP growth could be between 4-6 percentage points lower
than it otherwise might have been. However, with the outlook
becoming gloomier, this in turn will have consequences for the
tourism recovery.
The coronavirus (COVID-19) pandemic is, first and foremost, a
humanitarian crisis affecting people’s lives, and has triggered a global
economic crisis. This has very tangible impacts for the tourism sector,
which is critical for many people, places and businesses, with the
impact particularly felt in countries, cities and regions where tourism
is an important part of the economy.
Tourism generates foreign exchange, drives regional development,
directly supports numerous types of jobs and businesses and
underpins many local communities. The sector directly contributes,
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on average, 4.4% of GDP, and 21.5% of service exports in OECD
countries5. These shares are much higher for several OECD countries.
For example, tourism in Spain contributes 11.8% of GDP while travel
represents 52.3% of total service exports, in Mexico these figures are
8.7% and 78.3%, in Iceland 8.6% and 47.7%, in Portugal 8.0% and
51.1%, and in France 7.4% and 22.2%.
Tourism is a labor-intensive sector, directly contributing 6.9% of
employment on average in OECD countries. The sector is a leading
source of employment and job creation, providing a high volume of
jobs for low skilled workers, together with higher skilled jobs. The
sector employs many seasonal, part-time and temporary workers.
With the impact of the crisis continuing over June-July-August and
reduced capacity for many industry branches, many of these jobs will
be directly affected. In normal circumstances, the sector can help
provide diverse employment opportunities for migrants, women,
students and older workers, not only in major cities but also in
remote, rural and coastal areas, as well as other often economically
fragile locations where alternative opportunities may be limited. For
example, the share of tourism employment represents 15.7% of total
employment in Iceland, 13.5% in Spain, 10.3% in Ireland, 10.0% in
Greece, and 9.8% in Portugal.
Tourism is one of the most directly affected sectors in this current
crisis and this calls for immediate and long term responses. With
international aviation at a virtual standstill since March, the closure of
tourism sites and attractions, the cancellation or postponement of
major festivals and events, and restrictions on public gatherings
(indoor and outdoor) in many countries, the impact of COVID-19 on
global tourism has been overwhelming and immediate. Furthermore,
despite the sector’s proven resilience in response to previous crises,
the sheer depth and breadth of COVID-19–related impacts on tourism
and the wider economy means a quick recovery is unlikely. Reflecting
the urgency of the situation, an extraordinary convening of the G20
Tourism Ministers was held on 23 April, with Ministers issuing a
statement welcoming national efforts to mitigate the economic and
social impact of the pandemic, and committing work together to
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provide support to support a sustainable and inclusive recovery of the
tourism sector.
The reality is that global tourism will be hard hit throughout 2020 and
beyond, even if the spread of the virus is brought under control in the
coming months. Tourism businesses were among the first to be shut
down following the introduction of measures to contain the virus, as
tourism necessarily involves people-to-people interactions and the
movement of people travelling from their place of usual residence to
destinations within their own country, and to other countries. Tourism
activities are also likely to be among the last to restart, and on a
phased basis. Even when these businesses do open, it will be under
new operating procedures in the absence of a vaccine. The pandemic
is also likely to have an impact on tourist behavior, impacting the
resumption and recover of domestic and international tourism.
Revised OECD estimates point to 60% decline in international
tourism in 2020, rising to 80% if recovery is delayed until
December. The last time the global tourism economy contracted was
immediately following the financial crisis in 2008 when international
arrivals decreased by 3.9%. This is in line with recent projections
from other organizations, which similarly indicate a significant
reversal from previous growth projections. Latest UNWTO estimates
point to 22% decline on international tourist arrivals in the first three
months of the year, while for 2020 a fall of between 58% and 78% is
predicted, which would imply a loss of between USD 910 billion to
USD 1.2 trillion in export revenues from tourism. The World Travel
and Tourism Council (WTTC), meanwhile, forecast on 24 April that
100.8 million jobs are at risk globally. An ILO sectoral policy brief
has identified tourism as one of the most vulnerable sectors that is
extremely likely to witness a drastic fall in jobs as a result of the
COVID-19 crisis.
National level forecasts similarly reflect the scale of the expected
impact on tourism in 2020, together with the challenges in making
predictions in a fast-moving and uncertain situation. Countries
including Chile, Finland and the United Kingdom have developed
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scenario-based approaches based on assumptions and simplifications,
and which point to different possible outcomes. This will ultimately
be determined by the how the economic and sanitary crisis evolves,
and the interaction of a complex range of demand and supply factors.
Attempts to forecast the likely impact of the pandemic on the tourism
economy have quickly been overtaken by the speed the situation has
evolved as the pandemic has spread. However, expectations are
growing that recovery to pre-crisis levels may take two years or more.
The International Air Travel Association (IATA) predicts that airlines
are unlikely to see a return to pre-crisis traffic levels before the start
of 2021, while hospitality data company STR estimates that return to
pre-crisis levels will not occur before 2022.
With more than 9 out of 10 people in the world living in countries
which have put in place cross-border travel restrictions, the current
pandemic is more global and will cover a much longer period than
previous health-related crises. By comparison, crises such as SARS in
2003, the H1N1 outbreak in 2009, and MERS in 2015 were of a
smaller scale and the impact on tourism was more localized. While
the experience of these crises show how eagerness to travel was
recovered quickly, after health scares where under control and
confidence restored, the widespread nature of the COVID-19
pandemic and the depth of the economic crisis it has triggered mean
that the tourism recovery will be slower. WTTC estimates that the
impact of this crisis on tourism will be five times that of the global
financial crisis, while STR data also shows the depth of the impact,
with revenues per available room (RevPAR) plunging by 84.9% in
April 2020, compared with a reduction on previous year of 28%
following the financial crisis.
UNWTO reports that COVID-19 related travel restrictions are in
place in all countries worldwide, and on 1 June 2020 156
governments have completely closed their borders to international
tourism. Such travel restrictions are likely to remain in place in the
coming weeks, and possibly longer. In Europe, for example, the
European Commission has called for external borders to remain
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closed for non-essential travel until 15 June at the earliest. Countries
like New Zealand and Australia, which moved quickly to restrict
inbound travel to prevent the importation of COVID-19 cases, are
exploring the creation of a ‘travel bubble’ between the two countries.
Other countries are also looking to permit travel with neighboring
countries, such as the creation of a Baltic travel bubble allowing
tourism between Estonia, Latvia and Lithuania, or ‘air bridges’
between countries where the virus is contained.
It is not yet clear when a more widespread re-opening of borders will
occur, and under what conditions. Where borders are open, some
countries have announced mandatory 14-day quarantine periods for
people coming from abroad. However, the situation remains fluid, as
countries look to find solutions to manage the virus while minimizing
the impact of the containment measures, including on tourism. Iceland
is one country that has announced plans to re-open international travel
starting 15 June, offering tourists the option of getting tested for the
virus, or undertaking a quarantine period.
While much attention has focused on international tourism, not least
because of the availability of more data, domestic tourism has also
been severely impacted by the containment measures. Before the
crisis, domestic tourism accounted for 75% of tourism expenditures
on average in OECD countries. However, this figure varies highly
among countries.
Domestic tourism is expected to play an important role in leading the
initial recovery phase, given the uncertain outlook for international
travel. Countries where domestic tourism already represents a
significant share of the tourism economy are thus likely to see
recovery in the sector more quickly than countries that are heavily
dependent on international tourism flows. Many countries, and the
tourism sector, are moving to promote domestic travel and cater to
visitors from their own country.
China has emerged as a global tourism powerhouse over the past
decade, ranking first as a source of outbound tourists in 2018 (10.6%),
fourth in international tourist arrivals (4.5% - behind only France,
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Spain and the United States), and eleventh in international tourism
receipts (2.8%). As such, the sudden interruption of outbound travel
from China in January had an immediate demand-side impact on
destinations around the world. This was only the first indication of the
potential threat the virus posed to international tourism, and as it has
spread, it has had knock-on effects on other main markets and
destinations around the world.
Many countries are now moving to ease restrictions, as the pandemic
response moves to the next phase. Starting in China (and spreading
elsewhere, restrictions are progressively being lifted in most
countries, as people return to work and start travelling again on a
limited scale.
This is expected to be a gradual and non-linear process, as countries
seek to manage a gradual return to daily life while containing the
virus, and it is not yet clear when a full return to tourism activities
will be possible. This is a situation which will be closely monitored,
and governments have been keen to stress the potential need to re-
introduce restrictions should the circulation of the virus rise again.
This has been the experience in Singapore, for example, where having
initially eased restrictions on the movement of people containment
measures were reintroduced amid concerns of a second wave of the
virus.
Opening up the sector is going to be more difficult than shutting it
down, and will require a balanced measured approach. While tourism
has been heavily impacted by the pandemic, and the measures put in
place to contain the virus, tourism flows are also a potential vector for
spreading the virus. While the delay in re-opening and continued
uncertainty creates further challenges for the sector, moving too
quickly risks further dampening government and consumer
confidence in getting the sector up and running for the longer term.
Eventual impacts will depend not only on the length of the pandemic,
which will have ramifications for business survival, but also
potential long-term changes in travel behavior as a result of the
crisis – will people be more cautious about travelling overseas in the
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future? The crisis is expected to have a permanent impact on
consumer behavior, accelerating the move to online, with a greater
emphasis on hygiene and healthy living, and higher use of cashless
and contactless payment methods.
The impact on travel behavior remains to be seen, but tourism
businesses, such as cruise and aviation, are already preparing to
improve health screening and hygiene measures, and there is strong
recognition that much will need to done to restore traveler’s
confidence. Such measures will need to be fully actionable by small
and micro-businesses, and government has a role to play in working
with peak national industry bodies to support these businesses.
Businesses will also need to take steps to protect workers, who are at
the front line in delivering tourism services.
Another issue will be how welcome visitors will be in destinations, as
the negative perception of tourists as risk carriers by host community
may also be a consequence of the pandemic, while local communities
in destinations which before the crisis were experiencing issues
associated with high visitor volumes and overcrowding have
reclaimed their local areas.
The pandemic has been disruptive across branches of the tourism
sector, firms, and destinations, with some parts of the sector more
affected than others, now and in the longer term. This has obvious
connections with SMEs as most firms in the tourism sector are small
in scale. Given their often-limited resources and existing obstacles in
accessing capital, the period over which SMEs can survive a shock
will likely be shorter than for larger firms. As the OECD Interim
Outlook signals, there is a risk that otherwise solvent firms,
particularly SMEs, could go bankrupt while containment measures are
in force21. Tourism businesses that were viable before the pandemic
may now be vulnerable. Costs associated with prevention and changes
in work processes, such as the adoption of digital tools and
implementation of new operating protocols, may also be relatively
higher for SMEs.
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The OECD Policy Note, highlights that SMEs may have less
resilience and flexibility to cope with the costs that such shocks entail,
with a survey of SMEs indicating there is a serious risk that over 50%
of SMEs will not survive the next few months. A widespread collapse
of SMEs could have a strong impact on national economies and
global growth prospects, and on the tourism economy. Governments
have been quick to acknowledge the specific circumstances of SMEs,
and have put in place policies to support them, with policy responses
frequently followed this sequence of measures: health measures, and
information on how to adhere to them, measures to address liquidity
by deferring payments, measures to supply extra and more easily
available credit to strengthen SME resilience, measures to avoid the
consequences of unorganized lay-offs, and structural policies. These
general SME measures have also been accessible to SMEs in the
tourism sector.
In addition to being characterized by a very large group of small and
micro-businesses, the tourism sector is also highly fragmented and
diverse, covering a wide range of industries. The sector faces
particular challenges due to this cross-cutting, multi-level, and
fragmented nature. Tourism services are often interdependent and a
crisis in one sub-sector, such as aviation, can have disastrous follow-
on effects on the tourism value chain. A key challenge as the sector
looks to re-open is how to get all these interlinked parts of the tourism
supply chain working together again, to provide a seamless tourism
experience for visitors. outlines a selection of impacts experienced by
selected tourism industry branches.
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market and exposure to international source markets, and the place of
tourism in the economy.
Destinations most dependent on international markets are likely to be
most affected (particularly long-haul), as are urban destinations. More
remote and rural destinations and natural areas are likely to be more
attractive to visitors, at least in the short term. Tourism Economics
expects domestic city tourism to recover in 2021, but recovery of
international tourism is likely to take two years or more. Tourism to
major cities is expected to recover first, with a more widespread
recovery in international tourism to cities not expected before 2024.
Previously overcrowded destinations might see high reductions in
tourism flows while smaller rural destinations may become more
popular. Veneto Region (Italy) for example as part of its recovery
plan wants to leverage lesser known UNESCO heritage sites, to shift
volumes from Venice to different attractions. Popular destinations
may also need to reconfigure their development model to attract
people, while ensuring sufficient social distancing.
A key issue for destination recovery is whether the critical mass of
services will remain operating after the crisis, to cater to visitors when
they do come. A dynamic tourism economy depends on the
availability of a variety of tourism services within destinations, from
accommodation and food services to attractions, activities and events.
In the meantime, destination management organizations (DMO), are
faced with the challenge of providing timely and accurate information
and communication to stakeholders. Moreover, some DMOs are
redeploying their websites to provide information to residents to
discover local businesses and respond to current needs, this is
happening for instance in Raleigh, United States, and in Segnano dans
les Lands, France.
Another issue will be how welcome visitors will be in local areas.
There is a danger that tourism flows will become a vector for
spreading the virus. Should this become the case, this may further
dampen government, business and consumer confidence in getting the
sector back up and running in the longer term. It may also lead to a
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backlash from local communities who may resist the arrival of
visitors over concerns they may bring the virus and put pressure on
local health services. There has been some evidence of this happening
following the introduction of containment measures, as people left
cities to travel to spending the confinement period in second homes,
and also since the easing of travel restrictions, with some local
authorities and tourism organizations issuing calls for people not to
visit.
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several instances, businesses have made available excess hospitality
capacity to support the medical system, by providing meals to medical
personnel, or older people, or by providing spaces for people needing
quarantine. Vouchers for holidays are also being provided for medical
staff. For example, the Four Seasons Hotel in New York transformed
into a home for medical workers. Accor opened up 40 of its hotels in
France for nursing staff, vulnerable populations and anyone fighting
the spread of coronavirus. Hotels have also been transformed into
medical care spaces to absorb the escalating demand for hospital
treatments. Spain’s Madrid-based hotels offered hospitals 9 000 extra
beds for Coronavirus-infected patients, while Carnival cruise operator
offered a number of its ships as makeshift hospitals.
One area where the pandemic is providing an opportunity for
potential development of the sector, is in the area of digitalization.
Initial indications are that the current crisis is accelerating the digital
transformation of the sector. Digital solutions are being developed to
create ‘live remote’ tourism and/or virtual tourism experiences, as is
the case for several museums who are opening their virtual doors to
tourists worldwide in an effort to support those experiencing extended
periods of social distancing. The move to digital is also changing
work trends in the sector.
In the longer-term, social distancing requirements, as well as broader
shifts in business and risk management strategies, and consumer
demand for contactless, self-service, and personalized experiences,
could further the uptake of cloud-based property management
systems, and automatic check-in/out kiosks in hotels, transport
terminals and attractions. The use of autonomous robots to clean or
undertake back of house activities may also become more prevalent.
31
32
METHODOLOGY
this study is online research the data is taken from the official sites of
ORCD (Organisation for Economic Co-operation and Development),
World Travel and Tourism Council (WTTC), UNWTO (united nation
world tourism organization).
33
Discussion
In this study, I aimed to evaluate the psychometric properties of the
Covid-19 pandemic, a newly developed scale designed to measure the
aspect of international tourists’ travel risk and management
perceptions and its social outcomes. The results of the structural
model assessment revealed the hypothesis relationships, which
indicated that the Covid-19 pandemic has a relationship with travel
risk and management perceptions. It implies that due to the spread of
the Covid-19 pandemic across the globe, the majority of the countries
were set up short-term travel limits to control the mass panic. By
conducting a review of the previous study indicated that there is a
relationship between perceived risk for disease-related factors and
Covid-19 pandemic.
The existing study results identified that the effect of the Covid-19
pandemic has greatly affected risk management, service delivery,
travel pattern, distribution channel, avoidance of overpopulated
destinations, and hygiene and safety through the tourists’ travel risk
and management perceptions. The tourists believe that Covid-19
pandemic has created travel risk and management perception and
reduce their travel plant to destinations. Data analysis of this study
specifies that tourists’ travel risk and management perception is
greatly associated with risk management. In service research the
Covid-19 pandemic context, risk management has been marked as a
significant factor affecting an individual’s belief about controlling
threats of a pandemic. The previous study supported that tourists’
behavior can lead to risk management for destination infrastructure
and medical facilities, destination image, and trip planning.
The result highlight that travels risk perception is associated with
service delivery. This finding is related to which found that there is a
significant relationship between Covid-19 pandemic and service
delivery. Tourists can avoid eating and drinking in restaurants. There
is an alternative solution for people who can order delivery or takeout
food to minimize interpersonal interaction. This study expands the
existing knowledge by examining the effect of travel risk and
management perception on travel pattern. This result is related to who
34
reported that travel pattern can lead to independent travel or small
group tours, less group dining, promote destinations experiencing
under tourism, and diversity such as novel outdoor activities, smart
tourism, and nature-based travel. The findings indicated there is a
positive association between travel risk and management perception
and distribution channels. It infers that distribution Chanel can
encourage people for nature-based travel and smart tourism to reduce
the travel risk and risk management perception during the Covid-19
pandemic. some researchers have reported that people can use
technology for travel-related purposes to reduce travel risk and risk
management perception.
The empirical results indicated that tourists’ travel risk and
management perception is greatly associated with the avoidance of
overpopulated destinations. The effect of Covid-19 pandemic spreads
through human-to-human transmission, thus, avoidance of
overcrowded destinations can be an alternative solution to reduce
infection. The overpopulated destinations can be minimized by using
a short-term strategy of imposing travel restrictions for certain
attractions destinations. Data analysis point out that the travel risk and
management perception have a positive impact on hygiene and safety,
which corresponds well with a previous study which indicated that
travel risk and management perception has greatly affected tourists’
travel decision and their perceptions of hygiene and safety due to the
spread of Covid-19 epidemic. In the context of service research,
hygiene and safety judgments have been marked as an important
construct affecting people’s safety and security towards the service
firm or customers’ purchase intention of goods and services offered
by the firms or service organizations. Tourists can purchase travel
insurance when booking trips to confirm coverage in case of illness
including Covid-19. Usually, the potential tourists are likely to
express their interest in destinations’ hygiene, safety, security,
cleanliness, avoidance population density, and medical facilities when
they decide for travelling to destinations.
35
Limitation
The sources from which the secondary data is collected may not
be accurate so there is a scope of inaccuracy.
The pathogen test used for this research may vary from person
to person so the data may lack accuracy.
As the research is a secondary data hence the data is taken from
different websites. And every site uses different research
methods so the conclusion may very on different websites.
Secondary research rarely provides all the answers you need.
The objectives and methodology used to collect the secondary
data may not be appropriate for the problem at hand.
36
Conclusion
Government support in the first phase of the crisis has been focused
on immediate response and mitigation efforts to protect visitors and
workers and ensure business continuity following the imposition of
containment measures. Supports have largely focused on getting
financial aid out to the widest possible net of workers and businesses,
as quickly as possible. As the containment measures start to ease, the
next steps will be to get travelers moving, tourism businesses back up
and running, and people back to work. This is an important, but
complex and challenging task.
While the medium and long-term tourism impacts of COVID-19 will
vary between countries, destinations, and segments of the sector, it is
clear that in order to open up while the virus is still
circulating, governments will need to take balanced, measured and
coordinated policy action at the local, national and international level,
in order to protect people, while minimizing job losses and business
closures in the immediate and long-term. The OECD has created a
map of country-by-country COVID-19 economic measures, available
at the link
Countries have taken exceptional steps to respond to the crisis (see
Annex A). While country response measures continue to focus
on public health issues, governments have also moved quickly to
introduce extraordinary initiatives to mitigate the economic impact of
the coronavirus on businesses and workers. These have most often
taken the form of economy-wide stimulus packages, often including
37
some liquidity injections and fiscal relief (e.g. through loans, tax
holidays or postponements, guarantee schemes). For example, the
European Commission’s EUR 37 billion Coronavirus Response
Investment Initiative came into force on 1 April to provide liquidity to
small businesses and the health care sector. This initiative has been
complemented by the Coronavirus Response Investment Initiative
Plus (CRII+) package, designed to enable all non-utilized support
from the European Structural and Investment Funds to be mobilized
to the fullest.
The tourism sector is greatly benefiting from these general economic
stimulus and support measures, which are relevant and accessible to
workers and tourism businesses of all sizes. In some countries,
tourism is also earmarked as a target sector for support within these
frameworks, in recognition of the extent to which the sector has been
impacted. Given the dramatic pressures the tourism economy is
facing, and as the situation evolves, many OECD countries are also
taking steps to introduce tourism-specific measures to address the
immediate impacts on the sector, and to facilitate its recovery.
Governments are also adjusting the measures put in place to take
better address the needs to tourism businesses, and the sector as a
whole.
Most initiatives in the emergency response and mitigation phase are
intended to provide some income continuity for tourism workers, and
ensure that tourism businesses are in a position to restart operations
when containment measures come to an end, as well as assisting
tourism workers. While workers have been protected in many
countries (e.g. some governments are paying the salaries of more than
half of the workforce), in the long-term this is not sustainable – once
businesses are able to re-open, the full scale of job losses will become
more apparent. Likewise, for businesses, the fight to stay open will
not end with the lifting of travel restrictions.
More specifically, financial relief to tourism business is being
supported through exceptional legislation and rule changes, to for
example allow businesses to offer vouchers to consumers in place of
38
cash refunds, which may then be claimed by consumers if vouchers
are not used after a pre-determined period. Policy makers are taking
steps to protect tourism consumers and provide timely information.
Other measures being implemented include the establishment of
COVID-related cabinet committees or taskforces (e.g. Canada,
France, Ireland, New Zealand) to ensure a whole-of-government
leadership and co-ordination across policy areas, and to serve as a
platform for industry engagement and the development of effective
recovery plans.
An overview of country policy responses to the COVID-19 pandemic,
highlights three major response categories and types of responses,
which continue to evolve:
Supporting people, businesses (particularly SMEs) and destinations
through the crisis
Governments have been taking unprecedented steps to respond to the
crisis through general economy stimulus packages, however, much
more needs to be done, and quickly, at a sectoral level with creative
solutions to support tourism businesses and workers, restore travelers
confidence and be ready to stimulate demand once containment
measures are lifted. The crisis is also revealing the crucial need for
tourism policy to adopt an integrated governmental approach so that
response measures are consistent and complementary to general
economic stimulus packages (e.g. support measures for SMEs and for
workers).
Visitor protection. Tourists outside their normal environment
often suffer from an information deficit and countries are taking
steps to provide assistance and information in multiple
languages and formats.
Worker and business support. The tourism sector benefits from
cross-sectoral measures introduced by governments to provide
flexibility and relief for workers. Some countries have
introduced measures specifically aimed at the self-employed,
which is particularly relevant for many micro and small tourism
39
businesses. In countries where the impact of the pandemic on
tourism businesses has been particularly significant, many have
focused on providing financial relief to tourism SMEs, such as
postponed VAT payment. Non-financial supports are also
provided, including information provision and advisory services
to comply with new rules.
Destination support. The impact of the pandemic on destinations
varies depending on a variety of factors, with those most
dependent on international markets likely to be most affected
(urban, rural and natural areas). Other key factors include the
nature of the tourism offer, the impact of travel restrictions on
visitor flows, the scale and complexity of business operations,
the size of the domestic tourism market, and the place of tourism
in the wider economy. Tailored responses will often be required.
Government assistance efforts include communication campaigns to
help prevent the spread of the virus, supports to provide flexibility
and relief for companies and workers in the reduction of working
hours, temporary lay-offs and sick leave, liquidity injections and other
financial instruments (e.g. tax relief, guarantees, grants), to ensure
business survival in the immediate term, measures regarding
procurement and late payments, and actions to help SME adopt new
work processes and find new markets. Examples of specific country
initiatives are outlined in
In most countries, tourism businesses are benefiting also from
economy wide stimulus measures. In the United States, the travel and
tourism sector will benefit from a USD 2 trillion economic stimulus
package open to all businesses, which includes funding pots
earmarked for those hardest hit industries, including airlines, airports,
and travel agents. The package will be delivered through a mix of
measures including cash payments, loans, grants and guarantees.
In most countries, tourism businesses are benefiting also from
economy wide stimulus measures. In the United States, the travel and
tourism sector will benefit from a USD 2 trillion economic stimulus
package open to all businesses, which includes funding pots
40
earmarked for those hardest hit industries, including airlines, airports,
and travel agents. The package will be delivered through a mix of
measures including cash payments, loans, grants and guarantees.
41
Recommendations
42
attention. The travel and tourism industry are a fundamental part of
the global economy, liable for a large number of occupations and
billions of dollars in profit. Therefore, travel and tourism industry
practitioners and policymakers should reevaluate tourists’ behavior,
travel industry policies, regulations, tourism operators’ market, and
tourism product development to promote continuous sustainability.
The existing global health crisis has an unprecedented impact on the
travel and tourism industry due to the spread of Covid-19 pandemic.
Tourists’ travel risk and management perceptions and their impacts on
the tourism market or society (e.g., risk management perception,
service delivery, transportation patterns, distribution Channels,
avoidance of overpopulated destinations, hygiene and safety), need a
top to bottom investigation to empower the tourism industry experts,
and policymakers to build up a more adjusted industry. Tourists’
travel risk and management perceptions in the tourism industry will
likewise prompt the development of new tourism markets that
academics and tourism operators can investigate together. The
findings of the existing empirical study are likely to shape theories on
tourists’ travel risk and management perceptions, tourists’ behavior,
marketing and management, both in the travel and tourism industry
explicitly and in more extensive fields in general. The spread of
Covid-19 flare-up has carried critical effects on society and industry.
The travel and tourism policymakers and academicians should
consider this pandemic tragedy and how it will advise tourism
industry practices. The potential tourists concern about how they
travel to destinations; thus, tourism practitioners should consider the
strategies that mitigate the spread of a pandemic, public health crises,
and ponder a plan that carries positive changes to the travel industry
following this pandemic. For example, tourists should be needed to
buy travel insurance when booking trips to guarantee coverage if there
should be an occurrence of sickness, including a post-covid pandemic.
Both international and domestic tourism needs to stress safety and
health measures, and any tourism activities that make tourists feel
safer to travel destinations and reduce their travel risk and
management perception. The impact of Covid-19 pandemic should be
considered within a global community. The spread of Covid-19
epidemic will have greater psychological, sociological and financial
43
impacts if it is not eliminated quickly across the world. While society
can recuperate effectively from financial interruption, including in
global travel and tourism activities, following Covid-19 pandemic, the
sociological and mental effects will be more stable. People should
explore the current post-covid pandemic scene cautiously and
sympathetically.
44
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