Blue Or Black: The Impact of Pandemic on Tourism Industry Worldwide

Impact of Pandemic on Tourism Industry Worldwide

The tourism industry had faced the greatest impact during this pandemic and faced lots of economic loss. The COVID-19 had a major impact on the travel industry because it plays a major role in one’s daily life, due to this many people can’t visit places and to their native places also, so the demand for the employees has also been reduced. The tourism industry in India has been a significant contributor to the country’s GDP. The sector even generates a large employment base.This pandemic is the biggest challenge that any country has ever faced as international travel faced a loss of up to 25 percent this year which is equivalent to a loss of three months of travel. The COVID-19 pandemic has significantly affected the travel industry because of the subsequent travel limitations popular among explorers. The travel industry has been hugely influenced by the spread of coronavirus, many of the numbers of nations had travel limitations due to overspreading of virus. The United Nations World Tourism Organization said that worldwide global traveler appearances may diminish by 20–30% in 2020, prompting a possible loss of US$30–50 billion. In a large number of the world’s urban communities, dropped down around 80–90%. The other side travel limitations happened regionally and numerous vacation spots far and wide, for example, exhibition halls,events, malls, theaters, and sports scenes shut. “Due to this pandemic, the traveling moment has been restricted for 4 months. Around 750 enrolled and 40,000 unregistered visit administrators have shut shop unfit to pay lease because of the absence of business,” V K T Balan, executive Association of Domestic Tour Operators of India, Tamil Nadu said.This has resulted in jobless to over five lakh families directly. We can’t pay to our drivers (of mentors and vehicles). The situation is worst, aircraft have declined to discount our store sum or even the passages towards wiping out of flight tickets,” said Balan, CMD of Madura Travel Services. He urged the Central and State governments to waive off-road tax and insurance on tourist vehicles not plying since the lockdown was enforced and also refund the GST paid for at least one year, to pay the drivers and other employees.

Indian Association of Tour Operators (IATO) estimates the hotel, and travel sector together may suffer a loss of about ₹85 billion keeping in mind the travel restrictions imposed on foreign tourists. International tourism could decline by 60-80 percent in 2020 due to the Covid-19 pandemic, resulting in the revenue loss of $910 billion to $1.2 trillion and placing millions of livelihoods at risk, the World Tourism Organization (UNWTO). The travel industry area was facing lots of difficulty before the ascent of the Covid-19 pandemic because of the effect of the worldwide monetary problem. Economic growth in the world decelerated in 2019-20, resulting in weaker growth in foreign tourist arrivals and foreign exchange earnings from tourism in India. There are some countries which have faced a loss,the first is china, china faced a huge loss and hit hard by travel restrictions, the next is India Foreign arrivals in March 2020 fell by 66.4% year-on-year. In Thailand, Foreign arrivals in March 2020 fell by 76.4% year-on-year and tourist spending fell 77.6% year-on-year. In Turkey, the foreign arrivals in March 2020 fell by 67.73% year on year. SriLanka Foreign arrivals in March 2020 fell by 70.8% year-on-year.   Singapore Foreign arrivals in February 2020 fell by 51.2% year-on-year. In Japan, Foreign arrivals in March 2020 fell by 94% year-on-year. By mid-April, daily arrivals of foreigners had fallen by 99.9% year-on-year and there are many countries that are facing a loss in tourism. There the many sectors that are facing lots of loss due to this pandemic, but tourism is the main thing that is affected more,but due to this loss the country’s GDP has been affected more. During the outbreak of pandemics, almost everything connected to tourism is affected perhaps with the exception of the environment. Because of the impact on tourism, hotels, transport, and many sources have been affected, so though the hotels, transport, and travel restriction are shut, it’s notpermanent. This situation will come to an end soon.

1. Dr. Vikas Arya
Associate Professor, Rajalakshmi School of Business, Chennai
Email –

2. Ashritha M
Rajalakshmi School of Business, Chennai