Global tourism and COVID-19: An impact assessment

Abstract

The world is facing an unprecedented situation with COVID-19. The normal functioning of economies has been completely interrupted with the lockdowns in place. The consequences of pandemic have been deeply felt across the entire global tourism ecosystem. Travel restrictions that were put in place to reduce the outbreak of coronavirus, affected various sectors of every economy. Since recovery of tourism is crucial for the turnaround of any economy, this study aims to provide an overview of the impact of COVID-19 on global tourism and highlighted the ways that can lead the path of revival of the sector. To make this assessment, the paper studied three associated industries of tourism viz. airlines; hospitality with special focus on the hotel segment; and the MSMEs involved directly in tourism related business. Region-wise analysis reveals that the Asia-Pacific zone has been the worst affected followed by the Middle East. As countries are opening up their borders and encouraging tourism, the sector is facing the challenge of rebuilding the consumer confidence in order to promote future tourism. Hence, the paper also provides an overview of policy decisions taken worldwide which will be crucial for sustenance of the global tourism sector.