Since the outbreak of coronavirus, many countries restricted travel, also banned international and domestic travel due to which the Travel and Tourism industry faced a lot of financial loss. Many countries whose main source of income was through tourism are facing a major economic crisis. Hotels, road transport, travel agencies and the aviation industry are worst affected due to coronavirus.
The revenue from worldwide air passenger traffic in 2020 before the corona outbreak was $ 581 Billion USD and the current loss of airlines worldwide in 2020 due to corona is $314 Billion USD. If we talk about India then we faced a loss of USD 11.2 Billion. Even though the cargo transport is still in action but even it has seen a lot of revenue reduction. Due to the halt of airlines, even countries have faced huge revenue losses especially European counties whose major revenue share was through tourism.
The Indian tourism industry was already going through the dark phase due to outdated government rules, regulations and policies. Many five-star hotel chains had already raised their concerns about the tough time faced by the tourism industry in India. Due to currency ban and GST, many businesses suffered a lot and some even became bankrupt. The aviation industry in India was also not that strong and now due to COVID, it will become worse.
Some countries like Norway have given financial assistance to the airline companies but for major countries it still a big challenge to overcome these losses. Looking at the current situation it doesn’t seem like things will be back to normal until 2021. Cases of corona are increasing day by day worldwide and in the absence of a vaccine, it is literally impossible to eliminate this virus.
Written By: Tejas Purohit.