Coronavirus Impact: 5 Crore Tourism Jobs Will Be Lost; 80% Rooms Vacant In Indian Hotels

Covid-19 is causing havoc around the world, affecting the health of not only humans but also businesses and markets!

According to a report from the World Travel and Tourism Council (WTCC), the Covid-19 pandemic could end up to 50 million jobs in the travel and tourism industry.

Read to find out more…

Tourism and Hospitality Industry All Over the World Hit Due to Covid-19 Pandemic!

Tourism is one of the major parts of the economy of many countries around the world!

The council added that the world’s travel sector could shrink by up to 25% in 2020.

WTTC’s chief executive, Gloria Guevara, said, “The COVID-19 outbreak ‘clearly presents a significant threat to the industry as a whole, to those employed within it, and those wishing to continue traveling.’”

The airline companies have already cancelled thousands of international flights due to falling demand and travel restrictions. This decline is likely to create enormous undulating effects upon industries like tourism, hotels, hospitality, restaurants, etc. 

WTTC recommended that governments take measures to protect its tourism industries, including the removal or simplification of visas; the relaxation of “unnecessary barriers” at ports and airports; the reduction of taxes imposed on travelers like Air Passenger Duty; and the increase of budgets for the promotion of travel destinations.

In addition Guevera said, “Travel and tourism has the strength to overcome this challenge and will emerge stronger and more robust by taking all necessary measures to tackle COVID-19 and the understandable concern which surrounds it.” 

Every country around the globe is facing a serious decline in tourism and the revenue this sector generates. Many countries are also imposing travel bans as safety measures.

How is Indian Government Handling Tourism in India Amidst Covid-19?

India typically experiences a visit of around 10 million foreign visitors annually. According to WTTC, tourism in India generated $240 billion 9.2% of the country’s gross domestic product, in 2018, while supporting 42.7 million jobs. Tourism was also the country’s third largest foreign exchange earner.

Indian Government on March 11 suspended “all existing visas, except diplomatic, official, UN/international organisations, employment, project visas” for 30 days. 

Rajasthan is a popular destination amongst the foreign visitors. Rachna Singh, CEO of the Federation of Hospitality and Tourism of Rajasthan, “Everything has been cancelled. About 4 in 10 people in Rajasthan depended in some way on tourism.”

Chetan Gupta, general secretary of the Association of Domestic Tour Operators of India said, “All our members are suffering at the moment.” 

Sooraj Nair, director of the luxurious Crowne Plaza hotel in Kochi in southern India said occupancy at his hotel had plunged to 20% – whereas the average hotel occupancy in India in 2019 was about 67%.