How do you expect the COVID-19 virus to Impact the Travel and Tourism Industry?

How do you expect the COVID-19 virus to Impact the Travel and Tourism Industry in both the short run and the long run. Please use any external sources to support your position.


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Short-Run and The Long-Run Impact of COVID-19 on the Travel and Tourism Industry

The onset of the COVID-19 pandemic in early 2019 caught many countries by surprise, leading to the quick and unregulated imposing of containment measures to curb the spread of the virus. Among these measures were travel restrictions, including quarantine and closing sea, land, and air borders. The halting of movement had a significant impact on the travel and tourism industry, which largely depends on the movement of people from one destination to another. The effect of the pandemic was immediately felt by individuals such as travel agents, companies, and countries that rely heavily on tourism due to the reduced number of tourist bookings. The COVID-19 virus will likely impact the Travel and Tourism Industry in the short run by loss of revenue through reduced arrivals in international destinations and, in the long run, through revenue loss and an increase in production costs due to new health measures.

The tourism industry is expected to suffer from reduced bookings and arrivals, especially for international destinations leading to a loss of revenue. The containment measures are still in place in many popular destinations, and the travel and tourism industry continues to struggle with the low number of people booking flights and accommodations. According to Asian Development Bank (ADB) and World Tourism Organization (UNWTO) (2022), “In 2020 and 2021, fluctuating demand, revenue loss, reduced staff, and rising costs tied to public health measures were among the multiple challenges faced in the sector” (p. xiii). Therefore, in the short run, the travel and tourism industry can expect to deal with revenue losses from reduced bookings in both domestic and international destinations. The industry can expect to experience fluctuating demand, which might mean laying off some of its staff to reduce revenue loss.

In the long turn, the travel and tourism industry can expect to deal with a high cost of production related to the new measures and policies being implemented to prevent a resurgence or another loss of lives in a pandemic. The need for extra space to avoid overcrowding will push many travel and tourism companies to restructure their operations and premises, which might come with high costs. According to Kiesnoski (2020), “The new travel normal may mean a shift to vacation rentals over hotels, driving rather than flying, and an increase in the use of travel insurance and personal travel advisors.” Therefore, many travel and tourism companies will be forced to restructure the way they have always provided services to their clients, which might come with extra costs. The preference for rentals instead of hotels shows that people are still trying to avoid crowded places or hanging out with strangers as the pandemic cases continue to be reported.

The pandemic negatively impacted travel and tourism in the short and long run due to a significant reduction in bookings and arrivals, especially in international destinations. The airlines were forced to shut down due to containment measures restricting movement, while hotels and other tourist destinations such as museums and parks were forced to close, leading to revenue loss in the short run. After the restrictions were lifted, the travel and tourism industry can expect numerous impacts on its operations, especially in the long term, as people are no longer comfortable with the accommodation arrangements previously provided, such as hotel rooms. The travel and tourism industry will have to deal with the short-run, and long-turn impact of the pandemic, which left many countries that were largely dependent on tourism broke.




Asian Development Bank (ADB) and World Tourism Organization (UNWTO). (n.d.). Covid-19 and the Future of Tourism in Asia And the Pacific. Asian Development Bank.

Kiesnoski, K. (2020). Travel changed after 9/11; Here’s how it will look after the COVID-19 pandemic finally recedes. CNBC.

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