Question

Explain the challenges in macro-level market and industry analysis that face the tourism industry in the time of coronavirus. Will these challenges still be important in 5 years?

Answer 1

Covid-19 is a global pandemic There is a global challenge for many industries World is in the standstill Phase. There are no commercial flights from one country to another country. All international and domestic flights are closed due to this Corona Pandemic. Many countries have sealed their districts in states of the country.

The economy is in the worst phase. All visas are suspended due to the lockdown for many countries including China.

Overall Travel will be stopped for the time being. Many attraction like cherry blossom in Japan is hit due to Corona. The tourism industry is one of the most hit by this pandemic. Inbound tourism and outbound tourism both will be affected severely.

The Major challenge people are conscious of health first. In the wake of the corona, there is no means of communication. All public transport, by road, water and air are suspended. There is no question of tourism to be opened before existing of the coronavirus or till the vaccine is invented.

Even if the country is free from corona, there will be no international flights for commercial purposes. So inbound and outbound tourism will not flourish.

If we assume till Dec- 2020 the world is free from the Corona Virus. It will take another several month to revive the economy. It results in the lower-income of an individual. So consumers will invest first in their basic needs rather than go for tourism. Asia's tourism industry is considered to be the worst affected.

It is expected to recover the same momentum it will take several years and 60 million jobs will be at risk. The tourism industry shares 10% of the World's GDP.