The spread of corona virus disease is invariably impacting the tourism industry across the world. Tourism is a global business that contributes in a big way to the growth of GDP and employment. Before the corona virus hit China and rapidly started spreading across the world, it was predicted that there will be three percent to four percent growth in the International tourism industry. Although the infectious disease started in China, it has rapidly spread across 20 countries and is impacting economies across industry verticals.
Corona virus affected countries
Besides China, the virus has affected Singapore, Korea, Japan, Italy, India, Philippines, Thailand and the UK. These countries are some of the top tourist destinations and generate significant revenues through the travel and tourism industry. Chinese tourists also account for a significant part of tourists across the world. The global tourism industry has seen a dip in flight bookings and this will have an impact on the GDP of the nations. Countries have taken fiscal and non-fiscal measures to reduce the impact of corona virus on the tourism industry.
Canceled flight and hotel bookings
Two-third of China’s international flights have been canceled amid the corona virus outbreak. Additionally, there are many passengers who choose to cancel their travel plans and give air travel a miss. Hundreds of Hong Kong flights have been canceled in the past few weeks. Although there are safety measures across all airports, China has canceled flights and major airlines flying to China have temporarily suspended operations.
Several passengers flying to China, Hong Kong, and Thailand have already canceled their travel plans and have missed the flight. It immediately had an impact on hotel bookings across the country. This has also led to high hotel booking cancellations.
Global revenue loss
Corona virus has led to high expenditure for most countries. In order to control the spread of the disease, countries are taking essential steps. In addition to a loss of tourism, countries are incurring high fiscal expenditure. It can be rightly said that the virus will wipe off a significant amount of earnings in tourism this year.
The epidemic in China can wipe USD 5.9 billion to USD 7.7 billion from tourism earnings in Vietnam in the next three months. Travelers will continue to stay away from these countries. Vietnam has also stopped issuing visas for foreign visitors who had been in China in the last two weeks. The sector estimates to see two million fewer Chinese tourists due to the virus and it could lead to a huge amount of loss in tourism revenue. China was also the biggest source of foreign tourists for Vietnam last year.
It is not only China, but many countries have also been affected and the global tourism sector will witness an overall decline in terms of revenue and growth. How the countries handle it, only time will tell. Cases of the Corona Virus are only increasing across different countries. All countries have taken preventive measures to reduce the spread of Corona Virus and are restricting travel to countries affected with the disease.