The global travel business is one of the most affected businesses around the world from this pandemic. Especially due to the air travel ban and the lockdown situations in many countries the tourists are restricted to their houses. People traveling and spending time in places outside their regular environment is called tourism. International tourists use to travel across territorial borders for visiting places, business activities, vacations, and leisure time. But due to this unseen and unexpected situation, these days they are unable to travel.
Revenue Statistics of Global Travel Business
It is expected that there will be an 8.9% decline in revenue this year according to statistics. This is because of a very less number of local tourists and almost no international tourists. According to Statista original forecast for the revenues in 2020 was 711944 million USD. It is now restated to 447412 million USD. This industry will have to face this situation until the discovery of the coronavirus vaccine. Nobody knows the coronavirus life cycle at this time as the vaccine is yet to be discovered. The coronavirus live update shows the increasing numbers every day and more and more countries are locking the areas. So standing here we cannot predict the opening of this industry.
There are many businesses associated with the global tourism industry. There is a need for transport, travel agencies, air travel, accommodation food, and many other requirements for tourists to travel. So there are many businesses that are associated with this industry. International air transport, hospitality industry, food and beverage services, travel agencies, drinking bars, car rentals, taxi services, travel guides, etc are all part of it. If there is a decline in revenues of the tourism industry, all other industries suffer. This will increase unemployment.
All the industries are working on a business model of earning profits from customers and paying wages to employs. No business law is in favor of earning less and paying more. So, during these pandemic situations how can and how long a business owner can pay wages to its workers. Although the sales and profits situation is very low. That’s why unemployment in this sector rises across the world. The data at Statista shows the expected employment loss during this coronavirus pandemic. It is predicted that the Asia Pacific region will be most hit by this situation. 63.4 million people can lose jobs here. Europe 13 million, North America 8.2, Africa 7.6, Latin America 4.7, Middle East 2.6, and Carrabin 1.2 million. China, India, and the United States will top the world’s list of people losing jobs.
What to do?
Now the question arises, what to do? Should we sit still and wait to suffer? No, we should be thinking of out of the box solutions to these problems. Extraordinary situations want extraordinary decisions. It can be clearly seen that this coronavirus is not going anywhere. So, we should work differently on business strategy for business development. The relevant authorities should develop SOPs. The business owners and managers should strictly implement those coronavirus SOPs.
In the end, we should pray that this pandemic will end soon. The people across the world will be visiting places soon and cheering their lives up.