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The Economic and Psychological Impact of SARS-Cov2 On Travel and Tourism Industry: With Special Reference To India
The Economic and Psychological Impact of SARS-Cov2 On Travel and Tourism Industry: With Special Reference To India
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Uttam Kumar
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Abstract
By the end of December 2019, the eruption of SARS-CoV2 popularly known
as COVID-19 started in the Hubei province of China. In just two months, COVID-19
spread across the globe. By the end of March 2020, more than 160 nations putting the
public health first, implemented countrywide shutdown, hence the travel and tourism
industry came to a complete halt.This paper highlights the significance of the tourism
industry and its role in the Indian economy; investigates the impact of COVID-19 on
the tourism sector, and proposes some possible recovery measures.
Keywords: COVID-19; Lockdown; Tourism; Economy; WTTC; UNWTO
Introduction
The term tourist was first time probably used in 1772 and tourism in
1881(Westcott M. May 2015). Tourism is referred as an industry mainly because it
not only amuses us but also employs a sizable amount of people. Tourism together
with travel sector becomes the largest industry in the world. Over the years, many
countries have deemed tourism as an important benefactor to economic growth. The
economies of some countries totally rely on this sector. If a country attracts a good
number of tourists, that country can’t be designated as a poor country.The irony of
tourism industry is that, any kind of economic setback to the states hits tourism
industry first as people start cutting down their travel expenditure first. But, in the
case of COVID-19 tourism somehow had played a direct role as it spread most in
those countries where tourist was in high number.
The countries, never in history have faced a challenge like COVID-19, where the
movement of people both domestic or international has come to stand still, affecting
travel around 25% this year that is almost equal to dropping of 3 months of travel.Due
to the Corona pandemic, as per estimate, there will be around 38% decline in travelers
- It’s contribution to India’s GDP was 9.5% and generated more than 4 crore
jobs as of 2019 that makes 8% of country’s total employment [3].
- According to WTTC, out of 185 nations India ranks third in terms of its total
contribution to GDP (Aggarwal P, 2020).
- This industry accounts for over 12% of jobs (5% direct and 7% is indirect) in
India [4]. The tourism sector not only engages workers in urban areas but also
provides a platform for countryside people.
Road ahead
The comeback could be slow, but tourism being an integral part of
people’s life it will revive first for sure, once the pandemic is over. After a long stay
at home due to lockdown and no travel, people will certainly start exploring the world
once again. Further, China is a big inbound tourist destination, but COVID-19 will
certainly damage the market. This is a blessing in disguise, and India should try to tap
this opportunity once the business is revived.
References
Aggarwal Pallavi (March, 2020). “Indian travel market is growing at a steady
pace”,https://www.sundayguardianlive.com/lifestyle/indian-travel-market-growing-steady-pace
Marwah Munnmunn(May,2020). “Covid-19 and its Impact on
Tourism”.http://bwhotelier.businessworld.in/article/Covid-19-and-its-Impact-on-Tourism/12-05-2020-
191801/
Sharma Nimisha (March,2020). “How will Covid-19 impact Travel & Tourism industry”,
https://www.indiacityblog.com/travel/how-will-covid-19-impact-travel-tourism-industry-1395/.
Singh Nidhi (April,2020). “The Impact of Covid-19 on Travel & Tourism Industry in India and its
Future”.https://www.tourmyindia.com/blog/impact-of-covid-19-on-travel-tourism-industry/
Sara Farooqui (April,2020). “India coronavirus dispatch: Temporary troubles or a crumbling world
order?” https://www.business-standard.com/article/current-affairs/india-coronavirus-dispatch-
temporary-troubles-or-a-crumbling-world-order-120041400104_1.html
Westcott Morgan edt. (May, 2015), Introduction to Tourism and Hospitality in BC,
https://opentextbc.ca/introtourism/chapter/chapter-1-history-and-overview/
[1] COVID-19 pandemic could cost millions of jobs in global tourism industry: UN body17 th April
2020https://economictimes.indiatimes.com/news/international/business/covid-19-pandemic-could-cost-
millions-of-jobs-in-global-tourism-industry-un-body/articleshow/75194635.cms
[2] India’s Covid-19 lockdown may cause 38 million job losses in the travel and tourism industry 14
April 2020 https://scroll.in/article/959045/indias-covid-19-lockdown-may-cause-38-million-job-losses-
in-the-travel-and-tourism-industry
[3] Economic Impact Reports https://wttc.org/Research/Economic-Impact
[4] Distribution of employment in the travel and tourism sector across India
https://www.statista.com/statistics/701899/employment-in-travel-and-tourism-by-type-india/
[5] Indian Tourism and Hospitality Industry Analysis (March,
2020).https://www.ibef.org/industry/indian-tourism-and-hospitality-industry-analysis-presentation