Coronavirus expected to cause staggering losses in the tourism industry

Since its first outbreak in Wuhan province of China, more than 100,000 people were infected by the virus all around the world. The virus has affected many fields and hit the economies of many countries. It has affected the world as no other virus has in recent years. The novel coronavirus has spread in countries like Italy, the US, France, Iran, South Korea, and many others. The virus has already caused massive damage in the countries it managed to spread. The Tourism industry is one of those sectors that is being hit very hard.

The reason for it this is due to canceled flights between the countries. Additionally, fewer people are willing to travel not only in the countries where the virus was reported but also in general. The public is scared of Airports since they seem to be one of the best places for the virus to spread.

Many countries have already canceled direct flights with Iran, China, South Korea, Italy, and other destinations, where the virus spread. Even though the spreading of the virus in China seems to be slowing down, around the world it is increasing every day.

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The effect of coronavirus is changing every day as the number of confirmed infections and fatalities continues to increase and governments and businesses around the globe are taking steps to address the outbreak.

Hotels affected by the virus

Because of the fewer people traveling around the world,hotels are being hit with the negative impact of the virus. Many people have reported that they have canceled their already planned vacations because of the fear of coronavirus. This does not only happen in the countries where the virus spread. People are simply afraid of traveling or going out in general.

Many hotels already announced their losses in just the last two months, they include Hilton, which has closed 150 hotels in China with a total of 33,000 beds. The company is expecting a loss of $25 million to $50 million and a 1% decline in RevPAR, and this will happen if the epidemic continues for more three to six months.

Wyndham Hotels & Resorts also closed about 1,000 hotels in China. Considering these circumstances, Wyndham is predicting a possible adverse impact of approximately $5 million to the adjusted EBITDA for the first quarter of 2020 and a potential adverse impact of approximately $8 million to $12 million to the adjusted EBITDA for the full year 2020.

Home businesses also received a huge hit from the Coronavirus. Many hostels were closed or simply lost their customers.

Even in the countries where the virus is not spreading as fast as in China, different industries are getting hits from the virus. Fewer people are traveling in general, some even prefer to not leave their homes. People even in the least affected countries prefer to stay safe at their homes. However, gambling companies are experiencing increased traffic from the local population.Norske Casino representatives said several times, the traffic on their platforms is increasing significantly.

Airlines

Airlines are receiving one of the biggest hits from the coronavirus. As fewer people are traveling around the world, some flights are being canceled, some of them only take a few passengers and the situation is deteriorating daily.

The worldwide airline industry is expected to be facing $113 billion loss as a consequence of the coronavirus epidemic; compared to the 2003 SARS outbreak, when the airline industry lost $6 billion.

Tourist attractions

Tourist attractions are being closed down every day around the world. Most of them due to the fears of the coronavirus, and some of them because they do not have enough visitors. Disney recently announced closures of some of their parks.

A few days ago, Japan announced that they would be canceling the cherry blossom festivals, which represents one of the most popular events in Japan for tourists. Gyeongbokgung Palace, one of South Korea’s most popular tourist attractions, has also stopped all official guided tours.

Many museums are temporarily closed in Milan, Venice and other locations of northern Italy. According to the museum representatives, they will reopen with new safety measures. Museums across China were also forced to close their doors immediately because of the epidemic. Some tourist attractions have been requested by China’s National Cultural Heritage Administration to stay active on social media and offer their services online.

Tourist attractions and beyond: Coronavirus

According to the World Health Organization, the coronavirus epidemic has now triggered more than 3,000 fatalities all over the world. What might have been referred to as a Chinese concern, has now become very much a global problem.

This new development represents a significant change in opinion and clearly demonstrates the virus’s international potential to disrupt global supply chains as well as the operation of all other industries beyond manufacturing.

The virus is further spreading every day, showing little to no signs of bettering the situation. Many people are currently taken into quarantine for two weeks. The virus has already spread in many countries around the world.