How will Wuhan Coronavirus affect the travel and tourism industry?

Question
Mudassir Ali 6 months 1 Answer 84 views

Answer ( 1 )

  1. Originally Answered: Is the tourism and hospitality sector impacted due to the coronavirus?
    YES, they are impacted very negatively. And these losses are NOT recoupable or recoverable losses, meaning the travel industry cannot double-up later on in the year and make up for that loss.

    A flight seat lost to the airline (due to the passenger not flying) is lost revenue.

    A hotel reservation cancelled (due to the passenger not showing up) is lost revenue. The hotel cannot double up in May or June to make up for it.

    A rental car reservation cancelled is lost revenue.

    A group tour reservation cancelled is lost revenue.

    A cruise ship cannot cancel a cruise because of COVID-19 and then double up on cruises the rest of the year. They just lose the revenue from the cancelled cruise.

    This tourism loss is going to severely affect some countries who depend on tourism for a significant part of their Gross Domestic Product (GDP – the measure in revenue/money of how much your country makes).

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