2019 been a very disappointing year for Asian countries, and now the 2020 is going to face the more worst scenario as growth is expected to slow down to 2.2 % amid the COVID-19 outbreak. Experts hope the rebound in 2021 to 6.2 % if pandemic is controlled and situation normalizes. Growth is going to drop from 5.7 % to 2.4% in the ASIA, excluding highly income, newly industrialized economies.
Coronavirus disease 2019 (COVID-19) is going to increase the downside risks severely. No surety about the wide spread of virus pandemic, projections might prove wrong by the lasting of containment. Unfortunate to not discount the possibility of financial crisis leading to turmoil.
- The worst Pandemic of the century:
The rapid spread of Coronavirus Disease 2019 (COVID-19) has made it the worst pandemic in a century. The outbreak was still concentrated primarily China. Now it has expanded significantly, with its epicenter shifting to Europe and the United States. The use of containment measures such as travel bans and community quarantines has expanded greatly. And digits show that the outbreak caused a disastrous decline in economic activity by the start of 2020. Sharp and protracted declines in commodity prices and tourist arrivals will challenge dependent economies across the region.
- Dent to travel Industry:
Almost every entity relevant to travel has closed its operation, no local or international flights, and no more bookings. This disaster is creating a worst conditions to the organization newly emerging into the travel industry.
In Pakistan when technology is replacing the booking sector with online platforms like sastaticket, MYTM best booking app in Pakistan , easytickets and others this pandemic is leaving a deep dent in the structure.
Even so MYTM provides the best prices online for tickets via MYTM Travels now un-operational due to coronavirus shutdown worldwide.
- The Pre-Corona Projections about Travel Industry
The global travel & tourism industry was growing rapidly. According to World Travel and Tourism Council (WTTC), the global travel & tourism industry was expanding by the growth of 6.03 Trillion USD TO 8.27 Trillion USD by 2017 with reference to 2006. Growing at a CAGR of 2.9%. Across the globe.
As per World Bank, “the number of international travel departures increased from 633.4 million in 1995 to 1.57 billion in 2017 increasing at a CAGR of 4.2% from 1995 till 2017”. 2016, globally world travel and tourism council, about 76.8% of travel revenue was generated from leisure travel and 23.2% of the revenue was generated from business travel.
As per World Bank, the number of international travel departures increased from 633.4 million in 1995 to 1.57 billion in 2017 increasing at a CAGR of 4.2% from 1995 till 2017.
In 2016, globally as per WTTC, about 76.8% of travel revenue was generated from leisure travel and 23.2% of the revenue was generated from business travel. Rise in the number of leisure travelers across the world was increasing the market size of the travel and tourism industry.
In this way, the rising number of international travel departures, leisure travel, and increase in disposable income and promoting travel industry by international bodies such as United Nations World Tourism Organization (UNWTO) was increasing the market size of the travel and tourism industry gigantically.
- The COVID-19 Impact
According to world travel and tourism Council, approximately 50 million jobs of travel and tourism industry may get affected worldwide by that pandemic, the coronavirus.
Asia will be in the worst condition. The tourism industry currently accounts for 10% of global GDP. The coronavirus epidemic is putting up to 50 million jobs in the global travel and tourism sector at risk, with travel likely to slump by a quarter this year, Asia being the most affected continent.
- The Way Forward:
Tourism sector is facing the disastrous challenges due to the outbreak of COVID-19.
The World Tourism Organization (UNWTO) is coordinating with more strength with the World Health Organization (WHO). The two UN agencies met in Geneva to further advance a coordinated response to COVID-19.
By the time ongoing, authorities have to make decision to tackle the post corona situation of that industry. Policy construction in this regard is very crucial.
More over companies must have to pay employees, as long as they can. And last but not least we all have to hope for the bets.