Global Tourism Industry got unexpected hit by Covid-19

Almost every sector is suffering due to the Covid-19 Outbreak but the Tourism industry got the worst hit due to the COVID-19 outbreak.
Impact of COVID-19 on travel and tourist industry, a topic that we can not ignore to discuss.


As we know that the tourism industry is the greatest contributor to the economy of India and generate more employment in comparison to other sectors so when by the mid of the march the news started to flash on to shut down the tourist places to do increase in the cases of coronavirus in India was enough to predict that tourism industry will get the worst hit due to Covid-19 pandemic.
Even when the TAJ MAHAL one of seven wonders of India was shutting down on  March 17, 2020, which attracts millions of international tourists and from India was the sign enough to make understand the worst impact of COVID-19 on the tourism industry.

Apex sectoral body Federation of Associations in Indian Tourism & Hospitality (Faith) on the forecast the loss of Rs 10 lakh crore due to the impact of COVID-19 pandemic.According to the earlier statement of the government, the loss was predicted to be Rs.5 lakh crore but to increase in the outbreak of Covid-19 lead to the breakdown of the supply chain in the tourism industry both inbounds (domestically) and in outbound markets as said the spokesperson of FAITH

India’s Tourism industry will face double the loss to Rs. 10 lakh crore as forecast, says Faith
Whenever any major thing happens in the economy, the Tourism industry always comes on the first to get the hit because people always tend to cut down tourism costs and now this COVID-19 pandemic has given the biggest challenge to the tourism industry due to lockdown and social distancing.

Contribution of the Tourism Industry in different sectors:

  •  According to the statement of  WORLD TRAVEL AND TOURISM COUNCIL, travel & tourism contributed 9.2% in GDP of India in 2018
tourism industry
  •  The tourism industry generated 26.7 million jobs in 2018. The tourism industry not only employs workers in cities but also provides an earning source for the rural population. The tourism sector accounts for 12.75% of employment in India, 5.56% of it is direct and 7.19% is indirect.
  • More than 87 million people were employed in the travel sector in 2018-19 in India, According to the Ministry of Tourism (MOT) annual report for 2019-20.
  • It is estimated that in India, branded and organized hotels’ annual revenue is ₹38,000 crore ($5 billion).
  • The restaurant industry in India has an annual turnover of approx ₹4 lakh crore ($53 billion). This industry provides direct employment to more than 7 million people.
  • India’s air transport industry employs over 400,000 people directly and 940,000 are employed in related supply chains.

Effect on tourism industry due to COVID-19

  • Indian Tourism Industry is expected to bear the loss of Rs.1.25 trillion in 2020 due to the shutdown of hotels and the suspension of flights due to the spread of COVID-19.
  • According to the study of CARE Ratings, it will lead to a decline in the 40 percent of the revenue as compared to the year 2019
  • Due to the COVID-19 pandemic, the tourism industry is expecting a potential loss of job around 38 million. The impact would be felt on both the blue and white-collar jobs
  • Restaurant Industry will also get the effect as there is 0revenue in current time and it is expected to the drop of Rs.50% in the months ahead too because of shut down of tourist places and no tourists.
  • Expected to be the loss of Rs. 27000 crore in the aviation industry due to Covid-19 in the first quarter of 2020-2021.
  • In 2019, India’s Foreign Tourist arrival (FTA) was stood at 10.9 million and the foreign exchange earnings (FEE) stood at Rs 210,971 crore. However, due to strict restrictions imposed in India along with 80 countries, most of the flight bookings were cancelled and suspension of major flights was done along with lockdown on 31st March 2020 in India. It is expected to make a sharply negative impact on the tourism industry in 2020-2021.
  •  Along with Job loss in Tourism industry COVID-19 will also lead to bring threat to the 15% of job loss in the Restaurant and hospitality because there may be an immediate demand.

Recovery Ideas for Tourism Industry

As the impact of COVID-19 on tourism is more, the Tourism industry may find slow improvements in the starting because of this crisis everyone will cut down the touring expenses. But because we hope that “THIS TIME SHALL PASS TOO”  we have to adapt few recovery ideas and important points to focus on. It is only after lockdown end, we can assess the exact loss to the tourism industry due to this COVID-19 pandemic.


  • Their need extent of “safe zone” and Safe destination” need to be done from the public health safety point of view after this crisis.
  • After this crisis, the tourism industry should give more focus on domestic tourists as international tourists may not allow coming. So more focus should be given on domestic tourism and try to get profits out of it.
  • Cost capitalization needs to be done at the operational level as recommended by experts
  • As per the statement of ICC. Travel and tourist stabilization funds need to be made so as to give industry financial help and less job loss.


The industry can seek support from the government in this crisis. But at this point where the first and foremost objective of the country is to overcome this health emergency, the industry should extend its unconditional support, to strengthen the help for the government.

Tourism Industry can  seek help  from the government:

  • Reduce in the tax burden by lowering down the GST tax rates
  • Relife in the taxes by the state government in Entertainment Tax and Luxury Tax.
  • Ministry of Tourism could consider constituting a ‘National Tourism Recovery Committee’ to address the issues and demands of the industry and to bring out a ‘Recovery Package’ comprising short term, medium-term and long term, fiscal and monetary measures.

COVID-19 is the most challenging crisis for the Tourism Industry as all the tourist’s places are shut down and the tourism industry is suffering from huge loss. But we should hope for the best and when this crisis will over, people will start travelling again after stabilising their daily life. STAY HOME TODAY TO BE ABLE TO TRAVEL TOMORROW.
Read about – Top 5 places to visit in India after lockdown.

1 Comment

  1. Rajit
    June 28, 2020

    Keep it up.


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