Covid-19 has caused a severe economic impact on every industry that can be named. In synoptic words, only a limited number of sectors have had the same destructive economic effect as the tourism industry – the ever-growing industrial field that has generated billions of jobs around the world is teetering on the edge of falling in the pits of economic quagmires. 

According to a few estimates and expert studies, the COVID-19 impact is imperilling jobs of 50 million people in the global tourism sector. These figures may aggravate if the lockdowns are further extended. Moreover, the tourism sector economy can plunge to historic numbers in this quarter, and the countries that rely on tourism for their welfare will be the most economically devastated.

Gauging the economic impact on the tourism sector is difficult, as the data fluctuates swiftly. Not to forget that the contagion is spreading at a horse's pace. According to renowned sources, if the deadly pathogen continues to grapple its hold around the globe, the world will have to face a slump in jobs of about 75 million and $2.2 trillion in revenue collection.

For instance, last week, British Airways decided to suspend 36,000 staffers. This elucidates the grim economic situation the world's business sector is facing. May the situation aggravate, and the world could see an economic recession. 

THE GRIM IMPACT ON UK ECONOMY

Expounding on the impact that the United Kingdom is facing on their tourism industry; the U.K.'s travel and tourism sector is the most severely impaired as compared to the other countries. The U.K. travel association has projected a loss of 5 million jobs in only May. The indicators such as weekly jobless claims showed a massive jump in the jobless claims of about 6.7 million – a number quadrupled in 3 weeks. 

This sudden spike in the indicator is historic and is the most significant jump in nearly 50 years of the United Kingdom's economy. The spike in the jobless claims paints the picture of how bad tourism is hit in the U.K, and the driving reason for it is the sudden halt in the tourism economy. Succinctly, this historic halt in the economy has happened due to the prolonged lockdowns that were imposed once the deadly contagion becomes a pandemic. 

If the virus does not stop spreading, these lockdowns can extend even through the periods of summer vacations which can entirely decimate the tourism economy in the U.K. as most of the Londoners travel to their favourite spots during summer vacations, and the U.K. is one of the hottest spots for the tourists around the globe during the summer times. Summer vacation is the prime time for the tourism and travel industries in the U.K if lockdowns extend throughout this time period; the grave economic impact could escalate the Kingdom's economy into a recession. 

$8 TRILLION INDUSTRY COMPLETELY STALLED

The tourism industry around the globe was designed with a trouble-free approach, and due to this no preventive measures were developed to deter any potential devastations. Consequently, the tourism industry did not see what was coming their way, and now the $8 trillion industry is shaken to its cores. 

Along with a plunge in the tourism sector, the demand for air travel is also deteriorating. Put briefly, many airlines such as United Airlines and British Airways are on the verge of declaring a potential 'revenue deficit.' because the airline is a dynamic sector and they do not possess any more than two months of finances to cover their expenses for operating smoothly. 

In contrast to this, established companies like Apple possess funds to cover up to 6 years of their production expenses. This signifies how the tourism industry will face the grimmest economic conditions out of all the other sectors.

The regulating authorities of airlines projected revenue losses up to $250 billion. The number has ameliorated from the last week's projection of revenue losses, which was about $135 billion.

HOTELS AFFECTED

The hotels and lifestyle sectors are also severely affected, the halt in the human movement has completely stalled hotels from operating. Companies such as Marriott has lost up to 75% of their revenue.

FINAL THOUGHTS 

China, the point zero of the deadly pathogen, is painting the grim future ahead of us. The country where stage 1 of the pandemic has finally ended, a sheer recovery in industries is seen. The improvement is steady and swift. The hopes are high, but as the fear remains in the people because of the headlines hinting a stage 2 COVID-19 crisis, stock markets remain tumbled and keep plunging on every single headline signalling any fear regarding the pandemic.

On a lighter note, hotel bookings spiral upwards by 40% in the wake of the ease of lockdown restrictions. According to renowned sources, airline flights have also increased by 230% compared to the previous month. This is a good start, and a step towards normalcy.

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