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impact on the travel industry 2020

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Have you ever wondered why the travel industry is one of the largest running industries in this world? The industry which earns in trillions per year is one of the major sources of employment. What helps making this industry one of the most powerful industries? The answer is us, citizens. Us, travelers, and tourists, who constantly seek a vacation to let go of our stress and explore. Who would have thought that tourism plays such an important role in the development of the economy, right? After all, it contributes a whopping 10% to the GDP and 9.5% to the employment.

When it comes to tourism, cultural tourism has significantly proved to contribute to the value systems. It creates moral conduct which not only improves the collective lifestyles but also the communities.

But during times like these when the world is constantly undergoing changes, the travel and tourism industry has been heavily affected. Over the years, this industry has gone through innumerable changes. And yet, combating these challenges, the travel and tourism industry has never failed to provide us with the utmost experience. The evolvement of technology has resulted in several outcomes indicating how people have not only experienced a change in how they travel but also where they travel.


Read Also The Impact Of Coronavirus On Tourism Statistics 2020


The importance of the economy in the travel industry is frequently underappreciated. While the travel and tourism sector has undergone growth, outpacing the global economy, for nine consecutive years, 2020 has something else to offer. Throughout the years, the effects and benefits of tourism have severely outweighed the negative aspects of it. But in this golden era or 2020, the negatives of the travel and tourism industry are prominent and reflect on the global economy as well.


Fall of the economy on the travel industry

  • During the current circumstances, the travel industry was one of the first sectors that experienced a fallback. All the sectors of the travel industry went through a major setback, be it the hotels or the airlines.
  • While most of the impacts of this fallback are negative, there are a few good things that happened accordingly. This pandemic resulted in the hotel chains to reconstruct and improve their facilities. Over the course of the past few years, the tourism sector has been on a rise and these chains never had a break to pause and renovate.
  • Going back to the 2009 pandemic, the entire travel industry experienced a huge fall in its economy with an enormous 9% fall in tourism. However, studies have proved that the level of preparedness has resulted in much better control during times like these.

Direct, indirect and induced impact

The entire economy has always been categorized into direct, indirect, and induced sectors of tourism. All of these three factors lead to the overall impact of the economy on tourism.

Direct impact on tourism

The most direct, one to one factor of the economy occurs in the most primary level of tourism. This includes hotels, restaurants, transportation, and trade. There are immediate changes observed in the production. 

Indirect impact on tourism

As the word suggests, this factor affects indirectly the economy of tourism. This dwells into the back linked industries and the agencies that work in the back end of the management of the travel industry. These effects link the primary sectors of tourism to the business end of it.

Induced impact on tourism

Induced impact refers to all of the economic activities ranging from the absolute source of income to how each of their penny is spend in this economy. This is one of the major factors contributing to the highest change in the overall economy.

Impact of employment on the tourism industry


  • As mentioned earlier, tourism is one of the leading factors when it comes to employability. This industry continues to grow as the prominent source of a secured employable future. There is a high demand for employees in tourism which ranges from the front-line demand to the online demand.
  • Offices in restaurants, hotels, resorts, airlines, travel agencies and tourism centers have a wide spectrum of availability of job opportunities and demand. 
  • Unfortunately, a pandemic like this one has resulted in a major loss of jobs and job opportunities in the travel sector. A major percentage of the workforce is compromised during times like these. With canceled bookings and hotels shut down, the travel sector is on a complete paralysis with no convincing way of realizing when this will all get over.
  • The world has highlighted this as one of the worst crises that have hit the tourism industry so far.

Impact of the travel industry due to Covid-19

  • The coronavirus epidemic is risking several million jobs in the travel and tourism industry, with Asia being one of the most affected continents worldwide. There is no certainty of how long will the impact last for.
  • Travel and tourism industries are the primary sources of transportation and communication and times like these call for us to stay locked inside our homes. It is estimated that airlines have experienced a larger setback than hotels and restaurants.
  • It is difficult to keep up with the losses experienced during these times and urging us to call this revolution a helpless situation. 

Future of travel and tourism

  • It might be hard to believe in times like these but there is a promising future in the world of travel and tourism once the pandemic gets over. It is no surprise that the pandemic has caused a major loss in this industry and it might take a while to get back on track once the crises get over. But reports say that by 2030, the travel and tourism industry will rise back up to be one of the top industries of the world, yet again.
  • It is obvious of the fact that the number of tourists keeps increasing in millions every year. That consists of a whole lot of people competing for the cheapest fares for hotels or the cheapest airline tickets.
  • By a couple of years, there will be an efficiently increased demand for tourism with advanced technologies and smart ground transportations. Therefore, with more competitors, a faster world, and a better-connected world, the travel and tourism industry will rise to shine on top of all.

Important Links

  1. Dubai Tourism
  2. Coronavirus All You Need To Know About Dubai Visa Restrictions
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