How the Coronavirus Pandemic Has Impacted the Travel Industry
By: Christa Adams
Tags: Travel, Coronavirus, Tourism, World News, Airlines

Once upon a time, we nonchalantly booked plane tickets to the other side of the world, but that is no longer the case. Instead we must now tiptoe around travel bans or wait patiently for this pandemic to end. It’s clear that no industry has been quite as affected by the pandemic as the travel industry. From spring break to summer vacations, the coronavirus pandemic has disrupted travel plans, closed down airlines, businesses, amusement parks, attractions, and cruise lines around the world — many of which rely heavily on tourism. How’s how the pandemic has impacted the travel industry.

100% of destinations around the world imposed travel restrictions to limit the spread of coronavirus, according to research from UNWTO. With the travel industry contributing 2.9 trillion-dollars to the GDP in 2019, that number is set to drop significantly for 2020, resulting in a likely 60–80% drop compared to 2019. Tourism decline is especially harsh on destinations that rely heavily on the tourism industry. For example, states like Nevada, where casinos and hotels fuel the economy; and countries like Greece, where touristic islands like Santorini have seemingly become ghost towns, business from tourism is an essential part of these destinations’ economies.

The U.S. Travel Association forecasts that domestic travel will decrease by 45% and 75% internationally by the end of this year. This means that many businesses of these touristic destinations might not make it through the end of the year. The U.S. Travel Association is calling it the Great Travel Depression, with travel industry unemployment at 51%, twice the number during Great Depression’s worst year.

Millions of jobs around the world have been lost, with nearly 7 million in the U.S. alone. Jobs lost range from cafe employees and nightclub owners to tour guides and food service providers, but many lost jobs are particularly within the transportation industry. For example, major airline British Airways has cut up to 12,000 employees alone.

Though Spain reopened its border with Europe and the United Kingdom on June 21, flights have not returned to normalcy. Last June major Spanish destination Barcelona received 30,200 incoming flights. With an average of 1,000 incoming flights a day during June 2019, June 2020 has experienced a sharp decline. Currently, Barcelona is receiving slightly over 100 flights per day, a near 90% decrease comparatively.

Even as lockdown measures around the world ease up, many tourists are postponing their travel plans or canceling altogether. For example, according to research from Longwoods International, 69% of Americans say they are changing their travel plans due to the coronavirus pandemic. 36% of those American travelers have canceled their plans entirely. Furthermore, 29% changed to a drivable destination as opposed to flying, suggesting that many will opt for domestic travel.

Another area of the travel industry that has been largely impacted by the pandemic is hotels. A 96% decrease in hotel stays hit Italy as well as 68% in China, and currently 56% in the United States. However, high vacancies are seen across the world even as countries reopen borders and loosen restrictions.

An usually quiet Barcelona — Photo by author

Typically, visitors spend 300 million nights in tourist accommodation annually across Spain. However, that number is set to drop significantly due to the coronavirus pandemic as hotels across the country were closed from mid-March throughout much of June. Even now as European and British tourists are welcomed back to Spain, many hotels report high vacancies, and hotels that usually staggered between 80–90% occupancy are now experiencing a drop to around 25%, according to El País. The impact of COVID-19 on Spain’s travel industry is felt throughout the country, and quieter streets and empty attractions are a clear indication of that.

As for attractions, theme parks like Disney World and Disneyland have also taken a major hit. Both theme parks closed their doors in mid-March in response to the coronavirus. These closures are big — Disney’s four theme parks are among the five most visited in the world.

Though Disney World in Florida expects to reopen on July 11, California’s Disneyland will be postponing its original reopening date of July 17, due to the continuous rise in cases in the US. Of course, once Disney parks reopen strict health measures are expected to be set in place.

Major attractions around the world have seen several month-long closures. The Louvre in Paris, the world’s largest art museum, closed in March. Though typically The Louvre only shuts its doors three times a year and receives over 9 million visitors every year, its closure along with the Eiffel Tower and other prominent admission-required attractions in Paris have taken a blow to its economy. Fortunately for the city, the museum is set to reopen on July 6, though there’s no making up for the millions of visitors already lost throughout spring and what will continue to be lost, as tourism is at an all-time low.

The sector of the travel industry that may have it worst of all is cruise lines. The cruise industry accounts for $150 billion annually and reports over 1.7 million jobs worldwide. However, the Centers for Disease Control and Prevention (CDC) announced a No Sail Order on March 14 and has repeatedly extended that order.

The Royal Caribbean cruise line does not expect to resume any of its sailing routes until September 16, after the peak season. However, certain routes like Canada and Bermuda will stay closed until the end of October. The coronavirus pandemic has resulted in a loss of salaries and benefits for many cruise line employees.

Those who do travel this year can expect social distancing measures at airports, a mandate to wear masks on flights, and sanitizing hands before entering hotels, attractions, restaurants, and shops.

To sum it up, it’s uncertain how many businesses will survive this pandemic, especially small businesses like bars, cafes, and nightclubs that cannot offer many takeaway options to keep their businesses running amidst a pandemic. Tour guides, travel agencies, and even travel bloggers are seeing a potentially dire cut in income. It’s clear that every sector worldwide has been impacted by the coronavirus pandemic. What still remains unclear is when life will return to normal, especially for the travel industry.

For more information on travel restrictions worldwide, please advise this compilation from the New York Times.