TOURISM AFTER CORONA: IMPACTS OF COVID 19 PANDEMIC AND WAY FORWARD FOR TOURISM AND HOTEL INDUSTRY

OVERVIEW

T

he global pandemic of novel Corona has not only brought entire socio-economic structures in to a standstill but has challenged the globalization and global operations of enterprises. Paradoxically, potential repercussions and alternative way outs are yet volatile. However, for a speedy recovery and regain of the economy, employment and business functions a sustainable and fresh beginning is necessary in most of the worsened economic sectors. Conventionally, an infection used to attack the vulnerable groups with food, health care insecurity in their lifestyle and they normally used to be the poor of the society. Ironically, novel Corona infection first attacked the international travelers and the pandemic was caused through the travel and thus has confronted mainly the affluent social class globally.

Since, tourism is one of the largest and fastest growing industries globally; it is expected to play a significant role in regaining the socio-economic stability after Covid 19 pandemic. It is a key contributor to the economies and one of the most important industries that generates much needed foreign currency in Nepalese economy.

The continues threats arise towards the country from tourism with effect to the virus outbreak resulted imported cases of corona in foreign returned individuals under observation in government hospitals, following the new developments, while suspending on arrival visa for tourists and cancellation of Visit Nepal Year 2020 officially by the GoN.

Long suffered tourism industry of the tourism was last hit tough by the Massive Earthquake 2015 causing massive destruction of historical sites and monuments. Tourism is at halt in the country with the threat of finding the first Nepalese national tested positive for COVID-19. The continued threats arise towards the country from tourism with effect to the virus outbreak resulted rapid increment of COVID-19 cases under observation in government hospitals, following the new developments, while suspending on arrival visa for tourists.

Unfortunately, this rapid expansion of the virus reached 102 cases at present (as at 8^th May, 2020 and keep increasing), even though it is well controlled and handled properly by the government special operation in protecting people from the threat. Consequently, travel has become one of the key contributors of carrying the virus around the globe causing tremendous pressure on international travel and tourism operations including airline industry.

Travel, tourism and hotel industry as an umbrella industry operation is facing immense challenges at present. The global and local context of the outbreak, impacts of the outbreak and suggestions for speedy recovery (short and long term) are critically evaluated in this review.

GLOBAL PANDEMIC OF NOVEL CORONA (COVID 19)

Tourism is a reason for most of the human mobility in the modern world. According to the World Tourism Organization (2020), the international tourism has indicated continues growth for the tenth consecutive year reporting 1.5 billion international tourist arrivals in 2019 and estimated 1.8 billion of international tourist arrivals by 2030 )people are forecasted to be (UN News, 2017). Reporting the COVID 19 or the Corona outbreak started from Hubei province, Wuhan City in China in November, 2019 and spread all over the world by March, 2020 has been remarkable in world history as the most challenging tragedy occurred in the world after decades may be the World War II. The major disruptions on the global economy from the transmission of this virus especially to the retail sector, food, consumer goods, healthcare delivery and a potential curtailing of travel and tourism as major drivers of the most of the countries in the world is in immeasurable and severe than expected by many. The situation should be strategically addressed with suitable proactive and reactive measures considering the current situation and to overcome future threats to ensure the socio economic wellbeing of all humans keeping space for increased travel and tourism.

However, the decisions on limiting the movements of people and commodity mainly affected to the industries like tourism, because, tourism include air transportation, roadways, food handling, accommodation sector, entertainment and recreation etc. Considering the impact of Covid 19 pandemic on Nepalese tourism, it can be noticed that Nepal earns better reputation than the other countries in the world in controlling Covid 19 pandemic; arrangement of quarantine facilities and medical facilities even for foreigners while other developed countries announce nonresidents to leave the country, appliance of personal protective equipment in handling airline and roadways passengers at the respective airports and checkpoints, continuation of supply of basic human needs, extension of visas for foreigners securing them with available facilities etc. Hence, this situation would be favorable in flourishing Nepalese Tourism in the future even though it earns losses today.

Being a country with very less experiences on global health epidemics during the last few decades, Nepal did not have a clear predetermined technical agenda for such a worse tragedy. However, with this limited experience, Nepal reported to be a country which has taken the mitigation and necessary controlling actions for COVID 19. Even China has taken the action as the cases started to be reported from the country with deaths. GON started with quarantining and some specific health measures and preparedness at airport with thermal scanners before the first case found from the country.

Total COVID 19 Infections in by 14/04/2020

Total Cases Reported	Nepal	World
Total Infections	109	4,044,795
Total Deaths	0	277,087
Total Recovers	31	1,405,042
Active Cases	78	2,362,666

Source: Hamro Swasthya Mobile App (MoHP, Nepal) and worldometer.info/coronavirus on 9^th May 2020 (20:30)

IMPACTS ON TOURISM AND HOTEL INDUSTRY

The impact of this deadly virus is severe than estimated by specialists and the most exciting pandemic in the recent history which has already taken down 200 countries around the world with more than 1.9 million infections and over 120,000 deaths by 14th April, 2020. Nepal being a country with lack of resources, it is important to incorporate strategic approaches to minimize the economic recession. In this context, the travel and tourism as the third largest foreign exchange earner in the country, has totally collapsed with the fear of travelling and the need of maintaining the social distancing. Restriction on visa issuing and closing down the international airport, curfew and lock down of the countries and cities, and inviting the residents to back to their countries providing special flight arrangements in many countries were taken place during the last 40 days. Situation is severe at the moment as the whole world is on lock-down or under social distancing, people are scared to book anything until the distress of this infection subsides and the virus is brought under control in the world.

The tourism industry is an umbrella industry networked with many other sectors in the economy including hotel, community level operations, education, financial, agriculture, medical, travel and transportation, construction, real estate, retail, and vice versa. Due to the heavy toll of tourism in the country‘s economy, it is important to study how the reliance of the industry might shape the recovery of its main sub sectors once the pandemic subsides. The indirect impact in this context on travel and tourism industry cannot measure easily and definitely is a significant loss in short term as well as long term.

Since, Nepal is a country that heavily depending on the service sector the tourism industry plays a major role for the countries development. Hence it is clear that the tourism industry is helping the countries development massively. Therefore protecting this industry would be a huge investment on the countries future development prospects. Therefore we need to protect all the service providers of the tourism sector if we need to focus on the future development of Nepal through tourism sector.

There are number of service providers such as Accommodation Suppliers, Travel Agencies, Event Coordinators, and Transportation Suppliers etc. At the current situation they don‘t receive any income from their tourism products. Therefore it is important protect this sectors and remain them for cater the future tourism demand to the country. Otherwise this may lead to reallocating the resources to other industry where Tourism industry would face the challenge of finding the service providers in the future. To overcome this situation it is good release them from their business loans temporarily, help to retain the employees in their organization, using the tourism resources like hotels as quarantine centres with a monthly rental to the organizations. With the available technologies and medial advancements it is expected to overcome from this emergency within a short period of time. Hence, safeguarding the tourism industry would be a good investment in the future development of the country.

Indefinite lockdown across the country, travel restrictions, aggressive social distancing measures are some of the key measures that government has imposed currently to slowdown the spread of covid-19 outbreak.

SUGGESTIONS FOR RECOVERY

Immediate Response

There is no doubt, that this pandemic situation has brought lot of negative impacts to the Nepalese Tourism and hotel sector. Nepalese tourism industry was gradually recovering after the people's movement 2062/063 B.S. and 2015 Massive Earthquake. Thus, it is critical to improve the country‘s preparedness for public safety as well as to take necessary precautions to face these types of unexpected risks/challenges. Therefore, some of the key recommendations have been made to overcome the negative impacts of corona-19 outbreak. Firstly, it is important to spread the positive news through news channels and social media platforms to aware the potential tourists. Maintaining international advertising campaigns are also a crucial point in marketing and promoting Nepalese tourism and hospitality industry. Additionally, since pre-paid rates are unlikely to be booked with the present levels of market uncertainty it is highly recommended to remove the non-cancellable fees.

Further, promoting flexi-rates and allowing guests to move a booking to a new date is another key strategy to promote hotel business in compensation for emergency cancellations. Further, making some timely-modifications to existing hotel policies are also vital, such as flexi-cancellation policies, flexi-rates for all services, ensuring strict hygiene policies should be some of the key areas of concerns. It is highly recommended to use flexibility‘ as one of the primary marketing message as it will help to attract lot of businesses. Due to the prevailing situation it shows people are in fear of travelling to city limit accommodation centres therefore, promoting remote accommodation centres is another main strategy to attract tourists. Especially resort type hotels, eco-friendly hotels and nature and culture based remote attractions/ locations (rural and cultural homestays) may have a great potential to promote themselves. These strategies would also helpful to attract tourists and to uplift the revenue from Food & Beverage sector. Since these type of crisis impact on global hospitality sector it is important to recognize the value of promoting domestic tourism. Particularly, almost all the hotels would lower the prices on such situations as to reduce the service perishability.

Because of the pandemic situation people are very much concern about their health and safety. Thus, taking some additional time for cleaning the entire hotel is essential. These strategies will positively impact on ensuring hygienically clean safety and secure environment for guest stay. Finally, it is recommended to initiate collaborative strategies among the public and private sector. Specially, government could initiate tax reduction schemes (for certain period of time) for both micro and macro level business owners, could think of introducing interest-free capital loan schemes and job guarantees for permanent carder employees.

Following key measures were taken by the government and the successful control of the situation was totally upon the timely decisions of the government. Although , the country is at an stage not to move forward with the other operations along with tourism industry, still the country needs a preventive and a protective planning enhancement to reach back to the stage that Nepal stands before at every industry, specially the tourism field that yield the income of the country at its climax level. It would take more time to reach back to the core capacities, because of political instability and 2015 Earthquake. Although, the situation makes more slopes at the tourism cycle of the country, Nepal still have the potential to reach its aims with the proper identification of its core bases that would guide the country to gain some weightage in the tourism markets back with also further development mechanisms.

CONCLUSION

Presently, this unprecedented public health crisis has become a catastrophic economic crisis to the entire globe and consequently the tourism hotel and event sector. The recovery has to be gradual parallel to the recovery of other sectors, combatting the outbreak and regaining economic performances. Thus the measures proposed are to be implemented incrementally in response to the evolving conditions. Therefore, ensuring the safety of the guests and the staff have become a top concern of the hospitality industry stakeholders. At the same time, to recover business losses and to rebuild the positive image in the mind-set of the guests it is essential to initiate strong marketing and promotional campaigns both locally and internationally. Further, promoting flexi-services‘would be another strategic tool to attract potential customers. Hence, offering flexible prices, cancellation policies, flexi-work environment etc; would be beneficial in achieving long term sustainability of the hospitality business industry.

Since the onset of the epidemic, hundreds of events have been cancelled all over the world. And also, this will directly impact to the Nepalese Tourism industry and development of the country. Further, it is vital and will play a pivotal role in the world‘s economic recovery from Covid-19. Therefore, virtual and hybrid events emerge as two additional options to consider in the face of disruption and we can get the number of benefits as increased the financial benefits, increased attendance, measurability and ease of transition.

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