The outbreak of COVID-19 has triggered the immobility of people throughout the world. The travel industry is one of the worst-hit economies. This is not shocking because, in 2019, an unprecedented 1.5 billion visitors toured the world compared to other years. The epidemic and its rapid spread across the world resulted in significant disruption to the industry. Travellers had to seek up-to-date information and safety details before deciding on their next stops. The coronavirus catastrophe has warped international travel schedules from spring breaks to summer vacations, the lockdown policies keeping many people worldwide at home during prime periods for travel.
Tourism and travel restriction and closure of borders.
Countries across the world imposed travel bans to prevent the transmission of coronavirus. Airport bans, termination of flights to and from local and international airports, and national lockdowns are only a few of the steps being enforced by nations to combat the pandemic. After the outbreak exploded in the first two quarters of 2020, 93 percent of the world’s population resided in areas affected by the coronavirus. In addition, around 3 billion residents living in countries affected had to adhere to the imposed full international border closures.
The impact of COVID-19 on travel
The COVID-19 outbreak has had an extraordinary effect on travel and tourism. Everybody had to adhere to the government’s border controls to attempt to suppress the novel coronavirus spread in Europe, Asia, the Middle East, and the Americas since March 2020. The United States is currently the globe’s most critically affected region, with more than 24.3 million confirmed cases and 402,000 deaths. At the height of the contagion, the USA banned only those nationalities from entering the US, unlike Australia, which permitted only its people and inhabitants to enter the country. The European Center for Disease Prevention and Control considered that boundary closures against transmission of COVID-19 were unsuccessful. To minimize the adverse effect of coronavirus on European economies and regional social lives, the European Union (EU) states aimed to enable travel within the Schengen zone.
The economic effect of COVID-19
In the world economy, travel and tourism play a prominent part. The travel market perspective estimates worldwide market revenue to be approximately USD 447.4 billion for 2020, which is 34.7% less than the figures recorded in 2019. The travel sector contributes up to 10% to the EU economy. Consequently, in the otherwise high summer seasons from June to August, this percentage drastically decreased by up to seven percent across the globe. Furthermore, the virus risks millions of people losing their jobs, especially those in the tour and travel sector or the airline sector.
Hospitality Sector Hit by the Lockdown
The ongoing lockdown and travel restrictions have also impacted the hospitality industry. This sector is intertwined with the travel sector and shares almost even difficulties. In comparison to the first-quarter statistics for 2020 to those of 2019, the global hospitality market research firm, STR Inc., shows that the hotel occupancy rate decreased in Germany by 96 percent, 68 percent in China, 67 percent in the United Kingdom, and 59 percent in the United States, while Singapore rates dropped by 48 percent. The pandemic and the downturn have severely hit the hotel sector. The STR Inc. compared the United States’ statistics for hospitality between 9 May 2020 and 11 May 2019, and the leading hospitality performance indices reported a sharp fall in occupancy by 55.9 percent to stand at $30.1. On the other hand, the average daily rate (ADR) decreased by 42.1 percent to $76.35, while the revenues by room accessible (RevPAR) decreased by 74.4 percent to $22.95.
Macau travel ban and gaming industry being affected by COVID-19
In addition to government actions and small casino activities, the effect of COVID-19 on the gambling sector in Macao has disrupted the gambling industry. At the start of the coronavirus epidemic in China, Macau was alert and prepared for the outbreak. This was because, after the extreme acute respiratory syndrome outbreak (SARS) in 2003, the Government of Macau and the wider community took protective initiatives to maintain public health protection, and these were applicable for the impending danger of COVID-19. Abiding by these and other globally established regulations, Macau was able to remarkably and efficiently contain movement by ensuring a careful compromise with public health and economic demands.
Macau’s casinos had to shut down for 14-days in February. After consideration, the government permitted them to reopen their doors by 20th February if they met the new requirements. Americans seeking to travel to Macau have to conform to the travel disruptions and follow the Macao Health Code. Additionally, you cannot enter Macau unless you hold citizenship from Macau, Taiwan, Hong Kong, or Mainland China and have not gone to other places in the last two weeks. Other policies could be relaxed for people from foreign places to travel to Macau, even if they come from areas that have reported COVID-19 cases.
The pandemic and extensive shutdowns in Macau have dented the market. In particular, compulsory regulation mechanisms, including cross-border travel limits, compulsory inbound passenger quarantine, and corporate closures, have detrimental effects on Macau and its casinos and other gaming spots, which are strongly dependent on patronage by Chinese tourists. Moreover, Macau casinos have halved their ability to conform to the rules on social distances. Notwithstanding these severe limitations, Macau casinos operated closely along with government-mandated anti-coronavirus initiatives.
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Travel way forward
Travel will certainly not be the same, especially with the changes in travel experiences that will be implemented. Most governments seek non-contact travel, with the inclusion of remote check-in, luggage drop-offs, digital payment systems, and biographical/digital identity. Other changes would also include the screening of health status through thermal detectors, sprays for disinfection, and COVID-19 on-site checks. Other changes that will be around for a long time include social distancing and hygienic issues like limits on access to airports, the obligatory wearing of masks, and on-going disinfection. Additionally, recent advancements limited business travel as well as travel to exotic destinations. Even though time alone will tell which speculations are to come true, the coronavirus outbreak will certainly alter our travels.