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Tourism industry staring at huge losses in 2020

By Jayajit Dash
April 29, 2020 13:10 IST
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The most visible and immediate impact of COVID-19 is seen in the hotel and tourism sector in all its geographical segments – inbound, outbound and domestic.

The tourism industry is projected to book a revenue loss of Rs 1.25 trillion in calendar year 2020 as a fallout of the shutdown of hotels and suspension of in-flight operations due to the COVID-19 pandemic.

A study by CARE Ratings notes that the figure corresponds to a 40 per cent decline in revenue over calendar 2019.

 

The report assumes that the pandemic may dent the tourism sector by about 50 per cent during January and February 2020.

It may be higher at 70 per cent in March alone following the suspension of international flights.

During April-June, Indian tourism industry is expected to book revenue loss of Rs 69,400 crore, denoting a year-on-year (y-o-y) loss of 30 per cent.

“During H2 2020, assuming the virus impact subsides, we expect foreign tourist arrivals to still be lower.

"The foreign exchange earnings will be lower by about 50 per cent at Rs 56,150 crore against Rs 112,300 crore during H2 2019,” the report said.

The most visible and immediate impact of COVID-19 is seen in the hotel and tourism sector in all its geographical segments – inbound, outbound and domestic.

It will also be in almost all verticals like leisure, adventure, heritage, MICE (Meetings, Incentives, Conferences & Exhibitions), cruise and corporate.

Photograph: PTI Photo

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Jayajit Dash in Bhubaneswar
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