The dire consequences of Covid-19 began to manifest only when the world was halfway through the pandemic. Numerous businesses sustained adverse effects of consecutive lockdowns announced by governments as safeguards against the virus.
|| Basim Sheikh
Enforcement of lockdowns might have saved lives, yet it has menaced the functioning of the economies at large. As a result, small as well as large sectors experienced the similar impacts. Travel and Tourism sector sits on the same page as every other sector currently. The industry is on the verge of losing around ₹5 Lakh crore or $65.5 billion.
The organised sector is likely to lose USD 25 billion. The figure is dreadfully disappointed, and the economic issues need to be dealt through drastic measures. Experts had anticipated that backwash of lockdown will affect revenue streams until October, but as it turns out, consequences are different from what was expected.
Current figures suggest that only hotels will record only 30% occupancy until later 2020, and revenue streams will decline by 80% to 85%.
As per the study, occupancy was at the highest at 80% in January this year; then at 70% in February; at 45% in March, and finally at 7% in April, which was the lowest. Recorded 10%, 12%, 15%, 22% in May, June, July, August respectively.
The CII-Hotelivate study estimates that in September will record at 25%; October, 28%; November, 30%, December, 35%.
The loss of $4.77 billion, or around Rs 35,070 crore, may befall travel agents and tour operators, at the worst.
However, the most favourable condition is of improvement by 10-15% happens. An online travel services MakeMyTrip also have a contribution in this figure.