Tourism Industry: A New Era After Covid-19? – The Covid-19 virus is spread all around the world, and almost all countries shut down all businesses (except retail) and take strict measures by turning the whole world upside down. Thus, people are invited to adapt to new facts to protect both themselves and their fellow human beings.
But what will be the next day and what will be the course of the economy, especially the tourism one, from now on? Are people ready to travel again, thus helping the rapid recovery of businesses? Are they prepared to support the hotel industry?
In these questions, Mr. Yiannakis Mouzouris, a Strategy and Performance Management Expert, Business Consultant, and Trainer, gives us his opinion based on his experience.
1. The day after Covid-19. What will be the economic impact on the tourism industry?
Big and the magnitude will vary by country. In Cyprus, for example, tourism is 22% of GDP, and the industry employees 40.000 people. I do not forecast tourism catching up before the 2020 season.
2. In your opinion, how long will it take to the tourism industry to recover, and what shall be the steps that will lead to this way?
In my opinion, the earliest it will be 2021, and depending on the situation, it might go into 2022 to fully recover and climb up to 2019 results.
3. Do you believe that airlines’ operation strategy will change and, if so, in what way?
Yes, there will be measures taken due to Covid-19, which will lead to an increase in airfares. Remaining to see which airlines will survive!
4. Do you see any reduction in airfares to promote travel? If so, do you think the results will be positive for airlines following this strategy?
On the contrary, I see an increase in airfares due to restrictions and controls.
5. Which countries do you think they need immediate help to recover their economy, and how is feasible success under the shadow of the pandemic?
Big question ? Worldwide? Well, strong economies before crises recover quicker compare to week economies. In Europe, for example, Greece, Spain, Italy, Cyprus will need more help to recover than Germany, Holland, and the UK.
6. What do you think people’s behaviour will be the next day after Covid-19? Will they be willing to start traveling, or will they be scared, making slow the recovery?
A recent research a few days ago in Cyprus showed that 50% of Cypriots are planning to travel and look forward to it. They said that they made their plans during the lockout. I believe it will go country by country and all depends on the border and other restrictions.
7. What do you foresee for the hotel sector for the next 2 years?
The ones that can survive their loss for possible 2 seasons, they will recover and catch up latest by 2022. Some might not make it, unfortunately.
8. What are the appropriate measures to promote domestic tourism, in Cyprus, to save the tourism economy?
Domestic tourism cannot sustain the industry for 2 seasons:
- The size of the local market is small
- The culture of most (Cypriots) take holidays in 2 months (July and August)
However, it could work for this year by limiting hotels that will open, limit their occupancy to 50 – 60 %, and provide government incentives. This will help not only hotels but also all the businesses around hotels and tourism in general.
9. What do you think will be the consumer’s behaviour regarding the hotel sector?
I believe 50% or more will be conservative to travel until 2021 and % decreasing along the way. It also depends on the economic conditions and the financial situation of consumers.
10. Please tell us a few words about the effects of Covid-19 on the overall economy.
Difficult times ahead for the national economies but also individual business sectors until 2022.
I also see opportunities to differentiate our strategies and redefine our economic models. Every crisis creates challenges, threats, but also opportunities. I tend to remain more optimistic about the future.
Mr. Yiannaki, we would like to thank you for your time and useful information.
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