The hospitality industry takes a hit in the wake of COVID panic.
Italy the worst hit country in Europe, has reported over 3,000 cases of COVID. Cancelled bookings, empty rooms and silent streets that once bustled with tourism now plague the country which heavily relies on tourism. Tourism accounts for more than 10% of their global economic growth. Trade shows like Cosmoprof have now been delayed, as well as other big events. Venice hotelier Judith Boulbain has to go back almost two decades to the 9/11 attacks to recall a time when business was this bad. According to ForwardKeys, a travel analytics company, in a report published on March 5th in the final week of February, as the number of new bookings to Italy was suddenly outpaced by the cancellation of existing
Forward Keys also reported that the impact on travel was not confined to Italy, the overall number of new flight bookings to Europe fell by 79%. Hitting the hospitality industry hard, as tourists are wary to travel abroad.
Hotels and airlines combat the cancellations by offering heavily discounted rates. One Reddit user posted a Norwegian Cruise Line deal from Expedia at $489 per person for a whopping 22-night Middle East cruise which had previously been priced at $3,099 per person.
Meanwhile in the UAE GulfNews reports “While luxury hotels have not been hugely affected by cancellations caused by the virus outbreak, mid-tier ones that target corporate travelers have been affected”. As international companies put corporate travel bans on their staff to reduce their exposure. The situation has inevitably, started a price war between properties vying to make up cancellations. The winter season for the hospitality industry in the UAE is usually the most profitable, travel restrictions on Chinese tourists have negatively hit the properties with the heaviest reliance on this market. Event cancellations in the UAE have also furthered worsened the hotel industry’s situation.
UAE hotels have countered their demand dip by offering staycation packages for UAE residents.
