Coronavirus impact: Travel and tourism industry sees mass layoffs globally

ST Correspondent
04.15 PM

Many travel companies in India are witnessing stagnation in their business due to a drop in bookings and cancellation of flights because of the COVID-19 outbreak

The coronavirus pandemic is draining the world economy to unseen levels. We can see the repercussion from many sectors with pay cuts and job losses taking place in most countries.

The travel and tourism industry has come to a standstill. With nations under lockdown and no operation of travel modes, the dark cloud remains and with it the uncertainties. 

Industry bodies of travel and tourism are even estimating that if the crisis extends, then many of the transporters will have to go for bankruptcy filings.

TRAVEL INDUSTRY IN INDIA

Many travel companies in India are witnessing stagnation in their business due to a drop in bookings and cancellation of flights because of the COVID-19 outbreak.

According to a report by KPMG, a financial services and business firm, “The Indian tourism and hospitality industry is staring at a potential job loss of around 38 million, which is 70 per cent of the total workforce.”

If this drift remains as the coronavirus outbreak advances, it will be a hindrance for national employment. The travel sector accounts for 12.75 per cent of employment, 5.56 per cent of it direct, and 7.19 per cent indirect.

As per the Ministry of Tourism’s annual report for 2019-20, More than 87 million people were employed in the tourism industry in 2018-19.

Not only in the organised sector, the travel and tourism industry also delivers job to small homestays, bread and breakfasts and small hostel operators and their services will take a major hit too.

AROUND THE WORLD

The COVID-19 outbreak is stroking up 50 million jobs in the travel and tourism sector at risk around the world as per the World Economic Forum (WEF). The most shocking part is out of the 50 million jobs that could be lost; nearly 30 million may be in the Asian continent.

To be more specific about the biggest travel companies in the world, 3,400 management and administration jobs are to be cut at United Airlines. The US-based airline company announced recently that 30 per cent of approximately 11,500 management and administrative employees might face layoffs in October, with a formal statement to derive in July.

On the other side, over 3,000 positions are being eliminated at another airline service Virgin Atlantic. Also, Airbnb is cutting 25 per cent of staff due to the global travel slump.

 

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