COVID-19 throws the global tourism industry into an unprecedented crisis. Hotels around the world are closing, mass unemployment is following. The industry was in an absolute peak phase, yet buffers and reserves were very small. The crisis triggers a market shakeout among hoteliers and operators. Businesses that were at the brink before the crisis will find it very difficult to get help. Individual leisure travelers from domestic markets will return the fastest, individual business trips from domestic markets will also pick up faster. Group business will start slowly and change drastically in the long term. Metropolises with a high proportion of international guests and many congresses will have the hardest way back. Among them, Vienna, Prague, Venice – German cities will benefit from the rebound in the strong national market. The nationally dominated holiday hotel industry will benefit from the crisis. The industry masters crises surprisingly well and is still considered a global growth industry – after the financial crisis, the rebound usually lasted only 12 months. China is one month ahead, and occupancy is rising again. However, the extent of this downturn puts all previously overcome crises in the shade.
short term effects
- Employee situation becomes even more precarious
- Operator contracts are being rethought – yields are falling
- Projects will fall out of the pipeline
- Reaction of the banks not yet assessable