Operations Analysis Research Paper

PART II: Operations Analysis

As a future leader in the tourism and hospitality industry, it is critical that you are following
what is happening in the industry, trends, changes etc. Following this information also includes
what has happened to operations during the pandemic and efforts during reopening, as well as short- and long-term recovery.

sing a minimum of 3 research sources (not news/media outlets!):

1. What are three specific ways the global pandemic has impacted tourism and hospitality
operations around the world? Explain each. (approx. 3 pages)

2. Provide a brief summary (1 page) on what large operators are saying about the
recovery of their operations (large hotel chains, cruise companies etc).

3. Based on your knowledge and research, do you think the pandemic will change tourism
and hospitality operations permanently (i.e changes in policy, hiring, capacity etc)? Yes?
No? Explain your answer. (approx. 1 -2page)

Format & Submission Instructions:
1. Typed document using 12 pt. Times New Roman font

4. Include a Bibliography with APA citations (minimum 3 research sources not including the textbook for Part II.
5. Include conclusion.

ANSWER

Introduction

The novel corona virus pandemic (COVID-19) has taken the universe by storm. Arguably, the pandemic brought the world to a virtual standstill. Several social, economic, environmental, and economic aspects have been affected by COVID-19. Notably, one of the economic sectors that were almost hit by the pandemic is the tourism and hospitality industry (Davahli et al., 2020). Sadly, the virus’s outbreak and its rapid spread across the world presented a heightened uncertainty in this economic sector. This article intends to discuss three ways COVID-19 affected the tourism and hospitality sector, and analyze the possibilities of the pandemic’s permanent changes.

Effects of the Pandemic on Tourism and Hospitality

Restrictions and Ban of International Travels

Since the pandemic was first reported in China and spread across the universe, the world health organization advised governments to restrict people from traveling across national borders as a way of containing the virus. Although some countries refused such travels, most countries banned pilgrimages. This policy affected the tourism sector since there were no international tourists visiting countries as it used to be (Škare, Soriano & Porada-Rochoń, 2021). Markedly, countries that depend on international tourism for economic stability were hit hard by this new norm. International tourism contributes significantly to the economic growth and stability of most countries. Since the tourism and hospitality industry is the primary source of foreign exchange, revenue, and job opportunities, a fall in this sector significantly affects the operations and economic stability.  Therefore, without international tourism, the modern economy and social systems’ strong pillars have been threatened. Besides the direct impacts of travel restrictions and ban on the economic sector, it is essential to note that this sector is also an umbrella to other inter-industry linkages such as community operations, education, medical, construction, retail, and real estate. Therefore, when the pandemic hit the tourism and hospitality sector, all these sectors were also affected.

Closure of Hospitality Businesses

As the global pandemic continued to spread rapidly, some strategies were imposed to flatten its curve. However, these strategies included social distancing, lockdowns, and stay-at-home- orders, which lead to the temporary closure of many hospitality businesses (Davahli et al., 2020). For instance, hotels, lodges, and resorts were forced to close up since there were limited operations in these sectors. Arguably, most of the world’s restaurants were forced to limit their operations to only take-outs of food and beverages. More so, the strict demands that people should stay indoors resulted in a sharp decline of hotels and lodges occupancies. Unfortunately, a lack of occupants in these businesses leads to a vast loss of revenue.

Additionally, many employees were laid off since the businesses lacked the financial capacity to retain them. Although some of these restrictions have been eased, and most restaurants allow guests to dine on their premises as long as they observe the established safety protocols, these businesses have not entirely picked up (Kaushal & Srivastava, 2021. Some of them are still struggling to make ends meet, which might take a longer time than anticipated. Some of the safety protocols are also demanding, forcing these businesses to spend a lot of money that would have been used during the recovery process. For instance, the demand to ensure all employees undergo the COVID-19 test periodically forces the management to spend the extra cash, which would have been used to uplift the businesses. Sadly, businesses that fail to comply with these policies continue to be closed (Şengel et al., 2020). Overall, the hospitality business’s operating costs amidst a pandemic are much higher, hence straining these businesses.

Canceled contracts and Entertainment

The modern travel trends, increased online businesses, and heightened disposable income drove the hospitality industry was greatly affected by the pandemic. Notably, the ever-expanding worldwide tourism was one of the primary factors that initiated this industry’s growth (Škare, Soriano & Porada-Rochoń, 2021).. Additionally, the number of international tourists had increased, giving rise to more foreign exchange income. However, the pandemic disrupted all these, with the industry recording a lower turn-up of international tourism. With the continuous decrease in foreign visits and increased lockdowns that affected domestic tourism, the hospitality industry slowed down.

Markedly, the food and beverage sectors, recreational facilities, and travels, which form the hospitality industry’s backbone, were adversely affected. Multinational companies were disabled, and product shipment became complicated. Many hotels also canceled individual reservations and group events, which would have significantly contributed to their revenue. Even though some countries have opened up and reported a gradual return of normalcy, some regions are experiencing another pandemic wave, forcing the governments to impose a complete lockdown. If this situation persists, it will continue to restrict the growth of the tourism and hospitality industry.

Travel, tourism, and entertainment go hand in hand. As tourists enjoy their stay in a specific place, they are usually entertained by dancers, solo musicians, or even bands. However, with the new regulations intended to contain COVID-19, this has changed. Due to social distancing, guests in the hotels have not been entertained as is usually.

Recovery of Operations by Large Operators

Since large operators such as cruise companies were among the industries rocked hardest by the corona virus pandemic, there has been increased fear that these impacts could leave a permanent bruise that could complicate the recovery process. However, with continuous research, there is hope that normalcy will return, and that these sectors will regain their strength once again. For instance, the discovery of the new vaccines provides a reassurance that the pandemic will be contained. Such news boosts the hope for normal operations. Conversely, domestic tourism has resumed in most regions, helping large operators prepare adequately for the future.

Nonetheless, these sectors believe that actual recovery will be achieved once international tourism has been restored (Kaushal & Srivastava, 2021. For these operators to achieve this objective there is a need for universal collaborations and evidence-based solutions to ensure travel restrictions are safely and adequately lifted.  According to these large operators, there is also a need to restore people’s confidence and reassure them that international tourism and hospitality is safe. Unless this happens, it is almost impossible to recover the significant operations that support these industries. Large operators also believe that the government has a substantial role in recovering functions in this industry. Without the government’s support, the blow to tourism and hospitality industries will not be cushioned, and job losses hardly controlled. Therefore, a gap requires the government’s intervention to restore the strong pillars of the tourism and hospitality industry (Şengel et al., 2020). Overall, for large operators to fully recover strategies such as restoring travelers confidence, promoting tourism businesses and supporting them to adapt and survive these challenging times, building a more resilient, sustainable industry, strengthening co-operation among nations, and provision of adequate information to businesses and travelers will be helpful, especially in limiting uncertainties and helping the sector to recover its operations.

Changes in the Tourism and Hospitality Industry

Based on my research and knowledge, the COVID-19 pandemic will permanently change tourism and hospitality operations. To avoid a repeat of what has happened; governments might make establish policies that limit the number of people in recreational facilities and other sites. In the future, tourism magnets might experience smaller and controlled crowds (Kaushal & Srivastava, 2021). Since no one knows when exactly the pandemic will end, or if there will be another pandemic that will be worse than COVID-19, the already developed and ongoing strategies might work for the good of everyone. Once they are adopted, they may be used permanently.       Advanced technological approaches used during the pandemic might also be used even when the pandemic is over. For instance, the use of biometrics, which not only helps to prevent the spread of the virus but also helps in security purposes, may entirely be adapted. Additionally, some regions did not value domestic tourism as much as they appreciated international tourism. However, due to the pandemic, domestic tourism came in handy, and its importance has been recognized in these regions. As a result, efforts have been made to improve this sector. For this reason, whether or not the pandemic ends soon, these changes will be permanent.

Conclusion

Unlike most of the historical tragedies recorded in the world, the corona virus pandemic has sneaked its way around the universe, paralyzing most operations, and devastating millions of people. Most economic sectors have also been affected by the pandemic.  Unfortunately, tourism and hospitality industry has been hit harder by the pandemic due to banned and restricted travels, a decline in airline operations, loss of jobs and revenue, cancellation of contracts, and entertainment opportunities. Despite these effects, efforts have been made to help the industry recover. For instance, domestic tourism has been supported to cushion the impact of banned international tourism. Notably, the pandemic impacts have resulted in the development of new policies and strategies, which might permanently affect the industry’s operations. Nonetheless, although these changes might be permanent and may take time to yield fruits, I believe that they will work for the tourism and hospitality industry’s good.

References

Davahli, M. R., Karwowski, W., Sonmez, S., & Apostolopoulos, Y. (2020). The hospitality industry in the face of the COVID-19 pandemic: Current topics and research methods. International Journal of Environmental Research and Public Health, 17(20), 7366. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7601428/

Kaushal, V., & Srivastava, S. (2021). Hospitality and tourism industry amid COVID-19 pandemic: Perspectives on challenges and learnings from India. International Journal of Hospitality Management, 92, 102707. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7528873/

Şengel, Ü., Çevrimkaya, M., Işkin, M., & Zengin, B. (2020). The Effects of Novel Coronavirus (COVID-19) on Hospitality Industry: A Case Study. Journal of Tourism and Gastronomy Studies, 8(3), 1646-1667. https://www.researchgate.net/publication/344445842_The_Effects_of_Novel_Coronavirus_COVID-19_on_Hospitality_Industry_A_Case_Study

Škare, M., Soriano, D. R., & Porada-Rochoń, M. (2021). Impact of COVID-19 on the travel and tourism industry. Technological Forecasting and Social Change, 163, 120469. https://www.sciencedirect.com/science/article/abs/pii/S0040162520312956

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