Dr. GVK Reddy shares insights on Omicron’s devastating effects on the hospitality and tourism sectors of India.
In addition to the massive impact the COVID-19 pandemic had on India’s various sectors, the new coronavirus variant – omicron is also shaking them. No sector is spared from the effects of this pandemic. In all areas of shopping, dining, and eating to travel, aviation, and trading, people are experiencing a dread about the renewed restrictions. Dr. GVK Reddy shares insights on Omicron’s devastating effects on the hospitality and tourism sectors of India.
As a result of the spread of Coronavirus’ new variant, Omicron, the stock prices of the hospitality industry, travel services, entertainment industry, and many others started falling. There is a concern among investors who invested in these sectors that a new lockdown will be imposed by many countries. And India might not just remain immune. Industries that have yet to recover from their earlier losses will be adversely affected once again. Due to this, the market is noticing a decline in stocks.
Notably, after the Omicron outbreak, Indian Hotels were down 3.70 percent at Rs. 174.75, and East India Hotels down 5.77 percent at Rs. 119.95. Oriental Hotels was down 2.78 percent at Rs 34.95.
Moreover, crores of people have been affected by this situation in terms of their livelihoods and businesses. FHRAI estimates that over 20-30% of the hotels and restaurants in the organized sector have already shut their doors since the outbreak of the pandemic. As domestic tourism thrived post-August, restaurants and multiplexes both had a chance to see full houses. While airports and railway stations were filling up, restaurants and multiplexes also gained a good deal of business. In these sectors, all hikes recorded are experiencing unfavorable descents again.
In an apparent increase in Coronavirus cases, the hospitality industry, which was slowly returning to normal and awaiting a breather after the holidays, is now seeing a huge cancellation of bookings due to the apparent increase in Coronavirus cases. The contract-based sectors including the tourism and hospitality industries are unfortunately among the top victims of confinement due to the necessary restrictions and suspension of international flights until 28th February.
Consequently, a Skylink Travels’ executive said weddings were also affected because of the restrictions on the number of guests who could attend social gatherings due to the new outbreak.
Dr. GVK Reddy states, “Given these circumstances, the outlook for the next couple of months is bleak, with state governments bringing in a variety of restrictions, including night curfews, weekend curfews, and travel restrictions for international and domestic passengers.” He adds, “According to various travel agents, there has been a cancellation or rescheduling request from 30 percent to 50 percent of their customers.” And, approximately 30 percent of customers who had previously booked travel during January-February have now decided to cancel their plans or reschedule for a later date, according to data released by Yatra.com.
Numerous countries have already introduced vaccinations and booster shots to control the spread of Covid, and India will follow suit in order to put its economy back on track through the introduction of precautionary measures to its citizens.
Source: Indian Business Times