The Economic Impacts of COVID-19 on the Tourism Global Value Chain

Abstract

The purpose of this chapter is to examine the economic impacts of the COVID-19 pandemic on the tourism global value chain (GVC). Theoretical analysis revealed that being triggered by health factors, the coronavirus pandemic exerted an unprecedented shock on both the supply and demand sides of the tourism sector and the global economy. This resulted in implications that are more severe and less predictable than earlier crises that the world had witnessed. Analysis of the economic impact on various components of the tourism GVC revealed that measures adopted by world governments to protect their citizens resulted in massive damage to tourism related industries and to the global economy. The chapter concludes by predicting that the consequences of the current pandemic will inevitably give rise to new, more innovate tourism models, responding to the changing global economic and tourism landscape and to the change in consumers' characteristics and expectations.

Global Board Market Index Shariah: A Comprehensive Analysis of the 2020-2023 Trends

“…Some of the global stock sectors that have been affected during, before, and after the pandemic are (1) Travel and Tourism Sector: The travel and tourism sector suffered a severe blow due to travel restrictions, lockdown measures, and fear of contracting the virus (Ulak, 2020). The closure of international borders, cancellation of flights, and strict quarantine measures led to a sharp decline in demand for travel-related services and products (Barkas et al, 2020;Elhini & Kafafy, 2021). Dube et al, (2021) according to a report by the International Air Transport Association (IATA) 2020, global air travel demand declined by 66% in 2020, resulting in significant losses for airline companies and related businesses; (2) Hospitality and Entertainment Sector: Hotels, restaurants, and entertainment venues faced enormous challenges during the pandemic (Lau, 2020).…”

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“…The TGVC consists of multiple transit routes used to deliver final tourism products and services from initial manufacturers or providers to stage-specific actors in particular TVC phases. Moreover, the TGVC connects further to multiple convergences, representing multi-level suppliers who transform raw materials into intermediate products or assemble those intermediate components into final products [45]. In other words, the early phases of the TVW encompass the logic of supply chains spanning diverse raw material sources and convergences to produce ready-to-deliver tourism products and services.…”