With the globalized world going into partial or complete shutdown, the overall impact on human life, economic growth and businesses is immeasurable, both in the short term and long term due to the uncertainty as things evolve.

While most Economists and Analysts currently expect the global economy to rebound, by some measure in the latter part of 2020, the exact timeline cannot be determined till the virus is contained across the globe.

Nearer home, the Indian hotels sector has been hit hard, grappling with significantly low demand, with very few future bookings. Essentially, all transient demand has completely vanished – the remaining is largely on account of either a few long stay guests, or hotels having been prescribed by the Government for the international travelers returning to India.

Nothing could have ever prepared us for the COVID-19-shock and although, the current crisis is unlike any other we have ever faced, not all is lost. The Indian hotels sector can recover from this crisis as well, by adjusting strategies in the near term and preparing for the future.

In this report, we have tried to quantify the impact of COVID-19 on the Indian hospitality sector, while discussing some of the immediate steps that are needed to help the sector get back on its feet.

We would like to emphasize that our analysis is based on data available to us as on 23rd March 2020. However, as the situation and implications are evolving rapidly, some of the insights in the report may quickly be outdated.

It is imperative that all the industry participants collaborate and work harmoniously in the current crisis by sharing best practices, keep the workforce motivated and seek to put the industry back into recovery mode, because this too shall pass soon.

COVID-19 – Unprecedented Impact on the Global Economy

To say that the economic impact of the outbreak has been devastating, is putting it mildly. Most Economists believe that the full impact will only emerge once the outbreak is completely contained.

Economists world-over expect the global economy to shrink in the first quarter of 2020, a first since the 2008 financial crisis. With the number of cases rising sharply on a daily basis, even if the pandemic is contained soon, the ripple-effects will be felt across the world well into the year, pushing all major economies into a possible recession.

COVID-19 will significantly impact the GDP growth forecast in 2020

Source: IMF, RaboResearch, MacrobondS

The Travel & Tourism sector across the globe is undoubtedly the biggest casualty of the COVID-19 pandemic. Several countries have issued travel advisories and are in lock down mode, with all major global business, social and sporting events getting cancelled since February.

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