HYDERABAD, India, March 17, 2022 /PRNewswire/ — The hospitality industry has been one of the hardest hit by the COVID pandemic as it has restricted the movement of people, domestic or international. According to the World Travel & Tourism Council (WTTC), the travel and tourism sector suffered a loss of almost $4.5 trillion in 2020 and the sector’s contribution to GDP fell from 10.4% in 2019 to 5.5% in 2020. In addition, around 62.5 million jobs were lost in this sector compared to 2019. The decline spending has been much more drastic for international visitors; spending decreased by 45% for domestic visitors and 69.4% for international visitors.
The ban on international flights and strict restrictions on domestic travel have contributed to the decline of the hospitality market
At the height of the COVID-19 outbreak, almost all countries banned international flights, which caused international travelers to drop to near zero. Additionally, to minimize the spread of COVID-19, various state/provincial governments had enacted some form of travel restriction. These restrictions have limited domestic travel and have had a negative impact on the hospitality industry. The second and third wave made the situation worse by creating an atmosphere of fear and uncertainty. According to one estimate, the hotel occupancy rate had fallen to around 20% in May 2020 in the USA. The situation was either similar or worse for resorts, restaurants and other travel-related facilities.
A higher vaccination rate and an easing of travel restrictions should help the rebound
More than 80% of people ages 5 and older have received 1 lead dose of COVID vaccines in the United States, while 75% have received at least 1 dose in Europe. In addition, various governments have eased restrictions which will have provided a conducive environment for domestic and international travel. Due to these factors, the hospitality industry rebounded in 2021 but lags behind the pre-pandemic level. According to the WTTC, the travel and tourism sector generated $8.6 trillion in 2021, to just 6.4% of pre-pandemic levels. This trend is expected to continue in the coming years and is expected to exceed the pre-pandemic level in 2023.
However, geopolitical tensions such as the crisis between Russia and Ukraine may delay this rebound as it is expected to have major economic consequences worldwide. For example, gasoline prices have skyrocketed in the United States, which could negatively affect the hospitality industry.
Hospitality Industry – Market Overview
According to ReAnIn, the global hospitality industry was valued at $823.6 billion in 2021 and is expected to reach $1,605.6 billion by 2028, registering a CAGR of 11.2%. between regions, North America accounted for the highest share, followed by Europewhile Asia Pacific is expected to experience the highest CAGR during the forecast period.
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Market segmentation :
ReAnIn has segmented the global hospitality industry market into:
- Food services
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
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SOURCE Reanin Research & Consulting Private Limited