A new business study has revealed that the travel and tourism industry around the globe will face the fifty percent shrink amid the coronavirus outbreak.

Media reports said many businesses in the travel and tourism industry are likely to find themselves in jeopardy.  Governments and health officials have warned the public to avoid boarding cruise ships and long flights.

Major events like conferences, trade shows and the Olympics have been canceled or postponed. As a result, many businesses in the travel and tourism industry are likely to find themselves in jeopardy.

Predicting the economic impact of the coronavirus right now is akin to participating in a running competition without knowing how long the course is. However, a few things are already clear.

Study Findings

The study showed that 63.8% of the travelers will reduce their travel plans in the next 12 months. More than half canceled their business travel immediately due to the coronavirus.

Results of our study predict that, compared to last year, the travel industry, which includes businesses such as airlines, hotels and restaurants, will shrink by 50% in 2020, which would mean a significant loss of jobs and revenue.

The number of international travelers could shrink from 1.4 billion to fewer than 1 billion people. That would be the first time the international traveler number has fallen that low since 2015.

According to the study U.S. travelers’ image of China and Italy has deteriorated. The image of China damaged most significantly, as some people blame China for the spread of the virus.

However, it expected that this image may recover soon, as research shows that travelers have a short memory about the negative aspects of a destination after a disaster.

World Travel and Tourism Council

The World Travel and Tourism Council, which represents the global private sector of Travel & Tourism, predicts up to 50 million jobs in the global travel industry could be lost.