The Path of Recovery for Hospitality Industry: How Long Can It Take - ReAnIn Report
HYDERABAD, India, March 17, 2022 /PRNewswire/ -- The hospitality industry was one of the worst-hit by the COVID pandemic as it limited people's movement, domestic or international. According to World Travel & Tourism Council (WTTC), the travel & tourism sector suffered a loss of almost USD 4.5 trillion in 2020 and the sector's contribution to GDP decreased from 10.4% in 2019 to 5.5% in 2020. Moreover, about 62.5 million jobs were lost in this sector in comparison with 2019. The decline in spending was much more drastic for international visitors; spending decreased by 45% for domestic visitors and 69.4% for international visitors.
Ban on international flights and strict restrictions on domestic travel contributed to the decline of the hospitality market
At the peak of the COVID-19 outbreak, almost all countries banned international flights which resulted in international travelers coming down to near zero. Furthermore, to minimize the COVID-19 spread, various state/provincial governments had adopted some form of restriction on travel. These restrictions limited domestic travel and 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 an estimate, hotel occupancy had come down to about 20% in May 2020 in the US. The situation was either similar or even worse for resorts, restaurants, and other travel-associated facilities.
Higher vaccination rate and ease in travel restriction is expected to help in the bounce-back
More than 80% of people aged 5 years and more have received at lead 1 dose of COVID vaccines in the US, while 75% have received at least 1 dose in Europe. Furthermore, various governments have eased restrictions that will have provide a supportive environment for domestic and international travels. Owing to these factors, the hospitality industry has bounced back in 2021 but is behind the pre-pandemic level. According to WTTC, the travel and tourism sector generated USD 8.6 trillion in 2021, just 6.4% behind pre-pandemic levels. This trend is expected to continue in upcoming years and is likely to surpass the pre-pandemic level in 2023.
However, geopolitical tensions such as the crisis between Russia and Ukraine can delay this bounce-back as it is expected to have major economic consequences across the globe. For instance, gasoline prices have skyrocketed in the US which may negatively affect the hospitality industry.
Hospitality Industry - Market Overview
According to ReAnIn, the global hospitality industry was valued at USD 823.6 billion in the year 2021 and is projected to reach USD 1,605.6 billion by the year 2028, registering a CAGR of 11.2%. Among regions, North America accounted for the highest share followed by Europe, whereas Asia Pacific is expected to witness the highest CAGR over the forecast period.
Download free sample: Global Hospitality Industry Market Growth, Share, Size, Trends and Forecast (2022 - 2028)
Market Segmentation:
ReAnIn has segmented the global hospitality industry market by:
- Type
- Accommodation
- Food Services
- Others
- Ownership
- Chained
- Standalone
- Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Access full report on: Global Hospitality Industry Market
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