While some industries have adapted to the digital world and are using newer technology, others have faced unprecedented failures because of social distancing and travel restrictions. Without the mobility of tourists, tourism cannot hold its ground. According to the World Tourism Organization, there will be a 60-80% decline in tourist numbers by 2020. This is bad news for the tourism industry, which relies heavily on human labor.
Cohabitation between tourists and inhabitants
The growing popularity of Airbnb has dramatically impacted life in tourist areas, with concerns over rents, housing availability, and the inconvenience of living with tourists. The guest is less likely to abide by local conventions and be sensitive to the surrounding area’s culture. Moreover, some studies have shown that Airbnb guests experience cohabitation issues. The tourism industry is working to develop a better deal with this issue.
The economic impact of tourism
The economic impact of tourism is not just felt locally. It can also have a significant impact on regional economies. Tourism brings money into cities and rural areas, creating new jobs and expanding markets. Furthermore, it promotes a destination’s image worldwide, resulting in higher property values. But, how can tourism improve the local economy? Let’s look at some ways. Let’s start with an example. Let’s say that a hotel in a tourist destination buys oranges from a local farmer. This fisherman is indirectly employed by the hotel, which purchases oranges from the fisherman.
Taxes in tourism
It is easy to assume that the tourism industry is a soft touch for extra taxes. But hotel and restaurant associations are lobbying against this. They argue that such extra taxes are counterproductive and decrease tourist numbers, which reduces the tax yield. Therefore, lower tax rates benefit both the hotel and the tax authority. Hence, hoteliers should consider the impact of tax changes on their industry.
Impact of COVID-19 on tourism
The pandemic of COVID-19 has ravaged the global tourism industry. Arrivals worldwide rose four percent last year but remain 72 percent below pre-pandemic levels. There are more than a billion fewer tourists than in 1980. As a result, the tourism industry has been experiencing its lowest levels since the late 1980s. But, with several solutions to the pandemic looming, the industry will begin to recover.