Effect of Coronavirus disease (COVID-19) to tourism industry

Abstract

The coronavirus disease 2019 (COVID-19) is a new pandemic that spreads primarily through contact with an infected person when they cough or sneeze. The outbreak of COVID-19 is starting in China then spreading to worldwide that contributes to large number of deaths (40,598 deaths, 1st April 2020). The COVID-19 is a disease causes respiratory illness with symptoms such as a cough, fever, and in more severe cases, difficulty breathing. To preventing spreading of this pandemic, many countries implementing lockdown procedure to stopping the chain of infection for this new disease. The government-ordered lockdowns have disrupted life for billions and in the same time creates economic collapse scenario. The country with the most COVID-19 infections reported a record surge in unemployment. Therefore, this research calculates the effect of COVID-19 to tourism industry for affected countries in the worldwide. This study evaluated the impact using supply and demand curve to detect the economic changes in tourism industry. The result shows COVID-19 CREATES panic among public that contributes to lower demand in tourism industry. This is one of effect because of disease spreading including lockdown approach that implemented in current situation. This scenario, contributes to lower demand price by customer. Therefore, according to market equilibrium of supply-demand theory, the price of tourism sector is keep decreasing parallel with decrement in demand. The finding of this study is very important to government in preventing and stopping decrement demand in tourism industry. The government need to introduce a mechanism that economy and in the same time developing anti-virus for COVIC-19. If the action of prevention is not mange properly, the tourism industry will face more decremental effects that creates economic collapse.