Impact of Coronavirus Disease (COVID-19) towards Hotel Tourism Industry

Abstract

The coronavirus disease (COVID-19) that spreading over worldwide in year 2019, give significant impact towards global economics. In addition, there movement control gives negative impact towards global economic development. Therefore, this study evaluated the impact of COVID-19 towards hotel tourism industry as the most effected sector due to restriction of movement. This study collected data about two companies that involve in hotel tourism industry, both of the companies show negative movement of share price that indicates the declining profit. In the same time, this study developed supply and demand curve simulation regarding the effect of COVID-19 towards hotel tourism industry. The simulation indicates, the decrement of demands creates decrement of price of hotel according to market equilibrium. When the price is reduced, many hotels shrinking their operation that creates lower supply to balance the changes of price. Therefore, at the market equilibrium during COVID-19 outbreak, the hotel tourism industry suffering lower demand and facing lower price for hotel services. This situation creates the hotel industry is dealing with an unprecedented crisis due to the disruption caused by the global COVID-19 pandemic. This study contributes the advancement of literature of COVID-a9 effect towards global economy. In addition, the findings of this study will help government to provide suitable policy in helping hotel tourism industry to survive in current economic situation. This study also helping hotel industry in planning their financial management to make sure hotel industry can be survive until the post COVID-19 situation.