The crisis impact on the tourist business development

Abstract

The purpose of this research is to analyze and assess trends of the tourism industry in the world, and in Europe in particular and study the impact of the crisis caused by the COVID-19 virus on the functioning of tourism and hospitality agencies and firms. The materials of official statistical data of Eurostat, OECD countries, UNWTO, reports of the Tourism and Resorts State Agency of Ukraine and State Border Guard Service of Ukraine were used. During the research it was found that globalization challenges, opportunities and threats associated with it are changing the way businesses operate, especially those working in the tourism, hotel and restaurant business. The instability of the world social and political situation, economic crises and slow recovery affect the distribution, production of goods and services, access to the necessary resources. Global development of the tourism sector during 2010-2019 and its impact on GDP of some countries is presented in the article. The characteristic of the tendency of change of the share of GDP formed in the field of tourism in the world from 2000 to 2019 and the list of the countries with the largest share of tourist incomes in GDP in 2019 are given in the article. An analysis of the tourism business at the beginning of 2020 and the impact of the COVID-19 coronavirus on its functioning are presented. It was found that in the first quarter of 2020 there was a decrease in international world tourist flows by 22%, the number of tourist flows in March of 2020 decreased by 57%. This has led to a loss of about $ 80 billion in tourism. The tourism industry has faced an unprecedented conflict of threats: on the one hand - fear for human health and life, and on the other - economic losses from quarantine measures, which lead to the impoverishment of individuals and entire nations. The situation is complicated by the fact that investment problems of leading industries have to be solved in a crisis conditions, when the freezing of funds for specific projects has a very negative impact on the efficiency of the entire economic system and, consequently, nation`s welfare. Proposals for anti-crisis management of tourist infrastructure facilities are given.