The economic and social impact of COVID-19 on tourism and hospitality industry: A case study from Oman.

Abstract

The COVID‐19 pandemic has incurred a substantial economic and social impact around the world. Many sectors have been drastically affected but the tourism and hospitality industry was one of the hardest hit by the COVID‐19 outbreak globally. The coronavirus pandemic has caused direct losses of half‐billion Omani Rial to the tourism sector. This pandemic has also exacerbated the mental health of business owners of the tourism and hospitality industry in Oman. This research aims to investigate the economic and social impacts of COVID‐19 on the tourism and hospitality sector of Oman. The data was collected from business owners of micro, small, medium, and large size‐companies operating in the tourism and hospitality industry. A structured questionnaire was distributed and data collection was done from September 2020 to January 2021. The finding of the study reveals a negative economic and social impact on the tourism and hospitality industry of Oman due to the COVID‐19 outbreak. The economic impact includes financial loss, reduction in customer demand at a national and international level, disruptions in the logistics and distribution channels, ruined the relationship with suppliers, customers, and employees. The social impact included depression, irritation, anxiety, and stress among the business owners about the present and future conditions. This study has given valuable suggestion to mitigate the negative economic and social impact on the tourism and hospitality industry of Oman. The finding of the study will support the government to boost the tourism and hospitality industry in Oman.