Abstract

PurposeThe aim of this paper is to discuss innovations in response to the COVID-19 pandemic, major investments and reforms required to realize transformation in the tourism and hospitality industry of the European Union.Design/methodology/approachA remedial literature study approach is used to analyze innovations put in place by governments and industry and to determine best practices including new innovations that could help to strengthen hospitality and tourism operations.FindingsThe COVID-19 outbreak and border closures had a significant impact on the tourism and travel sectors. During the pandemic, innovations were needed to address challenges brought on by the border closures, vaccine passports and stricter health and safety requirements. While these innovations helped organizations survive and reinvent themselves, they are not enough for long term sustainability. The need for resilience, effective and well-designed active labor market policies and social protection systems including investment in education and skills training will become basic foundations for sustainability. In order to address these issues, collaboration between government, academia and industry is essential.Originality/valueThe outbreak of COVID-19 and border closures in 2020 created turmoil in the travel and tourism sector. Small- and medium-sized enterprises were damaged and many did not survive. That said, the crisis has given the tourism and hospitality industry an opportunity to rethink the future.

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