The effects of the coronavirus have led to a hotel crisis never before seen on this scale. During the financial crisis that started in 2008, there was a significant slump in the hotel sector, but occupancy rates never got to the lows that are being experienced right now. That did happen in China after the SARS outbreak in 2003, but the rates bounced back to their old levels within just six months, even in the most affected cities. If the current pandemic can not be curbed soon, and travel restrictions persist, what will it mean for the hotel industry? We’ve toured around six major holiday countries, to get a clear picture of the current situation, map out the consequences and identify opportunities.
Whichever scenario becomes a reality, it is certain that tourism will eventually re-enter the growth path it has been on for the past 20 years without major interruption. After the crises in 2003 and 2008, global tourism recovered to its former level within 18 months. It is to be expected that long-distance trips will be exchanged for trips closer to home for the time being. That speaks in favor of the European hotel market. In addition, the expected recession will cause business traffic to recover more slowly than holiday tourism. The hotels that survive this crisis without too much damage will have proven to be extremely resilient. That could make the hotel industry an even more interesting market to keep an eye on in the future.
Whichever scenario becomes a reality, it is certain that tourism will eventually re-enter the growth path it has been on for the past 20 years without major interruption. After the crises in 2003 and 2008, global tourism recovered to its former level within 18 months. It is to be expected that long-distance trips will be exchanged for trips closer to home for the time being. That speaks in favor of the European hotel market. In addition, the expected recession will cause business traffic to recover more slowly than holiday tourism. The hotels that survive this crisis without too much damage will have proven to be extremely resilient. That could make the hotel industry an even more interesting market to keep an eye on in the future.
