By Ms. Munaza Kazmi
Resulting in the outbreak of COVID-19, industries have been troubled by ambiguities & uncertainties, & this scenario is quite evident in the tourism & hotel industry, which is based on human mobility & interaction. It can be said the hotel & tourism industry is the main receiver of the catastrophe & its consequence.
The Impact of COVID-19 on Pakistan’s Hotel Industry:
Coronavirus attacked Pakistan on late February 2020, from onwards its hotel industry has confronted with damaging consequences from mainly lockdowns & quarantine. These results have affected each & every stakeholder in the hotel industry. Resulting the travel bans & prolonged quarantine, there seemed the cancelation of bookings & tourists unwillingness to travel due to the fear of virus. These cancelations have eventually led to cut their costs even to the risk of survival. It was reported that many of the small & medium hotel went to complete shut down & closer of business which have affected the bread & butter of many poor people. As there are 12,000 hotels in Pakistan that directly & indirectly employ 2.5 million families, moreover tourism & hospitality is the Pakistan’s second largest contributor in economy & foreign reserves. Furthermore, this scenario had headed to sharp decline in the market value in the stock exchange, as reported by Asian Development Bank in the worst-case scenario, Pakistan Hotels may face loss of $ 253.7 million whereas in the moderate case, the loss would be around $ 0.67 million. I would say Pakistan is under the era of slow recovery & lies between moderate to worst case since still hotels have not started operating as before, moreover the influx of international tourist is still near to zero, though Prime Minister Imran Khan have lifted the restriction on tourism industry, but almost more than half nations of the world had closed their boarders.
The scenario will persist, since the loss not just incurred on the economy only but to the physical as well mental health of the people, it raised the numerous fears & anxiety issues, the concerns for infection, for risking the lives, these concerns can have negative impact on the industry, though the industry will revive but slowly & for that Pakistan have to gear up for tomorrow.
Preparing for tomorrow:
It was observed by, that the industry of tourism & hospitality comes under a persistent crises & disaster since the beginning of 21st century. The pandemic of coronavirus came under the same category, as it is neither predictable nor avoidable & effecting the working & operations of entities round the globe.
COVID-19 Disaster Management Framework for Hotels:
| Phase | Principles | Strategies |
| Pre-event 26 February 2020 when two cases were reported. | Visualization | An effective team under a good manager.Potentiality of disaster & its probability of occurrencePlanning & CommunicationRisk analysisProactive planningAwarenessCreating digital communication network.Making, recording & communicating disaster management strategy. |
| Prodromal 15-25 March 2020, more cases reported, & it was registered that the spread had happened.Lockdown in Pakistan was made in less than a day.The operations of big hotels started affecting in response of travel bans & shut downs.Restaurants receiving lockdown notices from government.Cancellations of bookings have been recorded which drastically have stroke the cash flows of hotels. | Mitigation | Reduce vulnerabilityBusiness Continuity ManagementEnsuring the wellbeing of staff, clients & propertyReduce non-essential labor costs flexibility MultitaskingOnline sessionsUsing annual leave & reduction in working hours.Review & revise marketing |
| Emergency April 15 June 2020.Cases reached on its peak with 6,825 new cases.Shutdowns & closures to protect the people.Pakistan’s Hotel industry entered in the emergency phase.Hotel industry undergone a disastrous decline. | Contingency Management | SafetyEmergency servicesLoss SharingRefunding or re-scheduling cancellationsIntense cleaning & its marketingProvide contactless servicesCSR activitiesClosely monitor marketing |
| Intermediate Late June 2020 the number of cases stabilized.Smart Lockdown.Tourism bans were lifted with strict SOPs.Hotel business started showing some early signs of performance recovery.The hotel industry shifted its focus from anti-pandemic to business restoration measures. | Rehabilitation | Damage assessmentBeginning of restorationModification in marketing |
| Recovery Beginning of July 2020 there came a significant decrease in the confirm cases.Domestic tourism recovered, but foreign incoming was dropped since most of the countries had closed their borders.The overnight rate of Pakistan’s incoming passengers declined intensely, the situation convincing the luxury & upper-class hotels to seek new markets & segments. Most of them focusing on domestic clients & offering reasonable rates & packages.Healing. | Restoring | Restoration of normal business operationsImprovement in customer services & other facilitiesExtensive advertising & campaigns Seek aid from government & insurance companies if required.Encourage mutual support with all stakeholders |
| Resolution As of 20 September 2020, the recovery rate in Pakistan positions at 95.6%.Domestic market is improving but the international global situation & mobility.Perhaps, 2021-2022, phase is expected to last for 2 years or more till discovery of vaccine & conclusion of the COVID-19 | Discover new horizons Resolution or post disaster phase aims to ensure that adequate reflection critical examination of the lessons learned. There should be focus on day to day action with mind mapping for discovering the new horizons, since COVID-19 had caused enduring changes in customer preferences & consumption behaviors. Hence, hotels should identify those needs & develop state-of-the-art products e.g., concern for hygiene, health, & sustainability. | The hotels must renew services by reviewing & reconstructing existing products, marketing strategy, distribution channels, delivery methods, & consumption points.Develop Disaster Management Standard Operating Procedure |
It is hoped that such an approach would lead to a better understanding of disaster planning, reduction & readiness & the development of suitable policies & initiatives from hotel enterprises to facilitate more effective management.
