The World Health Organization (WHO) has declared the coronavirus a global pandemic as it continues to spread worldwide. It has resulted in businesses across different industries experiencing serious downturns. The world has focused all its time, energy, and efforts in slowing down the spread of the virus and minimizing the damage it has caused. Meanwhile, economies all over the world have come to a standstill.
While all industries are affected by COVID-19 in one way or the other, the impact on some sectors has been more severe. In this article, we will discuss the industries that have been hit the hardest by the novel coronavirus:
As both domestic and international flights become restricted all over the world, the airline industry is hit hard by the ongoing pandemic. According to experts, the spread of the virus has caused the passenger revenue to decline significantly. It has resulted in a loss of billions in revenue for airline businesses. Several airlines have even gone bankrupt. In response, many airlines are limiting their operations and asking their staff to go on unpaid leaves to prepare for the tough times ahead.
The majority of businesses that rely on international shipments have experienced disruptions in their supply chains because of the problems faced by the shipping industry due to coronavirus. China itself was one of the largest exporters and shipping hubs in the world. But being the source of the virus, it had no option but to close its ports for the time being. In our globalized industry, custom brokerage businesses have suffered greatly due to the restrictions imposed on the movement of goods across borders.
As the majority of the population decides to stay at home to protect themselves from the coronavirus, the hotel industry has seen a sharp decline in its demand. In response, hotels have no choice but to lay off hundreds of their employees to cut costs. Even the largest names like Marriot are planning to furlough a significant number of employees in light of the current economic crisis.
On the other hand, the major tourist destinations have also been hit the hardest as their economy is fueled by the income generated during the peak tourist seasons.
- RESTAURANTS AND CATERING
With most restaurants across the world having to close down their dine-in facilities to reduce the spread of COVID-19, the restaurant industry has experienced a significant loss of revenue. Some have decided to close down for an indefinite period due to their inability to keep up with their expenses, while others continue to be open for only take-away and delivery. However, even those that are open are uncertain whether they will be able to continue being in business in the near future. Because with limited revenues, keeping the business afloat is likely to be a continuous struggle.
As authorities shut down all of the leisure facilities in an attempt to enforce social distancing policies, the entertainment industry has been bearing the brunt of the global pandemic too. All concerts, sporting events, and exhibitions have been removed from the 2020 calendar, and cafes and bars closed to adhere to the lockdown measures. With all movie theatres and cinemas expected to be closed for the next few months, all major movie releases have also been pushed back.
China was amongst the largest oil consumers and importers in the world before the COVID-19 outbreak. As demand from the country fell significantly following the spread of the disease, this automatically resulted in a sharp decrease in crude oil prices on the international market. This unexpected fall in oil prices caused a lot of panic on the stock markets, ultimately causing the oil prices to crash.
The market for crude oil is very responsive to any changes in the world economy, and if this pandemic continues, there are concerns that oil prices could fall further.
- REAL ESTATE
As the global economies continue to be affected by the pandemic in alarming ways, declining incomes and uncertainty about the future have reduced the willingness of consumers to invest in real estate. Construction projects have been suspended while real estate sales have hit an all-time low. Small to medium-sized real estate businesses are the most affected. If the current situation continues, we might see them selling properties at low prices in return for some fast income.
THE FINAL WORDS
The COVID-19 outbreak has affected businesses worldwide, regardless of their size and the industry they operate in. While many companies have been forced to curtail their operations due to the lockdown measures, many of their expenses remain the same, and they must find a way to pay rent, bills, interest, and salaries during these challenging times. We can only hope that the future brings prosperity for us all, but only time will tell how this global pandemic will end up changing the world.