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Fashion Business Research - Assignment
Fashion Business Research - Assignment
Fashion Business Research - Assignment
Submitted by:
Submitted to: ARZOO HANS (MFM/21/310)
CONTENTS
IMPACT OF PANDEMIC (COVID-19) ON TOURISM........................................................................................................ 1
Abstract............................................................................................................................................................................................ 3
Summary......................................................................................................................................................................................... 3
BACKGROUND............................................................................................................................................................................ 4
OBJECTIVES................................................................................................................................................................................ 4
METHADOLOGY......................................................................................................................................................................... 5
Literature review........................................................................................................................................................................... 5
introduction..................................................................................................................................................................................... 5
TOURISM: A DROP.................................................................................................................................................................... 8
Tips for Crafting the Perfect Travel Marketing Strategy, with Post-COVID-19 in Mind:.................................10
TowardS recovery................................................................................................................................................................... 12
Data Analytics:......................................................................................................................................................................... 13
CONCLUSION:........................................................................................................................................................................... 26
References........................................................................................................................................................................................ 27
ABSTRACT
The novel coronavirus (COVID-19) has affected many people and businesses
worldwide, triggering a global economic crisis that includes a major sector of the
economy that is tourism. The impact of the pandemic on tourism consequently has a
drastic influence on the purchase of fashion goods and materials internationally and
domestically both. Large imports, exports, purchasing and selling of fashion goods,
setting up of overseas fashion units have decreased due to restrictions on borders and
the travel industry. As there has been a substantial decline in the arrivals of overseas
tourists in India in 2020, the purchase of Indian textiles have massively faced a loss.
The pandemic has not only affected the foreign earnings but has also affected various
regional developments, job opportunities, thereby disrupting the local communities as a
whole. In this report we analyse the impact of COVID-19 based on three scenarios
considering with and without lockdown in terms of the impact on travel booking status of
people, the number of cancellations of bookings faced, and lastly the decline in
purchase of international and domestic goods due to fear of transmitting the disease via
travelling. The study conducts survey through a questionnaire for measuring
respondents’ responses to the given factors of the Covid-19 epidemic. A sample size of
hundred respondents is covered. The survey is designed to cover the key points arising
from challenges faced by the people in reaching out to the fashion industry due to
imposed restrictions on the travel sector amid the pandemic along with analysing the
resultant loss faced by the fashion and travel units, thus stating possible measures to
overcome the challenge.
SUMMARY
The COVID-19 pandemic has caused major disruptions in the global economy. By the
end of the first quarter of 2020, the COVID-19 pandemic had brought international travel
and domestic travel to an abrupt halt and significantly impacted the tourism industry.
The study focuses on worldwide tourism and discovers the challenges they confronted
in tourism and the strategies to overcome those challenges in the short- and long-term
while minimizing the economic shocks due to the covid 19 pandemic. The objectives of
the study includes to calculate how long the pandemic will last and when a treatment or
vaccine will become available worldwide, Lifting of travel restrictions and lockdown
measures, regain of Consumer & Business confidence in the travel industry , Economic
impact and Governments Measures to overcome this problem. This study uses survey
instrument for measuring respondents’ responses to the given factors of Covid-19
epidemic. The research further shows that as countries gradually lift travel restrictions
and tourism slowly restarts in many parts of the world, health must continue to be a
priority. Only through collective action and international cooperation will we be able to
transform tourism.
BACKGROUND
The world tourism industry is facing the effect of the Covid-19 pandemic. Tourists’ travel
risk and management perceptions are crucial matter in their decision to travel
destinations during the ongoing uncertainty of Covid-19 epidemic. Tourists’ travel risk
and management perceptions can influence their psychological behavior for travel to
destinations.
OBJECTIVES
Pandemic
How long the pandemic will last and when a treatment or vaccine will become
available worldwide.
Economic impact
how deep and how long will the global recession be?
What will be consumers’ discretionary spending decisions?
Governments Measures
how do government measures support tourism? (UNWTO, 2020)
METHADOLOGY
This study uses survey instrument for measuring respondents’ responses to the given
factors of Covid-19 epidemic, tourists’ travel risk and management perceptions and their
social traits through the preparation of a questionnaire. A total of 9 questions measuring
travel risk and management perception are adapted in the questionnaire. The survey is
designed to cover the key points arising from the industry’s progression through the
COVID-19 period. This included COVID-19 impacts on businesses, what mitigation
actions are being taken, jobs lost, what government support is being utilized and what
further support is needed. In addition to the quantitative questions, a number of text
questions invited comments. This study uses survey instrument for measuring
respondents’ responses to the given factors of Covid-19 epidemic. The research further
shows that as countries gradually lift travel restrictions and tourism slowly restarts in
many parts of the world, health must continue to be a priority. Only through collective
action and international cooperation will we be able to transform tourism.
LITERATURE REVIEW
This paper considers two streams of literature: (1) impact of epidemic outbreak on
tourism and (2) forecasting Tips for Crafting the Perfect Travel Marketing Strategy, with
Post-COVID-19 in Mind
INTRODUCTION
Tourism is a dynamic and competitive industry that requires the ability to adapt
constantly to customers’ changing needs and desires, as the customer’s satisfaction,
safety and enjoyment.
Tourism is the activities of people traveling to and staying in places outside their usual
environment for leisure, business or other purposes for not more than one consecutive
year. Tourism is a dynamic and competitive industry that requires the ability to adapt
constantly to customers’ changing needs and desires, as the customer’s satisfaction,
safety and enjoyment are particularly the focus of tourism businesses. (go2HR, 2021)
The Ministry of Tourism maintains the Incredible India campaign focused on promoting
tourism in India.
TOURISM ENCOMPASSES
Outbound Tourism
Inbound Tourism
Domestic Tourism
Tourism Sectors (go2HR, 2021)
Ministry of Tourism
Cabinet Minister
India is a large market for travel and tourism. It offers a diverse range of niche
tourism like- cruises, adventure, medical, wellness, sports, MICE, eco-tourism,
film, rural and religious tourism. (Foundation, 2021)
India has been always recognized as a destination for spiritual tourism for
domestic and international tourists.
Before COVID-19, travel and tourism had become one of the most important
sectors in the world economy, accounts for 10 percent of global GDP and more
than 320 million jobs worldwide. (INTERNATIONAL MONETARY FUND, 2021)
In 1950, around just 25 million people took foreign trips. By 2019, that number
had reached 1.5 billion, and the travel and tourism sector had grown to almost
too-big-to-fail for many countries. (INTERNATIONAL MONETARY FUND, 2021)
The Indian tourism and hospitality industry have emerged as one of the key
drivers of growth among the services sector in India, potentially large in
employment generator besides being a significant source of foreign exchange for
the country. (Foundation, 2021)
India’s rank in the Travel & Tourism Competitiveness Index (TTCI) of the World
Economic Forum has moved from 65th rank in 2013 to 34th rank in 2019.
The Incredible India "Find the Incredible You" campaign, launched by the
Ministry of Tourism during the year 2018-19, was declared the winner of the
Pacific Asia Travel Association (PATA) Gold Award 2019. (Bureau, 2019)
The domestic tourism sector generated $247.3 billion (INR 16.91 trillion) in 2018,
with a growth of 6.7%. This makes India the 8th largest country in terms of
contribution to travel and tourism GDP and the largest market in South Asia.
Foreign Tourist Arrivals (FTAs) growing at 14 per cent to 10.4 million and Foreign
Exchange Earnings (FEEs) at 20.6 per cent to US$28.7 billion in 2017-18.
However, the sector witnessed a slowdown in 2018-19. (Bureau, 2019)
Outbound tourism also increased in recent years, with the number of departures
of Indian nationals from India, that stood at 23.94 million in 2017-18. This was
more than double the foreign tourist arrivals in India. (Bureau, 2019)
IMPACT OF THE COVID-19 PANDEMIC ON TOURISM
In many of the world's cities, planned travel went down by 80–90%. Conflicting and
unilateral travel restrictions occurred regionally and many tourist attractions around the
world, such as museums, amusement parks, and sports venues closed. UNWTO
reported a 65% drop in international tourist arrivals in the first six months of 2020. Air
passenger travel showed a similar decline. The United Nations Conference on Trade
and Development released a report in June 2021 stating that the global economy could
lose over US$4 trillion as a result of the pandemic. (Wikipedia, 2021)
TOURISM: A DROP
According to the United Nations World Tourism Organization (UNWTO), tourist arrivals
are estimated to have fallen 74 percent in 2020 compared to 2019.
The travel industry, which includes airlines, hotels and restaurants, will shrink by 50% in
2020, which would mean a significant loss of jobs and revenue. According to the
International Air Transport Association (IATA), Airlines worldwide are expected to lose a
record of $84 billion in 2020, more than three times the loss made during the Global
Financial Crisis. Most of the airlines are undergrounded. Hotels are being closed due to
fewer tourists and many five-star hotels turning into quarantine facilities. Most
restaurateurs see operating costs rising further because of social distancing, hygiene,
and sanitation-related costs. Therefore, sustaining during this crisis is a challenging task
for the tourism industry. (Group, 2021)
The appearance of the lethal disease COVID-19 has resulted in massive financial
losses and caused global health and economic crises worldwide. The most frightening
news of the seasonal influenza outbreaks, epidemics, pandemics, and catastrophes
results in a steep decrease in the travel and tourism industry, a dominant contributor to
the service industry. The pandemics adversely impact tourists' behaviours and their
mental wellbeing. As a result, they drop their planned tour plans in fear of the disease
infection, as it looks impossible to avoid transmission of the virus during travel. As a
result, they drop their planned tour plans in fear of the disease infection, as it looks
impossible to avoid transmission of the virus during travel. (Direct, 2021)
REPORT: On opening day of Parliament, the tourism ministry referenced the NCAER
report in response to a question raised by Lok Sabha MPs Ramesh Kaushik and Raju
Bista in which it said 14.5 million jobs were lost during the first quarter, followed by 5.2
million jobs.
On opening day of Parliament, the tourism ministry referenced the NCAER report in
response to a question raised by Lok Sabha MPs Ramesh Kaushik and Raju Bista in
which it said 14.5 million jobs were lost during the first quarter, followed by 5.2 million
jobs during the second quarter and another 1.8 million jobs during the third quarter of
20-21, after the lockdown was imposed.
The NCAER report, a draft of which has been approved by the tourism ministry, has not
been published yet. From hotels to travel and tour operators and tour guides,
representative bodies from the tourism sector have given multiple petitions to the
government highlighting the deep financial stress caused by the pandemic on the travel
and hospitality sector during 2020-21. (INDIA, 2021)
Consumers need to know and trust your brand when they are ready to travel again. In
this ever-changing world filled with a lot of unknowns, consistent branding can bring
consumers a sense of comfort.
Consumers want to hear from trusted brands, with balanced messaging that
acknowledges the current climate—e.g., stories of corporate social responsibility,
increased cleaning standards, and inspiration to travel in the future.
Create awareness around different attractions through the use of carousel units on
social and rich media units. They're engaging and can showcase various calls to action
and points of interest.
Consider Covid’s Impact on mobile usage
For travelers and guests, mobile usage will increase throughout the travel journey, from
passports and boarding passes to keyless hotel entry and digital check-out at hotels.
How can you incorporate this new normal into your marketing strategy?
Go for Geo-Targeting
Geo-targeting is a great way to reach locals and travelers who are looking to drive
to their next vacation instead of flying. And that’s why you should also…
One of the main responsibilities of travel guides is to reach consumers when they are
planning their next trip. Travel guides and to-do lists are helpful to be on, since
consumers are looking at reviews based on their safety concerns.
Streamline marketing technology and processes to serve the right messages to the right
customers at the right time. Utilizing dynamic segmentation with the right offers and
promotions will help brands bounce back faster.
Consumers are going to be looking for deals, and there’s no doubt they’ll be leveraging
online travel companies like Kayak and Expedia. By being present on these sites, you
can find consumers before they book—to either visit your location by competitive
conquesting or drive them to visit an attraction based on where they are searching.
(Gargano, 2021)
Measures need to adopted to bring the nation, industries and people back to recovery.
TOWARDS RECOVERY
Some governments have been providing financial support, either directly or through soft
loans and guarantees to the industry. Thailand allocated $700 million to spur domestic
tourism, while Vanuatu offered grants to small and medium-sized enterprises. Countries
have also been assisting firms to adapt their business models and retrain staff. In
Jamaica, the government gave free online training certification classes to 10,000
tourism workers to help improve their skills.
Technology can also play an important role. With social distancing and health and
hygiene protocols likely to remain in place for the foreseeable future, touchless service
delivery and investments in digital technology could be a bridge to recovery.
Finally, should the reduction in travel be longer lasting, owing to changes in tourist
preferences or economic scarring, some tourism-dependent countries may need to
embark on a long and difficult journey to diversify their economies. Investing in
non-tourism sectors is a long-term goal but could be aided by strengthening links
between tourism and locally produced agriculture, manufacturing, and entertainment. In
Jamaica, for instance, an online platform was launched that allows buyers in the hotel
industry to directly purchase goods from local farmers. Exports, including services,
could also be expanded, using regional agreements to address the constraints imposed
by limited economies of scale. (NEWS, 2021)
The method used for data gathering is questionnaire. This is done to collect numerical
data or to understand respondent’s state of mind regarding the statement of problem.
The survey covers over 100 of responses from different age groups of people to
understand their current status of travelling. The questionnaire responses are then
analyzed and interpreted by using SPSS software analytics.
DATA ANALYTICS:
The question wise data analytics is as follows:
Q: How often have you travelled outstation in the post pandemic era ?
How often have you travelled outstation in the post pandemic era ?
Valid
Frequency Percent Percent Cumulative Percent
Valid Regularly 15 15.0 15.0 15.0
Occasional 64 64.0 64.0 79.0
ly
Never 21 21.0 21.0 100.0
Total 100 100.0 100.0
Q) How often have you travelled internationally in the post pandemic era ?
How often have you travelled internationally in the post pandemic era ?
Valid
Frequency Percent Percent Cumulative Percent
Valid Regularly 4 4.0 4.0 4.0
Occasional 19 19.0 19.0 23.0
ly
Never 77 77.0 77.0 100.0
Total 100 100.0 100.0
BAR GRAPH -
From the above analysis we can conclude that the number international visits have
been lowered as compared with domestic visits. Majority of the people have not
travelled international in the post pandemic era as compared to the domestic travel.
In Domestic people have only travelled occasionally and not regularly in the Covid times
due to fear of transmitting disease. Whereas the international travel has decreased
drastically. The frequency of people travelling regularly is 4, occasionally is 19 and not
travelling at all is 77 in international travel. In domestic travel frequency of people
travelling regularly is 15, occasionally is 19 and not travelling at all is 77.
Since the COVID-19 pandemic is a global health crisis compared to the previous
pandemics, the findings from the previous research studies may not be directly
applicable. Hence, the present study is aimed at exploring the effects of the COVID-19
pandemic on human travel behavior. The characteristics of changes in travel behavior
before and during COVID-19 and factors influencing such changes are examined. This
study specifically focuses on the trips that are made due to necessity and people feel
compelled to make those trips due to various reasons hereafter referred to as primary
trips. Data were collected through a questionnaire survey that was distributed globally
through social media platforms and emails.
Q) As a result of covid-19, please indicate your booking status for domestic/international
travel:
Chi-Square Tests
Asymptotic Significance (2-
Value df sided)
Pearson Chi-Square 6.486a 2 .039
Likelihood Ratio 6.220 2 .045
Linear-by-Linear Association .131 1 .717
N of Valid Cases 100
a. 1 cells (16.7%) have expected count less than 5. The minimum expected count is
3.92.
To check correlation between age and status of booking for domestic travel
16.7% of the cells have expected count less than 5. This is an assumption of the
chi square test. This assumption is less than 20% hence it has not been violated.
Pearson chi square value: 6.486
2 degree of freedom
P value or significance value: 0.039
Alpha value = 5%, p value is less than alpha value, so are result is statistically
significant.
Which means we will accept our alternate hypothesis which means there is a
significant association between age and booking status of people travelling
outstation.
In other words booking status of people is not independent from the age group of
people in which they exist.
Symmetric Measures
Value Approximate Significance
Nominal by Phi .255 .039
Nominal Cramer's .255 .039
V
N of Valid Cases 100
Cramer’s V: 0.255
Bar graph:
Q) How strongly do you agree with the statement "it is safe to travel after receiving a
COVID-19 vaccine?
Descriptive Statistics
Minimu Maximu
N m m Mean Std. Deviation
How strongly do you 100 1 5 3.33 1.215
agree with the
statement "it is okay
to travel during the
COVID-19 pandemic
for leisure"
How strongly do you 100 1 5 2.36 .905
agree with the
statement "it is safe
to travel after
receiving a COVID-
19 vaccine"
Valid N (listwise) 100
How strongly do you agree with the statement "it is safe to travel after receiving a
COVID-19 vaccine has the lowest standard deviation While How strongly do you agree
with the statement "it is okay to travel during the COVID-19 pandemic for leisure" has
higher standard deviation comparatively.
How strongly do you agree with the statement "it is okay to travel during the COVID-19
pandemic for leisure" has the highest mean 3.33 and How strongly do you agree with
the statement "it is safe to travel after receiving a COVID-19 vaccine" has comparatively
lower mean of 2.36.
K cluster Analysis:
Iteration Historya
Change in Cluster Centers
Iteration 1 2
1 1.600 1.940
2 .169 .214
3 .000 .000
a. Convergence achieved due to no or small change in cluster centers. The
maximum absolute coordinate change for any center is .000. The current iteration is
3. The minimum distance between initial centers is 5.000.
The cluster levels is 1 and 5 for How strongly do you agree with the statement "it is okay
to travel during the COVID-19 pandemic for leisure" and for How strongly do you agree
with the statement "it is safe to travel after receiving a COVID-19 vaccine" it is 2 and 5.
Ranks
Have you received any
cancellations of bookings as
a result of covid-19 for
2020? N Mean Rank
Are you vaccinated with Yes 36 50.83
double dose for travelling No 64 50.31
outstation? Total 100
Will your travel bookings get Yes 36 54.94
affected if you’re asked to No 64 48.00
quarantine yourself post Total 100
travelling?
Are you comfortable making Yes 36 48.17
bookings online? No 64 51.81
Total 100
Mean Rank of not comfortable making bookings online is the highest whereas,
Vaccinated with double dose mean rank is somewhat closer to it.
Test Statisticsa,b
Will your travel
Are you bookings get
vaccinated with affected if you’re Are you
double dose for asked to comfortable
travelling quarantine yourself making bookings
outstation? post travelling? online?
Kruskal-Wallis H .018 2.095 1.072
df 1 1 1
Asymp. Sig. .892 .148 .300
a. Kruskal Wallis Test
b. Grouping Variable: Have you received any cancellations of bookings as a result of
covid-19 for 2020?
Q. Which travel mode do you prefer more for domestic travel in the post pandemic era ?
Statistics
Which travel mode do you prefer more for domestic travel in the post pandemic
era ?
N Valid 100
Missing 2
Mean 4.01
Median 4.50
Mode 6
Std. Deviation 2.134
Skewness -.503
Std. Error of Skewness .241
Kurtosis -1.466
Std. Error of Kurtosis .478
Range 5
Minimum 1
Maximum 6
Which travel mode do you prefer more for domestic travel in the post
pandemic era ?
Cumulative
Frequency Percent Valid Percent Percent
Valid Air Travel 30 29.4 30.0 30.0
Bus 2 2.0 2.0 32.0
Train 18 17.6 18.0 50.0
Cab 7 6.9 7.0 57.0
Personal 43 42.2 43.0 100.0
Vehicle
Total 100 98.0 100.0
Missing System 2 2.0
Total 102 100.0
Due to COVID-19, people will reduce their travel, and will prefer to use active modes or
cars over public transport. This will reduce the traffic volumes and affect people’s well-
being. Not only air travel, but people also tend to avoid domestic land railway travels
due to the perceived risk of contracting the viruses. The cumulative percent of personal
vehicle is the highest amongst all.
All these previous studies highlight that travel behaviors during pandemic situations
could be remarkably different compared to the normal daily life. Many factors
(demographic as well as attitudes) affect such changes in travel behaviors and patterns.
Gleaning insights from these studies, a questionnaire was designed and disseminated
online to collect data to explore key changes in travel behaviors before and during
COVID-19
Q ) Please rate on a scale of 1 - 5 how strongly you agree your domestic &
International purchases of fashion materials and other goods have decreased due to
restrictions on travelling (5 being the strongest)
Correlation Matrixa
Please rate on a scale of Please rate on a scale
1 - 5 how strongly you of 1 - 5 how strongly
agree your domestic you agree your
purchases of fashion international purchases
materials and other of fashion materials and
goods have decreased other goods have
due to restrictions on decreased due to
travelling (5 being the restrictions on travelling
strongest) (5 being the strongest)
Correlation Please rate on a 1.000 .617
scale of 1 - 5 how
strongly you agree
your domestic
purchases of fashion
materials and other
goods have
decreased due to
restrictions on
travelling (5 being the
strongest)
Please rate on a .617 1.000
scale of 1 - 5 how
strongly you agree
your international
purchases of fashion
materials and other
goods have
decreased due to
restrictions on
travelling (5 being the
strongest)
Sig. (1- Please rate on a .000
tailed) scale of 1 - 5 how
strongly you agree
your domestic
purchases of fashion
materials and other
goods have
decreased due to
restrictions on
travelling (5 being the
strongest)
Please rate on a .000
scale of 1 - 5 how
strongly you agree
your international
purchases of fashion
materials and other
goods have
decreased due to
restrictions on
travelling (5 being the
strongest)
a. Determinant = .620
Determinant is greater than 0.001 that states that the data is related.
Correlation is high in Please rate on a scale of 1 - 5 how strongly you agree your
international purchases of fashion materials and other goods have decreased due to
restrictions on travelling (5 being the strongest) question
KMO is 0.5. The greater the KMO the better. Bartlett's Test of Sphericity is statistical
significance is 0.000.
Communalities
Initial Extraction
Please rate on a scale of 1 - 1.000 .808
5 how strongly you agree
your domestic purchases of
fashion materials and other
goods have decreased due
to restrictions on travelling (5
being the strongest)
Please rate on a scale of 1 - 1.000 .808
5 how strongly you agree
your international purchases
of fashion materials and
other goods have decreased
due to restrictions on
travelling (5 being the
strongest)
Extraction Method: Principal Component Analysis.
Cumulative frequency is 100 and 80.831. The larger the cumulative frequency the
better.
CONCLUSION:
The report found that there was decline of tourist arrivals and tourist revenue in the
world and regions in the world during 2020. It also further evaluated a sudden decrease
in the air travel industry, hotel industry, and employment.Besides, the outbreak is still
within the society creating severe health and economic problems across the world.
For the recovery, vaccines will need to be widely distributed. Government should
provide financial support to the small–medium enterprises to boost tourism sector.
Countries have also been assisting firms to adapt their business models and retrain
staff. Technology can also play an important role. The tourism industry has been
massively affected by the spread of coronavirus, as many countries have introduced
travel restrictions in an attempt to contain its spread. Many industries including fashion
has been massively affected and faced losses. Recovery is now expected to start later
and be slower than previously foreseen. Travel restrictions and containment measures
are likely to be in place for longer, and are expected to be lifted only gradually, with the
possibility of reversal should new waves occur. Even when tourism supply chains start
to function again, new health protocols mean businesses will be operating at restricted
capacity. The COVID-19 pandemic has changed the traveler's mindset, but there are
countless reasons why people travel. As a result, global tourism has slowed down
significantly. According to the International Air Transport Association (IATA), Airlines
worldwide are expected to lose a record of $84 billion in 2020, more than three times
the loss made during the Global Financial Crisis. Travel brands are helping their local
communities and building engagement with their consumer base by communicating
empathy, understanding, and support, both moral and financial, for those who need it
most.
REFRENCES:
Literature cited
REFERENCES
Bureau, P. I. (2019). Press Information Bureau.
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Gargano, K. (2021). Building A New Travel Marketing Strategy Post COVID-19 | MNI. 225 High Ridge Rd.
Stamford, CT.
INDIA, T. O. (2021). Covid impact of tourism: 14.5 million jobs lost in 2020’s Q1 alone. Bennett, Coleman &
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Jaipuria, S., Parida, R., & Ray, P. (2020). The impact of COVID-19 on tourism sector in India. Taylor Francis
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on-international-tourism
Yehia, Y. (2019, March 26). The Importance of Tourism on Economies and Businesses. Global Edge.