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90% of job losses hit travel and tour business amidst COVID-19

COVID-19 has become the world’s number one enemy and has led to many changes in people’s way of life across the world.

Many businesses have had to close down or shut down operations with the hope that, the virus will end anytime soon for them to reopen business but that hope seems to be wishful thinking.

Businesses like the Motorcycle, farming and the likes have been some of the badly hit and most affected business amidst the COVID-19.

Another sector which has also been affected is the travel and tour businesses. The business which works in hand with the aviation sector has come to a standstill due to the COVID-19 restriction measures and closing of airports across the world.

Speaking to some travel and tour operators, they noted that, the pandemic has rendered them jobless and most of them are even finding it difficult to provide basic needs for the families.

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“The business has virtually collapsed, we are home now with no jobs, no money and life is actually difficult now because of the COVID-19, the travel ban and the restrictions globally has also made things more difficult if the airports or airline businesses we are not shut down we would have still been in business but now, unfortunately, everything is down,” they said.

According to the government, Ghana’s tourism and hospitality industry are expected to record a hundred and seventy-one million-dollar ($171 million) loss in revenue due to the adverse impact of Coronavirus within four months.

The International Air Transport Association (IATA) released its financial outlook for the global air transport industry showing that airlines are expected to lose $84.3 billion in 2020 for a net profit margin of -20.1%. In 2021, losses are expected to be cut to $15.8 billion as revenues rise to $598 billion.

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However, the world’s largest manufacturer of aircraft, Airbus, is to cut 15,000 jobs due to the global health and economic crisis. This is just one of many companies to announce drastic cuts as the airline industry attempts to survive amid the Coronavirus crisis, which has brought much of the world’s air travel to a halt since March.

The Ghana Civil Aviation Authority has also said that it has lost almost 95% of its revenue due to the Coronavirus induced ban on international passenger travel. The Authority says it has also taken drastic measures such as pay cuts to remain in business.

The Head of Business Development at One People Travels, Victor Satuh, said “Before the first two cases came in anyway, I had a certain understanding of where the industry was going to go. I was in Israel when the outbreak was announced worldwide. And just before I left Israel, the whole City of Bethlehem was under lock-down, so it gave me a perspective of what could possibly happen. So, when I got back a few days later and they announced that we had our first two cases, I knew we were going in for a lock-down and the first thing that came to mind was, what’s going to happen to our industry.”?

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“It’s like a bullet coming at you. You will see the flash of the muscle of the gun but you know it’s coming and you can’t dodge it. Unfortunately, it came that fast and that hard. It was definitely fast and hard” he said.

By Amos Ekow Coffie  | talksafrica.com

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