While the whole world is struggling with the novel coronavirus (covid19), it is a tough time for many sectors and industries. The fancy sectors like travel, tourism, entertainment, and hospitality will see a hard time in the coming years. Not only this, but the impact of this will also dent the overall economy. This could lead to a massive reduction in salary, job cuts, and a drastic fall in employment opportunities.
Worst Affected Industries and Sectors By Novel Coronavirus (Covid19)
1. Impact on Aviation Industries Due to Novel Coronavirus (covid19)
Already facing a hard time, aviation is one of the worst affected sectors due to coronavirus covid19. In view of the Coronavirus lockdown, almost all countries have banned their air travel. Because all the airlines have been grounded, the aviation sector is under great threat. The number of international travellers is likely to come down substantially in the year 2020. Globally, over 65 million people are directly or indirectly associated with this sector. As per the estimates of IATA, the novel coronavirus covid19 crisis will adversely impact around 25 million jobs in this sector. These impacts could either be a job loss or a salary cut.
In India, the coronavirus (covid19) is likely to endanger around 3 million jobs in the aviation sector and related industries. It also says that there will be an impact of more than 85,000 crores in the revenue of aviation companies as the passenger income will be less compared to 2019. Looking at the circumstances in the world, it can be said that it will take a long time to improve the situation of the aviation industry. Many of the weak companies in this sector might become bankrupt and have to shut down their operations.
2. Impact on Tourism Sector Due to Novel Coronavirus (covid19)
Coronavirus (covid19) has severely affected the global Tourism sector and related industries. The sector that contributes to 10% of the global economy will continue to struggle until this pandemic is controlled. To stop the spread of coronavirus, governments across the world have to implement lockdown. As a result of this, all flights are grounded, tourist places are closed and social distancing is being maintained. People have to stay inside their home and only essential services are available. The tourism sector that plays an important role in the economy of any country is likely to lose thousands of crores.
Till the time a proper cure is available, the fear of infection will keep impacting the tourism sector. According to the World Travel and Tourism Council, the travel industry can shrink up to 25% losing a huge number of jobs in 2020. This clearly means that many companies and their employees will become a victim of the novel coronavirus.
3. Impact on the Hospitality Industries Due to Novel Coronavirus (covid19)
Currently, the Indian hospitality sector accounts for 22 billion USD. Due to coronavirus (covid19), this sector is suffering huge losses. After the complete lockdown, the hospitality industry business has collapsed. Similarly, all the resorts are vacant. In the coming days also, it is unlikely that the occupancy for these hotels and resorts will be like earlier. There is a high chance of unemployment for many of the employees working in this sector.
4. Impact on Entertainment Industries Due to Novel Coronavirus (covid19)
The entertainment sector that constitutes of multiplexes, malls, cinema halls, concerts, gaming zone, sports events, etc. are all non-operational currently. The government will shortly decide to operationalize them, but with strict guidelines. However, till the time there is a fear of coronavirus infection, people will avoid going to these crowded places. The entertainment industry which is already suffering hard due to the lockdown can see a lot of job loss in the coming days.
5. Impact on IT Industries by Novel Coronavirus
As we understand that industries like aviation, tourism, hospitality, and entertainment will be directly hit by the novel coronavirus. However, the IT companies supporting them will also suffer. Also, some of the projects may run into losses due to the extended lockdown. Overall, big IT companies will be able to survive but for small IT companies, it will be a difficult task to remain the staff. Due to this, there are high chances of unemployment in the IT sector. Also, campus recruitment for the year is likely to come down. A lot of mergers and acquisitions can not be ruled out at this stage. Big IT companies with plenty of cash reserves will take advantage of the situation. Small size IT companies with low valuation will be a soft target for merger and acquisition.Read Here: Promising & in-demand and can generate lucratively jobs in 2020
6. Small Financing Companies
Small Financing and leasing companies will have a tough time ahead. There are high chances of bad debt and delays in payments. Some of the small players in this sector will become bankrupt and their employees will lose their job.