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Entrepreneurship

ENTERPRENEUSHIP AND TOURISM.

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ENTERPRENEUSHIP AND TOURISM.

Introduction

The tourism sector is indeed one of the economic activities that have been affected directly by the covid-19 pandemic (Mehrdad et al., 2020). Tourism is a significant contributor to the economy of many countries. It has also given rise to entrepreneurs who aim at filing the niche created by the tourism industry. A data collected by Tourism Economics predict a 24 billion loss in the American’s economy as an effect of covid-19. The World Tourism Organization (UNWTO), knowing the impacts it is facing, has asked international leadership to consider tourism as a priority in its recovery effort. Despite the hardship, the tourism sector faces, UNWTO has indicated that it has had to shift its priorities to fit best the current situation (“TOURISM AND COVID-19 | UNWTO”, 2020).

Current issues and situations of the tourism industry

Issue 1

The world is dealing with a never seen before health emergency. The tourism sector, like any other business, has felt the impact of covid-19 and though it is unknown nature and fast spread around the globe estimating its possible result at the end has not been easy (“Impact assessment of the COVID-19 outbreak on international tourism | UNWTO”, 2020). Six out of ten countries that thrive most in the tourism sector have recorded multiple cases of covid-19, confirming the relationship between the spread of the virus and travels (Mehrdad et al., 2020). UNWTO has given an estimate of a 20% to 30% loss that can incur in the tourism sector in 2020, which is approximately 300-450 billion dollars. The UNWHO says, in the worst case possible, they could face a loss of 1.5 trillion dollars on a global scale (“Impact assessment of the COVID-19 outbreak on international tourism | UNWTO”, 2020). The economy of tourism will drop jus as it did in 2009 and 2003. Entrepreneurship has to save the dropping economy of tourism back to its place. As much as it is anticipated the economy in tourism can resume in a few years, entrepreneurs and employers need to come up with ways to help attract tourists after the pandemic. The messages conveyed and the sense of belonging and protection will be among the key factors entrepreneurs will have to consider to win more tourists hence higher revenue.

Issue 2

The UNWTO has estimated the potential of 50 million jobs might be lost in the tourism and travel industry as a result of the covid-19 pandemic crisis that has now affected most parts of the world (Faus, 2020). The tourism and travel sector aims to help and protect the vulnerable groups economically in the society, such as the youth, women, and small to medium enterprises (SME) (“Impact assessment of the COVID-19 outbreak on international tourism | UNWTO”, 2020). Many tourism organizations and businesses are trying to find a silver lining amid the crisis (Cullinan, 2020) Rau, an SDC spokesperson, explains the employees are likely to be paid in the open delay week after the end of the crisis (Cullinan, 2020). This decision may affect many employees because their source of income has a halt. Tracy Kimberlin, the CEO, and president of CBV, further explains how redoing the year’s budget might affect the normal running of the business, including the payrolls of the employees (Cullinan, 2020). Kimberlin explains as a result of the budget cut vacant, employee spaces are not set to be filled, and part-time employees fired to reduce the cost. The full-time employees have not been affected in regards to their payroll; however, a number of them are to be performing their duties remotely. In other organizations, staff are laid off ‘temporarily’ to sustain the business (Cullinan, 2020). Reduced paychecks and firing employees aim to sustain the economy of the organization.

Interviewing with some employees in the tourism companies to explore the mood during the Covid-19

In my interview with an air-hostess, John, not his real name, he explained how the employees felt vulnerable before, especially when it came to travels in countries affected by the covid-19. John says the idea of pre-testing the passengers before travel has saved the company’s economy greatly (“Coronavirus & Travel Industry: Breaking News & Impacts”, 2020). Even though it does not provide 100% assurance that they are safe from contracting the disease, the interaction between the employees and the employers has improved, motivating them to work better because of the safe environment offered by the company. The entrepreneurs offered the company hope by identifying the niche and filling it. Worldwide, it is the first air flight to come up with the idea (“Coronavirus & Travel Industry: Breaking News & Impacts”, 2020) that will not only reduce the spread of the disease but motivate the employees more because of the better working conditions.

The hotel industry has been greatly affected with an expectation of a 60 to 65% loss in the economy (Camerena, 2020). Sara says since the outbreak of the covid-19, some of her colleagues have been temporarily let go to help the hotel keep up with its work. The fear of them contracting the disease, especially from an asymptomatic individual, worries the remaining workers. She further explains the reduction of customers is a blessing and a curse for the industry’s economy. Its blessing comes as they have minimal risk of infection, and it is a curse with a reduction in their payroll. “The decreased payroll is the result of the poor economy hotel industry is facing because of poor tourist turn up,” she says. She further explains that the management was in the progress of expanding its services to door to door delivery. They want to reach more of their internal customers to help them sustain the economy of the hotel.

Booking agencies have incurred a loss, too, as the population follows the lockdown directive set by the government. In my interview with an employee at Booking.com, he says the covid-19 has seen them lose approximately 48 bookings (“Coronavirus & Travel Industry: Breaking News & Impacts”, 2020). Some opted to postpone their bookings while others cancelled. He said with the high rate of infection, employees hardy have enough power to convince their clients to avoid cancellation of their booking, granting them big losses which in turn affects the economy of the company. He further explains how through a briefing by the CEO, Gen Fogel, the employees are at a risk of being laid off (“Coronavirus & Travel Industry: Breaking News & Impacts”, 2020). The employees would not be the first lot to be laid off by the company since the outbreak of covid-19. Despite the gloomy environment, employees find their motivation from their work. Even though no one knows their fate tomorrow in terms of the job, they still do it to their fullest, trying to achieve the goals of the company, and save its economic status.

Recommendations

Motivation, both intrinsic and extrinsic, keeps an individual attentive and gives them the zeal to work harder or do more. Many employees are working from home, and some are getting distracted as their mindset has not adapted to working in the home-setting environment (Cullinan, 2020). I would advise employers to motivate their employees by engaging them in talks on various topics about the progress of the company. A motivated employee works hard preventing further loss in the economy of the company. Sharing with colleagues also prevents boredom and promotes different ideas that could be of use to the company (Cullinan, 2020). Some may become entrepreneurs, too through sharing ideas.

There is no limit when it comes to creativity. With the lockdowns set in place in many countries, as well as directive to avoid social gatherings and promote social distancing, much hiking has not been taking place. I would recommend the incorporation of virtual communication in tourist sectors such as hiking. Virtual communicating is whereby the tourist or any client for that matter, would be able to hike in small numbers as an employee remotely guides them to the company by the gadget. The economy of the company will not be much affected because its revenue will be collected, though in less amounts.

Sense of belonging! Google has devised ways of making its employers feel like they belong, and are appreciated by the company for their work amid the pandemic. Just like Google, I advise employers to send encouragement messages giving them hope at this time as well as cautionary messages, emphasizing on the need to stay safe. Employees who might be affected by the pandemic can also be recognized, giving them hope at all times (Garrity, 2020). Being valued has been related to the better commitment of a worker at his duties (Ponsonby & Mehta, 2020). The commitment of a worker impacts the working state as well as the production of wares and services. A committed employee strives to create a better workplace for themselves

Companies have different capabilities that can offer to their employees to help the work effectively and efficiently from remote areas. The covid-19has affected not only the tourists but also the employees. Some companies, such as Twitter, have been commended for reimbursement handed over to its workers to help beat the tough times (Christie, 2020). Such initiatives by companies motivate the workers because the worker feels valued and appreciated. I would recommend the commencement of plans to help employees when they resume work. For example, Twitter can build a daycare for its employees. Parents were among the group that benefited with some money to help cater for increased bills as they cannot take their children today cares amid the lockdown. The eco

Employees need to keep in mind that their mental health is of much importance just as their work (Elia, 2020). Employees should have a normal sleeping routine, eat healthily, and do some indoor exercise to keep them healthy. It is difficult to motivate a person who is mentally unhealthy (Elia, 2020). The social media has become the main source of information as covid-19 continues to spread (De Valck, 2020). I would recommend the organization to help its consumes get to know of its progress during this period. After it all, the social media page can be used as an interactive platform between consumers and the organization. It will increase its scope and consumers, consequently its economy.

Employers should check on their employees. Many organizations use social media and another virtual form of communication to communicate. Employees should go through all alternatives before settling for an efficient method to be used. The core priority should be an employee; that is, all employees and most consumers should have ease of access to the form of communication decided. No employee or consumer should feel excluded from the functions of the company because of a situation they cannot control (MacArthur, 2020). I would recommend employers and employees to offer their services online, giving their consumers the awaited experience that cancelled, for example, hotels can start food shows for its consumers.

Individuals are forced to cancel their trips either via flight or cruises. The tourism industry has seen the importance of its customers having travel insurance. I would recommend the tourism travel agency department to consider offering its customers a traveller’s insurance. This initiative could help save the tourism economy. Individuals will pay for their trips knowing they could not incur loss neither will the company

Conclusion

Every individual is trying to adjust to the new lifestyle we have to live in to prevent the spread and eventually stop covid-19 (Elia, 2020). Keeping ourselves motivated is one of the key factors that will help us individually and as an organization moves forward despite various challenges we may face. Continuous interaction between the employer and the employee also improves their relationship. The brand of the company is also strengthened (MacArthur, 2020). Despite the generally poor economy globally in the tourism industry, identifying gaps and filing it reduces the economic impact felt by the organization at large. Both employers and their employees should be flexible within their line of work. They should be ready to incorporate change whenever possible to save the company’s economy and that of the tourism industry at large.

Reference

Mehrdad, Kennedy, Southern, Quinn, Park, Hockenos, & Quinn. (2020). The Tourism Industry Is in Trouble. These Countries Will Suffer the Most. Retrieved 17 April 2020, from https://foreignpolicy.com/2020/04/01/coronavirus-tourism-industry-worst-hit-countries-infographic/

Bera, A. (2020). Royal Caribbean sheds 26% of the U.S. workforce as coronavirus hits travel. Retrieved 17 April 2020, from https://www.reuters.com/article/us-royal-carib-crus-layoffs/royal-caribbean-sheds-26-of-us-workforce-as-coronavirus-hits-travel-idUSKCN21Y02S

Camerena, A. (2020). The Travel Industry After COVID-19: 6 Startups That Can Help. Retrieved 17 April 2020, from https://www.plugandplaytechcenter.com/resources/impact-covid-19-travel-hospitality-industry-and-6-startups-can-help/

Coronavirus & Travel Industry: Breaking News & Impacts. (2020). Retrieved 17 April 2020, from https://skift.com/coronavirus-and-travel/

Coronavirus hits tourism industry on Kenya’s coast: The Standard. (2020). Retrieved 17 April 2020, from https://www.standardmedia.co.ke/business/article/2001364952/coronavirus-hits-tourism-industry-on-kenya-s-coast

Cullinan, M. (2020). Delayed: Tourism industry struggles through COVID-19 impact. Retrieved 17 April 2020, from https://sbj.net/stories/delayed-tourism-industry-struggles-through-covid-19-impact,68203

MacArthur, H. (2020). Company Survival Guide To Care For Staff During The Coronavirus Pandemic. Retrieved 17 April 2020, from https://www.forbes.com/sites/hvmacarthur/2020/04/01/company-survival-guide-to-care-for-staff-during-the-covid-19-pandemic/#4ce1586f327a

HR, B. (2020). 6 Simple Ways to Improve Staff Morale During the Covid-19 Pandemic. Retrieved 17 April 2020, from https://www.bgc-group.com/blog/2020/02/6-simple-ways-to-improve-staff-morale-during-the-covid-19-pandemic 18.

De Valck, K. (2020). What is the Role of Social Media during the COVID-19 Crisis?. Retrieved 17 April 2020, from https://www.hec.edu/en/knowledge/instants/what-role-social-media-during-covid-19-crisis-0

Faus, J. (2020). This is how coronavirus could affect the travel and tourism industry. Retrieved 17 April 2020, from https://www.weforum.org/agenda/2020/03/world-travel-coronavirus-covid19-jobs-pandemic-tourism-aviation/

Impact assessment of the COVID-19 outbreak on international tourism | UNWTO. (2020). Retrieved 17 April 2020, from https://www.unwto.org/impact-assessment-of-the-covid-19-outbreak-on-international-tourism

TOURISM AND COVID-19 | UNWTO. (2020). Retrieved 17 April 2020, from https://www.unwto.org/tourism-covid-19

Elia, E. (2020). Six strategies for staying motivated during the COVID-19 pandemic | Graduate and Postdoctoral Studies | Rice University. Retrieved 17 April 2020, from https://graduate.rice.edu/news/six-strategies-staying-motivated-during-covid-19-pandemic

Cullinan, E. (2020). Losing motivation during the corona crisis and how to fix it. Retrieved 17 April 2020, from https://www.welcometothejungle.com/en/articles/lack-motivation-during-corona-crisis

Garrity, M. (2020). How Google execs are keeping employees motivated during coronavirus outbreak: Google executives continue to send out updates on the status of the coronavirus with encouraging messages, according to CNBC. Retrieved 17 April 2020, from https://www.beckershospitalreview.com/healthcare-information-technology/how-google-execs-are-keeping-employees-motivated-during-coronavirus-outbreak.html

Ponsonby, R., & Mehta, K. (2020). Seven reasons for employee motivation – London School of Science & Technology. Retrieved 17 April 2020, from https://www.lsst.ac/blogs/seven-reasons-for-employee-motivation/

Christie, J. (2020). Keeping our employees and partners safe during #coronavirus. Retrieved 17 April 2020, from https://blog.twitter.com/en_us/topics/company/2020/keeping-our-employees-and-partners-safe-during-coronavirus.html

 

 

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