| Abstract: |
The COVID-19 pandemic had a severe impact on the tourism industry across the
world. Be it aviation or hospitality, transportation, tour operators or
eateries, every activity related to tourism was adversely affected by the
pandemic in an unprecedented manner. India saw the first severe impact during
the first quarter of 2020-21 when the tourism industry was severely affected,
in terms of loss in tourism demand due to a significant fall in tourist
arrivals. The industry saw gradual signs of recovery post-October 2020, but
was hit again by the second wave during April-June 2021 and then the third
wave during the period November 2021-January 2022. Given the contribution that
tourism makes to the entire economy in terms of income and employment
generation, it is important to do a systemic estimation of the losses caused
by the pandemic so that resilient policies are put in place to address the
challenges at all levels and put the tourism sector back on the path it was
traversing before the pandemic. This paper presents the estimates of economic
losses resulting from the changes experienced during the most critical period
of the pandemic, that is, the first quarter of 2020-21, which witnessed a
complete lockdown, and the subsequent two quarters, wherein the sector started
showing gradual recovery following various relaxations in economic activities
and travel movements. The estimates are based on the methodology which draws
from the framework laid out in the Tourism Satellite Account of India, which,
in turn, is based on the methodological framework recommended by the United
Nations World Tourism Organisation |