Views: 3 Author: Site Editor Publish Time: 2022-10-17 Origin: Site
Which industry is the first to recover in the post-epidemic era?
Recently, Tedros Adhanom Ghebreyesus, director general of WHO, announced that the number of COVID-19 deaths reported last week was lowest since March 2020. He thought, now is the“best time”to defeat the epidemic and its end will be “in sight”. COVID-19 is the world’s largest and worst-hit infectious disease in the recent century. It is also the most serious epidemic that human society has experienced hundreds of years.
(Director General of WHO, Tedros Adhanom Ghebreyesus)
The global spread of the epidemic has impacted many global industry chains and supply chains. Dr. Guido Brettschneider, CEO of TUI China Travel, told CTNEWS, “The COVID-19 will pass and tourism will recover.”Under the current trend of gradual stabilization of the epidemic, tourism is becoming the first industry to recover, and its branches, like business travel and hospitality industry, are developing rapidly. Demand for hotel supplies will also see a substantial explosion in the post-epidemic era.
(CEO of TUI China Travel, Dr.Guido Brettschneider)
The development of tourism and hospitality industry are mutually influential and reinforcing. Why are tourism and hospitality developing rapidly in the post-epidemic era? There are three main reasons.
一. The long term suppressed tourism spending power is being rapidly stimulated. Many people are unable to travel across provinces and borders under the spread of COVID-19. After a long period of epidemic suppression, there is an increased desire to travel, which will be reflected in the growth of tourism in the post-epidemic era. According to the Ministry of Culture and Tourism, during the period of 2020-2022, the fourth quarter of 2020 had the least number of new cases. The highest degree of recovery in tourism arrivals reached 67%; The total number of domestic tourism arrivals in the first quarter of 2022 was 830 million, down 19% year-on-year. Therefore, It is evident that the arrival of the post-epidemic era will stimulate the long term suppressed tourism spending power, which will lead to a substantial outbreak of tourism.
(The picture originates form the internet)
二. Tourism is a booster of economic recovery and the government will increase its support for tourism. President Xi Jingping highlighted that tourism, as a comprehensive industry, is an important driving force for economic development. In order to promote the recovery of tourism, the government has being increased its policy support. The policies for tourism tend to be favorable. For example , banks and other financial institutions are encouraged to provide financial support to the cultural and tourism industry in terms of credit. 14th Five Year Tourism Business Development Plan advocates the deep integration of tourism and culture. Many local government have promoted the recovery of tourism through supportive policies such as reducing or waiving admission fees and issuing coupons.
三. The scale of hospitality industry is enlarging and has huge room for development. At present, although the hospitality industry’s economy is affected by the epidemic, its scale is still relatively large and tends to enlarge. As of January 1st, 2022 (excluding expropriated segregated hotels), there were 252,399 hospitality facilities nationwide with a total of 13,468,588 rooms. An average number of rooms of each hotel is approximately 53 rooms. Figures from Research and Markets show that the market size of China’s hospitality industry will grow from $57.62 billion in 2020 to $131.15 billion in 2027 with a CAGR of 12.47%, which indicates there is huge room for growth. Meanwhile, tourism will boost the development of hospitality industry, and thus it has a promising future.
(The picture originates form the internet)
According to foreign media, The market size of hotel supplies is expected to reach nearly USD 589.1 billion by 2022. In the post epidemic era, the recovery and positive development trend of tourism and hospitality industry are bound to be opportunities for hotel supplies suppliers. So as a fully automatic equipment manufacturer, what can Hengyao Automation bring to hotel supplies manufactures? We will analyze it in the next article. Follow us to get the latest information.