CHAPTER II

REVIEW OF RELATED LITERATURE

The Effects

The fear of the disease has stopped almost all the social and cultural activates, the air industry
and tourism industry affected to a large extend[ CITATION Hoq201 \l 1033 ]. According to[ CITATION
Bak201 \l 1033 ] study the correlation between the COVID-19 epidemic and the job losses in the world's
tourism industry. To measure the economic downfall of the tourism industry, the study employed the
demand and supply curve analysis. The results indicate that the present pandemic fear has dropped the
demand for traveling and tourism due to the lockdown and mobility restrictions. As a result, the tourism
sector's revenue keeps declining with the decrease in demand as per the demand and supply theory and
market equilibrium.

Another study conducted by[ CITATION Jon201 \l 1033 ] discovered the relationship between
tourism and sustainable development under the umbrella of the COVID-9 crisis. The study explains the
present pandemic outbreak challenges for the tourism industry, which ultimately affect the
environment. Similarly, [ CITATION Pra201 \l 1033 ] evaluates the impact of the present pandemic on
the tourism sector's resilience concerning the socioecological system. The study explores the lasting
effects of the pandemics on individuals, organizations, and nations and their resilience by adopting a
three-level approach. Moreover,[ CITATION Sik211 \l 1033 ] explain that the lockdown and mobility ban
due to the present pandemic negatively influence the hospitality sector with regard to the travel and
tourism stock fluctuations.

The analysis also examines the impact of long-standing hedging of gold on travel and tourism
stock and concludes that the inclusion of gold for the diversified portfolio reduces the risk on returns
during the crisis phase. However, [ CITATION Ska211 \l 1033 ] measured the potential impact of the
present pandemic on the tourism industry of 185 countries by using the Panel structural vector auto-
regressive method and conclude that the present pandemic has severer strives effects on the tourism
industry of the world. According to Tourist Travel Risk and Management Perception [ CITATION Rah1 \l
1033 ] Travel risk and management perception refer to the evaluation of a situation concerning the risk
to make travel decisions in destinations. Travelers’ risk and management perception is a key component
for tourism destinations. Risk management refers to the practice of recognizing potential risks of the
travel and tourism industry due to the current pandemic in analyzing, improvement and taking
preventive steps to reduce the risk. Many countries of the world started to recover from the crisis of
tourism events. Tourists’ travel arrangement should be organized to minimize the risk and stress of
tourists.

The Potentials

According to the Article ‘’Rethinking Tourism Industry in Pandemic Covid 19 Period’’, The
pandemic caused by the SARS-COV-2 virus has significantly affected the tourism industry. Tourist
destination have adopted emergency measures and restrictions that have affected the mobility of
individuals around the world. Tourism was one of the first sectors to be deeply impacted by the
pandemic. Pandemic not just bought us negative effect but its have a positive when we just look at the
positive side of the situation. Regarding the sustainability perspective, it benefits from several factors
that underlie the pandemic generated by covid 19 pandemic: Reduce tourist demand, in the short term,
due to traffic restrictions and those regarding social distancing, the tourism model is oriented towards
smaller group, more extended stays, and the preference for domestic tourism; and better reactivity and
adaptability of tourism operators to the precarious demand of the market. Pandemic brings lesson and
realizations. Now, People are having interest in their own tourism in their respective places and they are
not longing to go to far places because of the restrictions. By implementing those rules, people are now
more careful and practice proper hygiene and being clean all the time. We are not the same as what we
are in the past. We are now careful to all things, we are more clean and we always do sanitation. And
another best thing is that, because of the pandemic, we wholeheartedly adapt exclusive resorts that we
can control the persons within the place.
 REFERENCES

Song, Zhao, Chang, Razi, Dinca, Y., 2021. Does the COVID-19 pandemic affect the tourism
industry in China? Evidence from extreme quantiles approach. Taylor & Francis.
<https://www.tandfonline.com/doi/full/10.1080/1331677X.2021.1941180?fbclid=IwAR1kku-
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OECD. 2021. Rebuilding tourism for the future: COVID-19 policy responses and recovery.
<https://www.oecd.org/coronavirus/policy-responses/rebuilding-tourism-for-the-future-covid-19-
policy-responses-and-recovery-bced9859/?
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