Journal of Entrepreneurship

And Business Venturing Volume 2, Issue 1, 2022

PP. (79-89)
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Impact of Covid-19 on Tourism Supply Chain in Pakistan
*Imran Yousaf1, Jahangir Toor2, Hamza Hussain3, Abu Baker4, Hamza Akram5
1,2,3,4&5
Affiliation: University of Sialkot
Corresponding Author: Iy627910@gmail.com

Abstract

The rapid growth of COVID-19 has caused severe decrease in the travelling industry
and tourism all around the world. The disruption caused by the virus has lead to many
businesses to go bankrupt or stop providing services. The safety and life of people is at
risk due to this. In this we discuss tourism supply chain and how to minimize the risk
of covid 19 and preventing its spread. The relationship between tourism supply chain
and government to stop the covid and recommendations for this are also included.

Introduction

Tourism can be defined as an act of travelling from one place to another country for
study, work, and enjoyment and for discovering exploring other countries environment
and their living style traveling for discovery and traditional activities is division there
are four types of tourism. In the 2001 NHTS, travels of 50 miles or more from home to
the farthest location travelled are classified as long-distance journeys.This includes
both the leg of the journey to the farthest destination and the leg back, as well as any
overnight stays or stops to change means of transportation along the way. Long-distance
travel includes all modes of transportation, such as personal automobiles, planes, buses,
trains, and ships, as well as all purposes, such as commuting, business, leisure, and
personal or family business.
Tourist excursions are divided into two groups based on their length (at least one
overnight stay): long tourism trips have at least four overnight stays, and short tourism
trips have one to three overnight stays. When people say this, they usually mean that
they are spending their vacation and holidays at home. This is an excellent phrase to
memories since it encapsulates the topic of this article: considering staying at home, or
near to home, for a holiday.
Travel that takes place outside of a country's borders is referred to as international
tourism. As a result of globalization, tourism has become a popular global leisure
activity. According to the World Tourism Organization, tourists are persons who "travel
to and remain in destinations outside their typical surroundings for not more than one

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year for leisure, business, or other objectives." According to the World Health
Organization (WHO), up to 500,000 individuals are on the move at any given moment.
Foreign tourists was $919 billion USD in 2010, rising 6.5 percent from 2009 and 4.7
percent in real terms. In 2010, the United States welcomed around 940 million
international visitors. That number has risen to 1,235 million by 2016, resulting in
$1,220 billion in tourism spending. The COVID-19 crisis had a substantial negative
influence on international travel, significantly reducing the overall upward trend.

International tourism has a significant environmental impact, which is exacerbated in

part by issues created by air travel, but also by other variables such as wealthy visitors
who bring lifestyles that place a burden on local infrastructure, water, and waste
systems, among other things. This in turn, has certain environmental repercussions
when combined with the corresponding increase in travel owing to increased tourism
(Usman et al., 2019;

Tourism industry has a very substantial role in the economy of countries it helps in the
growth of the local communities of country to be traveled it brings people of different
at ethnics together globally.
COVID-19 is a virus that was originally from Wuhan China started to spread across the
globe this virus had a mortality rate of 2.7% it transmits itself by touch and air before
the virus was recognized as a deadly virus it had spread from China to all over the world
the main cause of spread was people traveling by airlines. This deadly virus has become
one of the deadliest pandemics in human history as a result of it. The symptoms of
coronavirus infection range from non-lethal to extremely lethal and life-threatening.
(Abbas et al., 2021)

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Effect of Covid-19 on the economy of Pakistan. Pakistan’s Civil Aviation

Authority (CAA) recorded losses of roughly $18 million in March 2020, and Pakistan
International Airlines (PIA) may be forced to send its employees on paid leave on a
rotational basis. According to preliminary estimates, KP's tourism sector will lose $20
million in revenue and 260,000 formal jobs will be lost.
At this point, putting a value on the losses suffered by the informal sector is difficult.
Perhaps the only unexpected benefit of the epidemic is that environment and wildlife
will be free to relax from the pressures of over tourism. The public and commercial
sectors must work together to help the tourism industry cope with COVID-19's effects
while also preparing it for responsible tourism once the travel restrictions are repealed.

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Effect of covid-19 on the global tourism industry. The tourism industry globally
generated the revenue of one $1.47 trillion this amount includes the profit generated
from traveling, hoteling, road transportations and buying souvenirs. After the outbreak
of COVID-19 that is transmitted from person to person the globe tourism industry and
supply chain were at a devastating loss the industry that generated $1.47 trillion head
or loss of 63% and revenue generated was only five $538 billion. With the onset of the
COVID-19 pandemic, the world has been thrown into a health and economic crisis that
has affected over 200 territories and countries around the planet (Lange, 2021; Agarwal
et al., 2021; Acter et al., 2020).
Supply chain in tourism refers to the basic needs of the tourists. This includes hotels
entertainment transportation restaurant and airports. The important factor in tourism
supply chain is the demand of these necessities and how to provide these things to
tourists. The process includes providing services from sourcing raw material to the
distribution. The tourism industry will definitely rebound, but COVID-19 is a once-in-
a-lifetime event. The long-term consequences of the crisis are still uncertain. Only
locations and hotels that understand the new tourism equilibrium (Kock et al. 2020)
will be able to prosper.
This paper aims to ensure to point out challenges and problem of COVID-19 epidemic
on global supply chain operation regionally and in Pakistan. The research also provides
policy and details on risk reduction and impact of supply chain carry interruption on by
effect of the epidemic this affected the deliveries manufacturing and distribution of
material because of the new regulations and standards to stop the spread of COVID-19

Literature review

The COVID-19 outbreak has created economic disruption, making tourism markets
uncertain. This is unsurprising, considering the tourism industry's reliance on forecasted
demand. On the other hand, border restrictions and mandatory mass quarantine have
produced an unprecedented situation and the installation of a mandatory nationwide
quarantine have created a unique situation.
This is the first time a situation has occurred like this one The costs of cleaning locations
must be considered by businesses ensuring that working environments are cleaned and
that the safety of employees is not jeopardized this helps to avoid the spread of the
infection or travel cancellations

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Several value added chains are examined when it comes to tourism products.
Components of service resulting from complex interactions between a big numbers of
participants. This network is known as a Tourism Supply Chain, which is defined as "a
network of tourism suppliers."
Tourism organizations participate in a wide range of activities, including supply of a
variety of tourism-related goods and services, such as from transportation and lodging
to distribution and marketing of the final product a tourism package that contains a
variety of services and is sold at a specific tourist attraction a wide range of commercial
and government participants"
Effective management takes into account the objectives of distinct organizations.
Upstream and downstream relationship management and coordination
Within the supply chain, there is a significant challenge in developing and maintaining
sustainability. Cooperative ties between two or more persons are referred to as
coopetition. At the same level of manufacturing, hotels collaborate with other
enterprises. One another Relationships can take several forms in the supply chain: arms
Length, strategic relationships, vertical integration, and collaboration are all important
factors to consider. Competition is one of the factors. The need of having an arm's
length relationship was emphasized in early research. TSC operations and the
achievement of certain business objectives necessitate a Move away from face-to-face
encounters and toward collaboration and coordination Organizations can collaborate
through a TSC Cooperation and a win-win perspective can be useful in relationships.
Boost the efficiency of your business. Furthermore, trust-based agreements are the
greatest option when the environment is unpredictable.
These arrangements are favorably related to company performance as they are more
adaptable and simple to change to accomplish safety, each agent in a supply chain must
collaborate. Considering the consequences of its actions on the other players Complete
vertically Integration is often regarded as the most effective way to achieve
coordination. This strategy, however, is typically associated with higher fixed expenses
as well as a loss of flexibility in dealing with market swings In addition, TSC personals
are often self-contained businesses with opposing objectives, when a transmissible viral
infection recurs, and mobility and global tourism suffer significant setbacks (Richter,
2016). The topic of this article is understanding coordination is TSC's to prevent
COVID 19 in TSC a diverse range of individuals are involved in a number of contexts
The supply chain must be coordinated. Many major tourism businesses, in particular,
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have already developed strategies between travel agencies and service providers like
hotels and airlines in addition to travel agencies on how to compete against the spread
of COVID.
The value of a brand, its reputation, image, and status are all important considerations.
Given the existing circumstances, Cost increase and operational efficiency are two
important factors that should be highlighted.Efficiency improves a company's ability to
identify and respond to risks, making it more competitive. Market risks and
opportunities, as well as staying on top of regulatory obligations, are all factors to
consider. A typical tourist value chain includes suppliers, tour operators, competitors,
partners, governments, and other enterprises. Activities that complement each other.
This involves the government, tour businesses, and competitors. In addition, we
propose important difficulties to be controlled in a TSC in addition to coordination
between the relationships in TSC in order to avoid disaster-related disruptions there are
other aspects to consider, including demand, supply, and regulation.

Methodology

For this research the data collected was secondary data with the method of qualitative
research data. The research is about effect of covid on tourism supply chain so the data
was collected from the various players in the industry of tourism supply chain. The data
gathered was from hotels ranging from local hotels to the five star hotels in the area,
restaurants that are in tourist destinations and transportation industry of that area. In our
research by studying about the hotels we can gather almost most of the data required
for our research. Hotels from which data was collected were basically in urban areas
providing services to the tourists and for business.
The nature of topic discussed is descriptive so the data gathered is literature and is first-
hand experience of the people. The data is gathered using qualitative approach due to
the type of data this helps understanding social phenomenon better rather then using
quantitative approach to the data. The goal of this is to understand how the procedure
of supply chain is completed and to better that procedure according to the covid
situation. The data was conducted from interviews, surveys social media and from news
outlets this secondary data was collected because of the theoretical nature of the topic.

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Result

For data gathering, registered tour providers in Pakistan were contacted. There are
fifteen tour providers in Pakistan: three in Islamabad, four in the north, one in
Rawalpindi, two in Kashmir, one in Peshawar, two in Baluchistan/Karachi, and two in
Lahore. Almost the entire country of Pakistan is represented in the sample.
A survey was used to collect data, and a semi-structured interview was used to record
the results. Thirteen tour operators were interviewed via video chats and two operators
were interviewed face to face about the COVID-19 epidemic and geographic
remoteness.
The responses and data were analyzed using thematic analysis. The responses were first
coded, and then the data was meticulously examined for any connecting patterns or
comparable themes that emerged. The data was analyzed using the Global Sustainable
Tourism Council Criterion, which was developed to offer a shared understanding of the
notion of sustainable tourist and is a set of minimum criteria that anyone desiring to
establish sustainable tourism operations should meet.

Discussion

Operational risks may result in demand fluctuations or even TSC interruptions, providing a
safety risk or disappointing tourists. However, in terms of an operational risk, the COVID-19
outbreak's rapid spatial expansion, combined with its unanticipated scope and ripple effects,
has produced one of the most serious economic disruptions in recent decades. Because there
has been little discussion of these problems in the literature on TSCs, this work contributes to
the need for theory building in TSCs management during economic disruptions.

The fundamental goal of this paper is to grasp the significance of relationship management
between hotel chains and their major TSC agents in overcoming economic disruptions induced
by virus outbreaks like as COVID-19. Managing the TSC requires effectively increasing all
chain operations in order to meet visitor needs and the business objectives of the many TSC
members. This study contributes to a deeper understanding of TSC agents' goals in relation to
their socioeconomic circumstances. While tourism supply chains are especially vulnerable to
economic disruptions caused by pandemics and other disasters, the findings show that hotel
chains' business objectives should shift away from cost reduction and operational efficiency
and toward obtaining or not losing liquidity, preserving labour relationships, reactivating

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international arrivals, attracting customers, reducing reliance on tour operators, and achieving
fair relations and greater control over suppliers.

The TSC's ability to manage inter-organizational relationships effectively is important to

attaining these goals. This demands both agent coordination and consideration of the effects of
their actions on other members. TSCs are extensively explored in the literature from a global
perspective, both in terms of general network performance and the provision of the typically
bundled tourism product. Numerous studies have been conducted to describe the wide range of
private and public sector players.

Limitations and future Recommendations

Because of the limitations inherent in its methodological design, the findings of this
study should be regarded with caution. The qualitative methodology prevents us from
comprehending the occurrence in other situations or drawing conclusions that may be
applied to other industries. Another limitation derives from the fact that only hotel
chains were interviewed. Furthermore, as with every research project, it offers new
concerns, allowing us to delve deeper into the study of inter organizational connections
in similar crisis situations. We identified several relevant subtopics for future research
under each of these pillars. With all of the unknowns surrounding COVID-19 and the
detrimental impact it has had on the industry, now is a better time than ever for
academics to come up with some more daring research ideas (Kock, Assaf, and Tsionas
2020),
Studies of the COVID-19's financial and performance implications, both in the tourist
and other sectors, will aid governments and management in determining the most
effective solutions to reduce the negative consequences that may develop in future
crises. Surveys and statistical approaches can be used by researchers to better
understand the situation and give recommendations to the sector. It would be intriguing
to compare the responses of huge international hotel chains and independent hotels to
the crisis.
In order to overcome crises in the tourist business, it is required to develop partnerships
between various agents — government, tour operators, or rivals — according to the
decision-making process. As a result, another area of interest is examining these
networks of contacts in terms of their quantity, objectives, whether they were one-time
or long-term connections, and the effects obtained. In this context, research on cultural

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integration and diversity management is being carried out in the United States.
Managing relationships with key players in the tourism supply chain and their
contributions to the success of the process can be beneficial in times of crisis.
Because human resources are the most valuable resource in the hotel industry, how
hotels respond to the crisis can either excite or entice staff to leave. As a result,
examining the impact of government-implemented measures such as temporary job
suspensions, as well as company-implemented measures in areas such as health and
safety, salaries, job adaption, and so on, is a promising research topic.
Recommendation’s Create standard operating procedures for employees, businesses,
and travellers (SOPs).
Developing tourism value chains, including microenterprises, as well as providing
direct financial assistance.
Restaurants, hotels, homestays, and transportation firms will be aided and led in
cleaning, updating facilities, and training staff in improved hygiene and safety
measures.
Virtual tours can be used to substitute actual trips to museums, heritage sites, and ski
resorts.
Plan and implement waste collection, plastic recycling, and traffic management
improvements on-site.
Pakistani officials are preparing to introduce relief programmes for affected firms and
daily wagers.

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