One of the industries that have been impacted most severely due to the Co-vid crisis is the sector of tourism. According to data provided by the UN, 2020 has been the worst year in tourism history with losses estimated at 1.3 trillion dollars (1 trillion euro). The effect of the coronavirus has been disastrous with reports of 74 % loss of international tourist arrivals (FRANCE 24 (2021). The global crisis has been felt acutely across the whole system of the world’s economy and the tourism industry has been hit particularly hard owing to the restrictions and additional regulating measures imposed by the states. The ban on international travel and even local tourism in most countries has conditioned a steep decline in the revenues, which is particularly detrimental for traditional touristic destinations and small developing states which rely heavily on this sector of the economy. Even developed touristic countries such as France have reported a plunge in income from tourism by 41 % in 2020 which amounts to 61 billion euro (FRANCE 24 (2021). It has been termed as a shock to the economy by the French minister for Tourism, which gives a clear enough idea of what consequences it has had even for European developed states, some of which have suffered even greater damage to their economies. Representatives of the World Tourist Organisation have predicted that achieving relative stability in the sector and a return to the pre-pandemic conditions would not be possible any time earlier than 2023 (United Nation World Tourism Organisation (2020).
What are the biggest strategic challenges for international firms in the post-COVID-19 world and how their management can proactively address them – A critical discussion