Challenges in Times of Crisis and Pandemics in the Hospitality Industry: A Systematic Literature Review

Introduction

Tourism is one of the largest, fast-growing industries in the world. In particular, the hospitality industry is one of the most significant drivers of economic growth and socioeconomic advances in developed and developing countries. According to OECD (2020) tourism is a very important part of the economies of OECD members and partners and is considered a key growth sector. Specifically, the sector directly contributes 4.4% to the GDP, 6.9% to the employment and 21.5% to service-related exports to OECD countries. Over the past six decades, global tourism has been steadily expanding, being driven by strong global economic growth and the existence of new source markets. Hospitality is a significant sector of the tourism industry.

Over the ages pandemics, epidemics and crises have been described have affected tourism, travel and in particular the hospitality sector (Uğur and Akbiyik, 2020). Tourism has been affected and exposed to numerous crises over the years (Gössling et al.,2020). Examples of some of the crises (including pandemics) that have greatly affected world tourism over the past 2 decades (years 2000-2020) include the terrorist attacks of September 11, 2001, the severe acute respiratory syndrome (SARS) outbreak in 2003, the economic crisis in 2008 and 2009, and the Middle East respiratory syndrome (MARS) outbreak in 2015 (Wen et al., 2005).

However, pandemics not only affect tourists, but also become a problem for the local population in the visited destinations. As such, pandemics and epidemics also cause damage in tourist destinations. As a result, travel becomes a catalyst for the spread of diseases. According to the literature evidence, travellers play a critical role in the transmission of pandemics and/or epidemics between destinations (Hollingsworth et al., 2006).

As a consequence of the Covid-19 pandemic, the world faces an unprecedented global health, social and economic emergency. According to the World Tourism Organization (UNWTO), travel and tourism are among the most affected sectors, with a massive drop in international demand amid global travel restrictions, including many fully closed borders, to contain the virus (UNWTO, 2020).

Forecasts for 2020 indicated a promising year was ahead for this industry, but the COVID-19 pandemic has had a catastrophic impact. Hospitality companies are experiencing one of the biggest, unprecedented crises to date. The epidemic caused by COVID-19 is the largest pandemic that affected the world in the last hundred years and caused devastating effects worldwide (Rodríguez-Antón & Alonso-Almeida, 2020). The tourism sector was strongly affected and reflected great effects and restrictions. These negative effects have resulted, on the one hand, from the drastic restrictions on mobility that were initially decreed by the governments of most countries, restrictions that have paralyzed much of the productive activity and services, as well as transportation and movements between territories, and that have cancelled the movement of tourists around the world; and on the other hand, from the reduction in disposable income of many families who have seen their incomes disappear or decrease for a considerable period. Faced with the effects of the pandemic, the response of supranational institutions, especially the European Union, has been overwhelming. The European Union has become involved as never before in the revival of economic activity in its sphere, providing significant financial resources to countries most affected by the pandemic, some without reimbursement and some in the form of refundable credits. Similarly, all countries have a major commitment to get out of the crisis with work, financial and fiscal measures.