Problems and Opportunities in the Hospitality Industry in a Masked and Rubber-Gloved World

Keywords: coronavirus, COVID-19, problems, opportunities, hospitality industry, global tourism, economic impact


As the global tourism industry is under sway of the novel Coronavirus, and the world still remains with a limited medical capacity to threat the pandemic, with no vaccine and with its only weapon of precautionary measures, masks, gloves and lockdown, a part of hospitality industry develops new stratagems and applies new tactics to survive the upcoming financial debacle. The almost worldwide lockdown, the brutal impact of mass cancellations caused by the virus spread, and the people's significantly reduced willingness to travel produce major upheavals in the tourism economy. The purpose of this study is to systematize the problems and opportunities in the hospitality industry in a pandemic. For this study there has been applied the secondary research methodology with several pieces of literature such as scientific journal articles, preprint papers, government documents, data from global organizations and mass media data etc., but no primary research was conducted. As the phenomenon is still ongoing, there is not yet the significant number of published papers about the opportunities in the hospitality sector. The main findings of the present study are demonstrating that, although this situation makes tourism highly vulnerable, the sector is also in a unique position to contribute to broader and just recovery plans and actions. Significant conclusions are the vulnerability of the travel sector and travel restrictions’ effects on hospitality industry, the appearance of a new form of hotel clients - ‘quarantine guests’, and the need of new survival strategies on hotel industry based on virtualization and domestication.


Download data is not yet available.


Albulescu, C. (2020). Coronavirus and Oil Price Crash. Retrieved from

Arghyrou, M., & Kontonikas, A. (2012). The EMU Sovereign-Debt Crisis: Fundamentals, Expectations and Contagion, Journal of International Financial Markets. Institutions and Money, 22(4), 658-77.

Aydın, B., & Doğan, M. (2020). Evaluation of Effects of the COVID-19 Pandemic on Touristic Consumption Behavior and Tourism in Turkey. Journal of Theory and Practice in Marketing, 6(1), 93-115.

Ayittei, F., Ayittei, M., Chiwero, N., Kamasah, J., & Dzuvor, C. (2020). Economic Impacts of Wuhan 2019-nCoV ON China and the World. Journal of Medical Virology, 92, 473-75,

Aznar, J.P., Sayeras, J.M, Rocafort, A., & Galiana, J. (2017). The Irruption of Airbnb and its Effects on Hotel Profitability: An Analysis of Barcelona’s Hotel Sector. Intangible Capital, 13(1), 147-59.

Bakar, N.A., & Rosbi, S. (2020). Effect of Coronavirus Disease (COVID-19) to Tourism Industry, International Journal of Advanced Engineering Research and Science, 7(4), 189-193.

Bannò, M., & Redondi, R. (2014). Air Connectivity and Foreign Direct Investments: Economic Effects of the Introduction of New Routes. European Transport Research Review, 6(4), 355-63.

Barro, R., Ursua, J., & Weng, J. (2020). The Coronavirus and the Great Influenza Epidemic – Lessons from the "Spanish Flu" for the Coronavirus's Potential Effects on Mortality and Economic Activity, CESifo Working Paper, No. 8166. Munich: Center for Economic Studies and Ifo Institute. Retrieved from

Beirne, J., & Fratzscher, M. (2013). The Pricing of Sovereign Risk and Contagion during the European Sovereign Debt Crisis. Journal of International Money & Finance, 34, 60-82.

Bossomaier, T., Barnett, L., Steen, A., Harre, M., d’Alessandro, S., & Duncan, R. (2018). Information Flow about Stock Market Collapse. Accounting & Finance, 58, 45-58.

Boutique Hotel News. (2020). Global Hotels Providing Quarantine Packages for Self-Isolating Travelers. Retrieved from

Bowen, J., & Shoemaker, S. (2003). Loyalty: A Strategic Commitment. The Cornell Hotel and Restaurant Administration Quarterly, 44(5-6), 31-46.

Brouder, P. (2020). Reset Redux: Possible Evolutionary Pathways towards the Transformation of Tourism in a COVID-19 World. Tourism Geographies International Journal of Tourism Space, Place and Environment.

Business Insider. (2020a). Coronavirus Demolishes Air Travel around the World. Retrieved from nd-the-world-2020-4

Business Insider. (2020b). Some of the World's Airlines Could Go Bankrupt because of the COVID-19 Crisis, According to an Aviation Consultancy. Retrieved from

Carlsson-Szlezak, P., Reeves, M., & Swartz, P. (2020). What Coronavirus Could Mean for the Global Economy. Harvard Business Review. Retrieved from:

Cboe. (2020). VIX Index Historical Data. Retrieved from historical-data

Chang, C.-L., McAleer, M., & Ramos, V. (2020). A Charter for Sustainable Tourism after COVID-19. Sustainability, 12, 3671.

Chava, S., & Purnanandam, A. (2012). The Effect of Banking Crisis on Bank-Dependent Borrowers. Journal of Financial Economics, 99(1), 116-35.

Chinazzi, M., Davis, J., Ajelli, M., Gioannini, C., Litvinova, M., Merler, S., Pastore y Piontti, A., Mu, K., Rossi, L., Sun, K., Viboud, C., Xiong, X., Yu, H., Halloran, E., LonginiJr, I., & Vespignani, A. (2020). The Effects of Travel Restrictions on the Spread of the 2019 Novel Coronavirus (COVID-19) Outbreak. Science, 368(6489), 395-400.

Condé Nast Traveller. (2020). Coronavirus Air Travel: These Numbers Show the Massive Impact of the Pandemic. Retrieved from

Correa-Martínez, C., Kampmeier, S., Kümpers, P., Schwierzeck, V., Hennies, M., Hafezi, W., Kühn, J., Pavenstädt, H., Ludwig, S., & Mellmanna, A. (2020). A Pandemic in Times of Global Tourism: Superspreading and Exportation of COVID-19 Cases from a Ski Area in Austria. Journal of Clinical Microbiology, 58(6), e00588-20,

Delaporte, I., & Pena, W. (2020). Working from Home Under COVID-19: Who Is Affected? Evidence from Latin American and Caribbean Countries. CEPR COVID Economics, 14. Retrieved from

Dingel, J.I., & Neiman, B. (2020). How Many Jobs Can Be Done at Home? CEPR Discussion Paper No. DP14584. Retrieved from

Domínguez-Mujica, J., González-Pérez, J., & Parreño-Castellano, J. (2011). Tourism and Human Mobility in Spanish Archipelagos. Annals of Tourism Research, 38(2), 586-606.

DUNC. (2020). COVID-19: Challenges and Opportunities for the Tourism Sector and How DUNC is Coping with the Current Situation. Retrieved from

Dungey, M., Fry, R., González-Hermosillo, B., & Martin, V. (2006). Contagion in International Bond Markets during the Russian and the LTCM Crises. Journal of Financial Stability, 2(1), 1-27.

Econsultancy. (2020). How Travel and Tourism Brands are Reacting to Coronavirus. Retrieved from

Englund, P. (1999). The Swedish Banking Crisis: Roots and Consequences. Oxford Review of Economic Policy, 15(3), 80-97.

Eric, T.N., Semeyutin, A., & Hubbard, N. (2020). Kenyan Tourism Industry and Their Likely Welfare Implications. Tourism Management, 78.

Estrada, M., Park, D., & Lee, M. (2020). How a Massive Contagious Infectious Diseases Can Affect Tourism, International Trade, Air Transportation, and Electricity Consumption? The Case of 2019 Novel Coronavirus (2019-nCoV) in China (February 19, 2020). Retrieved from

Eurocontrol. (2020). COVID-19 Impact on the European Air Traffic Network. Retrieved from https: //

European Investment Bank. (2020). Does This Change Everything? Air Travel and Coronavirus. Retrieved from

Fernandes, N. (2020). Economic Effects of Coronavirus Outbreak (COVID-19) on the World Economy. Retrieved from

Folinas, S., & Metaxas, T. (2020). Tourism: The Great Patient of Coronavirus COVID-19. International Journal of Advanced Research, 8(5), 365-75.

Foreign Policy. (2020). The Future of Travel after the Coronavirus Pandemic. Retrieved from https://

Gabrielli, L., Deutschmann, E., Natale, F., Recchi, E., & Vespe, M. (2019). Dissecting Global Air Traffic Data to Discern Different Types and Trends of Transnational Human Mobility. EPJ Data Science, 8(1), 1-24.

Gallacher, G., & Hossain, I. (2020). Remote Work and Employment Dynamics under Covid-19: Evidence from Canada. Canadian Public Policy/Analyse de politiques. [pre-publication version]. Retrieved from

Goodnight, T., & Green, S. (2010). Rhetoric, Risk, and Markets: The Dot-Com Bubble. Quarterly Journal of Speech, 96(2), 115-40.

Gössling, S., Scott, D., & Hall, C.M. (2020). Pandemics, Tourism and Global Change: a Rapid Assessment of COVID-19. Journal of Sustainable Tourism.

Greek City Times. (2020). List of Hotels in Greece that Will Remain Open during the Coronavirus Pandemic. Retrieved from

Gretzel, U., Fuchs, M., Baggio, R., Hoepken, W., Law, R., Neidhardt, J., Pesonen, J., Zanker, M., & Xiang, Z. (2020). E‑Tourism beyond COVID‑19: A Call for Transformative Research. Information Technology & Tourism, 22, 187–203.

Hall, C.M., Scott, D., & Gössling, S. (2020.) Pandemics, Transformations and Tourism: Be Careful What You Wish for. Tourism Geographies.

Hasanat, M.W., Hoque, A., Shikha, F.A., Anwar, M., Abdul-Hamid, A.B., & Tat, H. (2020). The Impact of Coronavirus (Covid-19) on E-Business in Malaysia. Asian Journal of Multidisciplinary Studies, 3(1), 1-6.

Hoque, A., Shikha, F.A., Hasanat, M.W., Arif, I., & Abdul-Hamid, A.B. (2020). The Effect of Coronavirus (COVID-19) in the Tourism Industry in China. Asian Journal of Multidisciplinary Studies, 3(1), 1-7.

Jorion, P. (2000). Risk Management Lessons from Long-Term Capital Management, European Financial Management, 6(3), 277-300.

Iacus, S., Natale, F., Santamaria, C., Spyratos, S., & Vespe, M. (2020). Estimating and Projecting Air Passenger Traffic during the COVID-19 Coronavirus Outbreak and its Socio-Economic Impact. Safety Science, 128.

Ivy, R.L., Fik, T.J., & Malecki, E.J. (1995). Changes in Air Service Connectivity and Employment, Environment and Planning, 27(2), 165-79.

Kabir, H., & Hassan, K. (2005). The Near-Collapse of LTCM, US Financial Stock Returns, and the Fed, Journal of Banking & Finance, 29(2), 441-60.

Khan, M., & McCleary, K. (1996). A Proposed Model for Teaching Ethics in Hospitality. Hospitality and Tourism Educator, 8(4), 7-12.

Kim, K., Baek, C., & Lee, J.D. (2018). Creative Destruction of the Sharing Economy in Action: The Case of Uber. Transportation Research Part A: Policy and Practice, 110, 118-27.

Kim, W.G., Han, J.S., & Lee, E. (2001). Effects of Relationship Marketing on Repeat Purchase and Word of Mouth. Journal of Hospitality and Tourism Research, 25(3), 72-88,
Kumar, S. (2020). Impact of Coronavirus (COVID-19) on Indian Economy. Agriculture & Food, 2(4), 301-302.

Lamsfus, C., Martín, D., Alzua-Sorzabal, A., & Torres-Manzanera, E. (2015). Smart Tourism Destinations: An Extended Conception of Smart Cities Focusing on Human Mobility. In I. Tussyadiah & A. Inversini (Eds.), Information and Communication Technologies in Tourism 2015. Cham: Springer.

Lane, P. (2012). The European Sovereign Debt Crisis. Journal of Economic Perspectives, 26(3), 49-68.

Lapointe, D. (2020). Reconnecting Tourism after COVID-19: the Paradox of Alterity in Tourism Areas. Tourism Geographies, 22(3).

Le Bijou. (2020). Hotel Service, without the Other Hotel Guests. Retrieved from

Lew, A. (2011). Tourism's Role in the Global Economy. Tourism Geographies, 13(1), 148-51.

Maffioli, E. (2020). How is the World Responding to the Novel Coronavirus Disease (COVID-19) Compared with the 2014 West African Ebola Epidemic? The Importance of China as a Player in the Global Economy. The American Journal of Tropical Medicine and Hygiene, 102(5), 924-925.

Metaxas, T., & Folinas, S. (2016). Gambling Tourism and Economic Development: Some Lessons from Macao. Munich Personal RePEc Archive, Unpublished. Retrieved from

Mishkin, F.S. (1992). Anatomy of a Financial Crisis. Journal of Evolutionary Economics, 2, 115-130,

Niewiadomski, P. (2020). COVID-19: from Temporary De-Globalisation to a Rediscovery of Tourism?. Tourism Geographies.

Novotel Sydney Brighton Beach. (2020). Self-isolate by the Bay. Retrieved from

OAG. (2020). Coronavirus: Understanding the Airline Schedule Changes and Manage the Impact. Retrieved from:

Official COVID-19 Recourse Centre for South African Tourism. (2020). Risk Adjusted National Lockdown. Retrieved from

Oskam, J., & Boswijk, A. (2016). Airbnb: the Future of Networked Hospitality Businesses. Journal of Tourism Futures, 2(1), 22-42.

Prideaux, B. (2020). Lessons from COVID-19 Can Prepare Global Tourism for the Economic Transformation Needed to Combat Climate Change. Tourism Geographies.

Recchi, E., Deutschmann, E., & Vespe, M. (2019). Estimating Transnational Human Mobility on a Global Scale. Schuman Centre for Advanced Studies. Research Paper, 30, 1-10. Retrieved from

Şenol, Z., & Zeren, F. (2020). Coronavirus (COVID-19) and Stock Markets: The Effects of the Pandemic on the Global Economy, Eurasian Journal of Research in Social and Economics, 7(4), 1-16.

Sheresheva, M.Y. (2020). Coronavirus and Tourism. Population and Economics, 4(2), 72-76.

Skift. (2020). Coronavirus and the Travel Industry. Retrieved from

Statista. (2020). Worldwide Revenue with Passengers in Air Traffic from 2005 to 2020 in Billion U.S. Dollars. Retrieved from

The Points Gay News. (2020). Need to Self-Isolate? These Hotels are Offering Quarantine Packages. Retrieved from

The Real Deal. (2020). Coming to a Hotel Near You: The $2,500 Coronavirus Quarantine Package. Retrieved from -quarantine-package/

The Wall Street Journal. (2020). Do Not Disturb: Hotels Hammered by Coronavirus Offer 14-Day Quarantine Packages. Retrieved from

Travel Daily News. (2020). Covid-19 Impact Could be Huge Opportunity for Value-Driven Tourism Products Like Aparthotels’. Retrieved from covid-19-impact-could-be-huge-opportunity-for-value-driven-tourism-products-like-aparthotels

Van Houts, D. (1984). Air Transport and International Tourism: An Examination of the Distribution of the Benefits between Developed and Developing Countries. Tourist Review, 39(1), 16-18.

Wen, J., Wang, W., Kozak, M., Liu, X., & Hou, H. (2020). Many Brains are Better Than One: the Importance of Interdisciplinary Studies on COVID-19 in and beyond Tourism. Tourism Recreation Research.

WorldAware. (2020). COVID-19 Prompts Concerns of Social and Political Instability in Middle East and North Africa. Retrieved from mpts-concerns-social-and-political-instability-middle-east-and-north

Yang, Y., Zhang, H., & Chen, X. (2020). Coronavirus Pandemic and Tourism: Dynamic Stochastic General Equilibrium Modeling of Infectious Disease Outbreak. Annals of Tourism Research, [Epub ahead of print].

Yozcu, O.K., & Cetin, G. (2019). A Strategic Approach to Managing Risk and Crisis at Tourist Destinations. In N. Kozak & M. Kozak (Eds.), Tourist Destination Management (pp. 273-287). Cham: Springer.

Abstract views: 288
PDF Downloads: 239
How to Cite
Folinas, S., Duquenne, M.-N., & Metaxas, T. (2020). Problems and Opportunities in the Hospitality Industry in a Masked and Rubber-Gloved World. Virtual Economics, 3(3), 7-24.