Job loss in the travel and tourism sector is rising day by day. Though the lockdown has been lifted and flights and trains have become operational but companies in this sector are laying off employees due to marginal revenue.
According to a media report, Thomas Cook has laid off about 1,000 people so far while travel portal Yatra, post the termination of its pending merger agreement with Ebix earlier this month, has laid off about 400 people besides putting 600 employees on leave without pay, people familiar with the developments said.
It can be recalled that earlier this month, MakeMyTrip also laid off 350 employees due to the impact of the COVID-19 pandemic on its business. This was the second time the company has taken a harsh step in order to control the damage due to COVID-19. Earlier in March, the company had opted for salary cuts.
In an email to employees, MakeMyTrip Group Executive Chairman and founder Deep Kalra and Group CEO Rajesh Magow said even as times remain unpredictable, what is evident is that the impact of COVID-19 crisis is going to be long drawn for the company.
Tourism is the worst affected sector of this epidemic and with multiple travel companies bearing the brunt. According to the World Travel & Tourism Council (WTTC) the travel sector could shrink by up to 25 percent in 2020.
The outbreak of COVID-19 has impacted the businesses globally and The World Travel & Tourism Council has predicted the pandemic can further put 50 million tourism jobs at the risk of getting eliminated.
The equivalent to a loss of three months of global travel in 2020 could lead to a corresponding reduction in jobs of between 12 percent and 14 percent. The tourism industry accounts for 10% of the world’s GDP and jobs.