Regional Formation and Development Studies

The Covid-19 pandemic that was announced by the World Health Organization (WHO) on 30 March 2020 has caused blockages in all economic sectors, but tourism is the most affected. It is difficult to estimate the real impact of the pandemic on international tourism. Travel restrictions imposed to stop the spread of the virus have had a devastating impact on the tourism industry around the world. According to the United Nations World Tourism Organization, tourism is a vital part of the infrastructure of the world economy, generating 10% of total gross domestic product (GDP), and accounting for one out of ten of all jobs. The tourism sector is very dynamic, requiring a rapid response to a changing environment and market; but it is also most affected by the Covid-19 pandemic. Modern tourism requires urgent research, and the analysis of internal and external resources. The perception of changes in the market is a key factor enabling companies to stay in business. Challenges are also posed by technological advances, driven by both the technological advances themselves and safety aspects during the pandemic. This article presents the effects of the Covid-19 pandemic on the tourism sector globally, which includes the cruise ship and airline industries, and also accommodation. The difficulties are successfully overcome by companies that proactively monitor and evaluate key performance indicators: if the indicators are unsatisfactory, they take all possible measures to improve performance. A smooth and timely restructuring process allows companies in temporary difficulty to reshape their operations by changing their strategy, abandoning unprofitable forms of activity, and focusing on the most efficient ones.