TOURISM AFTER CORONA: IMPACTS OF COVID 19 PANDEMIC

AND WAY FORWARD FOR TOURISM, HOTEL AND MICE

INDUSTRY IN SRI LANKA

Ruwan Ranasinghe, Anupama Damunupola, Shamila Wijesundara, Chandi Karunarathna,

Dhananjaya Nawarathna, Sammani Gamage, Amaya Ranaweera, Ali Abdulla Idroos

[email protected], [email protected], [email protected],

[email protected], [email protected], [email protected],
[email protected], [email protected], [email protected]

Department of Tourism Studies, Faculty of Management, Uva Wellassa University, Badulla,

90000, Sri Lanka
OVERVIEW

The global pandemic of novel Corona has not only brought entire socio-economic structures
in to a standstill but has challenged the globalization and global operations of enterprises.
Paradoxically, potential repercussions and alternative way outs are yet volatile. However, for
a speedy recovery and regain of the economy, employment and business functions a
sustainable and fresh beginning is necessary in most of the worsened economic sectors.
Conventionally, an infection used to attack the vulnerable groups with food, health care
insecurity in their lifestyle and they normally used to be the poor of the society. Ironically,
novel Corona infection first attacked the international travellers and the pandemic was caused
through the travel and thus has confronted mainly the affluent social class globally.

Since, tourism is one of the largest and fastest growing industries globally; it is expected to
play a significant role in regaining the socio-economic stability after Covid 19 pandemic. It is
a key contributor to the Island economies and one of the most important industries that
generates much needed foreign currency in Sri Lankan economy. Long suffered tourism
industry of the Island was last hit tough by the Easter bomb blasts took place at several places
including luxury hotels in the country. Tourism is at halt in the country with the threat of
finding the first Sri Lankan national tested positive for COVID-19 who was a local patient on
10th March, 2020. The victim was again a tourism stakeholder, a 52-year-old tour guide
working with a group of Italian tourists. The continues threats arise towards the country from

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tourism with effect to the virus outbreak resulted twenty-nine patients under observation in
government hospitals, including eight foreigners, following the new developments, while
suspending on arrival visa for tourists on 11 March, 2020.

Unfortunately, this rapid expansion of the virus reached 233 cases at present (as at 15th April,
2020 and keep increasing), even though it is well controlled and handled properly by the
government special operation in protecting people from the threat. Consequently, travel has
become one of the key contributors of carrying the virus around the globe causing
tremendous pressure on international travel and tourism operations including airline industry.
It was recently confirmed that Qantas admitted viral infection to a large group of its crew
challenging airline operations globally. Travel, tourism, hotel and MICE industry as an
umbrella industry operation is facing immense challenges at present. The global and local
context of the outbreak, impacts of the outbreak and suggestions for speedy recovery (short
and long term) are critically evaluated in this review.

GLOBAL PANDEMIC OF NOVEL CORONA (COVID 19)

Tourism is a reason for most of the human mobility in the modern world. According to the
World Tourism Organization (2020), the international tourism has indicated continues growth
for the tenth consecutive year reporting 1.5 billion international tourist arrivals in 2019 and
estimated 1.8 billion of international tourist arrivals by 2030 )people are forecasted to be (UN
News, 2017). Reporting the COVID 19 or the Corona outbreak started from Hubei province,
Wuhan City in China in November, 2019 and spread all over the world by March, 2020 has
been remarkable in world history as the most challenging tragedy occurred in the world after
decades may be the World War II. The major disruptions on the global economy from the
transmission of this virus especially to the retail sector, food, consumer goods, healthcare
delivery and a potential curtailing of travel and tourism as major drivers of the most of the
countries in the world is in immeasurable and severe than expected by many. The situation
should be strategically addressed with suitable proactive and reactive measures considering
the current situation and to overcome future threats to ensure the socio economic wellbeing of
all humans keeping space for increased travel and tourism.

However, the decisions on limiting the movements of people and commodity mainly affected
to the industries like tourism, because, tourism include air transportation, sea transportation,
food handling, accommodation sector, entertainment and recreation etc. Considering the

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impact of Covid 19 pandemic on Sri Lanka tourism, it can be noticed that Sri Lanka earns
better reputation than the other countries in the world in controlling Covid 19 pandemic;
arrangement of quarantine facilities and medical facilities even for foreigners while other
developed countries announce nonresidents to leave the country, appliance of personal
protective equipment in handling airline/sea line passengers at the respective ports,
continuation of supply of basic human needs, extension of visas for foreigners securing them
with available facilities etc. Hence, this situation would be favorable in flourishing Sri Lanka
Tourism in the future even though it earns losses today.

Being a country with very less experiences on global health epidemics during the last few
decades, Sri Lanka did not have a clear predetermined technical agenda for such a worse
tragedy. However, with this limited experience, Sri Lanka reported to be the first country
which has taken the mitigation and necessary controlling actions for COVID 19 after China.
Even China has taken the action as the cases started to be reported from the country with
deaths. Sri Lankan government started with quarantining and some specific health measures
and preparedness at airport with thermal scanners before the first case found from the country.
The first case of Corona infected patients (a Chinese tourist) reported from Sri Lanka on
February, 18 of 2020 and after a short silence, the second patient was reported.

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Total COVID 19 Infections in by 14/04/2020

Total Cases Reported Sri Lanka World

Total Infections 218 1,934,557

Total Deaths 8 120,438

Total Recovers 59 456,737

Active Cases 151 1,357,382

Source: worldometers.info & Ministry of Health, Sri Lanka on 14/04/2020

IMPACTS ON TOURISM, HOTEL AND MICE INDUSTRY

The impact of this deadly virus is severe than estimated by specialists and the most exciting
pandemic in the recent history which has already taken down 200 countries around the world
with more than 1.9 million infections and over 120,000 deaths by 14th April, 2020. Sri Lanka
being a country with lack of resources, it is important to incorporate strategic approaches to
minimize the economic recession. In this context, the travel and tourism as the third largest
foreign exchange earner in the country, has totally collapsed with the fear of travelling and
the need of maintaining the social distancing. Restriction on visa issuing and closing down
the international airport, curfew and lock down of the countries and cities, and inviting the
residents to back to their countries providing special flight arrangements in many countries
were taken place during the last 40 days. Situation is severe at the moment as the whole
world is on lock-down or under social distancing, people are scared to book anything until the
distress of this infection subsides and the virus is brought under control in the world.

The tourism industry is an umbrella industry networked with many other sectors in the
economy including hotel, community level operations, education, financial, agriculture,
medical, travel and transportation, construction, real estate, retail, and vice versa. Due to the
heavy toll of tourism in the country‘s economy, it is important to study how the reliance of
the industry might shape the recovery of its main sub sectors once the pandemic subsides.
The indirect impact in this context on travel and tourism industry cannot measure easily and
definitely is a significant loss in short term as well as long term. Since, Sri Lanka is a country
that heavily depending on the service sector the tourism industry plays a major role for the
countries development. In the Last year it the Contribution of travel and tourism to GDP as a
share of GDP is 12.5% and the Contribution of travel and tourism to GDP growth rate is

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11.4%. Hence it is clear that the tourism industry is helping the countries development
massively. Therefore protecting this industry would be a huge investment on the countries
future development prospects. Therefore we need to protect all the service providers of the
tourism sector if we need to focus on the future development of Sri Lanka through tourism
sector.

There are number of service providers such as Accommodation Suppliers, Travel Agencies,
Event Coordinators, and Transportation Suppliers etc. At the current situation they don‘t
receive any income from their tourism products. Therefore it is important protect this sectors
and remain them for cater the future tourism demand to the country. Otherwise this may lead
to reallocating the resources to other industry where Tourism industry would face the
challenge of finding the service providers in the future. To overcome this situation it is good
release them from their business loans temporarily, help to retain the employees in their
organization, using the tourism resources like hotels as quarantine centres with a monthly
rental to the organizations. With the available technologies and medial advancements it is
expected to overcome from this emergency within a short period of time. Hence,
safeguarding the tourism industry would be a good investment in the future development of
the country.

Global tourism and hospitality sector is one of the strong pillars of modern economy as well
as social system. Equally, hotel industry is significant income generating sector for many
countries in the world similar to Sri Lanka. However, during a global crisis usually tourism
and hospitality industry is the first industry to take a severe hit. According to the March 2020
data published by the global hospitality data firm STR, it is indicating a sharp drop of
occupancy rates nearly between 96% in the entire global hospitality industry due to the on-
going COVID-19 coronavirus pandemic. Sri Lankan Tourism sector is also hit by this
pandemic and as per the Sri Lanka Tourism Development Authority data a decline of 30% of
total tourist arrivals is evident compared to Q1 of year 2019.

Moreover, the decline in tourism revenue for Sri Lanka could vary between USD 107 mn –
USD 319 mn, according to ADB projections as of March 06, 2020. This outbreak has badly
affected to both public and private sector of the country and it is evident from the Colombo
Stock Exchange movements. Further, these type of crisis situations negatively impact on
attracting foreign direct investments to the country. While recognizing the current and post-
negative impacts of this pandemic several measures have been undertaken

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by the Government of Sri Lanka (GoSL) to enable the country to respond to the COVID-
19 pandemic. Indefinite curfew across the country, travel restrictions, aggressive social
distancing measures are some of the key measures that government has imposed currently to
slowdown the spread of covid-19 outbreak.

SUGGESTIONS FOR RECOVERY

Immediate Response

There is no doubt, that this pandemic situation has brought lot of negative impacts to the Sri
Lanka Tourism, hotel and MICE sector. Sri Lankan tourism industry was gradually
recovering after the 2019 April Easter attacks. Further, Sri Lanka was a country which
eradicated 30 years long civil-war in 2009. Thus, it is critical to improve the country‘s
preparedness for public safety as well as to take necessary precautions to face these types of
unexpected risks/challenges. Therefore, some of the key recommendations have been made to
overcome the negative impacts of corona-19 outbreak. Firstly, it is important to spread the
positive news through news channels and social media platforms to aware the potential
tourists. Maintaining international advertising campaigns are also a crucial point in marketing
and promoting Sri Lankan tourism and hospitality industry. Additionally, since pre-paid rates
are unlikely to be booked with the present levels of market uncertainty it is highly
recommended to remove the non-cancellable fees.

Further, promoting flexi-rates and allowing guests to move a booking to a new date is another
key strategy to promote hotel business in compensation for emergency cancellations. Further,
making some timely-modifications to existing hotel policies are also vital, such as flexi-
cancellation policies, flexi-rates for all services, ensuring strict hygiene policies should be
some of the key areas of concerns. It is highly recommended to use ‗flexibility‘ as one of the
primary marketing message as it will help to attract lot of businesses. Due to the prevailing
situation it shows people are in fear of travelling to city limit accommodation centres
therefore, promoting remote accommodation centres is another main strategy to attract
tourists. Especially resort type hotels, eco-friendly hotels and nature and culture based remote
attractions/ locations may have a great potential to promote themselves. These strategies
would also helpful to attract MICE tourists and to uplift the revenue from F&B sector. Since
these type of crisis impact on global hospitality sector it is important to recognize the value of

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promoting domestic tourism. Particularly, almost all the hotels would lower the prices on
such situations as to reduce the service perishability.

Hence, it would be a great opportunity for savvy tourists to visit a hotel or to consume
services in a hotel with much lower prices. At the same time, it is also recommended to
promote flexi-services instead of promoting value-added services. Because of the pandemic
situation people are very much concern about their health and safety. Thus, taking some
additional time for cleaning the entire hotel is essential. These strategies will positively
impact on ensuring hygienically clean safety and secure environment for guest stay. Finally,
it is recommended to initiate collaborative strategies among the public and private sector.
Specially, government could initiate tax reduction schemes (for certain period of time) for
both micro and macro level business owners, could think of introducing interest-free capital
loan schemes and job guarantees for permanent carder employees.

Sri Lanka being the first country in the world taken necessary initiatives to face the corona
virus impact with the lessons learned from China was well appreciated by the WHO as well
as many other leaders around the world. Following key measures were taken by the
government and the successful control of the situation was totally upon the timely decisions
of the government. Although , the country is at an stage not to move forward with the other
operations along with tourism industry, still the country needs a preventive and a protective
planning enhancement to reach back to the stage that Sri Lanka stands before at every
industry, specially the tourism field that yield the income of the country at its climax level. It
would take more time to reach back to the core capacities, since this cause to be the second
biggest threat after the bomb attack that does not leave a flexible time to make the status back
of the industry. Although, the situation makes more slopes at the tourism cycle of the country,
Sri Lanka still have the potential to reach its aims with the proper identification of its core
bases that would guide the country to gain some weightage in the tourism markets back with
also further development mechanisms.

The world, with respect to the special attention of World Tourism Organization (UNWTO),
has already lunched several practices to save the essentials of tourism industry at present.
The special campaign named “#Travel Tomorrow ―, has become the common thread that
runs through the World Tourism Organization‘s response to the current crisis, highlighting
the enduring values of tourism.‖ "By staying home today, we can travel tomorrow‖. The
hashtag #Travel Tomorrow encapsulates this message of solidarity and hope, through

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which the World Tourism Organization (UNWTO) calls for shared responsibility among
travelers and the tourism sector around the world to deal with the COVID-19 coronavirus
pandemic‖ (UNWTO). Further, the campaign specify the core values of tourism that
constitute the main pillars of the #Travel Tomorrow campaign as, Discovering different
cultures, practicing solidarity and respect, caring for the environment, continuing to learn,
fostering decent work, development and sustainability, generating new opportunities for
all. The countries such as Germany, Morocco, Mongolia, Oman and Uruguay, as well as
cities such as Bogotá or Vienna, have already endorsed the hashtag #Travel Tomorrow,
thus amplifying the voice of tourism, which is united in the face of this unprecedented global
challenge.

A digital resource platforms with social media profiles, electronic signatures, has been
created to provide different options for any individual, business or institutional user to join
this initiative. Also, they have formed a Global Tourism Crisis Committee to guide the sector
as it responds to the COVID-19 crisis and to build the foundations for future resilience and
sustainable growth. Sri Lanka, still moving with the arrangements and it is applicable to
move forward with the current campaign hashtag #Travel Tomorrow cooperate to the world,
to make aware the people of the importance of facing this unprecedented charge at first, to
make a safe travel tomorrow. Also, while adhering to the ongoing progress at the world, the
country itself should identify its paths that can be utilized as advantages areas to be linked in
tourism, in the future established plans to rise again.

Accordingly, my point of view reflect the fact that, The Corona Virus outbreak itself created
and emphasized several key bases that Sri Lanka enrich than the other nations, that we could
gain more advantage at present and also, in the future. The focus that lead toward the
Ayurveda healing properties and authentic medical foods in the country that create through
the natural ingredient collections, significantly created a debatable topic in the world. More
emphasis and attention was given to Ayurveda medicine and traditional foods in the world
with the most prior factor of immunity building against the virus, that courted Sri Lanka as its
most efficient land of herbs that created more preventive solutions for the influence through
natural medicine while also contribution in the western medicine.

The government‘s attempt to invite indigenous medical practitioners to explore ―alternative‖

medical solutions to this global pandemic, specify the value of this fact. ―As Sri Lanka‘s
confirmed COVID-19 cases reach the 180s, the government has a group of over 60 such

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practitioners met health officials at the National Operation Centre for Prevention of COVID-
19 Outbreak in Rajagiriya on April 5 to discuss traditional Sri Lankan remedies‖ (Sri Lanka
Army press release). Further the press release highlight the importance of taking measures
relate to Ayrvedic medicine toward precautionary measures at the time. ―A presentation,
submitted by Ayurveda practitioners explained how indigenous medical practices could be
applied in the treatment of this deadly epidemic and other associated preventive measures,
inclusive of the conduct of precautionary, curative and post -treatment phases of the
indigenous practices, etc.,‖ As the measures alternatively, China also encouraged the use of
traditional medicine for the treatment and prevention of COVID-19.

Although, Chinese medical approaches were debated at the world with different experts with
relate to their compositions, much positive viewpoint were raised towards Sri Lanka practices
in the world. ‖ Traditional Chinese medicine (TCM) mixtures can be toxic, contaminated or
adulterated with prescription drugs; they can also interact with prescription drugs,‖ (Dr.
Edzard Ernst, a professor emeritus of complementary medicine at the United Kingdom‘s
University). Further, the Ministry of Science and Technology of Sri Lanka discovered the
true validity of traditional herbs, as Kohthamalli (coriander) and Venivelgeta (Coscinium
Fenestratum or tree turmeric) whose scientific value, proving their well-documented medical
values to the world. ―In western medicine, we learn about immunity in membranes as well as
humoral immunity and cell-mediated immunity. The value of Kohthamalli in fighting
bacterial infections and the use of Venivelgeta for viral infections is clearly mentioned,‖
(Colombo/April7/2020, the chief of Ministry of Science and Technology, Sri Lanka).

This illustration on the value of traditional medicine, as Local core step to develop tourism,
propose the attention toward Ayrvedic treatments that can be viewed in another aspect that
links towards future tourism initiatives as, a focus towards creating a weight to the
international authenticity for Ayrvedic tourism in Sri Lanka. Also, the traditional authentic
foods can be utilized to create more wealth to Sri Lankan tourism in the future. More
marketing on theses niche product that has been already emphasized in the world at current
situation, would be taken as a future advantage to develop and include in Sri Lankan tourism
industry. Since there is no much market for the Ayrvedic tourism, at present, it is essential to
create a proper progress towards developing Ayrvedic tourism that will be demanded in near
future exceeding the number of visitors travelling for pleasure. This prediction arise as the
utmost results of this influential virus outbreak in the world, since it is applicable that the
people will move more towards health and wellbeing maintenance than pleasure in the future

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world as a response to the current crisis occurred in attempting to be more healthy and strong
who expects a long life and a simple life style.

 Establishing the quarantine camps for passengers from identified high risked
destinations
 Placing thermo scanners in international airport
 Identify the network of patients and lead the recognized potential individuals for
quarantine process
 Curfew and lock down around the country identifying as high danger zones, low
danger zones, etc.
 Distribution of essentials for residents around the country
 Empowering local health care industry

What will be the Future of Travel and Tourism when the Danger is over?

As an industry, we need to have a resilient strategic plan to reconstruct the country‘s

economy. The impact of this infortune will lower the business investment due to increased
uncertainty and risk. Consequently, the demand for the travelling and consumer confidence
also may very lower due to uncertainty and fear. This will ultimately leads to reduce the
spending of people as lowering the disposable income with limited economic activities and
homebound life to reduce the probability of infection. Moreover, the face to face contact may
generate the lower confidence for both service provider and consumer in the related services
and supplies in tourism, transportation and retail spending.

The problems will also occur in the utilization of full capacity of human resources. The
employees should be ready to come to work and engage in consumer related activities in the
service supply process without any uncertainty. This confidence should be implemented
within the workplace with proper mechanism to enhance the employees‘ confidence as well
as sufficient internal and external motivational strategies.

The biggest challenge is to strengthening the community based economic activities. The day
to day income of the grass root level suppliers in the value chain was vanished with the
spread of deadly virus. Therefore, the community engagement should be carefully mapped in
the process exerting a psychological boom that make a positive impact on attitudes to risk.

There is an urgent need to encourage tourism operators to engage with crisis preparedness
and disaster-management strategies and it is important to gain a better understanding of the

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consumer response to disastrous event by all components of the value chain. This is one of
the key element which currently not in the corporate plans of many business organizations.

National tourism bodies such as Sri Lanka Tourism Development Authority (SLTDA), Sri
Lanka Convention Bureau (SLCB), and Sri Lanka Tourism Promotion Bureau (SLTPB)
should employ a globally driven destination marketing and branding that systematically
evaluates and reviews the state of tourism in the country with properly highlighting the best
practices applied in the crisis situations from the past, future forecasts to encourage private
sector. Most importantly, the PPP approach is much more appropriate for this effort.
Research and development activities should be encouraged in collaboration with academia to
open up the hidden cornerstones.

Further, local-global collaboration is essential in the recovery process. There should be a

strong linkage between hospitality and tourism businesses, supportive services, destination
management organizations as well as a strong reliance with public health authorities in terms
of monitoring and reconciliation of the infections. Local residents and other important
tourism stakeholders should be well informed and encouraged to carry out healthy ethics of
care to minimize the public uncertainties and risks.

As a summary, all stakeholders should pay attention on following necessities.

 Knowledge sharing and collaboration with necessary stakeholders locally and

globally
 Understand the consumer response after the pandemic, because the demand patterns
and consumer behavior in all market segments may show significant changes.
 Destination rebranding is very much essential after the situation highlighting the
positive elements during the outbreak
 Show the readiness and response of Sri Lankan government for the COVID 19
transmission compared to the competitive destinations
 Highlight the key incidents of Sri Lanka related to the tourists and international
visitors during the past tragedies
 Hoteliers, travel agents and other service providers should be continuously keep in
touch with key customer base during the outbreak (check their safety maintaining a
strong linkage)

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  Community Based Tourism should be properly encouraged with adequate resources to
mitigate and recover from outbreaks.
 Service providers and human resource within the tourism and hospitality industry
must be sufficiently educated and prepared for the recovery to retain and collaborate
with guests/ potential guests appropriately to avoid uncertainties and risks
 Responsible and ethical use of social media and mass media
 All possible communication channels should efficiently remain opened between key
tourism and hospitality stakeholders and the local and regional public health
authorities as part of a proactive strategic response plan
 Announcements and advices from global institutional structures such as UNWTO and
WTTC in order to recover the industry level globally
 National tourism bodies should continuously collaborate with the global level tourism
bodies to help the tourism industry prepare and respond to global health emergencies
 More researches should be carried out with the support of academia to see the indirect
effects of the outbreak

Areas need Immediate Attention

The domestic travel market will significantly grow compared to the international tourism
market to release the home bound stress of the community as an immediate effect. Mostly,
the tourism products related to the healing, well- being, heritage, culture, ayurvedic and
medicine, and freedom will be more vigorous market segments among the travellers.
However, the attraction towards events and festivals will be dramatically curtailed after the
COVID pandemic because consumers are driven upon the value factors such as safety,
friendships and price as more rigorous elements of consumer choice. Price levels may
drastically fall down in many products to encourage visitation and demand from the potential
market segments.

Another blooming market after such pandemic is the Visiting Friends and Relatives (VFR),
hence, travel agencies should make a special attention on the modified packages such as no
frills packages, seat only packages, etc. where travellers might switch towards more reputed,
and trust worthy and low- cost alternatives. The demand for rural locations will show a
significant growth compared to the crowded urban areas with high population density due to

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the practiced social distance experience remained in the mind of people. Mass media has a
major role to play in terms of domestic tourism promotion as well as community level
engagement. The social media has a major role in the recovery process. In conclusion, the
industry stake holders should be reinforced and stimulated to re-think of the processes and
systems to perform better with innovative and low cost strategies when the industry start up
again. ―Doing the right thing and Dong the things right‖ is very important. More technology
based innovations, low cost production and delivery, making the process more convenient for
all the participants without compromising on security would leads to immediate benefits in
the industry level recovery process.

IMPACT AND WAY FORWARD FOR MICE INDUSTRY

The Meetings, Incentives, Conventions and Exhibitions (MICE) industry is an important and
growing segment of the tourism industry with a great potential. Unfortunately, the COVID-19
outbreak has brought our world to a standstill with unparalleled and unforeseen impact in our
lives, our economies, our societies and our livelihoods and there are growing risks of a global
recession and a massive loss of jobs in tourism industry. United Nations World Tourism
Organization (2020) estimates international tourist arrivals could decline by 20% to 30% in
2020 and this would translate into a loss of 300 to 450 US$ billion in international tourism
receipts globally.

Further, MICE industry has been strongly affected by the disruptive effects of COVID-19.
Since the onset of the epidemic, hundreds of events have been cancelled all over the world
and waking up to the news of cancellations or postponements has become the new normal.
Sri Lanka‘s MICE tourism industry goes back to nearly 3.5 decades and it will be growing
slowly. But, there is a huge demand for incentive travels and corporate meetings as we have
diversified attractions in country. According to Sri Lanka annual tourism statistical reports in
2017 and 2018, business tourists and MICE tourists‘ arrivals are gradually increasing as 3%
of business tourists and 1% of MICE tourists in 2017 and 3.2% of business tourists and 1.2%
of MICE tourists in 2018. Moreover, this will directly influence the Sri Lankan MICE
industry and development of the country at large.

As a result of these adverse conditions, most of the event organizers have cancelled,
postponed and relocated their events. We have seen significant events like Mobile World
Congress, IMEX, ITB Travel Trade Show, or the Geneva Auto Show follow this course of

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action since, they cannot guarantee the safety of participants or if they anticipate logistics
problems due to travel restrictions. Not only that, We have also seen several organizers
postpone their events as the Olympics, the ILC International Liver Congress or Open
Networking and Edge Summit, which moved their event dates from the spring to late summer
and autumn. Postponement is not a unilateral decision since hosting an event at a later time
requires the approval from venue managers, suppliers, and sponsors.

Seizing the Benefit of Successful Combatting

Further, other option is to maintain the event date but choose a new location. India is facing
great deal of challenge in hosting scheduled events yet the under serious arrest of the
pandemic outbreak. Sri Lanka has been able to take the control of the outbreak and is in a
position to host some of the scheduled events. E.g. Indian Premier League (IPL) annual
cricket encounter is already looking the possibilities of hosting in the Island. If Sri Lanka can
attract such regional events and host under strict measures, the MICE industry has a great
potential to upsurge. However, there may be limited options in terms of venues, travel
arrangements, and accommodation. Moreover, there are financial considerations of dropping
a venue, or a hotel may affect overall profitability, as penalties may be involved. And also,
both the US and EU economies have been experiencing a persistent global economic
slowdown and decisions to hold meetings outside the country of residence of the
organizations are no longer an option for many companies in their efforts to combat the
economic downturn by pursuing cost-cutting strategies in future. The result will be the huge
drop and leakages of the economies of the developing countries especially Sri Lanka.

Virtual Events

As a country, to overcome these issues, we can develop alternative formats that allow people
to meet and interact remotely. Virtual and hybrid events emerge as two additional options to
consider in the face of disruption. Therefore, number of meetings and conferences have been
redesigned as virtual events and this format is probably the best alternative in these
challenging times. After this crisis, budgets become tighter, incorporating technologies that
allow for video conferencing and virtual meetings are increasingly seen by many organizers
as a cost effective option when holding MICE events. Virtual events mainly serve as a good
substitute for recession-prone exhibitors and attendees. Use of social media has become so
commonly used in marketing for almost every type of products and services in the MICE

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industry and is one of many underlying factors that have shifted behavior and challenged
traditional marketing campaigns.

Hybrid Events

Further, organizing hybrid events is a solution of retaining the MICE industry in a situation as
this. Hybrid events are feature a mix of live and virtual components. In this model, a number
of people may be present at a physical location while the audience at large attends the event
remotely. If we can adopt these two methods, we can get the number of benefits as increased
the financial benefits, increased attendance, measurability and ease of transition.

IMPACT AND WAY FORWARD FOR AIRLINE INDUSTRY

The government of Sri Lanka also has put in place several measures to control the spread of
the disease. Schools closed early for April holidays and it has been instructed employees to
work from home and this was followed by a mid-March all island curfew. Furthermore, from
22 March, the main airports in the country were closed for arrivals in order to prevent
imported COVID-19 cases which was the main source of outbreaks. Contrary to the Easter
Sunday bomb attacks, COVID-19 affects not only Sri Lanka but also nearly almost all the
countries worldwide are feeling its influence. The economic effect of this on Sri Lanka will
be influenced not only by what is happening in the region, but also by how the disease affects
global supply chains, markets and the worldwide flow of goods and people. With no visitors
come in and out of the country, the airline industry will be one of the most severely affected.
The bombings also mainly affected the Sri Lanka's airline industry, but the effect was short
lived. But with the covid 19 outbreak, most countries are put on curfew and travel restrictions
in and out of the countries, rendering airline industry more vulnerable in the long term
perspective.

On 12th March 2020, Sri Lanka has been indefinitely suspended the issuance of on-arrival
visas for all visitors and 13th March 2020, Sri Lanka‘s Civil Aviation Authority banned nine
European countries, South Korean and Iran. Finally by 22nd March, all passenger flight
arrivals into Sri Lanka stopped till Coronavirus threat is brought under control while all
departure flights from Sri Lanka continue to operate as usual. According to the head of the
Airports Council International (ACI), the impact of the Covid 19 outbreak on aviation was
rapid especially in the Asia Pacific region. The International Air Transport Association

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(IATA) forecasted that the global aviation industry passenger revenues will fall below the
figure for 2019 by 44 per cent or more than that.

The Sri Lankan Airlines is not only the flag carrier of Sri Lanka, but also the largest
international airline serving the Maldives and southern India, has reported a loss of LKR
Million 44,022.67 in 2019 with the outcomes of the Easter bomb attack. This year (2020) the
losses will be much more severe to the industry with the Covid 19 outbreak with the rapid
dropdown of passenger revenue. This would lead to a reduction of operating cash flow for the
Sri Lankan Airlines in the next few months, in addition to the refund costs of customers.
Another effect of the events chain is that the airline would not be able to maintain their leases
on the aircraft with the drop down of revenue. For the airport, this means not only decreasing
its operation in the short term, but also closing the commercial areas, halting airport services
operations and rapidly reducing operating income to zero. In addition, the expense will rise
significantly due to the introduction of new healthcare policies at the airport and the flights.
Furthermore, airlines would have to operate flights, even if largely empty, to maintain their
current slots at European Union airports, with a negative effect on both the economy and
environment. In the midst of this situation, Sri Lankan Airlines has announced a flexible
Travel Waiver Policy to its customers who has already purchased tickets to adjust their travel
plans which will help to maintain its customer loyalty.

According to the IATA, the governments need to provide financial assistance to airlines.
Each airline job saved would keep 24 more jobs, which could give airlines a fighting chance
to recover from a viable business. IATA has suggested a range of relief measures that needs
to be considered by governments, including direct financial assistance to passengers and
freight carriers to compensate for decreased revenues and liquidity due to travel restrictions
imposed due to COVID-19. In addition, loans, loan guarantees and funding for the corporate
bond market by governments or central banks, since the corporate bond market is a critical
source of financing for airlines, but the eligibility of corporate bonds for central bank funding
needs to be expanded and guaranteed by governments to provide access for a wider range of
companies. The government would be able to concern on tax exemption on payroll taxes
charged in 2020 and/or an extension of payment terms for the remainder of 2020 along with a
partial waiver of ticket taxes and other levies levied by the government. Therefore, the Sri
Lankan government needs to concern on the airline industry by providing necessary financial
and policy support to minimize the impacts caused by COVID 19 outbreak.

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CONCLUSION

Presently, this unprecedented public health crisis has become a catastrophic economic crisis
to the entire globe and consequently the tourism hotel and event sector. The recovery has to
be gradual parallel to the recovery of other sectors, combatting the outbreak and regaining
economic performances. Thus the measures proposed are to be implemented incrementally in
response to the evolving conditions. Therefore, ensuring the safety of the guests and the staff
have become a top concern of the hospitality industry stakeholders. At the same time, to
recover business losses and to rebuild the positive image in the mind-set of the guests it is
essential to initiate strong marketing and promotional campaigns both locally and
internationally. Further, promoting ‗flexi-services‘ would be another strategic tool to attract
potential customers. Hence, offering flexible prices, cancellation policies, flexi-work
environment etc; would be beneficial in achieving long term sustainability of the hospitality
business industry. One of the first to feel its impact and one of the hardest hit has been the
MICE industry. Since the onset of the epidemic, hundreds of events have been cancelled all
over the world. And also, this will directly impact to the Sri Lankan MICE industry and
development of the country. Further, it is vital and will play a pivotal role in the world‘s
economic recovery from Covid-19. Therefore, virtual and hybrid events emerge as two
additional options to consider in the face of disruption and we can get the number of benefits
as increased the financial benefits, increased attendance, measurability and ease of transition.

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