Top 5 losers from crisis: industries most impacted by covid 19
Pandemic is still going strong and it seems that we may be back to normal in 2022. We are in the middle of 2021 and it seems impossible to return to normal life in the next few months. Countries used only two billion vaccines so far which is enough for 15% of the world population. Pandemic is very tough for businesses too. There are few industries that saw massive losses in revenue and interest from the start of the pandemic. Today we will talk about the top 5 industries most impacted by covid 19.
Table of Contents
Travel space – one of industries most impacted by covid 19
In the wake of the global pandemic, it was obvious that travel space would get a big hit. Travel industry got the biggest hit since the first quarter of 2020. Technological development brought us together and in the last few years, travel space was on top of the attention. With more than 1 billion travel trips alone in 2019, it went downhill after the pandemic started. Firstly, people were afraid of travelling, especially in EU countries such as Italy, Spain and the UK. Those countries got a big hit of covid pandemic in late March and we saw thousands of registered deaths. Secondly, the countries started closing borders so it was impossible to travel abroad in 2020.
Watch DW News interesting video on how big was the covid-19 waves for tourism industry
Data shows reality tourism sector has to worry
If we take a look at the stats, it’s even worse. For instance, only 5% of the regular tourists visited Paris in the summer of 2020. Paris is the city of love and people love visiting this European stylish city. Not only Paris but other big and adventurous cities like Nice, Rome and Barcelona got a big hit. The World Tourism Organization predicted a 90% decrease in the tourism sector of 2020 and their prediction became reality. Although nobody knows what the future holds, one thing is certain. We definitely know that social distancing and regulated tourism will be a new normal for upcoming years. WHO suggests that vaccination may last for 2 more years, so it’s impossible to re-create exact same tourism framework as we had in the pre-pandemic world.
Entertainment industry (movie companies, movie theatres, theatres, etc.)
Entertainment is one of the industries most impacted by covid 19. Economic recession and lockdown was the biggest nightmare for every company operating in the entertainment space. Not only movie production companies but also theatres, cinemas, entertainment spots for children – all these places had to lock doors for a few months.
Watch video on how covid-19 pandemic affects on entertainment space
Movie production companies
Online movie streaming platforms got the biggest increase in history. Netflix broke a few records in 2020 and they are not going to stop in the near future. It’s easy to sit on the sofa or lay on bed and watch movies on Netflix. On the other hand, the biggest revenue-share for the movie companies come from the theatres and big premieres. Cinemas are closed, so companies delayed movie premieres. When the movies have online premieres, it’s easy for hackers to steal it and share on Torrents or Warez type of websites. So, movie production companies postponed premieres. The delay always leads to serious financial issues. For instance, Marvel Studios delayed premieres of the biggest MCU movies. The stats show that MCU lost around half a billion dollars due to delay and pandemic.
Watch Reed Hesting's mini interview about the Netflix stats and success during the pandemic
Movie theaters like AMC get a big hit in 2020
Quarter 3 and 4 were the biggest hits for movie theatre chains like AMC. All the biggest movies were delayed and in most countries, AMC theaters were closed. The company registered a 90% drop in revenue in the fourth quarter compared to 2019. The third biggest movie theater chain (Cinemark) suggested a 98% drop in sales which is the biggest loss in the movie theater space. Covid pandemic is still going and there are many things uncertain at this point. There are still countries that have not given full permission to movie theaters.
Watch interesting video from CNBC Business about the panic from companies owning movie theater chains.
Culture in financial crisis
Culture space that employs around 50 million people around the globe got the biggest hit. According to UNESCO, 90% of the world’s art galleries has to cut the staff by a minimum 50%