Insider Business Coronavirus epidemic to hit consumption hard

Coronavirus epidemic to hit consumption hard

Tourism will probably be the sector to be affected the most from the coronavirus, but the epidemic is also expected to hit consumption hard, even harder than the economic crisis of 2013, Phileleftheros reports.

Even though the extent of the damage cannot be estimated yet because of the prevailing uncertainty, the epidemic’s impact raises concern for a number of industries and businesses.

With the Easter holidays just around the corner, many businesses had high hopes that consumption would rise. However, the spread of coronavirus, increased protection measures and the psychological factor have put a lid on these expectations.

The catering, leisure, clothing and footwear businesses, and, in general, all those that have nothing to do with essentials, are now feeling uncertainty over turnover in the near future.

The tourism sector felt the consequences of the coronavirus from day one, with seasonal hotels, restaurants and leisure centres considering postponing their operation by a month.

Especially after hotels operating all year round have reported only about 20% of occupancy. Companies that are expected to also feel the pain are those supplying the hotel industry with food, beverages and toiletries.

HORECA (Hotel/Restaurant/Cafe) businesses are expected to be hit hard, depending on the duration of the outbreak, along with companies organising conferences and events.

Postponed or even cancelled events, such as conferences, conventions, baptisms and weddings are already on the rise following the Ministry of Health’s decree prohibiting more than 75 people indoors at the same time.

The market’s key players fear a complete stagnation over the coming days since people are already opting to isolate themselves at home, avoiding indoor spaces, restaurants, pubs, bars, and cafes.

In terms of consumption, supermarkets are recording big sales with most popular products being antiseptics and household cleaning supplies.

By Demetra Landou

 

Read more:

https://in-cyprus.com/latest-on-the-spread-of-coronavirus-around-the-world-3/

 

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