Designated as a global pandemic by the World Health Organization (WHO), the novel coronavirus has a devastating impact on the U.S economy and the world as a whole. The effect has been felt by giant companies like the Dow Jones Industrial Average, which has recorded a drop from 29,000 in February to 21,000 by mid-March – around 30% drop.
This company recorded the highest single-day drop in history on March 16th when it dropped by 3000 points. As countries around the world try to contain the spread of the deadly virus, the global economy is struggling to survive.
Although the pandemic has affected almost all industries in the world, some have been hit harder than others. The information we have provided here is based on the publications by the Bureau of Labor Statistics. As you would expect, the hotel and restaurant industry is among the most affected since the Center for Disease Control and Prevention has banned a gathering of more than 50 people.
The worst part is that some American workers have already been sent home, and more are expected to follow as countries go on lockdown. This a big threat to financially insecure people in the world. Here are some of the hit industries by Covi-19:
Airlines
Since both international and local flights have been grounded, the Airline industry is expected to be hard hit by this pandemic. It’s projected by the International Air Transport Association that the US and Canada could lose up to $21.1 billion in revenue while the worldwide industry could see a decline in revenue of up to 20%.
In case the spread continues, the big airline companies in the world may go bankrupt by the end of May 2020, according to the Center for Aviation (CAPA). This has forced most airlines to cut capacity in half for April and May as well as freezing stopping hiring. For instance, Norwegian Airlines laid off 90% of the staff on March 16.
Betting on Live Sports
Many sports leagues from around the world like NBA, NHL, XFL, and others have been postponed, and others have been suspended. This does not only affect the organizers and players but the extensive ecosystem around them too. The additional advantage is that there are no events to place a bet and even all sports betting operators without Gamstop scheme lose their revenue.
For instance, the NBA is estimated to lose between $359 million and $450 million from ticket sales if the games are cancelled. Besides, the league also risks losing up to $200 million from non-ticket revenue sources like parking, merchandise, and others. Though the NHL doesn’t make as much as the NBA, it stands to lose a bigger percentage of their annual revenue.
Offline Entertainment
Most land-based entertainment venues like casinos have also fallen victims to COVID-19. This comes as stringent measures to curb the spread of the coronavirus. Some of the biggest casinos in Las Vegas and other major gambling destinations have been shut down, and most employees laid off.
Some casinos have been requested to close for two or three weeks, while others have been closed indefinitely. Besides gambling venues, the virus has also affected other big events like NCAA Men’s Basketball Tournaments. In 2019, this event alone generated about $8.5 billion in revenue. However, things seem to be taking a different course with the cancellation of major sports like the NHL, NBA, and European Soccer.
Film Production
After the Oscar-winning actor, Tom Hanks went public that he had tested positive for the COVID-19, the production of the film he was working on was closed. This is only one of the hundreds of films and TV shows that stopped production out of fear that the entire crew might be infected.
For now, we would not see any new good film released and could only dream of interesting films such as High Roller. Of course, these films were to generate billions of dollars to the U.S Box, thus boosting the economy. Hundreds of crew members, including drivers, directors, production assistants, camera operators, lighting technicians, are rendered jobless whenever a film production is halted.
Tourism
With hundreds of travel companies and airlines shutdown, the tourism industry has closed down. There are many countries that depend on tourism to boost their economy. This will no longer be possible because of the limitations that have been created by this pandemic.
The closure of big hotels and restaurants that have been welcoming and hosting tourists has also made it difficult for everyone to run any business.
Conclusion
The novel coronavirus, COVID-19 has crippled almost all the major industries of the world. Though experts and other professionals work around the globe to find a lasting solution, it will take time before the world economy can stabilize. We hope that more efforts will be made to ensure that the industries resume production again.
