How Covid-19 impact Recreation Industry: An Empirical Evidence from Pakistan

Abstract

The purpose of this survey was to investigate the impact of COVID-19 on businesses operating in the recreational sector in Pakistan. The survey was carried out in October 2020 and the questionnaires were aimed to assess the outbreak consequences from an operational and financial point of view. The findings revealed that over 55% of companies operating within the recreational and hospitality industry have already closed some of their shops or outlets. 80% of the respondents disclosed that their profit is turning into loss due to revenue decrease as compared to the previous year 2019. While a majority of the respondents were not prepared for this uncertain situation. This study deduced three major findings. First, the hospitality industry is uniquely unorganized in Pakistan, with various intrinsic limitations contributing towards dissemination of incorporated SMEs, lower level of functional expertise, and lack of financial strength. Secondly, the limitations occur due to the lack of communication between the recreational industry and, which hamper the growth of the recreational sector, and thirdly, there is no central level strategy among provinces to promote the hospitality industry to the national level.