As the effects of COVID-19 spread across the entire world, the primary focus for governments and businesses is the safety of their people.
Whilst this focus will continue, the implications for economic growth and corporate profits have to lead to a sharp sell-off in equity markets across the globe. We are proud to see that our hospitality and leisure clients, being the first ones that experienced the extreme bad weather conditions, are moving quickly and remain focused to understand and quantify the operational and financial impact for their business. The impact is huge, and not yet predictable, on both revenue and supply chains. Decisions being taken to shut down hotels, restaurants, theme parks, cinemas, not to mention the entire disruptive effect of the travel ecosystem, all have a significant impact on worldwide tourism. As a team, Operators and Investors are trying to mitigate the cash and working capital issues, and stay in close contact with their stakeholders.
We are proud to see that this sector shows its maturity level: in working together, showing their true hospitality commitments in helping out our society where they can. For example, by making their venue available for hospital beds and hospital employees. The situation we are in also brings new business models and opportunities, in defining for instance new delivery concepts, human capital sharing platforms, initiatives in promoting the “staycation or holistay concept” and the use of the less productive time to work on activities that were normally pushed forward like asset counts, security plans, defining standard operating procedures, social media plans etc.
Given the protracted nature of the pandemic, we need a set of policies to carry us through the next two years, designed to counteract the disparate impacts of COVID-19 on workers, businesses, and communities.
This gives hope for the sector at this stage in time. Stay positive, stay focused and stay alert on your financial situation.