Reshaping Hospitality: The Impact of COVID-19 on the Hotels and Restaurants of District Swat, Pakistan

Abstract

The COVID-19 pandemic badly affected the global economies and the tourism and hospitality sectors. However, Swat is an area that heavily relies on tourism, and the pandemic has caused devastating economic losses, business closure, and unemployment. However, it left the hospitality industry in extraordinarily challenging situations due to the change in consumer behavior. This study aimed to investigate the impacts of COVID-19 on Swat's hospitality sector, including employment, revenue generation, and operational challenges to hotels and restaurants in the pre-and post-pandemic era. This study was conducted through qualitative research design through in-depth interviews and Focus Group Discussions (FGDs) with the owners and employees of hotels and restaurants in Swat. The data were analyzed using Braun and Clark's six-step thematic Analysis model, and key themes were identified. The research findings reveal the destructive impact of the COVID-19 pandemic on Swat's tourism and hospitality sector, the reduction in tourists, the number of employment opportunities and the reduced income of the owners. The hospitality sector of Swat is deeply impacted by COVID-19, which impacts business, employment, and consumer behavior. After the closure of several hotels and restaurants that were at a loss because of no tourists, the unemployment ratio has increased significantly. People were worried about their health and preferred staying home, which shifted to online services. The lack of expertise of restaurant owners in online services worsened the economic sufferings of the hospitality industry. The sector's recovery is critically dependent on the sector's ability to adapt to changed consumer expectations and technological improvement. However, recovery support will require financial relief measures, skill development programs and incentives for digital transformation. We suggest tourism-build resilience by promoting domestic tourism and diversifying offerings and funds for tourism-specific emergencies. Joint efforts from government and private stakeholders must revive Swat's hospitality industry.