Article

Covid-19 and the Nordic Hospitality and Retail Sector

With retail and hospitality being two of the hardest hit property market segments the effects of the contraction in the Travel & Tourism industry figures are strongly felt.

April 14, 2020

By Dragana Marina

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There is no doubt that retail and hospitality are two of the hardest hit property market segments. Although there are differences in how the
governments responded to the COVID-19 outbreak, with Denmark closing all non-essential stores, to Sweden allowing all stores to remain open,
the decline in footfall and sales is unanimously present across the region. The Nordic countries being highly regarded as attractive tourist
destinations, the effects of the contraction in the Travel & Tourism (T&T) industry figures are strongly felt.

Indeed, the global travel industry is facing activity reduction – by some estimates of more than 90%. Airlines, cruise companies and hotels are
suffering as a consequence of low or non-existent tourism activity, trade fairs and cruises being cancelled, travel restrictions and quarantines,
cancellation of company travel and meetings and closed borders. Obviously, countries that are more reliant on tourism will be comparatively more
affected by the crisis.

Moreover, the local activity that is disappearing due to the crisis will have a major negative impact on the economy. All service-oriented businesses
such as dentists, hair dressers and restaurants are suffering losses that cannot be recovered. The fact that we are choosing to postpone the purchase
of our favourite perfume is not making a big difference, as our purchase will take place just at a latter point. But all other services are lost – we are
not going to go to the restaurant more often once the outbreak is under control just to make up for the lost nights out. Nor will we visit the hair
dresser twice in a month.

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