Travel industry and restaurants worry about toughest social distancing rules

By Jun Ji-hye

Hotel, food service, airline and tourism industries' expectation toward a business recovery in the latter half of the year is turning into disappointment, following the government's decision to apply the toughest, Level 4, social distancing rule in the Seoul metropolitan area, which includes Incheon and Gyeonggi Province, amid an explosive increase in COVID-19 infections in the area.

The industries had expressed hopes that their businesses would improve in the third quarter, provided that the country's vaccination rate picks up speed, combined with expectations of the government easing social distancing rules.

However, the government changed its position on Friday and announced its decision to place the Seoul metropolitan area under the toughest social distancing rules for two weeks beginning on Monday, due to concerns over another wave of infections.

Under the Level 4 social distancing rules, accommodations are allowed to operate less than two-thirds of their rooms and are banned from hosting any parties and events. The decision will force them to cancel reservations that have already been made by some clients.

“We are already receiving many telephone inquiries about the need to cancel reservations,” an official from a five-star hotel in Seoul's Gangnam District said. “We may have to cancel reservations for those who booked rooms later than others.”

The Level 4 rules are also expected to deal a blow to food service industries' businesses, especially at night, as gatherings of more than two people are banned after 6 p.m.

An official from a food service company that operates various restaurant chains said that such a ban will inevitably lead to a decrease in sales.

“There will be nothing left when restaurant owners subtract all the costs, such as personnel expenses and rent fees, even if they operate their restaurants at night,” the official said.

Tourism and airline industries face similar situations.

Around the world, the industries that have been hit hardest by the prolonged pandemic were expecting to see a recovery in demand for travel this summer, with the number of vaccinated people increasing.

Officials in the tourism industry are raising concerns that the Level 4 rules, which in effect restrict people's movements except for essential ones such as going to school or to work, will affect demand for travel during the peak summer season.

“As travel is significantly affected by the psychology of people, recent fears over infections reduce demand,” a representative from a Seoul-based tourism agency said.

Airlines, especially low-cost carriers, which have largely depended on domestic routes amid the pandemic, have been actively carrying out their promotional activities for the summer season. But now, worries are growing over the possibility that clients will cancel their reservations.