Homework Answers
In my opinion, tourism based business like Hotel will suffer the most. People are worried for health and may not travel. States putting sanctions is also a reason. Demand for holiday packages in these hotels is elastic. When people are unsure of future income then they will first cut down on outings. Budget problems and fear for health are main reasons.
Operating costs are higher and as hotels are unable to cober them, they may have to ask employees to leave. Price wars may start citing limited tourists and businness will suffer more post pandemic too.
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