Economic impact of covid- 19 on travel agencies of Kathmandu district in nepal

Abstract

In this study the effect of COVID-19 pandemic on travel and tour business in Nepal is tried to analyzed using the secondary data of the 81 travel and tour companies inside Kathmandu valley. This study mainly analyzes the examine the pre and post COVID19 incom and expenditure position of travel agencies. This study covers primary data as well as secondary data for the analysis. For this study, data about the effectiveness has been collected through direct personal interviews with the help of a structured questionnaire for the study area. In this study descriptive statistics and paired sample mean test are used for the analysis of per and post COVID data of the sample travel agencies. It descriptive analysis in this study found that the income and expenditure position of the travel agencies as annual turnover, annual tax payment, annual airline payment, annual salary, annual rent, annual electricity expenses, annual communication expenses, annual admin expenses and annual miscellaneous expenses has been heavily decreased during the COVID-19 in year 2078 which were in satisfactory level before the COVID-19 in year 2076 and 2077. However, in year 2079 and 2080 the travel agencies are somehow recovered for the huge economic loss form the COVID-19. Similarly, the paired sample test in this study found that there is significant difference in the average annual turnover, average annual tax payment, average annual airlines payment, average annual salary expenses, average annual rent expenses, average annual communication expenses, average annual administration expenses and average annual miscellaneous expenses of the travel agencies in Kathmandu valley. The paired sample analysis showed that all the income and expenditure pattern of the travel agencies are significantly affected by COVID-19. In addition to the urgent actions required, policymakers must take the COVID-19 crises' lessons to heart. The government has raised the expectations of tourist entrepreneurs, but they have been let down thus far by the absence of a strategy for the industry.

Keywords: Annual turnover, Annual expenses, COVID-19 pandemic