Travel Agencies on Verge of Bankruptcy Due to Covid-19

Travel agencies suffered losses to the tune of 10 trillion rials ($38.5 million) in the first two months of the Covid-19 pandemic in Iran alone, of which 40% were due to the decline in domestic tourists and 60% by fall in the number of international tourists, says the head of Travel Agents Guild Association.
“Travel and tourism sector has been one of the hardest hit by the coronavirus. Losses incurred by businesses active in the field are even more startling in Iran compared with other countries because most governments have lent financial support to the sector whereas in here the government has failed to offer adequate help to the tourism industry,” Hormatollah Rafiei was also quoted as saying by the news portal of Tehran Chamber of Commerce, Industries, Mines and Agriculture. 
The official noted that travel agencies and airlines alone had 50,000 people on their payroll, which has now reduced to fewer than 10,000, which shows that 40,000 people have lost their jobs following the outbreak of coronavirus. 
“Today, only 20% of travel agencies have managed to keep their companies afloat, while others have shuttered and jobs have been lost. Of those still active, more than 60-70% have downsized their staff. An agency, which used to have 100 employees, is now working with 20,” he said.