Downturn in tourism impacts restaurant industry: analysis

National Restaurant Association reports impact of fewer travelers, tourists

The impact of COVID-19 on travel and tourism has cascaded over to the restaurant industry. Added to the economic impacts of the coronavirus, like business closures and capacity restrictions, is the impact of fewer people traveling. according to the National Restaurant Association.

All restaurants segments appear to be affected. Fine dining restaurant operators have typically brought 41 percent of their sales from travelers and visitors. And one quarter of fine-dining operators drew even more, with at least 60 percent of their sales coming from travelers and visitors before COVID-19. Sadly, the overall proportion of fine-dining restaurant sales from tourism plummeted to 19 percent during the June to November 2020 period.


In the family-dining, casual-dining and coffee-and-snack space, operators say that travelers and visitors made up about 33 percent of those sales. In limited-service, they accounted for 25 percent of their restaurant sales in 2019, now dropping to 10 percent of sales from June to November of 2020.

Restaurants that depend on tourism for their business will likely find a longer road to recovery than their counterparts that derive most of their sales from local customers.

To read more about the impact and review a detailed chart, navigate the Association’s website.


Photo credit: Louis Hansel (featured preview image)

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