A lot of times, when you read some news about the coronavirus and its impact on the economy of the world, you only read it for its face value. You are constantly being fed news about the impact of the pandemic on businesses around the world. When you see a business has closed because it lost customers due to the pandemic, you only see that business closing. However, when you look at the big picture, you will realize that there is much more to consider. The virus has had a domino impact on the industries.
No one could have explained this effect better than Israel Figa, who has been studying the impacts of the virus on the global economy since day one. So, what exactly is he calling the domino effect of the current pandemic? Let’s find out.
Coronavirus Hurting Business after Business
So, there are many ways for you to know how the coronavirus has been affecting the businesses all over the world. However, according to Israel Figa, you can take the example of the hoteling and restaurant industry and the connection with the agricultural sector. When you think of hotels, you only think about them providing you with accommodation and food, but where is all this food coming from? If a hotel has 500 different guests staying at its rooms and thousands of customers coming at its restaurants every day, you can already imagine the amount of food that is being consumed at its premises.
When it comes to food, in addition to the meat that customers eat, there is a lot of consumption of vegetables, fruits, herbs, roots, etc. You are talking about a huge industry with a huge overall consumption of these resources. However, due to the pandemic, the hotels are going down in terms of their sales. Their rooms are being accommodated rarely, which means there is no one to eat food at their restaurants and in their rooms. Traveling has been on the stop, so there is not a lot of tourism taking place either. In other words, the less food hotels make, the less food goes out of the farms of the farmers.
You can be sure that this has affected the entire world directly. In a similar manner, you can think about the airline sector that has also been affected directly by the lockdowns and countries shutting down their borders for other countries. Airlines are a huge business not only for the traveling agencies but also those who sell meat. The food that is served on airlines has to be provided by meat and poultry suppliers. Since the airlines have been reduced to half or even worse, they don’t have any place to sell their meat.
These people are now relying on final consumers to buy their meat products. On the other hand, when you are a meat business owner connected with an airline to provided it with meat on a daily or weekly basis, you are talking about meat being sold in tons. Final consumers can consume as much as they want, but the business that comes from them cannot be compared to what these businesspersons were earning from the airlines.
So, you can see that the closing of borders and stricter SOPs being followed on the planes have caused many airlines to completely shut down. Those that are still operating have chosen to not provide their customers with food because it can result in the transferring of the virus from one person to another.
You can see how Israel Figa has a 360-degree view of the whole thing. The spreading of the virus has impacted businesses in more ways than a layperson would realize. If you are a business owner that relies on another business, you have to think of an innovative way to keep selling or decide as fast as possible to exit the business and try something else.