DISCUSSION WEEK 12 (4)

Managerial Economics

Student’s Name

Institutional Affiliation

Course Tittle

Professor’s Name

Date

The impact of Covid-19 restrictions on tourism

With so many confirmed cases of COVID 19 around the world, the coronavirus epidemic has affected almost every industry worldwide this year. Currently, with the assertion of COVID-19 as a tragedy by the World Health Organization on March 11, there has been so much effort to avert the spread of the infection, which has signified the annulment of numerous happenings, including festivals, sporting games, and movies. The Ireland professional golfers’ association is aware that the golf clubs use several business models in line to provide their services effectively. Majorly all golf club in Ireland is at present affected by commerce disruption as a result of the COVID-19 crisis, whereas government support and advice were evolving almost daily. 

Golf tourism was giving out in €270m yearly to the Ireland economy in the years before COVID 19. This pandemic is an unprecedented and unexpected disaster for our business. Tourism is an important sector in the Ireland economy. It will be essential for me as an individual who has been appointed to do consultancy work for a large golfing resort to keenly provide some lucidity to this club on what the government support is presently available under a number of scenarios. According to the golf association, the revenues have collapsed by approximately 97 per cent, whereas 2021 could be down 80 per cent on the previous year, placing the feasibility of the whole sector at risk. The pandemic is mainly a comprehensive wipeout. It’s not only the virus, but also the travel restrictions too that hinders the tourists. This section focuses on the economic effect of tourism on how demand and supply have been impacted this year by the halt of tourism, in the short and medium-term. This paper section concludes with policy implications. 

The tourism economy in Ireland has been seriously smashed by the coronavirus (COVID-19) crisis, and actions put into practice to contain its spread. Depending on the period of the pandemic, reviewed circumstances show that the potential risk could range between 50%-70% declines in the American tourist economy in 2020 (Bowes et al., 2020). Nearly every golf Club in Ireland is currently impacted by the business disruptions due to this crisis emergency, while administration guidance and sustenance is evolving nearly every day. The COVID-19 epidemic had an unexpected and extensive impact on the tourism sector, for instance, the Golf resort club. The international wellbeing crisis and the hesitantly subsequent from it deeply affected the Golf operations along with individuals, both independent and employed across the sector.

The majority of the Golf did not surprisingly report the risk of closing permanently within three months, stressing on the requirement for quick governments actions to provide help. Ireland is in the phase of fighting the virus while at the same time managing the re-opening of the tourism economy. It is a challenging and complex responsibility, and reckoning the impact on the tourism economy is hard.

The Golf resort needs to put effective measures to deal with falling revenues. Considering ahead, the actions put into practice ahead will shape the tourism of tomorrow (Nhamo et al., 2020). The administration requires to by now deliberate the longer-term insinuations of the pandemic, while remaining ahead of the digital curve, backing up the low carbon changeover, and supporting the organizational change required to create a resilient, more sustainable and stronger golf tourism economy. The emergency is a chance to rethink tourism for the coming days.

The Fall in Demand for Oil

Oil is a vital resource in the entire globe. Individuals use oil in different ways. The universe has used oil for many years, and it will still continue to use it as a basic product. Its usage can be traced back to then in the 1850s. Though, when Edwin Drake manufactured commercially functional amounts of crude oil from a 69-foot well in Pennsylvania in 1859, he made a new era that deliberated oil as a cherished and valued commodity. Oil prices have been varying and changeable since 1859. The findings of additional wells significantly reduced oil costs and made many oil barons abandon the business. Nevertheless, oil costs have augmented over time because of different factors.

The fall in demand in oil usage in March and April generated a sharp reduction in oil charges. In response, several oil manufacturers reduced production. The virus has had a bigger consequence on the oil demand in a manner that after its occurrence, energy prices have seen a fractional retrieval driven by crude oil charges. The recent drop in oil demand and prices has been a result of a number of factors: weakening global demand, the unwinding of some geopolitical risks, several years of upward surprises in the production of unconventional oil, and a significant shift in OPEC policy.

One of the factors that benefit from lower prices is those that are reliant on consumer expenditure. When patrons spend less on oil, they have more non-refundable income for other purchases. The cost of oil has become negative for the first time in history. That denotes that oil producers compensate consumers for taking the resource off their hands over worries that storing volume may perhaps run out in May. Demand for oil has all but become more reduced as lockdowns across the universe have kept individuals inside.

The cost of oil impacts the price of other manufacturing and production across the nation of Ireland. A fall in fuel costs signifies reduced conveyance prices and low-priced carrier tickets. COVID 19 travel restrictions have resulted in an unprecedented fall in demand for oil, according to the World Bank. Costs have dropped abruptly, and below zilch in several cases. With a lot of the world shut down as a result of the coronavirus crisis, the outcomes for supplies have been dramatic. Another factor that causes a drop in oil demand and supply is natural disasters. Such disasters may include flooding and Katrina hurricanes. From a global outlook, political uncertainty in the Middle East results to oil values to fluctuate, as the area accounts for the larger share of the world oil supply. On the other hand, production expenses affect costs, together with storage capacity; even though less impactful, the course of interest rates can also impact the price of supplies.

This the occurrence of COVID 19, causing the economic slowdown, including oil dropping, it is essential to recommend an oil production reduction to sustain reduced demand. The cut would favor US shale manufacturers whose product development has moved oil movements and debilitated the comparative position of both Russia1 and OPEC. It is also essential to gain markets by giving discounts to customers in the Americas, Northern Europe, and Asia. It is also significant for the company to add barrels per day to its production over the approaching months. Oil majors that function across the whole value chain can hedgerow against several of the reduction in upstream returns with augmented margins in purifying and downstream retail corporate. In addition, corporations with trading supports, such as Shell and BP, can discover additional advantages in market instability.

Stopping Teenage drinking

Underage alcohol consumption has become one of the greatest social issues among young individuals in Ireland nowadays. Even though more than half of young adults drink on a regular basis, the main concern is that they are not conscious of how dangerous alcohol can be. The truth is that liquor is normally the reason for a lot of problems among these youngsters. In other words, it ruins lots of young individual’s lives and is currently one of the most serious problems and difficulties the underage generation goes through.

            Consuming alcohol and driving is one big issue normally connected with underage or teenage drinking. Deadly alcohol linked crashes make up 25% of the crashes involved among young drivers. Alcohol decreases the ability to concentrate, dampens parts of the brain that are vital to decision making, and reduces the response time behind the wheel. Those drunken teenagers are treacherous on the road and can simply hurt someone innocent or themselves. Something big requires to be put into practice, or this risky tendency will continue to harm several individuals in the forthcoming days.

             Another concern with underage alcohol consumption is the reality that they lose control of their actions. These drink regularly consequences in youngsters engaging in risky sexual behavior. Unplanned pregnancies, sexually transmitted diseases, raping, and HIV infections very commonly connected back to when they had been taking alcohol. These underage individuals lose judgment and a lot of times take part in things they would not do if they had not drunk. Losing judgments outcomes in various actions that are regretted, and as a result, they then comprehend that they could have been circumvented.

             Consuming alcohol is tremendously damaging to someone’s body, particularly to an underage. It has a negative impact on almost every organ system, either indirectly or directly. Inopportunely, alcohol drinkers usually do not reason about what types of consequence alcohol will have on them when they become older; so a lot of underage ends up learning the difficult way. Underage or teenagers that abuse alcohol regularly develop problems with their stomach, liver, mouth, heart, and throat.  

Options to deal with the issue of underage alcohol consumption may have impacts on governmental objectives and other unintended consequences. Among conceivable interventions projected to lessen alcohol consumption among the underage drinking in Ireland is alcohol price control which includes restriction or bans on discount sales, the use of price promotions, flat rates for unlimited drinking, and sales below cost. Findings confirm that pricing has the downwards sloping demand curve. As the cost of the alcohol rises, the quantity demanded of the alcohol falls. Policies that increase the costs of alcoholic drinks can be operational in decreasing the economic, health, and social outcomes resulting from alcohol usage and abuse among underage individuals.

Increase in alcoholic drinks price and taxes leads to significant diminutions in alcohol drinking among the underage. As a result, the government will generate substantial new tax revenue. Alternatively, rising alcohol taxes can negatively impact or be harmful to some alcohol businesses and also impact to rising of the number joblessness (Sunday et al., 2019). Alcohol may perhaps be taxed centered on its value, or capacity of pure alcohol, for instance through an excise. One likely strategy response to the problem of diet-related sickness is non-alcoholic drinks taxes and subsidies. However, the net wellbeing gains of these methods are indeterminate because of substitution effects between foods. A subsidy on non-alcoholic drink will reduce alcoholic drink consumption. An education policy via advertising and school visits to spread the word on the damage of excessive alcohol use could manage the problem of underage drinking of alcohol in Ireland. A school is a significant setting for interventions intended to prevent alcohol usage and abuse among the underage. Most of the school interventions attempt to lessen risk issues for alcohol use among the underage.

Reference

Bowes, A., Lomax, L., & Piasecki, J. (2020). The impact of the COVID-19 lockdown on elite sportswomen. Managing Sport and Leisure, 1-17.

https://doi.org/10.1080/23750472.2020.1825988

Harding, F. M., Hingson, R. W., Klitzner, M., Mosher, J. F., Brown, J., Vincent, R. M., … & Cannon, C. L. (2016). Underage drinking: a review of trends and prevention strategies. American journal of preventive medicine, 51(4), S148-S157.https://doi.org/10.1016/j.amepre.2016.05.020

Khan, M. I. (2017). Falling oil prices: Causes, consequences and policy implications. Journal of Petroleum Science and Engineering, 149, 409-427.

https://doi.org/10.1016/j.petrol.2016.10.048 Nhamo, G., Dube, K., & Chikodzi, D. (2020). Impact of COVID-19 on the Global Sporting Industry and Related Tourism. In Counting the Cost of COVID-19 on the Global Tourism Industry (pp. 225-249). Springer, Cham

https://doi.org/10.1007/978-3-030-56231-1_10

Sunday, S., Keogan, S., Hanafin, J., & Clancy, L. ESPAD 2019: European Schools Project on Alcohol and Other Drugs in Ireland.