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The impact of COVID-19 on the tourism and hospitality Industry: Evidence from international stock markets

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  • Liu, Yan
  • Cheng, Xian
  • Liao, Stephen Shaoyi
  • Yang, Feng

Abstract

COVID-19 seriously affects the tourism and hospitality industry. In this study, we investigate the behavior of 40 tourism and hospitality stock market indices worldwide from two perspectives. First, empowered by the Granger causality test and network analysis, we test the spillover effects among these stock markets and find that the dynamics of interconnectedness network structures differ significantly in the pre-pandemic and in-pandemic periods. Second, we employ econometric models to explore how the influence of COVID-19 on these stock markets varies by considering the interconnectedness structure, the government response stringency index, and other country-level characteristics. We find that the interconnectedness structure significantly and robustly affects stock returns in the tourism and hospitality markets. Our investigation provides a better understanding of the impact of COVID-19 on tourism and hospitality industry.

Suggested Citation

  • Liu, Yan & Cheng, Xian & Liao, Stephen Shaoyi & Yang, Feng, 2023. "The impact of COVID-19 on the tourism and hospitality Industry: Evidence from international stock markets," The North American Journal of Economics and Finance, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:ecofin:v:64:y:2023:i:c:s1062940822002108
    DOI: 10.1016/j.najef.2022.101875
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    2. Eloy Gil-Cordero & Pablo Ledesma-Chaves & Jaime Ortega-Gutierrez & Heesup Han, 2023. "Organizational value and participatory leadership for sustaining the competitive advantages of hospitality and tourism companies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-17, December.
    3. Oumaima Lamhour & Larbi Safaa & Dalia Perkumienė, 2023. "What Does the Concept of Resilience in Tourism Mean in the Time of COVID-19? Results of a Bibliometric Analysis," Sustainability, MDPI, vol. 15(12), pages 1-23, June.
    4. Guo, Qingran & Ahmed, Khalid & Ding, Cuicui & Khan, Bareerah, 2024. "How the pandemic-led volatility in the natural resource commodity indices affect U.S and China markets," Resources Policy, Elsevier, vol. 90(C).
    5. Sami Özcan & Murat Serçemeli & Ali Kemal Çelik, 2024. "Analyzing the Effects of Covid-19 Pandemic on the Financial Performance of Turkish Listed Companies on Borsa Istanbul using the Entropy-based Grey Relational Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 14(5), pages 109-124, September.

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