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The impact of COVID-19 on tourism, employment, and population of the Azores islands

Author

Listed:
  • Karina Simone Sass

    (Universidade dos Acores Centro de Estudos de Economia Aplicada do Atlântico)

  • Raquel Ferreira Maciel

    (Universidade dos Acores Centro de Estudos de Economia Aplicada do Atlântico)

  • Tomaz Ponce Dentinho

    (Universidade dos Acores Centro de Estudos de Economia Aplicada do Atlântico)

Abstract

Tourism is a very important economic sector and, for many regions, the main economic activity. Tourism was one of the main sectors affected by the COVID-19 pandemic. This paper aims to evaluate the impact of COVID-19 on tourism, employment, and the population of the Azores, highlighting the resilience of the different islands and the sustainability of their tourism. To do that, we estimate an economic base model for the Azores islands that relates total employment per island with performance indicators of the basic activities (hosts, milk production, fish captures, external public support, and the service of the public debt). The results show that employment on the islands was reduced by around 7% because of the reduction in tourism activities. The analyses also revealed that the western small islands of Flores and Corvo, which had fewer COVID-19 cases in 2020, increased their specialization in tourism and Terceira island showed a relative touristic attractiveness at the expense of the nearby Graciosa and São Jorge. We also estimated a model that relates employment with the population to evaluate the potential impact of job losses in the population change in the Azores. The results show the loss of jobs did not affect significantly the population movement in the short run.

Suggested Citation

  • Karina Simone Sass & Raquel Ferreira Maciel & Tomaz Ponce Dentinho, 2023. "The impact of COVID-19 on tourism, employment, and population of the Azores islands," Letters in Spatial and Resource Sciences, Springer, vol. 16(1), pages 1-12, December.
    • Handle: RePEc:spr:lsprsc:v:16:y:2023:i:1:d:10.1007_s12076-023-00365-5
    DOI: 10.1007/s12076-023-00365-5
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    More about this item

    Keywords

    Tourism; COVID-19; Azores islands; Resilience;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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