Catastrophic Impact of COVID-19 on Tourism Sector in Bangladesh : An Event Study Approach

This paper intends to examine the disastrous impact of COVID-19 on the flourishing tourism sector in Bangladesh. To achieve the research purpose, this study applies event study methodology. Daily closing prices of five listed companies of Dhaka Stock Exchange (DSE) under Travel and Leisure category, DSE Index, COVID-19 variables namely, confirmed cases, lockdown days and restrictions on movement from 1st January 2020 to 25th March, 2020 have been considered for this study. The significantly negative cumulative abnormal returns of the companies during post-event period indicate their worst performance. Restrictions on movement and lockdown days have negative impact on the stock returns whereas confirmed cases have positive impact. The empirical findings and recommendations of this study, will significantly benefit the concerned stakeholders to formulate appropriate policies to resuscitate this highly potential sector as well as to prepare for any unforeseen imminent crisis