The Impact of COVID-19 : Turbulence for Tourist Hotels in Taiwan

This article studies impacts of COVID-19 on performances of Taiwanese tourist hotels. Using a monthly panel of hotel operations, empirical results show the dynamic effects over different epidemiological stages. During the most severe conditions in the past two years, the revenue declined by more than 90% while in moderate times the revenue dropped by 40% to 50%. The differences are driven by domestic tourism as the number of domestic travelers rose well above pre-pandemic levels when the new indigenous case numbers were low. Finally, I find uneven effects in different regions due to the level of internationalization. Hotels in cities/counties other than Taipei sometimes recovered to pre-pandemic normality