EVALUATING GOVERNMENTAL RESPONSES TO COVID-19 AND THE IMPLICATIONS FOR TOURISM INDUSTRY

Jani Kinnunen, Irina Georgescu and Ane-Mari Androniceanu

Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, 2020, vol. 14, issue 1, 585-594

Abstract: The current Covid-19 pandemic is a disruptive event accompanied by a range of governmental responses and unforeseen impacts on society and businesses. We analyse and rank-order the effects of the national mitigation measures on the tourism sector of fifteen European countries and we build a composite Covid-Mitigatin Index, CMI, for country comparisions. This is done using clustering and principal component analysis. The results are visualised and quantified, and their implications on decision makers within a tourism sector and governments are discussed. Daily data on national governmental responses to reduce the transmission of Covid-19, from January-May 2020, is obtained from Oxford Covid-19 Government Response Tracker. The data ranges from domestic and international travel restrictions, to banned gatherings, Covid-19 testing procedures and quarantine requirements among other variables. The effects of the national measures on tourism are studied using monthly market research data, from January-May 2020, on international (foreigners) and domestic (residents) travelers’ bednights in European countries acquired mainly from a tourism marketing information system, TourMIS. The applied methodology uses, firstly, the K-means algorithm for the period February-April 2020 to cluster countries with similar responses and show dynamically, which countries have changed policies leading to changing also their reference cluster, accordingly. Secondly, a principal component analysis is conducted to find which response components related to containment and closure policies are linked to nights spent in the European countries under analysis. The implications of the results may be useful both for governmental decision making and for business preparedness in the future.

Keywords: clustering; Covid-19; hospitality; tourism; principal component analysis. (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:rom:mancon:v:14:y:2020:i:1:p:585-594

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