Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic

Batara Surya, Hernita Hernita, Agus Salim, Seri Suriani, Iwan Perwira, Yulia Yulia, Muhlis Ruslan and Kafrawi Yunus
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Batara Surya: Department of Urban and Regional Planning, Faculty of Engineering, University Bosowa, Makassar City 90231, Indonesia
Hernita Hernita: Department of Economic, STIM Lasharan Jaya, Makassar City 90231, Indonesia
Agus Salim: Department of Regional Planning, Faculty of Engineering, University Bosowa, Makassar City 90231, Indonesia
Seri Suriani: Department of Financial Management, Faculty of Economic and Business, University Bosowa, Makassar City 90231, Indonesia
Iwan Perwira: Department of Economic, STIM Lasharan Jaya, Makassar City 90231, Indonesia
Yulia Yulia: Department of International Law, Faculty of Law, University Bosowa, Makassar City 90231, Indonesia
Muhlis Ruslan: Department of Management, Faculty of Economics and Business, University Bosowa, Makassar City 90231, Indonesia
Kafrawi Yunus: Department of Economic Management, Faculty of Economic and Business, University Bosowa, Makassar City 90231, Indonesia

Sustainability, 2022, vol. 14, issue 4, 1-37

Abstract: The COVID-19 pandemic, apart from having an impact on public health, has also caused the stagnation of travel-bureau businesses and the management of small and medium enterprises (SMEs) in the tourism sector. This study aims to analyze the COVID-19 pandemic as a determinant of travel-business stagnation and turbulence in small and medium enterprises (SMEs), the influence of human resources, business development, and product marketing on the productivity of the travel and SME business, the direct and indirect effects of business innovation, economic digitization, and the use of technology on business stability and economic-business sustainability. This study uses an explanatory sequential qualitative–quantitative approach. Data were obtained through observation, in-depth interviews, surveys, and documentation. This study is focused on assessing the efforts made by travel-agency-business actors and SMEs in responding and adapting to changes in the business environment, both internally and externally. Human resources, business development, and product marketing together affect the productivity of travel agents and SMEs with a coefficient of determination of 95.84%. Furthermore, business innovation, economic digitization, and the use of technology simultaneously affect business stability with a coefficient of determination of 63.8%, and business stability affects the sustainability of travel and SMEs with a coefficient of determination of 67.6%. This study recommends a strategy for travel-agency-business sustainability and the stability of SMEs’ economic-business management towards increasing economic growth in the North Toraja Regency, South Sulawesi, Indonesia.

Keywords: economic enterprise; SME turbulence; business management; utilization of technology; pandemic COVID-19 (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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