Prognostication of the financial health of tourism and hospitality sub-sector in India

Puja Kaura

International Journal of Indian Culture and Business Management, 2023, vol. 29, issue 3, 389-402

Abstract: COVID-19 has an inconceivable negative impact on almost whole world but tourism and hospitality sub-sector have been affected the most. Therefore, it becomes imperative to predict future of tourism and hospitality sub-sector. Financial health is one way of determining future of any sector. There are various models for predicting the financial distress; however, one of the most reliable models under the multivariate analysis category is Altman's z-score model, with an accuracy rate ranging between 75 and 90%. The current study has been done to predict the financial distress of tourism and hospitality sub-sector in India, using the Altman Z score model. The study's findings revealed that the tourism and hospitality sub-sector is financially sound and will not face any financial distress in the near future as it has a higher Z score for the period 2018-2021, than the standard (2.99). The findings of study will be valuable for all stakeholders in their decisions.

Keywords: financial distress; tourism and hospitality sub-sector; multivariate analysis; Altman Z-score model; pandemic COVID-19; India. (search for similar items in EconPapers)
Date: 2023
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