Macau hotel industry’s response to global shocks

Aliana Man Wai Leong, Emrah Kocak, Jingyi Bai and Fevzi Okumus

Tourism Economics, 2024, vol. 30, issue 7, 1914-1921

Abstract: This study examines the Macau hotel industry’s response to global shocks using vector autoregression analysis. According to the findings, the hotel occupancy rate reacts negatively to a one-standard-deviation shock in global geopolitical risk. However, this reaction decreases after the second period and completely loses its effect after the fourth period. Hotel occupancy rate responds weakly and short term negatively to the shock of global economic policy uncertainty. The hotel industry reacts short term, weakly, and positively to a shock in US monetary policy uncertainty. According to the variance decomposition results, at the end of the tenth term (long-term), 96.25% of the change in hotel occupancy rates is explained by their own dynamics. The rest is 3.00% geopolitical risk, 0.5% US monetary policy uncertainty, and 0.25% economic policy uncertainty.

Keywords: gambling industry; geopolitical risk; hotel industry; impulse-response; policy uncertainty (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/13548166241234096 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:30:y:2024:i:7:p:1914-1921

DOI: 10.1177/13548166241234096

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().