The economic analysis of impact and policy response of COVID-19 on tourism industry in Taiwan

Chun-Hsien Yeh and Je-Liang Liou

Current Issues in Tourism, 2025, vol. 28, issue 8, 1342-1360

Abstract: This study uses the Taiwan Tourism Satellite Account and input-output model (IO model) and analyzes the negative impact of COVID-19 as well as the positive impact of relief and stimulus measures rolled out by Taiwan’s government on the economy. According to the simulation results, following the initiation of border controls in Taiwan in March 2020, until the end of 2020, the value of Taiwan’s tourism industry witnessed a decline of NT$ 608.47 billion, equating to more than 50% of its 2019 production value. On the other hand, the implementation of relief and recovery measures reduced the negative impact on purchase orders of the tourism industry chain, GDP, and employment demand by 12.6%, 13.5%, and 13.9%, respectively. The government rolled out a total of NT$24.96 billion in relief and recovery measures related to the tourism industry, and had a direct, indirect, and induced effect on NT$192.718 billion in production value of tourism-related industries; the multiplier effect on output value reached a significant 7.72 times.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13683500.2024.2333912 (text/html)
Access to full text is restricted to subscribers.

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:taf:rcitxx:v:28:y:2025:i:8:p:1342-1360

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rcit20

DOI: 10.1080/13683500.2024.2333912

Access Statistics for this article

Current Issues in Tourism is currently edited by Jennifer Tunstall

More articles in Current Issues in Tourism from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().