Threshold effects during the COVID-19 pandemic crisis: evidence from international tourist destinations

ABSTRACT

The empirical analysis employs a static threshold model using a daily dataset over the six months from the first confirmed European COVID-19 case (25 January 2020). The results indicate that the investigated relationship is non-monotonic (‘U-shaped’) depending on the intensity of the lockdown measures proxied by the Coronavirus Government Response Tracker Index (CGR).

KEYWORDS:

• Hotel industry
• COVID-19
• sustainability
• social distancing
• threshold model

Acknowledgments

We would like to thank the Editor Professor C.M. Hall for allowing us to revise and thus improve the relevant study both in substance and exposition of the results. Special thanks also go to an anonymous reviewer of this journal for his/her constructive comments on an earlier version of the paper. All the errors are the authors’ alone. The usual disclaimer applies.

Disclosure statement

No potential conflict of interest was reported by the authors.

Ethical approval

This article does not contain any studies with human participants or animals performed by any of the authors.

Informed consent

Informed consent was obtained from all individual participants included in the study.

Notes

1 Specifically, the data come from the SHARE Centre, developed by STR in partnership with ICHRIE. The purpose is to provide universities, research institutions and hotel companies data for academic research and training materials under a three-level (renewal) membership. For further details one can visit the following link https://str.com/training/academic-resources/share-center.

2 https://www.bsg.ox.ac.uk/research/research-projects/coronavirus-government-response-tracker.

3 Since the average total room revenue for the six countries over the sample period is equal to 15.248.510 euros per day.