Download This PaperThe Importance of International Travelers and Domestic Tourism: Evidence from Tourist Hotels during COVID-19
TAIWAN ECONOMIC FORECAST AND POLICY 54:1 (2023), 1–35
36 Pages Posted: 4 May 2022 Last revised: 7 Dec 2023
Date Written: December 1, 2023
Abstract
This article studies the impacts of restricting international travelers during COVID-19 on performances of Taiwanese tourist hotels. Using monthly panel of hotel operations and leveraging unique epidemic situations in Taiwan, my DID event-study estimates show dynamic effects in 2020 and 2021. The costs of restricting international travelers are around 30% of the revenues when people can travel freely with minimal health risks. However, while the number of domestic travelers rose well above pre-pandemic levels, the increase still could not make up for the losses from the absence of foreign visitors. Finally, domestic tourism did not shift away from the most densely-populated areas as tourist hotels in Taipei have experienced larger increase in domestic travelers.
Keywords: COVID-19, tourist hotel, international traveler, domestic traveler, revenue
JEL Classification: D22, I18, L83
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