Anti-Pandemic stringency measures and performance of tourism and hospitality firms worldwide: what makes a firm resilient to a crisis?

This study delves into the impact of COVID-19 pandemic-induced stringency measures on firm performance within the global tourism and hospitality sector, exploring the factors that shield firms from such measures. The results of a sample drawn from 41 countries reveal a negative association between stringency measures and firm performance. Notably, firms in countries with a stringency score at the 75th percentile are found to exhibit a 263% lower return on assets compared to their counterparts in countries with a stringency score at the 25th percentile. Moreover, larger and established firms, as well as those with high (low) sustainable growth (financial constraints) demonstrate a lower susceptibility to the adverse effects of stringency measures. These results underscore the critical need to customize government support schemes, ensuring they align with the vulnerability levels of businesses during abnormal operating conditions. Such customization will promote fairness and equity among businesses, recognizing their distinct challenges.