Insidious Impact of the COVID-19 Pandemic on Leverage of the Tourism and Hospitality Sector in India
The COVID-19 pandemic has had a massive cascading effect on the entire tourism and hospitality sector, acting as a demand shock, affecting not only customary travellers but also wiping out any transient demand. The upside of these difficult circumstances is that they can be used to test the sector’...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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University of Primorska
2024-03-01
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| Series: | Managing Global Transitions |
| Subjects: | |
| Online Access: | https://ojs.upr.si/index.php/fm/article/view/133 |
| _version_ | 1797244468697497600 |
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| author | Bashir Ahmad Joo Simtiha Ishaq Mir |
| author_facet | Bashir Ahmad Joo Simtiha Ishaq Mir |
| author_sort | Bashir Ahmad Joo |
| collection | DOAJ |
| description |
The COVID-19 pandemic has had a massive cascading effect on the entire tourism and hospitality sector, acting as a demand shock, affecting not only customary travellers but also wiping out any transient demand. The upside of these difficult circumstances is that they can be used to test the sector’s resilience. In this context, this paper analyses the deleveraging risk that industry players in India face by employing a qualitative response model, ‘Logit’. The study concludes that the deleveraging risk that sector players face depends upon the amount of debt and leverage ratios, both during the pre-and post-pandemic period. However, the influence of other
financial indicators on deleveraging has been different in terms of its intensity and bi-directional impact. Moreover, during COVID-19 deleveraging tendencies were noticed only in 204 firms, compared to 242 firms before COVID-19, discrediting the forced deleveraging as predicted in the literature.
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| first_indexed | 2024-04-24T19:11:30Z |
| format | Article |
| id | doaj.art-2d9738719b34467ead360d271f014484 |
| institution | Directory Open Access Journal |
| issn | 1854-6935 |
| language | English |
| last_indexed | 2024-04-24T19:11:30Z |
| publishDate | 2024-03-01 |
| publisher | University of Primorska |
| record_format | Article |
| series | Managing Global Transitions |
| spelling | doaj.art-2d9738719b34467ead360d271f0144842024-03-26T09:33:43ZengUniversity of PrimorskaManaging Global Transitions1854-69352024-03-0122110.26493/1854-6935.22.73-93Insidious Impact of the COVID-19 Pandemic on Leverage of the Tourism and Hospitality Sector in IndiaBashir Ahmad Joo0Simtiha Ishaq Mir1University of KashmirUniversity of Kashmir The COVID-19 pandemic has had a massive cascading effect on the entire tourism and hospitality sector, acting as a demand shock, affecting not only customary travellers but also wiping out any transient demand. The upside of these difficult circumstances is that they can be used to test the sector’s resilience. In this context, this paper analyses the deleveraging risk that industry players in India face by employing a qualitative response model, ‘Logit’. The study concludes that the deleveraging risk that sector players face depends upon the amount of debt and leverage ratios, both during the pre-and post-pandemic period. However, the influence of other financial indicators on deleveraging has been different in terms of its intensity and bi-directional impact. Moreover, during COVID-19 deleveraging tendencies were noticed only in 204 firms, compared to 242 firms before COVID-19, discrediting the forced deleveraging as predicted in the literature. https://ojs.upr.si/index.php/fm/article/view/133Travel and HospitalityDeleveraging RiskDebtCovid-19Logit |
| spellingShingle | Bashir Ahmad Joo Simtiha Ishaq Mir Insidious Impact of the COVID-19 Pandemic on Leverage of the Tourism and Hospitality Sector in India Managing Global Transitions Travel and Hospitality Deleveraging Risk Debt Covid-19 Logit |
| title | Insidious Impact of the COVID-19 Pandemic on Leverage of the Tourism and Hospitality Sector in India |
| title_full | Insidious Impact of the COVID-19 Pandemic on Leverage of the Tourism and Hospitality Sector in India |
| title_fullStr | Insidious Impact of the COVID-19 Pandemic on Leverage of the Tourism and Hospitality Sector in India |
| title_full_unstemmed | Insidious Impact of the COVID-19 Pandemic on Leverage of the Tourism and Hospitality Sector in India |
| title_short | Insidious Impact of the COVID-19 Pandemic on Leverage of the Tourism and Hospitality Sector in India |
| title_sort | insidious impact of the covid 19 pandemic on leverage of the tourism and hospitality sector in india |
| topic | Travel and Hospitality Deleveraging Risk Debt Covid-19 Logit |
| url | https://ojs.upr.si/index.php/fm/article/view/133 |
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