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Effects of COVID-19 on the Tourism Sector: Learning from the Azores Islands

Author

Listed:
  • Áurea Sousa

    (Faculty of Sciences and Technology, University of Azores, 9500-321 Ponta Delgada, Portugal
    CEEAplA, University of Azores, 9500-321 Ponta Delgada, Portugal)

  • Beatriz Macedo

    (School of Business and Economics, University of Azores, 9500-321 Ponta Delgada, Portugal)

  • Gualter Couto

    (CEEAplA, University of Azores, 9500-321 Ponta Delgada, Portugal
    School of Business and Economics, University of Azores, 9500-321 Ponta Delgada, Portugal
    CITUR—Madeira—Centre for Tourism Research, Development and Innovation, 9000-082 Funchal-Madeira, Portugal)

  • Rui Alexandre Castanho

    (CITUR—Madeira—Centre for Tourism Research, Development and Innovation, 9000-082 Funchal-Madeira, Portugal
    Faculty of Applied Sciences, WSB University, 41-300 Dąbrowa Górnicza, Poland
    College of Business and Economics, University of Johannesburg, Auckland Park, P.O. Box 524, Johannesburg 2006, South Africa)

Abstract

This research aims to examine the impact of COVID-19 on businesses operating in the tourism industry in the Azores. The objective of this survey, conducted in 2021 and 2022, was to investigate the preventive and management measures implemented by the tourist firms, in this outermost region of Portugal, in response to the pandemic, along with the effects on profitability. Additionally, the study aims to assess the contribution of financial support from the regional government toward these businesses’ sustainability and anticipate future expectations. The temporary closure of businesses was the most frequently adopted measure by the firms to adapt to the ongoing pandemic. Most companies reported a significant decline in profitability, with a reduction in customers being the primary contributing factor. Most firms availed themselves of the preceding financial support structures provided by the regional government. Looking forward, the firms expressed their intention to retain their current employees. At the same time, their biggest concern was the potential decrease in consumer demand, even in the context of well-established public health safety protocols.

Suggested Citation

  • Áurea Sousa & Beatriz Macedo & Gualter Couto & Rui Alexandre Castanho, 2023. "Effects of COVID-19 on the Tourism Sector: Learning from the Azores Islands," Sustainability, MDPI, vol. 15(18), pages 1-16, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:18:p:13339-:d:1233789
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    References listed on IDEAS

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