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The impact of COVID-19 on the tourism industry stocks returns in Mauritius. Evidence from quantile regression analysis
Vol 4, Issue 2, 2023
VIEWS - 65 (Abstract)
Abstract
The tourism industry has been severely affected by the COVID-19 outbreak in Mauritius, where this industry is the backbone of the economy. Just like tourism revenue, tourism returns are also expected to be affected. Hence, this paper examines the impact of COVID-19 on tourism returns in Mauritius by using a quantile regression model and daily data from 18 March to 30 June 2020. The results show that the COVID-19 variables used in the study impact negatively on tourism stock returns. For instance, it is observed that COVID-19 confirmed cases exert negative effects on tourism returns at higher quantiles. Similar results were obtained for COVID-19 recovered cases. Also, a positive link was found between the government response stringency index and tourism returns. However, stock volatility is observed to reduce the industry’s return. This paper further provides useful insights for policymakers, investors, and managers in the tourism industry.
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