The impact of COVID-19 on hotel performance: Evidence from a Difference-in-Differences approach

Polemis, Michael (2020): The impact of COVID-19 on hotel performance: Evidence from a Difference-in-Differences approach.

Abstract

This note aims to investigate the impact of the national lockdown adopted by the Italian government on hotel performance. For this purpose, a difference-in-differences (DID) methodology is employed to compare the performance of the hotel industry in Italy and Turkey during the post-treatment period. The empirical findings based on a daily unbalanced panel data set indicate that the national lockdown adopted by the Italian government to stem the COVID-19 spread mitigated the level of hotel performance by 68% on average. Our empirical findings survive robustness checks to account for alternative proxies of hotel performance and the inclusion of time fixed effects on the model.

• Item Type: MPRA Paper
• Language: English
• Keywords: COVID-19; Hotel industry; Lockdown; Difference-in-Differences; Italy
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z18 - Public Policy

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