Assessing How COVID-19 Pandemic Affects the Tourism Industry in Mainland China

Abstract

The study primarily contends that the rise in COVID-19 cases has adversely impacted the volume of tourist visits. This investigation focuses on how the pandemic affected the hotel sector during the outbreak. Throughout the entire economy, the hospitality sector may be among the areas most significantly impacted by the pandemic. Hence, employing linear regression and ARIMA models, this investigation looks at the relationship between the number of COVID-19 instances. and tourism expenditure, overall spending on star-rated hotels, and per capita GDP in mainland China. These factors can represent tourists budgets and wiliness to spend during the pandemic. Furthermore, the research also considers whole-city quarantine and health codes to show the restriction when tourists travel during the pandemic. According to the test findings, the research reveals that a 1% rise in COVID-19 cases correlates with an estimated 0.108% reduction in tourist numbers.