COVID-19 Impact on the Tourism Accommodation and Restaurant Sectors of São Miguel (Azores)

Abstract

The importance of tourism in the Azores’ economy has been increasing over the years. In order to respond to higher tourist demand, new accommodation establishments and restaurants started activity in the region, creating new jobs and wealth. This trend of economic expansion has been slowed down, possibly reversed, since the COVID-19 pandemic and the various strategies adopted by the government to decrease the infection rate, which led to the arrival of fewer tourists. To assess the pandemic impact after the first lockdown on the economy of São Miguel, the biggest and most visited island of the Azores, surveys were designed for the tourism accommodation and restaurant sectors, both influenced by tourism activity. The main aim was to estimate the mean income drop in the 2020 tourism high season, in percentage, compared to the homologous pre-pandemic 2019 period. The results highlight an adverse impact on those sectors, with the greatest mean income drop being estimated for the local accommodation sector (78.7±3.6%), followed by the traditional hotel sector (74.7±4.6%) and the restaurant sector (58.5±6.5%). Moreover, an almost 60% drop in the mean occupancy rate during the 2020 tourism high season, compared to 2019, was estimated for the tourism accommodation sector.