Abstract

This article focuses on the dynamics of entries and exits in the tourism industry from 2006 to 2018. More specifically, it compares the entry and exit rates in each subsector of the tourism industry. Compared to other sectors of the economy, the tourism industry was much more dynamic in terms of both entry and exit rates. During and after the COVID-19 crisis, when the demand for tourism services decreased, we can expect lower entry rates of new firms and on the other hand increased exit rates. Among the sub-sectors, the most dynamic activity was observed for food and beverage service activities, followed by accommodation, especially in the pre-crisis year 2007. In the period after the post Great Recession period, more dynamism was observed in sports activities and amusement and recreation activities. Simple forecasts for the future also predict that the hospitality industry will remain among the most dynamic, which unfortunately in the COVID-19 crisis means that the number of businesses leaving this industry is predicted to be quite high.

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