Examining the Impact of Covid-19 Pandemic on Jordan's Tourism Industry: Income, Expenditures, and Revenues

Abstract

Purpose: The worldwide COVID-19 pandemic will undoubtedly harm the world economy, according to the majority of economists, even though it is impossible to estimate the economic harm it will cause. This paper examines the Corona pandemic's economic effects on Jordan's tourism industry. Theoretical Framework: In light of the changes that the world went through as a result of the Corona pandemic and its economic and social repercussions on most countries of the world, The industry of tourism and travel has been devastated by the Corona pandemic to a much greater extent than previous studies have suggested, and the recovery process is taking longer than the anticipated 10-month average recovery time. In order to ensure the expansion of the tourism sector's operational sustainability and capacity, both private and government procedures support needs to be coordinated. Design/methodology/approach: By studying the monthly tourism income and the variables affecting it, such as the number of travelers coming to Jordanian airports, the number of booked hotel rooms, the number of overnight tourists and one-day visitors, and tourism spending, which is mainly affected by the number of Jordanians leaving the country for tourism purposes, using monthly data for the period from 2017 to the end of 2020. Findings: The study showed the enormous effects of the Corona crisis on the tourism sector, as tourism income decreased by more than From 3 billion JOD, and the rate of decline in tourism income and spending for the year 2020 was more than 70% which resulted from a decrease in all variables affecting them at high rates that reached 100% in some months that witnessed complete closures. Research, Practical & Social implications: This paper Focus on the tourism industry sectors. The Chow Breakpoint test was applied to look at the crisis's starting point and determine whether there was a structural change. In this test, the data was split into two sub-samples (pre-crisis from 1/2017 to 2/2020 and the second period from 3/2020 to 12/2020) in order to see if there were any significant differences between the two periods, which determine whether there is a structural change or not. The test contrasts the squared remainders of each subsample equation and the entire sample equation. Originality/value: A disease known as Corona (COVID-19) has recently taken over the world. As a result of industrial closure projects, this disease has forced changes in the industry's performance and operations, adding to the study's originality and raising important questions about its recovery implications. About Jordan's tourism industry. The knowledge gap between economic science and the general public is characterized and critically analyzed in this paper after COVID-19.