From shutdown to reopening: unpacking the determinants of tourism business reopening in the face of adversity

Abstract

ABSTRACT The coronavirus (COVID-19) pandemic and its associated lockdowns put many tourism businesses on hold. Although these lockdowns have been lifted, not all tourism entrepreneurs reopened their businesses. While prior research has extensively explored the post-pandemic recovery of tourism businesses, there has been relatively limited attention given to the determinants of tourism entrepreneurs to reopen their businesses post-crisis. Drawing on upper echelons theory, this paper explores the role of tourism entrepreneurs’ age in driving the decision to reopen their businesses in the face of adversity. Empirical evidence from a two-wave multi-informant survey involving 134 entrepreneurs in small and medium-sized tourism enterprises in China reveals that older entrepreneurs were more likely to reopen their businesses after the lockdowns were lifted. This relationship is even more pronounced for entrepreneurs who perceive less uncertainty or exhibit higher optimism. This paper represents one of the pioneering attempts to uncover the individual-level heterogeneity in determinants of tourism business reopening against the backdrop of adversity – a crucial foundation for understanding business recovery processes. It offers valuable insights that can assist small and medium-sized tourism enterprises to enhance their preparedness and responsiveness to probable future crises.