Proof of Trade-off between Economy and Safety in the Acceptance of New Normal Policy for Tourism Industry in the Covid-19 Pandemic; Evidence from Bali

Abstract

This article shows the existence of a trade-off between the economy and safety in the acceptance of the New Normal Policy for the tourism industry. To prove the existence of the trade-off, path analysis was used to test the mediating effect of the Economic Impact of Pandemic Covid-19 in the prediction of Acceptance Toward New-Normal Policy with the Danger of The Pandemic Covid-19 as the predictor. The result shows that mediation exists, thus trade-off also exists. It means that in the current Pandemic Covid-19 situation, people prefer the economy more than health and safety since they understand that the NewNormal Policy will ensure their health and safety while pursuing the economy. This article contributes to presenting a different method for measuring trade-offs, other than Discreet Choice Experiments (DCE) which is widely used as a method to measure trade-offs. Having proved that trade-off exists, this article recommended that government should always educate the citizen about the danger of the pandemic. This is important so that they will pursue the economy safely and responsibly.