Resiliency or Regression? A Case Study Analysis of the Impact of Coronavirus (COVID-19) on Tourism-Dependent Economies in the United States

Abstract

The COVID-19 outbreak has brought about economic crises in American states and cities most dependent on tourism, with lower tax revenue resulting from empty hotel rooms and canceled trips, conventions and events. This situation is particularly dire, as more than 3,784,900 people in the United States have been infected with the coronavirus and at least 140,300 have died. This study deals with inconsistencies in public health policy, datatracking, and even data-reporting due to a lack of coordinated national strategy in the United States, and exhibits a significant variation from state to state and locale to locale. This study discusses about how some rural areas actually experienced growth in tourism and lodging sectors, while more concentrated urban centers suffered. Tourism-dependent economies that had additional sources of revenue available from online gaming, such as Atlantic City, saw some of the losses in revenue mitigated. Also, this study proposes how important this tracking is during and after this outbreak to determine a lasting positive impact for the future. 2Tourism is one of the industries hit the hardest by the COVID-19 outbreak. The sector is experiencing a rapid drop in demand and a surge in job losses at a global level. The World Travel and Tourism Council (WTTC) forecasts that up to 75 million jobs are at risk in the hospitality and tourism sector of the global economy. This estimation is even more concerning when we consider the fact that tourism is a leading job creator for vulnerable segments of population: a far higher share of low-skilled immigrants, women, and students are employed in tourism compared with the total nonfinancial business economy. Despite tourism’s proven resilience in responses to other crisis, the depth and breadth of the current pandemic will likely have a longer lasting effect. Within this broader global context, the COVID-19 outbreak will produce economic crises in American states and cities most dependent on tourism, with lower tax revenue resulting from empty hotel rooms and canceled trips, conventions, and events. The situation in the United States is particularly dire, as more than 3,784,900 people in the United States have been infected with the coronavirus and at least 140,300 have died, according to a July 20, 2020 update from the New York Times database. This research examines the impact of COVID-19 and related government responses in tourism-dependent cities and counties across the United States. These case study locations are chosen because they represent some of the most tourism-dependent economies in the United States, as well as diverse geographies, diverse forms of tourism, and diverse government responses. Each case describes the structure of the tourism-dependent economy, assesses the impact of COVID-19 and public health policies utilizing STR data and other metrics, and describes how these economies have found creative approaches to adapting to long-term social-distancing policies and closures.