The COVID-19 Pandemic Effect on Risk and Return of Malaysian Tourism Industry
Abstract
In this paper, the repercussions and impact of the COVID-19 pandemic are investigated based on the tourism industry risk and returns by employing a quantile regression method via daily data spanning from December 2019 until September 2022 in Malaysia. The results show that the COVID-19 recovered and death exert a substantial asymmetric and pronounced impact on tourism industry risks and returns. From this study, confirmed cases have a more notably significant positive impact at lower risk and higher risk quantiles, while demonstrates a negative impact on the tourism industry at lower return quantiles. Conversely, vaccination progress shows negative influence across all risk quantiles levels but indicates positively impacts return quantiles. The results depict positive and negative correlations between the government response stringency index (GRSI) and risk, and a predominantly positive correlation between GRSI and return. Furthermore, factors such as oil price, exchange rate and inflation play a significant role on tourism corporation risk and return within the tourism sector.
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About this article
Publication Date
06 May 2024
Article Doi
eBook ISBN
978-1-80296-132-4
Publisher
European Publisher
Volume
133
Print ISBN (optional)
-
Edition Number
1st Edition
Pages
1-1110
Subjects
Marketing, retaining, entrepreneurship, management, digital marketing, social entrepreneurship
Cite this article as:
Lee, S., Tan, C., & Ho, S. (2024). The COVID-19 Pandemic Effect on Risk and Return of Malaysian Tourism Industry. In A. K. Othman, M. K. B. A. Rahman, S. Noranee, N. A. R. Demong, & A. Mat (Eds.), Industry-Academia Linkages for Business Sustainability, vol 133. European Proceedings of Social and Behavioural Sciences (pp. 1012-1031). European Publisher. https://doi.org/10.15405/epsbs.2024.05.83