Nirma University Journal of Business and Management Studies
Rasmita Nayak1
and Bimal K. Sahoo2
1Institute of Management, Nirma University, Ahmedabad, Gujarat, India
2Department of Humanities and Social Sciences, Indian Institute of Technology, Kharagpur, West Bengal, India
This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access page (https://us.sagepub.com/en-us/nam/open-access-at-sage).
The COVID-19 pandemic severely impacted the tourism sector, disrupting livelihoods, public services, and the global economy. Travel restrictions reduced travel flows, altering household spending patterns and hindering tourism-driven economic growth. Despite its significance, limited micro-level research exists on this issue. This study examines the impact of COVID-19 on tourism spending by Indian households using Consumer Pyramids Household Survey data and a difference-in-differences (DID) approach. Findings reveal a 34% decline in average tourism expenditure post-pandemic, with rural areas experiencing a sharper 62% drop compared to urban regions. While key determinants of tourism spending remain significant, gender does not appear to influence expenditure. These insights offer valuable guidance for policymakers and tourism professionals in understanding household tourism behavior and formulating targeted strategies to revive the sector in the post-crisis era.
COVID-19, Domestic Tourism Expenditure, Difference-in-difference Analysis, -test, PSM, India
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