THE EVALUATION OF FINANCIAL DISTRESS CAUSED BY THE COVID-19 PANDEMIC IN TOURISM COMPANIES

Abstract

This study analyzes the financial difficulties faced by tourism enterprises during the COVID-19 pandemic based on a review of previous research. The study examines findings from four international studies that utilized different research methodologies, including financial analysis models, surveys, and interviews with tourism sector representatives. The results indicate that the pandemic severely impacted tourism businesses worldwide, leading to significant revenue declines, increased bankruptcy risks, and rising unemployment rates in the sector. The hospitality industry was among the most affected, with hotels experiencing substantial losses due to travel restrictions and reduced tourist flows. Financial distress was particularly evident in businesses with high fixed costs and limited financial reserves. Governments in various countries introduced temporary financial relief measures to support struggling businesses; however, the long-term recovery of the tourism industry remains uncertain. The findings highlight the importance of financial resilience and adaptive strategies for tourism businesses in crisis situations. Future research should explore sustainable financial models and policy measures that can help mitigate the risks of future disruptions. This study contributes to the understanding of financial challenges in the tourism sector and emphasizes the need for strategic planning to enhance crisis preparedness.