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Killing the goose that lays the golden eggs? the impact of Covid-19 on the touristic sectors in Portugal
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This study explores the causal impacts of the Covid-19 pandemic on tourism in Portugal. We use monthly data on overnight stays between 2013 and 2020, and monthly data on the value of electronic purchases from 2018 to 2020 for 308 municipalities. We employ a difference-in-differences event study, both on overnight stays and on electronic purchases. Our results show a very strong reduction on the overnight stays, especially those of non-resident tourists. They also show a very strong contraction on electronic purchases, with different impacts across regions and among the different touristic sectors. Lastly, we show that the purchasing behaviour of foreign consumers seems to mimic the variation in overnight stays by non-resident tourists, in the most touristic municipalities.*
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Covid-19 tourism Portugal sectorial impact regional impact