Impact of Covid-19 on Restaurant and Travel Businesses Wellbeing

Zuzana PLECHOVA

https://doi.org/10.53465/EDAMBA.2023.9788022551274.223-236

 

Abstract. This paper examines the impact of the COVID-19 pandemic on the wellbeing of restaurant and travel businesses in Slovakia. The study utilizes data from the Slovak financial status database FINSTAT to analyze the financial performance of these companies, including revenues, costs, investment, debt, and company size. The research finds that the pandemic has significantly affected the wellbeing of these businesses, with key factors such as decreased revenues, inability to retain employees, and overall sector stability playing a role. The study also reveals a decline in revenues, increased indebtedness, low investment, and decreased performance among these businesses. Government support during the pandemic was deemed insufficient by the companies, further impacting their wellbeing. The paper recommends that the government collaborate with affected companies to develop effective empowerment and welfare-enhancement schemes. This collaboration would help improve the success of government policies and provide the necessary stability for companies in the affected sectors. The restaurant and travel businesses are vital to the economy and the overall recovery from the pandemic, accounting for a significant portion of the GDP and job positions in the European Union. The study further explores the concept of company wellbeing and its significance for business success. It emphasizes the importance of balancing financial growth with the overall wellbeing of the business, as neglecting the latter can lead to stress, burnout, and ultimately, business failure. The research aims to investigate the relationship between negative wellbeing among entrepreneurs and company performance. It suggests that wellbeing at one point in time predicts company performance at a later point, and vice versa. The study utilizes a modified model to analyze the relationship between company wellbeing and various financial variables. Overall, this research sheds light on the impact of the COVID-19 pandemic on the wellbeing of restaurant and travel businesses in Slovakia and provides insights into the relationship between wellbeing and company performance. The findings underscore the need for comprehensive support and strategies to ensure the stability and success of these businesses during and beyond the pandemic.

Keywords: Wellbeing, Company performance, Covid-19 Pandemic

JEL classification: L25, D22, I31

Fulltext: PDF

Online publication date: 25 January 2024

ISBN: 978-80-225-5127-4

Publisher: University of Economics in Bratislava

Pages: 223-236

 

To cite this proceedings paper (STN ISO 690 and 690-2): 

PLECHOVA, Z. 2024. Impact of Covid-19 on Restaurant and Travel Businesses Wellbeing. In PETROVSKÁ, F. (ed.). EDAMBA 2023: Conference Proceedings. Bratislava: University of Economics in Bratislava, 2024. ISBN 978-80-225-5127-4, pp. 223-236.

https://doi.org/10.53465/EDAMBA.2023.9788022551274.223-236