The impact of economic and political crises on the survival of tourism-related firms: Evidence from Antalya

Abstract

This article examines the effects of economic and political crises on the survival of 7115 tourism-related firms (hotels, restaurants, travel agencies and spas) in the Antalya region between 2000 and 2016. Using a discrete-time hazards model, we show that tourism-related firms exhibit lower survival rates during times of crisis. We have also found that age, size and legal form increase survival rates. In addition, firms in tourism locations specialized subregions and subregions with higher entry rates have lower chances of survival, whereas firms in tourism destinations with large markets have higher chances to survive. Our empirical analysis suggests that hotels and travel agencies are more sensitive to macroeconomic and political shocks than other tourism-related businesses like restaurants and spas.