Title: Recovery strategies in response to the COVID-19 pandemic: empirical evidence of the Malaysian hotel industry

Authors: Zarinah Abdul Rasit; Aliza Ramli; Reniati Reniati

Addresses: Faculty of Accountancy, University Teknologi MARA, Bandar Puncak Alam, Malaysia ' Faculty of Accountancy, University Teknologi MARA, Bandar Puncak Alam, Malaysia ' Department of Management, Faculty of Economics, Universitas Bangka Belitung, Indonesia

Abstract: The COVID-19 pandemic has led to a fundamental impact on human health worldwide and the global economy. As a consequence of the pandemic, immediate precautionary measures for safety were imposed to ensure public safety. The travel and tourism sector are among the biggest casualties of COVID-19. Drawing from the contingency theory of management, this study examines the effect of COVID-19 on the hospitality industry. Data were gathered through a questionnaire survey distributed to 77 managers of hotels in Penang and Langkawi, specifically members of the Malaysian Association of Hotels (MAH), and were analysed using multiple regression analysis. The findings revealed a significant decline in hotel performance, particularly the room occupancy rate, pricing, revenue, profit margin and market share. Maintenance practices are the most effective cost-cutting initiatives at the recovery stage that significantly reduce the decline in hotel performance. Apart from a few studies highlighting hospitality recovery strategies due to the impact of COVID-19, to the researcher's best knowledge, this is the first study to systematically examine the extent to which the recovery practices would assist in recovering from the shattering impact of COVID-19. This study provides empirical evidence to represent COVID-19 implications for the hotel industry in an emerging economy.

Keywords: hotel industry; hotel performance; strategic renewal initiatives; COVID-19 pandemic; contingency theory of management.

DOI: 10.1504/IJBEM.2023.132200

International Journal of Business and Emerging Markets, 2023 Vol.15 No.3, pp.219 - 239

Received: 22 Feb 2022
Accepted: 19 Feb 2023
Published online: 12 Jul 2023 *

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