Spa industry resilience in changing external conditions: Nexus between tourist attractiveness and fiscal policy

Abstract

Purpose – This study aims to evaluate the performance of the Czech spa industry within a dynamically changing external environment, specifically in the context of the COVID-19 pandemic. Considering the relationship between tourist attractiveness and fiscal policy effectiveness, the research explores the divergences existing among spa companies functioning across discrete spa resort categories within the Czech Republic. Methodology/Design/Approach – The research employs secondary data obtained from the State Statistical Office and the Business Register. The analysis entails an examination of the relationship between the level of tourist attractiveness and alterations in sales. Findings – The study reveals that spa resorts with higher levels of tourist attractiveness encountered a more pronounced decline in sales. Despite the notable allocation of public funds, the impact of subsidies on economic outcomes remained limited. Originality of the research – A contribution lies in its revelation of the adverse implications of over-reliance on tourism for the spa industry. The study highlights the imperative for diversification in resort portfolios. Moreover, the research offers valuable insights into the optimal allocation of subsidies, suggesting directions for more effective utilization and distribution in a manner that supports the industry's long-term sustainability and resilience

Keywords

• health tourism
• self-payers
• spa industry
• subsidies
• uncertainty
• czech republic