Pandemic and Financialization for Tourism Firms in Asian Emerging Markets

Abstract This study examines the intersection of financialization and the pandemic’s impact on the tourism sector. When financialization extends beyond unproductive or service-based transactions, it can serve as a strategic response to crisis conditions. This research specifically investigates financialization as a shock absorber for tourism firms in Asia-Pacific emerging markets during the pandemic. Employing a time-varying difference-in-differences approach, the analysis utilizes a panel dataset of 80 tourism firms from five Asian countries within the pandemic period. The findings indicate that financialization provides a mechanism for safer returns amid volatility, transforming geographical spaces into profit-oriented strategies for tourism firms in Asian emerging markets. To the author’s knowledge, this is the first study to analyze the time-varying effects of financialization on tourism firms in Asia-Pacific countries during the pandemic.