Financial Impact of COVID-19: Perspective from the Hospitality and Restaurant Industry

This study aims to analyze the financial impact that COVID-19 has had on the tourism sector, specifically in the municipality of Braga. In order to understand the economic and financial impact of COVID-19 on businesses in the municipality, particularly in the areas of catering and accommodation, a survey was carried out by means of questionnaires to 120 businesses. Through this study, it was possible to perceive the perspective of financial managers and executives regarding the financial impact of COVID-19 on their companies. In this sample, 55.8% of the companies belonged to the catering sector and 44.2% to the accommodation sector. A profile of the financial manager was identified for both the accommodation and restaurant sectors, with accommodation financial managers being younger and more highly educated. Most companies were in a growth phase and had good liquidity and solvency indicators. With the emergence of COVID-19, there was a disruption in the operations of the enterprises, as most of them were forced to temporarily suspend their activities. As a result of this suspension, there was a significant decrease in the companies revenues, which led to short, medium and long-term financial problems, with a greater emphasis on the accommodation sector. These problems led some enterprises to go into debt, a factor justified by the fall in turnover and the emergence of new loans and debts. In this context, companies had to adapt and create alternatives in order to reposition themselves in the market and avoid bankruptcy.