Fig 1.
Comparison of the cumulative returns of the S&P 500, the hospitality industry and its related industries indexes
A. The figure depicts the cumulative returns of the S&P 500, the hospitality industry and the indices of numerous related industries since the outbreak of COVID-19 in January 2020. “c,” “e” and “h” denote closures, economic and health measures, respectively.
Table 1.
The performance of U.S. hospitality stocks and those in closely related industries during COVID-19.
Fig 2.
Evolution of the pandemic-driven uncertainty and market indices.
(A) The dotted line is a one-week moving average of the index. The figure indicates that starting from the last week of February 2020, pandemic-driven uncertainty skyrocketed to record values. The figure includes 7-day-a-week observations. (B) The solid bold red line is Baker et al.’s daily index of uncertainty due to infectious diseases [46]. This uncertainty measure considers the frequency of U.S. newspaper articles that include terms related to economy, risk, financial market, uncertainty and epidemic. The uncertainty index observations correspond with the trading days on the stock exchange. The correlation between this form of uncertainty and variations in returns is 0.46 (t-stat = 4.66). Overall, the message of the figure is that high levels of uncertainty do not bode well for a quick recovery in the hospitality sector.
Table 2.
Description of U.S. interventions.
Table 3.
The impact of government interventions on the hospitality industry and industries closely related to it.
Table 4.
Granger causality test results (December 31, 2018-April, 30, 2020).
Table 5.
Uncertainty average on the day of and the day following intervention.