Exploring the role of tourism dependency on COVID-19 induced economic shock in the Small Island Developing States

All countries have suffered significant economic losses due to COVID-19 but some are affected more than others. A number of vulnerabilities explain the magnitude and differences in shocks felt worldwide. This paper uses Ordinary Least Squares regression techniques estimate role tourism dependency explaining induced shock a sample Small Island Developing States. The model also includes remittances, natural resource dependency, government debt measure quality governance. results confirm plays cross-country shocks. economies that dependent on larger remittances resources mitigated negative impacts. governance matter levels do not variations Hence, these fragile small island need develop appropriate diversification strategies, strengthen traditional activities adapt new products innovative business models for their industry as pandemic recedes global travel resumes.