The Tourism Sector Under Uncertainty due to COVID-19 Pandemic and the Assumptions of New Institutional Economics*

Purpose: The aim of this study is to show the relationship between functioning tourism market subject New Institutional Economics (NIE) in social terms. Furthermore, it aims discover a need identify relationships NIE theoretical framework and phenomena processes COVID-19 period. Design/Methodology/Approach: This research was based on critical literature analysis, statistical data participant observation sector. Notably, new perspective presented allows identifying non-market that accompany economic mechanisms. approach could be an important direction for mitigating effects pandemic Findings: results showed diverse activities carried out by sector subjects largely concern tangible intangible public goods, however, these are not naturally compatible. Private tour operators have hidden goals—often short-term particularistic—that frequently force institutions adjust their activities.The importance both formal informal organisations prerequisite strengthening role state achieving goals support tourist enterprises which suffer under pandemic. novelty findings connected with attempt explain uncertainty caused assumptions Practical Implications: has implications ways policymakers managers encourage entities focus aspects consumption. Social analysis concerning ‘new face’ impact requires interdisciplinary exploring topic. limitations include little attention given specificity market, including hotels, restaurants, air passenger transport different countries Europe. Originality/Value: It first time institutional economics been shown as way searching inter-institutional co-operation field policy.