Impact of the pandemic on the HoReCa industry in 2020

Authors: Adelina-Andreea Sirițeanu, Erika-Maria Doacă

Vol. 7 • No. 12 • May 2022


Small and medium-sized enterprises in Romania, as well as those throughout the European Union, have been severely affected by the COVID-19 pandemic. This crisis has affected the HoReCa industry the most in the world, given that events and accommodations have been cancelled and restaurants closed. The main reason why this industry has suffered the most is the health regulations imposed by governments to limit the spread of the virus. This paper aims to make an analysis of 3 companies in this industry that are listed on the Bucharest Stock Exchange. Thus, we will use time series data for the period 2009-2020 in the EViews econometric software. The purpose of the analysis is to highlight the economic shock caused by the pandemic, as well as the solutions found by these companies to overcome this crisis. Thus, we will use the net result as a dependent variable, and we will use income and expenses as independent variables. The paper indicates that small and medium-sized enterprises in the field of HoReCa in Romania have been severely affected by the pandemic crisis, due to lack of access to finance, high unemployment, and declining incomes.

Keywords: pandemic, HoReCa industry, sustainability, financial market

JEL Classification: D53, Q56.

DOI: 10.55654/JFS.2022.7.12.12