Author Bios (50 Words for each Author)

Daša Farčnik is an Assistant professor at the School of Economics and Business, University of Ljubljana. She teaches undergraduate and master courses in microeconomics. In her research she focuses on the firm behaviour in terms of investments, performance and survival.

Kir Kuščer is an Assistant Professor at the School of Economics and Business, University of Ljubljana. In his research, he specializes on mountain tourism, overtourism, innovativeness and development. He was a partner in INTERREG IVC project (Digital Agenda for New Tourism Approach in European Rural and Mountain Areas).

Denis Marinšek is Assistant Professor of Statistics at the School of Economics and Business, University of Ljubljana. He teaches undergraduate and graduate courses in statistics and multivariate analysis. His academic research focuses on the application of statistics in financial studies.

Abstract (150 Words)

A substantial decrease in revenues will, without any government intervention, affect the survival of the tourism firms. However, the effects of decreased demand and liquidity differ among subsectors and should be investigated separately. This paper explores the survival rate of Slovenian firms, operating in tourism industry during the period 2008-2018. Results show that the 10-year survival rate is around 60 percent, but there are substantial differences between the subsectors. We show that both liquidity ratios and sales per employee significantly affect survival rates, the first one having stronger effect within travel agency, accommodation, transport and food & beverage subsectors, while the former within gambling. Based on hazard ratios we can conclude that the expected fall in sales and worsened liquidity ratios of firms, operating in tourism sectors, will result in fallen survival rates. Crisis control measures will have to be adjusted for sub-sector in order to limit the firms’ default.

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Tourism firms survival jeopardized

A substantial decrease in revenues will, without any government intervention, affect the survival of the tourism firms. However, the effects of decreased demand and liquidity differ among subsectors and should be investigated separately. This paper explores the survival rate of Slovenian firms, operating in tourism industry during the period 2008-2018. Results show that the 10-year survival rate is around 60 percent, but there are substantial differences between the subsectors. We show that both liquidity ratios and sales per employee significantly affect survival rates, the first one having stronger effect within travel agency, accommodation, transport and food & beverage subsectors, while the former within gambling. Based on hazard ratios we can conclude that the expected fall in sales and worsened liquidity ratios of firms, operating in tourism sectors, will result in fallen survival rates. Crisis control measures will have to be adjusted for sub-sector in order to limit the firms’ default.