The impact of COVID-19 on tourism expenditures: A Quasi-DiD analysis

We investigate the impact of COVID-19 on tourism expenditures by analyzing survey data collected from participants of one of the major amateur cycling races in Italy-the Nove Colli. We gathered information from different types of participants (tourists, residents, day-trippers) about their travel expenses, accommodation, food and beverage, and side goods such as sports equipment. The survey covers three race editions: pre-COVID-19 in 2016, post-lockdown in 2021, and post-COVID-19 in 2022, for a total of 2734 respondents. Using a quasi-difference-in-differences approach, we find a significant increase in total tourism expenditures due to COVID-19, primarily driven by a substantial increase in side goods expenses, which more than doubled the rise in food and beverage expenses. This result can be partly explained through revenge spending as a form of compensatory consumption behavior and inform policy-makers on how individuals' spending patterns may change in the aftermath of an exogenous shock.