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The Influence of Business Cycles on Corporate Performance: Evidence from Outdoor Tourism

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Advances in Tourism, Technology and Systems (ICOTTS 2023)

Part of the book series: Smart Innovation, Systems and Technologies ((SIST,volume 383))

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Abstract

Tourism contributes substantially to economies and employment opportunities. In recent years, sustainable tourism has gained prominence, seeking to harmonize economic growth with environmental preservation and social equity. This concept revolves around minimizing tourism’s environmental impact while maximizing local community benefits. Consequently, assessing the economic sustainability of tourism firms becomes imperative for destinations aspiring to cultivate sustainable tourism practices, particularly in nature-based, cultural, and nautical activities. This study delves into the economic sustainability of outdoor tourism firms in Portugal, encompassing nature-based, cultural, and nautical activities, from 2013 to 2022 across diverse business cycles. Utilizing data from the National Tourism Registry and the SABI database, we scrutinize profitability and financial structures. Our findings underscore essential insights. Nature/adventure firms struggle to maintain consistent positive returns on assets, while cultural and nautical firms exhibit variable profitability linked to economic conditions. Nature/adventure firms display relatively strong current liquidity, hinting at potential financial resilience during economic downturns. Cultural firms consistently exhibit higher financial autonomy, indicative of distinct financial management practices. Debt ratios vary significantly among firms, reflecting diverse financing strategies and risk profiles. These findings hold implications for outdoor tourism sector managers and policymakers. Managers must prioritize risk management, financial strategies, and financing approaches to bolster financial resilience and long-term sustainability. Policymakers can offer targeted support and incentives to mitigate the adverse effects of business cycles, safeguarding the sector’s enduring viability.

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Acknowledgements

This research was financed by National Funds of the FCT—Portuguese Foundation for Science and Technology within the project UIDB/04928/2020; under the Scientific Employment Stimulus—Institutional Call CEECINST/00051/2018; and under the projects: UIDB/05422/2020 and UIDB/04059/2020.

Author information

Authors and Affiliations

  1. Centre of Applied Research in Management and Economics, Polytechnic Institute of Leiria, 2411-901, Leiria, Portugal

    Eleonora Santos

  2. CEOS, Instituto Superior de Contabilidade e Administração do Porto, Instituto Politécnico do Porto, rua Jaime Lopes Amorim, s/n, 4465-004, São Mamede de Infesta, Portugal

    António Abreu, Agostinho Sousa Pinto, Milena Carvalho & Susana Martins

Authors
  1. Eleonora Santos
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  2. António Abreu
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  3. Agostinho Sousa Pinto
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  4. Milena Carvalho
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  5. Susana Martins
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Corresponding author

Correspondence to Eleonora Santos .

Editor information

Editors and Affiliations

  1. Institute of Accounting and Administration of Porto (ISCAP), Polytechnic of Porto, São Mamede de Infesta, Portugal

    António Abreu

  2. Institute of Accounting and Administration of Porto (ISCAP), Polytechnic of Porto, São Mamede de Infesta, Portugal

    João Vidal Carvalho

  3. School of Hospitality and Tourism, Polytechnic of Porto, Porto, Portugal

    Pedro Liberato

  4. Faculty of Tourism and Gastronomy, Universidad Anáhuac México, Huixquilucan Estado de México, Mexico, Mexico

    Hazael Cerón Monroy

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Santos, E., Abreu, A., Pinto, A.S., Carvalho, M., Martins, S. (2024). The Influence of Business Cycles on Corporate Performance: Evidence from Outdoor Tourism. In: Abreu, A., Carvalho, J.V., Liberato, P., Monroy, H.C. (eds) Advances in Tourism, Technology and Systems. ICOTTS 2023. Smart Innovation, Systems and Technologies, vol 383. Springer, Singapore. https://doi.org/10.1007/978-981-99-9765-7_9

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