Coping Mechanism of Philippine Family Businesses in the Tourism and Hospitality Sector: A Non-Parametric Approach

Research by: Andrea L. Santiago, Fernando Martin Y. Roxas, John Paolo R. Rivera, & Eylla Laire M. Gutierrez

Executive Summary

Purpose: Family businesses (FB), mostly small-sized, dominate the tourism and hospitality industry (THI), especially in the rural areas. While many would have been used to the impact of demand seasonality, it is unknown how these businesses would have survived through the restrictions imposed to contain the coronavirus (COVID-19) pandemic as compared to non-family business (NFB) counterparts. This study aims to determine if there were differences on how family and non-family enterprises in the THI coped with government restrictions.

Design/methodology/approach: By subjecting the survey data from tourism enterprises to non-parametric techniques, we establish empirical evidence on similarities and differences of coping strategies adopted by FBs and NFBs; their required support from government; and their perceptions of a post-pandemic THI.

Findings: The analysis revealed that family-owned tourism and hospitality businesses in the Philippines tended to collaborate with other businesses to manage the impact of the pandemic restrictions.  Since they hired more seasonal workers prior to the restrictions, they tended to avoid hiring workers during the restricted period. NFBs, on the other hand, that were generally larger in size and more professionally managed with more regular employees, tended to streamline operations for greater efficiency.

Originality: This is the first study in the Philippines that was able to capture response of family and non-family firms in the THI during the COVID 19 lockdown.

Research limitations/implications: The study relied on survey results distributed and collected on-line. There is an innate bias against those firms that did not have access to the survey links.

Practical implications: The comparative study suggests that interventions to assist firms in the THI should consider the differences in firm ownership as one size does not fit all.

To cite this article:  Santiago, A., Roxas, F. M., Rivera, J. P., & Gutierrez, E. L. (2021). Coping mechanisms of Philippine tourism and hospitality family businesses during the COVID-19 pandemic: A non-parametric approach. Journal of Family Business Management. https://doi.org/10.1108/JFBM-10-2021-0120

To access this article: https://doi.org/10.1108/JFBM-10-2021-0120

About the journal

Journal of Family Business Management (JFBM) is a refereed journal publishing since 2011. JFBM provides broad and unrivalled coverage of all aspects of family business. JFBM offers a unique focus on behavioural and applied research, particularly considering the impact of research on policy and practice; it aims to communicate the latest family business research and knowledge worldwide for the benefit of scholars and family business practitioners.

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