Measuring the organizational resilience of hotels in the economic crisis in Sri Lanka

Abstract

Purpose: The tourism industry deals with facing different alterations as a response to the socio-economic circumstances such as Covid-19, economic crises and terrorist attacks due to the industrial complexity. Therefore, it causes a significant effect on every branch of the sector including hotel industry. In this context, the current economic crisis also has an impact on the tourism fields and the hotel sector. Therefore, this survey study aims to measure organizational resilience through predictors of resilience, i.e. strategy and change, and to assess how organizational resilience contributes to the performance of hotels in the Western and Sothern provinces of Sri Lanka in the economic turbulence. Design/methodology/approach: Data was collected via questionnaire from the hotel managers of 36 above 3-star hotels. And, convenience sampling was used and data was analyzed using SPSS software. To identify the relationships between predictors, correlation and regression analysis were used and to test the hypotheses, hypothesis testing was used. Findings: The result of this research emphasizes that the resilience predictors have a considerable effect on hotel resilience and resilience positively influences the hotel performance in the economic crisis in Sri Lanka. Practical implication: This study extends to providing a framework to identify organizational resilience and its effect on hotel performance in the economic crisis in Sri Lanka, giving hotel managers better idea of how to be adapted to environmental changes. Research limitation: It was a problem to cover a relatively large sample. Because only a small number of hotels were registered in SLTDA for the hotel classification Originality value: The study is valuable to the knowledge of how hotels should be managed in a period of economic crisis.