Charting Economic Resilience: Examining Fiscal Policy Adjustments during the COVID-19 Pandemic, with a Focus on Tourism Sector Dynamics and ICT Incorporation

The COVID-19 pandemic crisis has brought about unprecedented economic and social consequences worldwide. The implementation of isolation measures, including national and international travel restrictions, significantly affected contact-intensive sectors such as tourism. During this lockdown period, Information and Communication Technology (ICT) was crucial in maintaining connectivity and enabling remote activities. Governments across the world implemented discretionary measures to mitigate the crisis's adverse effects on economic activity. This paper aims to analyze whether the level of ICT adoption and the importance of tourism influence the fiscal policy efforts pursued by governments. Based on the results of a linear regression analysis for 154 countries, the findings suggest that in countries with higher international tourism receipts, the governments had to promote higher fiscal stimulus. At the same time, ICT development diminished the efforts of the fiscal policy response to the crisis since it facilitated economic resilience. The findings of this study can contribute to understanding how governments responded to the pandemic crisis and the factors that influenced their fiscal policy decisions.