The Impact of the COVID-19 Pandemic on Business Performance in the Japanese Leisure Industry

This study focuses on the Japanese leisure industry, including golf, bowling, and amusement and theme parks, to empirically evaluate the impact of the COVID-19 pandemic on business performance. Given the necessity for interpersonal interaction in the leisure industry, the restrictions on outings due to the COVID-19 outbreaks had a considerable impact on business operations. The novelty of this study lies in its integration of establishment-level microdata with geocoded location information and human mobility data collected as big data, to assess the impact of surrounding locations on business performance before and during the COVID-19 outbreak. Using establishment-level monthly panel data from January 2019 to December 2021, this study finds the direct negative effects of the COVID-19 outbreak on business performance. Interestingly, the COVID-19 pandemic led to structural changes in the relationship between business performance and weekday outings, suggesting behavioral changes in leisure activities.