What is Supply Shock

This study aims to reveal the effect of COVID-19 on the financial performance and position of the tourism sector. The financial statement data of the firms traded in the restaurants and hotels sub-sector in Borsa Istanbul were analyzed by using financial statement analysis techniques. According to the comparative income statements, the firms' total profit turned into a loss by declining 181%. The first 9-month analyses are essential in revealing the significant decrease in the firms' revenues and the fact that the expenses could not be reduced; the firms sold fixed assets and realized capital increases to continue their activities. The policymakers should develop a comprehensive cash support policy and develop short-term measures such as cost-free financing opportunities and expanding loan opportunities to reduce the damage.