IMPACT OF COVID-19: A QUALITATIVE STUDY ON THE CHALLENGES ENCOUNTERED AND STRATEGIES ADOPTED BY HOMESTAY INDUSTRY

Abstract

This study aims to uncover the challenges faced by homestay operators during COVID-19 and the strategies they've employed for resilience. It does so by examining multiple homestays in the hardest-hit states through the lens of entrepreneurial resilience. This research sheds light on the challenges confronted by Malaysian homestay operators during COVID-19 and the strategies they've adopted, offering a fresh perspective through the entrepreneurial resilience framework. It is noteworthy that Malaysia's homestay industry differs from those in other countries, due to unique lock-down policies and government support systems. These factors significantly influence how homestay operators recover, as viewed through the entrepreneurial resilience theory. This study employed a qualitative research approach using a case study methodology, gathering data through semi-structured interviews. The sample size was determined using the constant comparative method, which reached data saturation after the 12th interview. Data analysis was conducted using thematic analysis with a non-linear process, iterated multiple times. The findings indicate that homestay operators faced mental health challenges, including stress, uncertainty, and unconfidence, as well as financial challenges such as less consumer demand and high operation costs during COVID-19. Participants shared strategies such as self-development (positive attitude and learn new skills)  and cost management (zero-cost marketing and aware of government support) to overcome these issues and regain resilience. In summary, this study highlights the remarkable entrepreneurial resilience exhibited by Malaysian homestay operators amidst the challenges posed by the COVID-19 pandemic. These operators have demonstrated entrepreneur emotional and financial resilience by adapting to the unprecedented challenges. The limitation of this study exclusively focuses on registered homestays in Malaysia, particularly in states where homestay operators' income is most affected.