Does the New Tax Policy Make a Difference? Case Study of the Yacht Industry in Taiwan with SUR-OLS and DID Approach

Although the WHO has declared that the COVID-19 pandemic era is over, little is known about the operation of yachts post-COVID-19 pandemic era . This study compares the differences in the yachting industry between the COVID-19 and the post COVID-19 phases. Looking back at the traditional land-based tourism industry, including restaurants and tour buses, it is true that at the beginning of the Covid-19 pandemic, it was greatly affected by the closure of businesses. However, yachts engaged in recreational activities at sea fulfill the requirement of isolation from crowds. Hence, during the outbreak, marine yachting activities with the fear of being infected by the epidemic became an important alternative to land-based activities. There are many reasons why there has always been strong demand for new yachts in the market. One reason is that most buyers want to build a yacht that truly fits their style and taste, not someone else's. Moreover, tax strategies make buying a new superyacht more attractive. Recall that the pandemic shock, although event and macroeconomic studies have been conducted in the literature, we have not yet seen any research related to the pre- and post-outbreak impacts on the Asian yachting industry. This study first observes the impact of the change in rental tax policy on yacht groups in 2018, and then analyzes the changes in profits and revenues of Asia's largest yacht company and another large yacht emerging company before and after the COVID-19 pandemic using the DID model and the SUR-OLS method. More importantly, our study also examines the association between CEO compensation and the operating performance of two yacht companies during and after the COVID-19 pandemic.