The moderation effects of political instability and terrorism on tourism development: A cross-country panel analysis
Document Type
Journal Article
Publisher
Sage Publications
Faculty
Faculty of Business and Law
School
School of Business
RAS ID
17637
Abstract
Looking at the current political turmoil across the globe, this study aims to analyze the effects of interaction between political instability and terrorism on tourism development using panel data from 139 countries for the period 1999-2009. The study measures the extent to which a country's political conflicts and terrorism can negatively impact its tourism industry. The results reveal that the effect of political instability on tourism is far more severe than the effects of one-off terrorist attacks. Surprisingly, the findings suggest that terrorist attacks increase tourism demand for those low- to moderate-political-risk countries. However, countries that experience high levels of political risk witness significant reductions in their tourism businesses. In addition, political volatility and terrorism together can cause serious damage to the tourism industry.
DOI
10.1177/0047287513496472
Access Rights
subscription content
Comments
Saha S., Yap G. (2014). The moderation effects of political instability and terrorism on tourism development: A cross-country panel analysis. Journal of Travel Research, 53(4), 509-521. Available here