The (Un)sticky role of exchange and inflation rate in tourism development

Insight from the low and high political risk destinations

Dados Bibliográficos

ID21698237
AutoresSeyed Alireza Athari (0000-0003-4918-1597, Faculty of Business, Department of Banking and Finance, Girne American University, Kyrenia, Turkey), U V Alola (0000-0002-3926-6231, Faculty of Economics, Administrative and Social Science, Department of Tourism Guidance, Istanbul Gelisim University, Istanbul, Turkey), Matina Ghasemi (0000-0001-5143-1132, Faculty of Business and Economics, Department of Business, Girne Amercian University, Kyrenia, Turkey), Andrew Adewale Alola (0000-0001-5355-3707, South Ural State University, autor correspondente), Adewale Andrew Alola (Faculty of Economics, Administrative and Social Science, Department of Economics and Finance, Istanbul Gelisim University, Istanbul, Turkey)
Ano2021
Volume24
Fascículo12
Páginas1670-1685
Data de publicação2021-06-18
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoCurrent Issues in Tourism (JOURNAL)
Identificadores do periódicoISSN: 1368-3500 • E-ISSN: 1747-7603
EditoraInforma UK Limited (PUBLISHER • GB)
DOI10.1080/13683500.2020.1798893
OpenAlexW3045713590
IdiomaEN
Citações recebidas19
Referências citadas60

Although the tourism industry has continued to exert a significant impact on economies of most destinations, the impacts of political (in) security, socioeconomic and financial dynamics in the destination countries are equally playing decisive roles. Mirroring from this perspective, this study examined the role of political risk, exchange rate and inflation rate on the inbound international tourists in the panel of 76 destinations over the period 1995–2017. By employing the Pooled OLS (Ordinary Least Square) and the Generalized Moment of Methods (GMM), the estimation results suggest that the political risk is a significant impediment to the growth of total tourism arrivals in the panel countries. In addition, high exchange and inflation rates, respectively, impact international tourism arrivals (ITAs) in a positive and negative pattern. Moreover, the findings show that the impact of political risk on ITAs is significant, and has a positive and negative effect in the low- and high-risk destinations, respectively. While the study urges for a formidable drive towards sustainable conflict resolution in destination countries, it further presents recommendations for preventing potential spillover effects in the event of the political, economic or financial crisis

Destinations · Development economics · Econometrics · Economics · Exchange rate · International economics · Macroeconomics · Monetary economics · Panel data · Political risk · Political science · Politics · Spillover effect · Tourism · Cruise Tourism Development and Management · Diverse Aspects of Tourism Research · Energy, Environment, Economic Growth