The Impact of Political Violence on Tourism

Abstract

The hypothesis that political violence deters tourism is mainly based on case study evidence and a few quantitative studies confined to a small sample of countries. Two estimation techniques—a fixed-effects panel estimator with contemporaneous effects only and a dynamic generalized method of moments estimator—are used to test the impact of various forms of political violence on tourism. Both models show strong evidence that human rights violations, conflict, and other politically motivated violent events negatively affect tourist arrivals. In a dynamic model, even if autocratic regimes do not resort to violence, they have lower numbers of tourist arrivals than more democratic regimes. Results also show evidence for intraregional, negative spillover, and cross-regional substitution effects.