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International Tourism Demand and Macroeconomic Factors

Author

Listed:
  • Sarod Khandaker

    (Department of Accounting, Economics and Finance, Swinburne University, Australia,)

  • Silvia Zia Islam

    (School of Economics, Finance and Marketing, RMIT University, Australia)

Abstract

The Global Financial Crisis (GFC) in the early 21st century curtailed international tourism growth, and the tourism industry suffered significantly during the financial crisis. There is evidence in the academic literature that the demand for international tourism declined significantly during the GFC and the impact remain consistent after the GFC. In this paper, we use several country level economic variables and find evidence that Political Stability and Exchange Rate volatility is negatively correlated with international tourism demand for our sample developed and emerging country group. Therefore, we conclude that the favourable Macroeconomic Policy, Governance Mechanisms and lower Exchange Rates are desirable for the growth of a tourist-based economy.

Suggested Citation

  • Sarod Khandaker & Silvia Zia Islam, 2017. "International Tourism Demand and Macroeconomic Factors," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 389-393.
    • Handle: RePEc:eco:journ1:2017-05-46
    as

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    References listed on IDEAS

    as
    1. Claessens, Stijn & Kose, M. Ayhan, 2010. "The financial crisis of 2008-2009: Origins, issues, and prospects," Journal of Asian Economics, Elsevier, vol. 21(3), pages 239-241, June.
    2. Crouch, Geoffrey I. & Ritchie, J. R. Brent, 1999. "Tourism, Competitiveness, and Societal Prosperity," Journal of Business Research, Elsevier, vol. 44(3), pages 137-152, March.
    3. Fidrmuc, Jarko & Korhonen, Iikka, 2010. "The impact of the global financial crisis on business cycles in Asian emerging economies," Journal of Asian Economics, Elsevier, vol. 21(3), pages 293-303, June.
    4. James Crotty, 2009. "Structural causes of the global financial crisis: a critical assessment of the 'new financial architecture'," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(4), pages 563-580, July.
    5. Christine Lim & Michael McAleer, 2001. "Cointegration analysis of quarterly tourism demand by Hong Kong and Singapore for Australia," Applied Economics, Taylor & Francis Journals, vol. 33(12), pages 1599-1619.
    6. Stijn Claessens, 2010. "The Financial Crisis," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 4(2), pages 177-196, May.
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    Cited by:

    1. Kim Nguyen, 2022. "Do Australian Households Borrow to Keep up with the Joneses?," RBA Research Discussion Papers rdp2022-06, Reserve Bank of Australia.
    2. Abdul Rauf & Ameer Muhammad Aamir Abbas & Asim Rafiq & Saifullah Shakir & Saira Abid, 2022. "The Impact of Political Instability, Food Prices, and Crime Rate on Tourism: A Way toward Sustainable Tourism in Pakistan," Sustainability, MDPI, vol. 14(24), pages 1-17, December.

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    More about this item

    Keywords

    Tourism Income; .Exchange Rate; Global Financial Crisis (GFC); Macroeconomic Factors; Governance;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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